India Payment Gateway Market Size, Share, Trends 2033

India Digital Payment Gateway Market Size, Share, Trends and Forecast by Type, Organization Size, Application, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A31271

India Digital Payment Gateway Market Overview:

The India digital payment gateway market size reached USD 3.80 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 20.07 Billion by 2033, exhibiting a growth rate (CAGR) of 20.29% during 2025-2033. The market is driven by rising smartphone penetration, increasing internet connectivity, strong government initiatives like Digital India, growing e-commerce adoption, favorable regulatory policies, rising Unified Payments Interface (UPI) transactions, and expanding fintech innovations.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 3.80 Billion
Market Forecast in 2033	USD 20.07 Billion
Market Growth Rate 2025-2033	20.29%

India Digital Payment Gateway Market Trends:

Surge in UPI Transactions and Real-Time Payments

The digital payment gateway market in India is experiencing exponential growth of UPI transactions because of the smartphone adoption, improvement in internet accessibility, and the government's active financial inclusion programs. For example, in 2024, the Union Cabinet approved a ₹1,500 crore scheme to promote low-value BHIM-UPI transactions among small merchants, aiming to strengthen the digital payment ecosystem. In addition, the real-time payment system, UPI, has revolutionized digital transactions by providing quick peer-to-peer (P2P) and merchant payment options, which are both convenient and affordable. Moreover, the implementation of UPI 2.0, together with AutoPay functions and UPI credit, and international payment system integration, enhances its growing usage. According to reports, in October 2024, UPI processed 16.58 billion transactions worth ₹23.49 lakh crore, marking a 45% year-on-year growth and underscoring India's shift towards a cashless economy. Furthermore, UPI-based solutions implemented by banks and fintech firms, and merchants result in the expansion of embedded finance and digital-first banking services. As a result, the expansion of UPI into rural areas through UPI Lite and offline payment initiatives is driving adoption to reach all segments of society and boosting the India digital payment gateway market share.

India Digital Payment Gateway Market Size

Rise of Contactless and Tokenized Payment Solutions

The India digital payment gateway market growth is spurred by users’ prioritizing security alongside convenience through contactless and tokenized payment solutions. In line with this, digital frauds in the market have triggered the Reserve Bank of India (RBI) and payment networks, such as Visa and Mastercard, to enforce tokenization strategies for security improvement. The process transition results in encrypted tokens that protect sensitive details and speed up transactions by decreasing fraud opportunities. Concurrently, numerous payment systems with Near Field Communication (NFC)-enabled tap-and-pay functions and QR-based payments, and biometric security methods are being rapidly integrated throughout urban retail areas and e-commerce sectors, and transit networks. Besides this, the Buy Now Pay Later (BNPL) service providers have adopted contactless payments to enable easy credit-based transactions. Additionally, digitally supported payment programs from governments, along with the rising adoption of payments through wearables, continue to form the path of digital commerce's future development. For example, in August 2024, Mastercard collaborated with boAt to enable tap-and-pay functionality on wearable devices, allowing users to tokenize their Mastercard cards for seamless transactions. Apart from this, businesses, along with consumers, are focusing on security combined with ease of payments, while tokenized and contactless payment technologies, thus enhancing the India digital payment gateway market outlook.

India Digital Payment Gateway Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type, organization size, and application.

Type Insights:

Pro/Self-Hosted Payment Gateways
Local Bank Integrates
Platform-Based
Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes pro/self-hosted payment gateways, local bank integrates, platform-based, and others.

Organization Size Insights:

SMEs
Large Enterprises

A detailed breakup and analysis of the market based on the organization size have also been provided in the report. This includes SMEs and large enterprises.

Application Insights:

Travel and Hospitality
Retail and E-Commerce
Media and Entertainment
Healthcare
Energy and Utilities
IT and Telecom
BFSI

The report has provided a detailed breakup and analysis of the market based on the application. This includes travel and hospitality, retail and e-commerce, media and entertainment, healthcare, energy and utilities, IT and telecom, and BFSI.

Regional Insights:

North India
South India
East India
West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North, South, East, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Digital Payment Gateway Market News:

In March 2025, Mintoak, backed by PayPal and HDFC Bank, acquired Digiledge, marking India's first deal in the central bank digital currency (CBDC) space.This acquisition enhances Mintoak's capabilities in offering comprehensive CBDC-related payment solutions, benefiting partner banks like HDFC Bank, Axis Bank, and SBI.
In January 2025, WhatsApp received approval to extend its payment services to all users in India, potentially reaching over 500 million individuals.This expansion aims to broaden the usage of the Unified Payments Interface (UPI) and enhance digital payment adoption.

India Digital Payment Gateway Market Report Coverage:

Report Features	Details
Base Year of the Analysis	2024
Historical Period	2019-2024
Forecast Period	2025-2033
Units	Billion USD
Scope of the Report	Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: Type Organization Size Application Region
Types Covered	Pro/Self-Hosted Payment Gateways, Local Bank Integrates, Platform-Based, Others
Organization Sizes Covered	SMEs, Large Enterprises
Applications Covered	Travel and Hospitality, Retail and E-Commerce, Media and Entertainment, Healthcare, Energy and Utilities, IT and Telecom, BFSI
Regions Covered	North India, South India, East India, West India
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

How has the India digital payment gateway market performed so far and how will it perform in the coming years?
What is the breakup of the India digital payment gateway market on the basis of type?
What is the breakup of the India digital payment gateway market on the basis of organization size?
What is the breakup of the India digital payment gateway market on the basis of application?
What is the breakup of the India digital payment gateway market on the basis of region?
What are the various stages in the value chain of the India digital payment gateway market?
What are the key driving factors and challenges in the India digital payment gateway?
What is the structure of the India digital payment gateway market and who are the key players?
What is the degree of competition in the India digital payment gateway market?

Key Benefits for Stakeholders:

IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India digital payment gateway market from 2019-2033.
The research report provides the latest information on the market drivers, challenges, and opportunities in the India digital payment gateway market.
Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India digital payment gateway industry and its attractiveness.
Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

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