New Delhi [India]June 17 (ANI): India is set to see the fastest growth in alternative payments share in e-commerce payments in the Asia Pacific region, from 20.4 per cent in 2018 to 58.1 per cent by 2023, according to a report by data and analytics firm GlobalData.
Other payment methods besides traditional cash include UPI, debit cards, and credit cards.
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“The significant uptake of alternative payment solutions is due to the popularity of mobile wallets, driven primarily by UPI, which allow for real-time mobile payments by simply scanning a QR code,” the GlobalData report details.
The report highlights that in the Asia Pacific (APAC) region, payment solutions such as mobile and digital wallets are replacing traditional methods such as cash and bank transfers for e-commerce payments.
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The report said that such alternative payments are already popular in countries such as China and India, and are growing in other Asia-Pacific markets.
However, China will take the lead in 2023, with alternative payments accounting for almost two-thirds of total e-commerce payments across the Asia Pacific region in 2023. However, India is not far behind, having seen a significant increase in alternative payment methods since 2018.
The company's e-commerce analysis revealed that similar trends are being seen in cash-dominated 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.
The study also found that China and India have higher adoption rates of alternative payment methods than other countries in the Asia-Pacific region.
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 the company's 2023 Financial Services Consumer Survey.
Other Asian markets such as Indonesia, Hong Kong, Singapore and the Philippines are also seeing increased adoption of alternative payment solutions.
“Alternative payment solutions have captured a significant share of the e-commerce market in many Asia Pacific countries, fuelled by rising internet and smartphone penetration and growing acceptance of digital payments by retailers. The convenience, speed and security these payment tools offer, coupled with the expected high overall growth in the e-commerce market in the region, are expected to further increase their adoption and revolutionise the consumer payments sector in the region,” Gupta said. (ANI)
(This is an unedited article auto-generated from a syndicated news feed and LatestLY staff may not have altered or edited the content body)
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