EP36: The Global Digital Payments Revolution and Lending Potential

Digital payments are transforming everyday commerce, with even small street vendors adopting QR-based transactions for low-value payments. While payments span P2P, C2B, B2C and B2B models, it is low-value, high-volume P2P and merchant payments that are driving mass adoption. India’s UPI exemplifies this shift, crossing USD 1 trillion in transaction value by March 2022 and enabling fee-free merchant payments that boost convenience, cash flow and inclusion.The real value of digital payments lies in the data they generate. Transaction data reveals customer behaviour, cash-flow patterns and preferences, forming the foundation for AI-driven analytics and digital lending. As highlighted by industry experts, payments act as a customer acquisition layer, while digital lending especially low-value working capital credit represents the larger opportunity. BNPL further blurs the line between payments and lending, driven by alternative data and instant credit decisioning.Globally, the future points to rapid innovation, ecosystem collaboration, rising data security focus, continued private equity interest, and evolving regulations as digital payments reshape how money is used.