India has seen amazing shifts in digitisation of payments, aided by unbelievable level of innovations in startup payment ecosystem. In fact, over the past year, penetration of digital payments is no longer limited to urban India and is increasingly being embraced by tier II, tier III and tier IV cities across the country. The increase in acceptance of digital instruments has been supported by the increase in merchant outlets, as well as proliferation of UPI that provides a simple and convenient way to transfer money across bank accounts. Interestingly, a large part of the activity in the digital payments space has been led by non-banks, the mobile wallets companies have acquired millions of merchants using QR code, while digital giants like Google and Facebook offer seamless payment services leveraging UPI. Another important innovation in the payment sector is the interoperability of banks. To facilitate the interoperability between prepaid payment instruments UPI handles and debit cards, non- bank PPIs will become quasi-banks in terms of payments. As we move forward, the digital payments industry will need to continue creating new user experiences which are need-based and innovative. The “auto payment” option has made life really easy while paying for daily use cases like cabs, etc. The Indian digital payments is poised for exponential growth driven by continued growth and penetration of smart-phones, increased adoption of digital payments by both consumers and merchants and technological innovation by key ecosystem players.