According to a recent State of RMG in India report by global intelligence platform Egomonk, the ban could reduce India’s monthly transaction volumes by at least ₹3 trillion ($36 billion).
India’s payment gateways are bracing for a slowdown, with annual revenue growth expected to dip by as much as 15% after the enforcement of new online gaming laws forced real money gaming (RMG) operators to halt operations. The disruption is rippling beyond gaming companies, significantly impacting fintech providers that have long processed millions of high-frequency transactions from the sector.
Transaction Losses Mount
According to a recent State of RMG in India report by global intelligence platform Egomonk, the ban could reduce India’s monthly transaction volumes by at least ₹3 trillion ($36 billion).
“Short term, this squeeze is putting pressure on revenue stability and margins—particularly for fintechs that rely heavily on betting and gaming flows,” said Leo Romano, Chief Payments Officer at Einpays Global Ltd.
Data from the National Payments Corporation of India (NPCI) shows that in July, Unified Payments Interface (UPI) processed ₹1.0077 trillion ($12 billion) worth of payments for the category “digital goods: gaming,” which made up 1.38% of total UPI transaction value. This equated to 35.1 million transactions—about 2.8% of all UPI payments.
Industry estimates suggest that the RMG ban could remove around 25 million UPI transactions each month, valued at roughly ₹504 billion ($6.04 billion).
Payment Gateways Under Strain
Leading payment processors tied to gaming activity include Razorpay, PayU, and Cashfree. While diversified across industries, these firms face a direct shortfall from the sudden disappearance of RMG-related volumes.
Romano explained that payment providers have historically benefited from gaming: “RMG has been one of the most profitable verticals, built on high-frequency, low-value payments that fuel transaction growth, while also generating layered revenues from convenience fees, float income, and settlement solutions.”
He added that the current disruption is already squeezing operating margins: “This shock is exposing the structural risk of relying on gaming transactions. Restrictions on gambling payments or tightening of channels can hit processors abruptly, and we are seeing that play out in real time.”
Industry Reactions
According to Egomonk founder Sartaj Anand, the impact on UPI overall will remain manageable. “While RMG is significant within its own niche, its share of UPI as a whole is relatively small,” Anand said. “Payments aren’t a single-point dependency. Leaders like Razorpay and Cashfree are well-capitalized and diversified enough to weather this downturn.”
However, smaller processors could struggle. Anand noted that firms such as PayKun or smaller offshore players with heavy exposure to RMG might be forced to shut down or pivot quickly. “Without capital and market depth to diversify, they risk collapse,” he cautioned.
