India’s eCommerce market is expected to grow dramatically as a result of the Covid-19 pandemic. The market is forecasted to increase by 84 percent by 2024 to US$111 billion, according to a new report released today from financial technology leader FIS® (NYSE: FIS).
The 2021 Global Payments Report by Worldpay from FIS, which examines current and future payments trends across 41 countries, found that global trends in digital commerce accelerated under the pandemic. Countries including India have seen a shift in consumer behavior caused by Covid-19, and new payment trends are shown to be on the rise.
eCommerce Payment Trends
India’s eCommerce market grew significantly in 2020 amid the pandemic. The FIS report found:
India’s eCommerce market is projected to grow by 84 percent between now and 2024, driven by mobile shopping, which is projected to grow 21 percent annually over the next four years.
Digital wallets (40 percent) followed by credit card (15 percent) and debit card (15 percent) were the most popular payment methods online in 2020.
Buy Now, Pay Later is the fastest growing online payment method in India. Currently only 3 percent of the market, based on analysis in the report, it is projected to increase to 9 percent by 2024.
Data in the report shows that purchases made with digital wallets are expected to increase their market share of online payments by 2024 to 47 percent.
In-Store Payment Trends
The FIS report found:
Point of Sale (POS) market in India is projected to increase by 41 percent between now and 2024 to US$1,035 billion according to data in the report.
The most popular in-store payment method is cash at 34 percent, followed by digital wallets (22 percent) and debit card payments (20 percent).
The report projects digital wallets will overtake cash as the most popular in-store payment method by 2024, accounting for 33 percent of payments.
“The Indian eCommerce industry has witnessed a huge upsurge due to COVID-19 and there is substantial room for future growth,” said Mr. Phil Pomford, Managing Director of Asia Pacific, Worldpay from FIS. “eCommerce capability is no longer limited to just traditional websites, and physical retail has blended with the digital world. The shop floor is now in the palm of our hands and consumers expect the same hassle free and convenient shopping experience whether they are purchasing in app, through their social feeds or in the real world. Merchants will be well positioned to be successful, if they put customer experience at the heart of the checkout process. Those who position themselves with digital payments capabilities will be well-positioned to capture the next wave of growth in the retail and eCommerce market in India.”