India's e-commerce sector is witnessing a dramatic change in payment methods, with alternative payments accounting for 58% share of the market. Mobile and digital wallets are outperforming traditional payment modes, GlobalData analysis reveals. He called this change a “paradigm shift” in consumer preferences and transaction behavior. While cash decreased significantly, Amazon Pay, Google Pay, card payments, etc. increased.
The report highlighted the country's digital revolution driven by internet connectivity and a burgeoning e-commerce ecosystem. “India's e-commerce market is growing at a healthy pace, supported by rising internet and smartphone penetration and growing consumer preference for online shopping.The latter is driven by consumer confidence in online transactions. coupled with rising sentiment,” GlobalData said in its latest report.
The data analytics firm also revealed that India's e-commerce market value is expected to increase from $147.5 billion in 2024 to $315.5 billion in 2028, at a compound annual growth rate (CAGR) of 20.9 percent. . In addition, according to the Telecommunications Regulatory Authority, Indian authorities have 881.3 million internet subscribers, up from 865.9 million in December 2022.
This strong momentum suggests that retailers, especially small and medium-sized enterprises, are encouraged to enter the e-commerce space, and retailers such as Flipkart, Amazon, Myntra, etc. It also suggests that they offer discounts and cashbacks during sales such as Indian. Sale, Myntra Big Fashion Festival Sale.
“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.
It said the importance of alternative payment solutions has been consistently increasing among Indian consumers, with brands such as Amazon Pay and Google Pay. Payment cards are the second most popular e-commerce method in India, accounting for 25.7% share, and credit and charge are the preferred card types, accounting for 15.4% share in 2023. The market share of cash has decreased significantly. Online purchases account for only 6.2% share.
E-commerce payments are expected to be driven by government initiatives such as Make in India and Startup India and the rise in online shoppers.
Sharma further added, “The upward trend in e-commerce sales in India is likely to continue in the coming years, supported by rising consumer preferences, improved payment infrastructure and the growing popularity of alternative payment solutions. solutions are dominating the e-commerce payments space.” For the next few years. ”
