The Covid-19 pandemic has jumpstarted India’s ecommerce market, which is set to grow 84% by 2024 to $111 billion, according to a study released on Wednesday.
The surge will be driven by mobile shopping, which is projected to grow 21% annually over the next four years, the Jacksonville, Florida-based financial technology firm FIS said in the report.
The Global Payments Report by Worldpay from FIS report examines current and future payments trends across 41 countries.
In 2020, digital wallet was the most popular payment method at 40%, followed by credit card (15%) and debit card (15%), the report said.
Purchases made with digital wallets are expected to increase their market share of online payments to 47% by 2024.
‘Buy now, pay later’ is the fastest growing online payment method in India, the report said. The payment method, which currently makes up only 3% of the market, is projected to touch 9% by 2024, it said.
The Point of sale (POS) market in India is projected to increase 41% by 2024 to $1,035 billion, according to data in the report.
The most popular in-store payment method is cash at 34%, followed by digital wallets (22%) and debit card payments (20%).
The report projects digital wallets will overtake cash as the most popular in-store payment method by 2024, accounting for 33% of payments.
“The Indian ecommerce industry has witnessed a huge upsurge due to Covid-19 and there is substantial room for future growth,” Phil Pomford, managing director of Asia Pacific, Worldpay from FIS, said.
“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,” he added.
The data for the report was collected through consumer surveys, B2B surveys and inputs from local research teams. About 46,000 consumers were surveyed globally.