Gurgaon, January 25 2017: Digital payments, are forecast to overtake cash transactions in India by 2023 even though the second largest consumer market globally, I remains a cash-driven economy.
Market anallysts Ken Research in a just-published report, suggests there is a key opportunity in the digitization of payments -- provided they can be made as easy to use, convenient, and secure as cash. The main factors that will play a significant role in the process will be the rise of smartphone penetration, increasing access to the internet, and the development of a digital payments infrastructure.
As the move to non-cash payments accelerates, cards will be used more frequently by Indian consumers. Providers should increasingly promote card adoption and use through merchant partnerships, reward programs, and benefits on day-to-day spending as well as educating consumers about the advantages of using payment cards over cash.
While m-commerce is expected to record a compound annual growth rate (CAGR) of 32% between 2015 and 2020, e-commerce is set to record a CAGR of 27% and will continue to account for the majority of online purchases by value. Due to its significant size (forecast to reach $42.4 billion through 2020) e-commerce will see the greatest opportunities in the online commerce market over the next five years.
In spite of recent progress, India's infrastructure network is still underdeveloped, with only 1 POS terminal per 1,007 people and 1 ATM per 6,471 people. Since smartphone penetration is on the rise, providers should consider extending the mobile point of sale network as a means of increasing card acceptance among merchants and promoting financial inclusion in the country, suggests the Ken Research study