Digital payment industry to touch ₹1.2 lakh cr by year-end

The digital payment industry is expected to grow at the rate of 40 per cent to touch ₹120,120 crore by December 2014.

The industry was worth ₹85,800 crore in December 2013, according to a report by the Internet and Mobile Association of India , Payments Council of India and IMRB.

According to the report, there has been an annual growth of 10 per cent — since 2010 until December 2013 — in payments made through digital means. The modes used for making such payments are credit and debit cards, payments through net banking and payments using mobile wallet, pre-paid cash cards and immediate payment systems over the Internet, but does not include remittances.

According to the report, out of around 800 million online transactions in 2013, nearly 53 per cent were done through credit and debit cards. The volume of online payments through credit cards was only 21 per cent, while debit cards constituted 32 per cent of the payments.

Online travel, financial services and e-tailing were the main drivers of digital payment. The online travel industry, which include air and train ticket bookings, hotel accommodations and tour packages, contribute nearly 60 per cent of digital payments followed by financial services (comprising online mobile recharge and DTH service, online tax filing, payment of insurance premiums, gas and electricity bills) and e-tailing.

Digital downloads (including downloads of e-books, music and movies) contribute 4 per cent, while others such as payments for jobs portals, real estate and matrimonials contribute 2 per cent.

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