The use of alternative payment methods in the e-commerce sector is increasing, reaching nearly 58% in 2023, according to a report by data analysis firm GlobalData. According to the report, mobile wallets and digital wallets have overtaken traditional payment modes.
The use of cash has decreased significantly, and the use of Amazon Pay, Google Pay, and card payments, among other alternatives, has increased.
Monetization effect
“Alternative payments have gained a lot of attention in India since demonetization in 2016, as both consumers and merchants preferred digital payments to avoid exposure to disease vectors such as cash. , the COVID-19 pandemic has accelerated this trend.'' The growing popularity of alternative payment brands among consumers and merchants is also driving this trend.'' said Ravi Sharma, Operations and Payments Analyst.
Alternative payment solutions have been consistently popular over the past five years, according to GlobalData's 2023 Financial Services Consumer Survey
Payment cards are the second most popular e-commerce payment method in India, accounting for 25.7 per cent share, with credit and charge being the preferred card type, accounting for 15.4 per cent in 2023. In-store payments account for only 6.2% share of online purchases in India.
Growth of e-commerce
The growth of the Indian e-commerce market is supported by increasing internet and smartphone penetration.
The Indian e-commerce market is expected to grow from $147.5 billion in 2024 to $315.5 billion in 2028, at a compound annual growth rate (CAGR) of 20.9%. According to the Telecommunications Regulatory Authority of India, the number of internet subscribers is 881.3 million and growing. From 865.9 million people in December 2022.
India's online shopper base is expected to grow to 400-450 million by 2027, according to e-commerce retailer Flipkart. The company he launched an initiative called Flipkart Samarth Program in 2019 to help small and medium-sized businesses sell their products online. As of December 2023, the program has expanded to 28 states across the country.
“The upward trend in e-commerce sales in India is likely to continue in the coming years, supported by rising consumer preferences, improvements in payment infrastructure and the growing popularity of alternative payment solutions,” Sharma added. Ta.
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