As per GlobalData, a leading data and analytics company, the alternative payments have gained significant prominence among the online shoppers in India. Amidst COVID-19, mobile and digital wallets have displaced traditional payments such as cash and cards.
In India, the e-commerce market is estimated to be valued at Rs 4.3 trillion in 2020, up from Rs 1.7 trillion in 2016, revealed by an analysis of GlobalData’s E-Commerce Payments Analytics. The above figure represents a CAGR of 26.3% between 2016 and 2020. It is further expected to rise to reach Rs 7.9 trillion by 2024.
According to GlobalData’s 2020 Banking & Payments Survey, the share of alternative payments in e-commerce transactions stands at 54% in 2020, which more than doubled from 25.3% in 2016. It is followed by payment cards and cash, which accounted for 30.1% and 8.1%, respectively.
Ravi Sharma, Lead Banking and Payments Analyst, GlobalData, said, “The adoption of alternative payments has been on the rise since demonization in 2016. The recent COVID-19 outbreak has further accelerated the usage of alternative payments as consumers are increasingly using electronic payments to avoid exposing themselves to disease vectors while merchants are also insisting on the digital mode of payments.”
“While alternative payment tools were initially used for online payments, they are now being used for in-store payments as well. With merchants increasingly opting for QR code-based payments due to their cost-effectiveness, alternative payments are set to disrupt the country’s overall consumer payments space in a big way,” he added.