As a payment product, UPI will continue to scale with more innovative use cases coming in and will remain default payment gateway for the country, said a report by The Digital Fifth.
While UPI has enabled innovation in the payment space, it has resulted in larger players taking complete control of the market, it said.
With wallet business depleting and UPI getting aggregated with few players, there may not be many new players entering this space.
The report also came out with a list of top-30 fintech influencers, which includes Niti Aayog Advisor Anna Roy, Ujjivan Small Finance Bank CEO Nitin Chugh and CreditMantri co-founder Gowri Mukherjee.
Advisor on industry and data management and analysis at the Niti Aayog, Roy also leads the Women in Entrepreneurship Platform (WEP) initiative, supporting women entrepreneurs in India. She is leading the Government of India's initiatives on frontier technologies such as BigData, artificial intelligence and Blockchain.
The report further said the remittance business would continue to scale as the market has remained largely untapped as of now.
India will see emergence of few large remittance players with focus on high-traffic corridors, it said.
The business-to-business segment has done well over past few years across POS (point-of-sale) and payment gateway segments with firms such as Pinelabs and Razorpay, building scalable and profitable business models, it said.
"This segment has primarily depended on merchant discount rate for their revenues. In the Budget, the government has proposed that the establishments with an annual turnover of more than Rs 50 crore will offer low-cost digital modes of payment to customers and no charges or MDR shall be imposed on customers or merchants," it said.
This change will impact payment start-ups focusing on the issuance side where they share issuance fees with banks and acquirer side, it said. DP HRS