Indian e-commerce market to grow 96% to $120 bn by 2025
Digital wallets (45.4%) followed by debit cards (14.6%) and credit/charge cards (13.3%) were the leading e-commerce payment methods in 2021 in India: Report
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Boom in e-commerce
• Global e-commerce sees 13.9% growth
• Point-of-sale (POS) transaction grown by 13.4%
• Digital wallets are projected to account for 52.9% of transaction value by 2025
• BNPL is projected to rise to 8.6% of e-commerce market value by 2025, up from just 3% in 2021
Bengaluru: Growth of Indian e-commerce market is likely to continue with a projection of 96 per cent growth between 2021 and 2025 reaching $120 billion, a report released by financial technology leader FIS said on Wednesday.
The report found the shift to online continued with 13.9 per cent growth in global e-commerce, while the 13.4 per cent growth in point-of-sale (POS) transaction value reflecting a steady recovery from the impacts of the Covid-19 pandemic. The 2022 Global Payments Report by Worldpay from FIS examines current and future payments trends across 41 countries in 5 regions.
As per the report, digital wallets (45.4 per cent) followed by debit cards (14.6 per cent) and credit/charge cards (13.3 per cent) were the leading e-commerce payment methods in 2021 in India. Digital wallets are projected to extend their lead over other e-commerce payment methods through 2025, when they are projected to account for 52.9 per cent of transaction value.
Among the digital payment method, buy now, pay later is India's fastest-growing online payment method. BNPL is projected to rise to 8.6 per cent of e-commerce market value by 2025, up from just 3 per cent in 2021. Prepaid cards, bank transfers and cash on delivery market shares are in decline and are projected to collectively comprise just 8.8 per cent of e-commerce transaction value by 2025. "The e-commerce industry in India has witnessed strong growth over the last few years and this growth is showing no signs of slowing down," said Phil Pomford, General Manager APAC, Worldpay Merchant Solutions at FIS.
"The Covid-19 pandemic has brought fundamental changes in the way people shop and make their purchase decisions throughout India, and it's now vital for merchants to provide customers with a hassle-free and convenient shopping experience. Those who offer a compelling value proposition to consumers are well positioned to thrive as India's e-commerce market continues its dramatic growth," he added.
