· Digital Wallets are projected to represent nearly half of online payment transactions by 2024
· Data shows use of ‘Buy Now, Pay Later’ payment methods growing quickly in the country while prepaid cards and cash on delivery methods are declining
· By 2024, digital wallets are projected to overtake cash as the most popular in-store payment method
MUMBAI, NFAPost: India’s ecommerce market is expected to grow dramatically as a result of the Covid-19 pandemic. The market is forecasted to increase by 84% by 2024 to $111 billion, according to a new report released today from financial technology leader FIS.
The 2021 Global Payments Report by Worldpay from FIS, which examines current and future payments trends across 41 countries, found that global trends in digital commerce accelerated under the pandemic.
Countries including India have seen a shift in consumer behaviour caused by Covid-19, and new payment trends are shown to be on the rise.
Ecommerce Payment Trends
India’s eCommerce market grew significantly in 2020 amid the pandemic. The FIS report found:
- India’s ecommerce market is projected to grow by 84% between now and 2024, driven by mobile shopping, which is projected to grow 21% annually over the next four years.
- Digital wallets (40%) followed by credit card (15%) and debit card (15%) were the most popular payment methods online in 2020.
- Buy Now, Pay Later is the fastest growing online payment method in India. Currently only 3% of the market, based on analysis in the report, it is projected to increase to 9% by 2024.
- Data in the report shows that purchases made with digital wallets are expected to increase their market share of online payments by 2024 to 47%.
In-Store Payment Trends
The FIS report found:
- The point of Sale (POS) market in India is projected to increase by 41% between now and 2024 to $1,035 billion according to data in the report.
- The most popular in-store payment method is cash at 34%, followed by digital wallets (22%) and debit card payments (20%).
- The report projects digital wallets will overtake cash as the most popular in-store payment method by 2024, accounting for 33% of payments.
Commenting on the report, Worldpay from FIS Managing Director of Asia Pacific Phil Pomford said the Indian ecommerce industry has witnessed a huge upsurge due to Covid-19 and there is substantial room for future growth.
“Ecommerce capability is no longer limited to just traditional websites, and physical retail has blended with the digital world. The shop floor is now in the palm of our hands and consumers expect the same hassle-free and convenient shopping experience whether they are purchasing in-app, through their social feeds or in the real world,” said Phil Pomford.
Phil Pomford said merchants will be well-positioned to be successful if they put customer experience at the heart of the checkout process.
“Those who position themselves with digital payments capabilities will be well-positioned to capture the next wave of growth in the retail and eCommerce market in India,” Phil Pomford.
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. The company’s employees are dedicated to advancing the way the world pays, banks and invests by applying its scale, deep expertise and data-driven insights.
The company helps clients use technology in innovative ways to
solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500 Index.