RMG Ban Impact
New Delhi
The recent suspension of real-money gaming (RMG) operations in India is set to deliver a significant blow to payment gateway firms, with annual revenue growth projected to dip by up to 15 per cent. The downturn follows the government’s move to enforce stricter regulations on e-sports and real-money gaming platforms, effectively halting their operations.
Industry experts estimate that the country’s digital transaction volumes could shrink by at least ₹30,000 crore this year. According to reports, the hardest hit will be smaller payment players heavily reliant on the gaming sector, while larger, diversified gateways may experience only a limited impact.
Data indicates that nearly 80 per cent of these transactions would typically be processed through the Unified Payments Interface (UPI). This shift is expected to affect UPI’s monthly transaction volumes by nearly 2 per centn and reduce its overall value by about 0.5 per cent, industry insiders revealed.
The National Payments Corporation of India (NPCI) data highlights the massive scale of digital payments linked to online gaming in the country, emphasizing the financial implications of the ban.
Analysts predict that the RMG ban could prompt payment firms to diversify their client base or explore alternate growth avenues to offset the losses. However, recovery may take time as the industry adapts to the changing regulatory landscape, signalling a challenging year ahead for payment gateways and fintech firms operating in the digital payments ecosystem.
