Research from IMARC Group forecasts India’s digital payments market soaring from $6.75bn in 2025 to over $52bn by 2034, driven by infrastructure upgrades, wider smartphone use, and rural adoption of app-based transactions.
India’s digital payments market is set for another decade of rapid expansion, with research from IMARC Group projecting the sector will rise from $6.75bn in 2025 to $52.10bn by 2034, reflecting a compound annual growth rate of 22.27%. The firm said the market’s momentum is being driven by India’s real-time payment infrastructure, led by the Unified Payments Interface, as well as wider smartphone use, cheaper data and a steady shift from cash to app-based transactions.
IMARC said the market remains heavily weighted towards the software and infrastructure that powers transactions. Solutions such as application programming interfaces, payment gateways, processing engines and fraud-management tools accounted for 77.2% of the market in 2025. Digital wallets led the payment-mode segment with a 60.7% share, while cloud-based deployments captured 74.2% of activity, underscoring how quickly payment providers have moved away from older on-premises systems.
The strongest demand is coming from retail and e-commerce, which generated 35% of end-use revenue last year, according to the report. West and Central India held the largest regional share at 32.6%, helped by Maharashtra’s fintech ecosystem and Gujarat’s digitised industrial corridors. IMARC also pointed to the growing role of merchant acceptance in smaller cities and rural areas, where policy support has widened the reach of QR codes, point-of-sale terminals and UPI-linked payments.
The broader backdrop is a payments system growing at scale. Business Standard reported that India’s digital payments volumes are expected to surge further by FY2030, while a separate IMARC report on UPI said the rail has become central to the country’s payment economy, especially for person-to-merchant transactions among small shops and local businesses. Together, the figures suggest India’s digital payments story is no longer only about adoption, but about deepening infrastructure, more use cases and a market that is still far from maturity.
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