Digital wallets are projected to account for over half of e-commerce transaction value in India by 2023.
Buy now, pay later (BNPL) is India’s fastest-growing online payment method.
Digital wallets are projected to overtake cash as India’s leading point-of-sale (POS) payment method in 2023.
Mumbai, NFAPost: India’s ecommerce market continues its rapid expansion and is forecast to increase 96% between 2021 and 2015 to $120 billion, according to a new report released from financial technology leader FIS.
The 2022 Global Payments Report by Worldpay from FIS examines current and future payments trends across 41 countries in 5 regions. Regarding 2021, the report found the shift to online continued with 13.9% growth in global e-commerce, while the 13.4% growth in point-of-sale (POS) transaction value reflects the steady recovery from the impacts of the Covid-19 pandemic.
The FIS report states
· The Indian ecommerce market is projected to grow by 96% between 2021 and 2025 when it will surpass $120 billion in transaction value.
· Digital wallets (45%) followed by debit cards (14.6%) and credit/charge cards (13.3%) were the leading e-commerce payment methods in 2021.
· Digital wallets are projected to extend their lead over other e-commerce payment methods through 2025, when they are projected to account for 52.9% of transaction value.
· Buy now, pay later is India’s fastest-growing online payment method. BNPL is projected to rise to 8.6% of e-commerce market value by 2025, up from just 3 percent in 2021.
· Prepaid cards, bank transfers and cash on delivery market shares are in decline and are projected to collectively comprise just 8.8 percent of e-commerce transaction value by 2025.
Point-of-Sale (POS) Payment Trends
· India’s POS market is projected to increase by 28.8% between 2021 and 2025 when it will exceed $1.08 trillion.
· Cash was the leading in-store payment method in 2021 with 37.1% of transaction value, followed by digital wallets (24.8%), and credit/charge cards (18.1%).
· Digital wallets are projected to overtake cash as the most popular in-store payment method by 2023 when they are projected to account for 30.8% of POS transaction value.
FIS General Manager APAC, Worldpay Merchant Solutions, Phil Pomford said the ecommerce industry in India has witnessed strong growth over the last few years and this growth is showing no signs of slowing down.
“The COVID-19 pandemic has brought fundamental changes in the way people shop and make their purchase decisions throughout India, and it’s now vital for merchants to provide customers with a hassle-free and convenient shopping experience. Those who offer a compelling value proposition to consumers are well positioned to thrive as India’s e-commerce market continues its dramatic growth,” said FIS General Manager APAC, Worldpay Merchant Solutions, Phil Pomford.
About The Global Payments Report
The Global Payments Report by Worldpay from FIS offers a snapshot of the payments landscape: globally, by region and in 41 select markets.
The report tracks consumer payments when shopping online and at the point of sale, identifies key payment trends including B2B and C2B real-time payments, and projects future scenarios for payment method shares as well as market size.
The report’s data was collected using a survey of 46,000 consumers, secondary research, and extensive validation by payments experts from each region; the complete research methodology is published as an appendix to the report. Published continuously since 2015, The Global Payments Report by Worldpay from FIS is an industry benchmark used by merchants, financial institutions, press and researchers around the world.
About FIS
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights.
FIS helps clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Standard & Poor’s 500® Index.
