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India set to overtake US as world’s largest e-commerce market
Online and mobile shopping in India is poised for explosive growth during the next 20 years, according to the new Global Payments Report from Worldpay.
By
migrator
migrator
New Delhi
The Indian e-commerce market is set to overtake the US and become the second largest in the world in less than two decades, going head-to-head with China for the position of biggest e-commerce market.
DIGITAL PAYMENTS IN THE INDIAN SCENARIO
- With rapidly growing Internet and mobile adoption, India is one of the fastest-growing e-commerce markets in the world. In fact, it’s expected to almost quadruple by 2020.
- In terms of payment methods, Cash on Delivery is the most popular, accounting for some 26% of the market followed by Bank Transfers.
- The popular use of cash is a consequence of the country’s underdeveloped payment infrastructure. Around 75% of the population do not have a way to pay online. As the infrastructure develops, cash is likely to decline in favour of other payment methods.
- With rapid growth expansion in recent years, India’s mobile wallet market is projected to reach USD 5.1 billion (EUR 4.6 billion) in 2020. As cash on delivery is by far the largest payment method, choosing the right delivery partner to take cash payments is critical.
- Alternative payment methods estimated to grow 28% Up 2016-2020 CAGR
KEY INSIGHTS ON INDIA FROM THE REPORT
- Roughly 350 million Indian citizens are already online, and that number is expected to nearly double to 600 million by 2020
- According to Google’s ‘Next Billion Users’ team, three Indians are coming online every second. A government digital finance initiative has also been launched to give more Indians access to debit cards
- RuPay now provides nearly 40% of the cards issued in India
- In light of these trends, Worldpay expects India will overtake the US as the world’s second largest e-commerce market by 2034. Leading companies are already making their move on the Indian market, including, Amazon, Alibaba, and Flipkart
- Mobile will be a driving force behind e-commerce growth. By 2020 the average age of India’s citizens will be 29, and while cash is still king, young people shopping on smartphones are driving a sharp rise in online spend
- Smartphone penetration rose by 23% in 2015 as the country’s middle class increasingly switches over to 3G, 4G networks at affordable prices. The National Optical Network will be a determinant in India’s e-commerce growth
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