Technology firms eye sweet spot in Indian digital payment market

Technology companies from China and the United States are betting big on the digital payment market in India, as the country looks to ramp up cashless transactions and more people switch to digital payments, industry insiders said.

Digital payments are expected to see a tenfold growth from the current levels by 2020, to $500 billion and account for 15 percent of the country's gross domestic product, said a study conducted by tech giant Google and consultancy firm Boston Consulting Group.

The study said the digital payments market will see fast growth in India, fueled by the increase in smartphone adoption, the entry of several non-banking companies offering payment services, consumers' readiness to embrace digital payments and changes in the regulatory framework.