Digital wallets will overtake cash as the leading point-of-sale payment method in India by 2023
In 2021, digital wallets (45.4%) followed by debit cards (14.6%) and credit/charge cards (13.3%) were the top e-commerce payment methods in 2021. In fact , digital wallets are expected to extend their lead over other e-commerce payment methods until 2025, when they are expected to account for 52.9% of transaction value.
“Digital wallets are the leading e-com payment method and are expected to retain a majority share through 2025; Paytm and PhonePe local wallets compete with Google Pay, Amazon Pay and others in this growing market. that in decline, bank transfers, cash on delivery and credit cards still retain a significant share of e-commerce, while debit cards are on an upward trajectory.While the long-term trend of digital payments to replace continues, cash remains a core component of point-of-sale payments; the Indian rupee is expected to maintain its share of POS until 2023, when it will be overtaken by mobile wallets,” the report said.
Buy now, pay later is the fastest growing online payment method in India. It is expected to reach 8.6% of e-commerce market value by 2025, up from just 3% in 2021.
The market shares of prepaid cards, bank transfers and cash on delivery are declining and are collectively expected to represent only 8.8% of the value of e-commerce transactions by 2025.
FIS’ Worldpay Global Payments Report 2022 examines current and future payment trends in 41 countries across 5 regions.
India continues to show strong growth in real-time payments.
Looking to 2021, the report found that the shift to e-commerce continued with 13.9% growth in global e-commerce, while 13.4% growth in point transaction value (POS) reflects the steady recovery from the impacts of the COVID-19 pandemic. .
India’s booming e-commerce market is expected to grow by 96% between 2021 and 2025, when it will surpass $120 billion in transaction value.
Point-of-sale (POS) payment trends
Cash was the top in-store payment method in 2021 with 37.1% of transaction value, followed by digital wallets (24.8%) and credit/payment cards (18.1%).
Digital wallets are expected to overtake cash as the most popular in-store payment method by 2023, when they are expected to account for 30.8% of POS transaction value.
India’s POS market is expected to grow by 28.8% between 2021 and 2025, when it tops $1.08 trillion.
“The COVID-19 pandemic has brought fundamental changes in the way people shop and make purchase decisions across India, and it is now vital for merchants to provide customers with a seamless experience. “convenient and hassle-free shopping. 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 Phil Pomford, Managing Director APAC, Worldpay Merchant Solutions at FIS .
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