India's e-com market may surpass $120 bn in 4 years: Study

Buy now, pay later is India's fastest-growing online payment method which is projected to rise to 8.6 per cent of e-commerce market value by 2025, up from just 3 per cent in 2021, said ‘2022 Global Payments Report by Worldpay’ from FIS, an American financial technology company.

Furthermore, digital wallets were the leading e-commerce payment method at 45.4 per cent followed by debit cards at 14.6 per cent and credit cards at 13.3 per cent in 2021. The payment method is projected to overtake cash as the most popular in-store payment method by 2023 and account for 30.8 per cent of POS transaction value.

Digital wallets are also projected to extend their lead over other e-commerce payment methods through 2025 and account for 52.9 per cent of the transaction value.

Cash was the leading in-store payment method in 2021 with 37.1 per cent of transaction value, followed by digital wallets at 24.8 per cent, and credit/charge cards at 18.1 per cent. In addition, the POS market is projected to increase by 28.8 per cent from 2021-2025 and exceed $1.08 trillion, as per the report.

"The e-commerce 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,” Phil Pomford, general manager APAC, Worldpay merchant solutions at FIS, said.

ALCHEMPro News Desk (SF)