Market Forecast By Component (Solutions, Services), By Vertical (Banking, Financial Services, And Insurance, Retail and E-commerce , Healthcare, Travel and Hospitality, Transportation and Logistics, Media and Entertainment, Other Verticals), By Deployment Mode (On-premises, Cloud), By Organization Size (Small and Medium-sized Enterprises, Large Enterprises) And Competitive Landscape
| Product Code: ETC4424545 | Publication Date: Jul 2023 | Updated Date: Jan 2024 | Product Type: Report | |
| Publisher: 6Wresearch | No. of Pages: 85 | No. of Figures: 45 | No. of Tables: 25 | |
The India Digital Payment Market Report thoroughly covers the market by component, vertical, deployment mode, and organization size. The India Digital Payment Market Outlook report provides an unbiased and detailed analysis of the ongoing India Digital Payment Market trends, opportunities/high growth areas, and market drivers. This would help the stakeholders devise and align their market strategies according to the current and future market dynamics.
India Digital Payment Market has been growing faster due to the Indian government’s push towards a cashless economy, the rise of e-commerce, and the increasing adoption of mobile technology. However, the market still faces significant challenges, including low literacy rates and awareness of digital payments, security concerns, and the high cost of transactions. The market is projected to recover from these challenges.
According to 6Wresearch, the India Digital Payment Market size is anticipated to rise at a CAGR of 22% during 2024-2030. The Indian government’s demonetization drive in November 2016 has been a significant catalyst for the digital payment market. It created a huge demand for digital payment solutions, and many startups emerged to cater to the growing demand. The rise of e-commerce, especially during the COVID-19 pandemic, has also led to an increase in digital payments. Consumers are now more comfortable with online transactions, and this trend is expected to continue in the coming years. The government’s push towards a cashless economy, the spread of smartphone technology, and the development of digital infrastructure are other important drivers of the India digital payment market growth.
One of the primary challenges is the low literacy rates and awareness of digital payments, especially in rural areas. The lack of access to smartphones and the internet is another challenge in rural areas. Security concerns, including the risk of online fraud, also remain a significant challenge for digital payment companies. Lastly, the high cost of digital payments, exorbitant transaction fees, and the absence of standardized payment systems are other impediments to the growth of digital payments in India.
The Indian digital payment market is highly fragmented, with many players competing for market share. Some of the key players in the market include Paytm, PhonePe, Google Pay, Amazon Pay, Samsung Pay, and BHIM. These players have introduced a broad range of payment solutions, including e-wallets, UPI payments, mobile money transfers, and contactless payments, to cater to the diverse needs of Indian consumers.
The government of India has taken several initiatives to promote digital payments and reduce the dependence on cash transactions. Some of the key initiatives include the Pradhan Mantri Jan-Dhan Yojana, the BHIM-Aadhaar payment system, the Unified Payments Interface (UPI), the National Electronic Fund Transfer (NEFT), and the Bharat Bill Payment System (BBPS). These initiatives have enabled customers to make payments quickly, securely, and conveniently.
The digital payment market in India has a bright future due to the country's growing economy, rising smartphone penetration, and expanding internet connectivity. The market offers immense opportunities for fintech startups, e-commerce players, and payment solutions providers. However, there are also significant challenges such as cybersecurity, which need to be addressed to create a more secure payment ecosystem.
According to Kapil, Senior Research Analyst, 6Wresearch, the banking segment is the most established vertical in the Indian digital payment market and has the highest penetration among all other verticals. In recent years, India's biggest banks have rolled out several digital payment apps to provide ease of use for their customers.
The report provides a detailed analysis of the following market segments: