Payments Landscape in India: Data-rich players turn digital lenders

Increasing use of digital payments has led to critical data points for financial institutions to leverage it for credit scoring

The Indian payments landscape has evolved rapidly over the past few years, driven by an increase in the number of digitally initiated consumers, rising personal consumption expenditure, increase in use cases supporting digital payments, urbanisation and improvement in technology and mobile data usage. While in the past banks played a central role in providing payments services, the landscape today has evolved with active participation coming in from non-banks players as well. Increasing smartphone penetration, reduction in the prices of telecom data use, growth in digital commerce and institutional support have been the key drivers for digitisation of payments in India.

Growth in the adoption