Digital banking drives e-payment growth
As online payment rose in popularity, paper-based clearing methods experienced a sharp blow within the overall retail payments sector (both in terms of value and volume) in FY 2019.
The e-payment solutions market in India is expected to expand at a compound annual growth rate (CAGR) of ~21.74% during the FY 2020-FY 2024 period to reach Rs.4,323.63 billion 2024. It was Rs.1,638.49 billion in 2019.
Based on volume, the market would expand at a CAGR of ~60.65% during the same period (FY 2020-FY 2024), according to the “E-payment Solutions Market in India 2020” report from ResearchAndMarkets.
Bank cards (debit cards, credit cards), e-wallets and UPI are some of the common modes of online payment prevalent in the country.
Development in fintech, e-commerce and digital banking is significantly driving the growth of e-payments in the country. Integration of payment services in popular non-banking mobile applications such as WhatsApp, Apple Pay, Amazon Pay and Ola Money, among others, is also fueling e-payments, especially among the millennial population in India.
Of late, the e-commerce market in India has been experiencing rapid growth, owing to the participation of companies offering niche products, presence of a large Internet user base, launch of 4G and increase in the purchasing power of consumers.
E-commerce giants like Amazon, Flipkart and Paytm Mall often provide cashback and discount offers for online transactions, which in turn attract young customers towards e-payment systems.
Despite multiple efforts of the government towards making the Digital India campaign successful, cash continues to be the most popular mode of transaction in the country. This is impeding the adoption of e-payment services across the country.
Main players in the industry are Axis Bank Limited, HDFC Bank Limited, ICICI Bank Limited, Infibeam Avenues Limited, State Bank of India, Airtel Payments Bank Limited, Mswipe Technologies Private Limited, One97 Communications Limited, One MobiKwik Systems Private Limited, Google LLC and PayPal Payments Private Limited. fiinews.com
