New Delhi: According to a new report, India’s e-commerce market value is expected to rise at a compound annual growth rate (CAGR) of 18.7 percent, from $147.3 billion this year to $292.3 billion in 2028, driven by increasing consumer preferences for online shopping and high internet penetration.
The future of e-commerce payments in the country is promising, thanks to government programmes such as ‘Make in India’, which promotes domestic manufacturing, and ‘Startup India’, which fosters a conducive environment for startups. These initiatives have led to an increase in the number of online buyers and a boost in the e-commerce market.
The e-commerce market in the country is not just growing, it’s surging at a fast pace. According to GlobalData, a leading data and analytics company, it is forecast to surge by a staggering 23.8 per cent this year, setting the stage for exciting opportunities in the e-commerce sector.
Ravi Sharma from GlobalData said that the uptrend in India’s e-commerce sales will likely continue over the next few years, supported by the growing consumer preference, improving payment infrastructure, which includes faster and more secure payment gateways, and growing popularity of alternative payment solutions.
The latest Telecom Regulatory Authority of India (TRAI) data revealed 954 million internet subscribers as of March, up from 881 million in March 2023.
This strong momentum encourages merchants, especially small and medium enterprises (SMEs), to enter the e-commerce space.
The report mentioned that among payment tools, alternative payment solutions are most preferred by online shoppers.
India’s e-commerce sector witnessed a seismic shift, with alternative payment methods commanding a staggering 58 per cent share of the market in 2023. This shift was driven by factors such as the convenience of digital payments, the proliferation of smartphones, and the increasing trust in online transactions.
“Alternative payment solutions have consistently gained popularity among Indian consumers in the last five years, with some of the popular brands being Amazon Pay and Google Pay,” said Sharma.
Market Trends Positive: Sensex Trades Higher After Opening at New All-Time High
Payment cards are the second most popular e-commerce payment method in India, occupying a share of 25.7 percent. Credit and debit cards are the preferred card types, accounting for a 15.4 percent share in 2023.
The report said cash has seen a drop in its market share for online purchases, accounting for only 6.2 percent.
For more updates Subscribe to Media Eye News
–IANS
