India’s e-commerce market continues its rapid expansion and is forecast to increase 96 percent between 2021 and 2015 to $120 billion (USD), according to a new report released today from financial technology leader FIS® (NYSE: FIS).
- Digital wallets are projected to account for over half of e-commerce transaction value in India by 2023.
- Buy now, pay later (BNPL) is India’s fastest-growing online payment method.
- Digital wallets are projected to overtake cash as India’s leading point-of-sale (POS) payment method in 2023.
The 2022 Global Payments Report by Worldpay from FIS examines current and future payments trends across 41 countries in 5 regions. Regarding 2021, the report found the shift to online continued with 13.9 percent growth in global e-commerce, while the 13.4 percent growth in point-of-sale (POS) transaction value reflects the steady recovery from the impacts of the COVID-19 pandemic.
The FIS report found:
The Indian e-commerce market is projected to grow by 96 percent between 2021 and 2025 when it will surpass US$120 billion in transaction value. Digital wallets (45.4 percent) followed by debit cards (14.6 percent) and credit/charge cards (13.3 percent) were the leading e-commerce payment methods in 2021. 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 percent of transaction value. Buy now, pay later is India’s fastest-growing online payment method. BNPL is projected to rise to 8.6 percent of e-commerce market value by 2025, up from just 3 percent in 2021. Prepaid cards, bank transfers and cash on delivery market shares are in decline and are projected to collectively comprise just 8.8 percent of e-commerce transaction value by 2025.
Point-of-Sale (POS) Payment Trends
The FIS report found:
India’s POS market is projected to increase by 28.8 percent between 2021 and 2025, when it will exceed US$1.08 trillion. Cash was the leading in-store payment method in 2021 with 37.1 percent of transaction value, followed by digital wallets (24.8 percent), and credit/charge cards (18.1 percent). Digital wallets are projected to overtake cash as the most popular in-store payment method by 2023 when they are projected to account for 30.8 percent of POS transaction value.
“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.”
About The Global Payments Report
The Global Payments Report by Worldpay from FIS offers a snapshot of the payments landscape: globally, by region and in 41 select markets. The report tracks consumer payments when shopping online and at the point of sale, identifies key payment trends including B2B and C2B real-time payments, and projects future scenarios for payment method shares as well as market size. The report’s data was collected using a survey of 46,000 consumers, secondary research, and extensive validation by payments experts from each region; the complete research methodology is published as an appendix to the report. Published continuously since 2015, The Global Payments Report by Worldpay from FIS is an industry benchmark used by merchants, financial institutions, press and researchers around the world.
Statement Regarding Forward-Looking Information
The statements contained in this release that are not purely historical are forward-looking statements within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about anticipated financial outcomes, market trends and expected outcomes, as well as other statements about our expectations, beliefs, intentions, or strategies regarding the future, or other characterizations of future events or circumstances, are forward-looking statements. These statements relate to future events and involve a number of risks and uncertainties. Actual results, performance or achievement of the Company in light of these market projections could differ materially from those contained in these forward-looking statements. Forward-looking statements are based on market research as well as assumptions made by, and information currently available to, management. The risks and uncertainties to which forward-looking statements are subject include, without limitation, results of operations, financial condition, cash requirements, future prospects, changes in the growth rates of the markets for our solutions; changes in applicable law, adverse impacts on the market and Company’s common stock due to a pandemic or other adverse natural phenomena beyond our control, adverse developments affecting digital or other innovative solutions, changes in general economic, business and political conditions, and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of our forward-looking statements, whether as a result of new information, future events or otherwise.
About FIS
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Standard & Poor’s 500® Index. To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).
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