Piyush Goyal says Fintech market is anticipated to increase about USD 84 billion by 2025

The Union Minister of Commerce and Industry Piyush Goyal asserted on Thursday that India is on the track to be one of the globe's largest digital marketplaces. He further stated that the FinTech industry in India is now worth USD 31 billion and is anticipated to rise to USD 84 billion by the year 2025. The second Global Fintech Fest 2021 was hosted by the Fintech Convergence Council (FCC) and Payments Council of India (PCI), as well as the Internet and Mobile Association of India (IAMAI) and the National Payments Corporation of India (NPCI).

Goyal stated through videoconference, at Global FinTech Fest, “India is poised to become one of the largest digital markets in the world. At 87 percent, India has the highest FinTech adoption rate in the world against the global average of 64 percent." 

Fintech market growth in 2021

The union minister went on to say that the United Payments Interface (UPI) of India had 224 banks participating and had logged 2.6 billion transactions value in May 2021 with over USD 68 billion, and more than 3.6 billion transactions in August 2021. He also claimed that the AePS (Aadhaar-enabled payment system) completed over 2 trillion transactions last year.  

Quoting Prime Minister Narendra Modi, Goyal added, “Every crisis can be converted into an opportunity, now citizens do not have to go to the banks, the banks have come to their homes and on their mobile phones." He even revealed that over two crore accounts were created underneath the Jan Dhan Yojana initiative which is itself a global record.  

While talking about the last year launched National Broadband Mission, the minister stated that under this initiative every village in India will soon get high-speed internet and this capability can be used to build India as a Fintech Innovation Hub. FinTech, he claims, has the ability to attract funding for mobile applications, e-commerce sites, and other digital infrastructures. Goyal further said that since its inception in 2016, investment inflow in the Fintech industry has increased to $10 billion, while also improving the consumer experience. "Your strength will be augmented by the world's 3rd largest Startup ecosystem which is hungry for growth," he added.  

The union minister even indicated that the Micro, Small and Medium Enterprises (MSMEs) have quickly embraced the FinTech services for lending, transactions, accounting, and tax filing, in order to extend their value chains. The Open Credit Enablement Network (OCEN) and Account Aggregator (AA) frameworks were also recently established by the government. These allow formal credit access to the most vulnerable parts of the economy, notably small enterprises. 

(Image: PTI)