IT REMAINS THE BACKBONE FOR DIGITAL PAYMENTS COS' SUCCESS

Three strategic themes in IT that help in structurally scaling up technology in any digital payments company and make it a driver for business growth

- Venkat Sriramagiri

Faceless, Paperless, Cashless - one of the key principles of Digital India campaign sets clear direction for the payments business in India. With this focus and drive from the government, digital payments in India have grown at a CAGR of 55.1% over the past five years. The future looks even more promising:

According to Redseer Consulting research report, Country’s digital payment market was worth around Rs 2,162 trillion in 2019-20 and is expected to grow over three-fold to Rs 7,092 trillion by 2025 on account of government policies around financial inclusion and growing digitisation of merchants.

There is significant headroom for growth of POS terminals in the small retailer universe. MPOS/ soft POS is expected to drive this growth in this space. The payment gateway aggregator market in India, which is currently estimated to be at Rs 9.5 trillion, is expected to grow by 2.4 times driven by large value transactions. Mobile payment users are expected to grow by 5 times in the next 5 years.

With this opportunity size and continuous innovation, technology is no longer an enabler, but has become the most critical driver for the growth. However, rapidly growing dynamic businesses, intense competition, intervention from authorities and evolving government policies may derail the execution if projects are not planned and managed well. Here are three strategic themes in It that help in structurally scaling up technology in any organization and make it a driver for business growth:

Sustain