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According to a new report released by global financial technology company FIS (Fidelity Information Services), India’s e-Commerce market is expected to grow dramatically due to the Covid-19 pandemic.
The report stated that the market is forecasted to increase by 84 per cent by 2024 to US$111 billion.
The 2021 Global Payments Report by Worldpay from FIS, which examines current and future payments trends across 41 countries, found that global digital commerce trends accelerated under the pandemic.
Countries, including India, have seen a shift in consumer behaviour caused by Covid-19, and new payment trends are shown to be on the rise.
The report noted that India’s e-Commerce market will be largely driven by mobile shopping, projected to grow 21 per cent annually over the next four years. Digital wallets (40 per cent) followed by credit cards (15 per cent) and debit cards (15 per cent) were the most popular payment methods online in 2020.
The report further said that ‘Buy Now, Pay Later’ is the fastest growing online payment method in India. Based on an analysis in the report, only three per cent of the market is projected to increase to nine 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 per cent.
In-Store Payment Trends
The Point of Sale (POS) market in India is projected to increase by 41 per cent 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 per cent, followed by digital wallets (22 per cent) and debit card payments (20 per cent).
The report projects digital wallets will overtake cash as the most popular in-store payment method by 2024, accounting for 33 per cent of payments.
“The Indian e-Commerce industry has witnessed a huge upsurge due to Covid-19, and there is substantial room for future growth,” said Phil Pomford, Managing Director of Asia Pacific, Worldpay from FIS.
He added: “e-Commerce capability is no longer limited to just traditional websites, and physical retail has blended with the digital world... Those who position themselves with digital payments capabilities will be well-positioned to capture the next wave of growth in the retail and e-Commerce market in India.”
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