Consumer Behaviour on Financial Technology Adaptation: A Study on Increasing India's GDP (Research Square)

Summary

• Every 1% increase in gross digital transaction value (GDV) makes a positive contribution of about 0.14% to India's real GDP growth rate.p.3
• India has reached a fintech adoption rate of around 87%, significantly above the global average of 64%.p.7
• India accounts for about 49% of global real-time digital transactions, representing 129 billion annual transactions.p.8
• Fintech transactions valued under ₹500 surpassed an 80% market share in retail payments.p.13

Key insights

1. India's fintech adoption rate of 87% substantially outpaces the global average of 64%.p.7
2. India dominates global real-time digital payment volume with a 49% share across 129 billion annual transactions.p.8
3. Regression modeling indicates that a 10% increase in gross digital value directly and indirectly adds 1.42% to GDP growth.p.13
4. Payment transactions under ₹500 achieved an 80% fintech penetration rate, boosting unorganized sector liquidity.p.13
5. Digital credit mechanisms expanded consumer Marginal Propensity to Consume from 0.68 to 0.74.p.13