Mumbai: Digital payment’s penetration and acceptance in the tier-II and tier-III cities still face some obstacles, a report said. According to Credit Suisse report, India's mobile payments market is likely to touch $1 trillion by 2022.
Despite the rise in the number of platforms that enable businesses to offer online payment experience to their customers regardless of location, instrument or mode, still there is a long way ahead as the penetration has mostly been in tier I cities.
RBI expects the country will have five million active point of sale (PoS) machines by the end of 2021. However, to achieve it, there are several hurdles to be crossed.
"The digital infrastructure needs to be strengthened further to ensure consistent reach and penetration across the Tier II and Tier III cities along with rural areas," says, Sunil Khosla, Head Digital Business, India Transact Service Limited.