NEW DELHI: The share of alternative payments in India's e-commerce transactions in Asia Pacific – which includes UPI, debit cards and credit cards replacing cash and bank transfers – is expected to grow to 58.1% by 2023 from 20.4% in 2018, according to a GlobalData report.
“The significant uptake of alternative payment solutions is largely due to the popularity of mobile wallets, driven by UPI, which enables real-time mobile payments by simply scanning a QR code,” the GlobalData report stated.
Additionally, the report states that alternative payment solutions are gaining popularity in other Asia Pacific markets as well.
Meanwhile, China will lead the way, with alternative payments accounting for almost two-thirds of total e-commerce payments across Asia Pacific by 2023. GlobalData's e-commerce analysis reveals that similar trends are also evident in cash-heavy Asia Pacific countries such as the Philippines, Malaysia and Indonesia.
“While most Asian markets are traditionally cash-centric, many markets in the region are seeing increased adoption of alternative payment methods for both online and in-store payments, outpacing their Western counterparts. This trend is driven by increasing smartphone and internet accessibility, the increasing convenience of electronic payments, and the widespread adoption of mobile and QR code-based payment solutions,” said Shivani Gupta, senior banking and payments analyst at GlobalData.
Meanwhile, the report found that China and India have higher adoption rates of alternative payment methods compared to other countries.
In China, the world's largest e-commerce market, alternative payment solutions account for more than 65% of e-commerce transaction value, up from 53.4% in 2018, according to GlobalData's 2023 Financial Services Consumer Survey.
“The significant uptake of alternative payment solutions is largely due to the popularity of mobile wallets, driven by UPI, which enables real-time mobile payments by simply scanning a QR code,” the GlobalData report stated.
Expanding
Additionally, the report states that alternative payment solutions are gaining popularity in other Asia Pacific markets as well.
Meanwhile, China will lead the way, with alternative payments accounting for almost two-thirds of total e-commerce payments across Asia Pacific by 2023. GlobalData's e-commerce analysis reveals that similar trends are also evident in cash-heavy Asia Pacific countries such as the Philippines, Malaysia and Indonesia.
“While most Asian markets are traditionally cash-centric, many markets in the region are seeing increased adoption of alternative payment methods for both online and in-store payments, outpacing their Western counterparts. This trend is driven by increasing smartphone and internet accessibility, the increasing convenience of electronic payments, and the widespread adoption of mobile and QR code-based payment solutions,” said Shivani Gupta, senior banking and payments analyst at GlobalData.
Meanwhile, the report found that China and India have higher adoption rates of alternative payment methods compared to other countries.
In China, the world's largest e-commerce market, alternative payment solutions account for more than 65% of e-commerce transaction value, up from 53.4% in 2018, according to GlobalData's 2023 Financial Services Consumer Survey.
