The number of cashless payments on e-commerce platforms in India has increased to 58.1% from 20.4% six years ago

Payment options other than traditional cash include UPI, debit cards and credit cards, among others.

“This significant uptake of alternative payment solutions can be attributed to the widespread use of mobile wallets, largely driven by UPI, which facilitates real-time mobile payments through QR code scanning,” explains the GlobalData report.

The report highlights that in the Asia-Pacific (APAC) region, payment solutions such as mobile and digital wallets have replaced traditional payment methods such as cash and bank transfers for e-commerce payments.

The report said such alternative payments are already popular in countries such as China and India, and are also gaining popularity in other APAC markets.

However, China is leading the way in 2023, where alternative payments will account for almost two-thirds of the total value of e-commerce payments in 2023 across the Asia-Pacific region. However, India is also not left behind in terms of significant growth in alternative payment methods since 2018.

The company’s e-commerce analytics showed that even cash-intensive Asia-Pacific countries such as the Philippines, Malaysia and Indonesia are seeing a similar trend.

“While most Asian markets are traditionally cash-dominated, alternative payment methods, both online and in-store, are growing in popularity in many markets in the region, outpacing the West. This trend is driven by the growing availability of smartphones and the Internet, the increasing convenience of electronic payments and the spread of mobile and QR code-based payment solutions,” said Shivani Gupta, senior banking and payments analyst at GlobalData.

It also highlights that in the Asia-Pacific region, China and India have higher rates of use of alternative payment methods compared to other countries.

According to the company’s 2023 Financial Services Consumer Survey, alternative payment solutions account for more than 65% of e-commerce transaction value in China, the world’s largest e-commerce market. This represents a significant increase from 53.4% in 2018.

Other Asian markets such as Indonesia, Hong Kong, Singapore and the Philippines are also seeing high levels of use of alternative payment solutions.

“Alternative payment solutions account for the lion’s share of e-commerce markets in many APAC countries, supported by increasing internet and smartphone penetration and growing acceptance of digital payments by merchants. With the convenience, speed and security they offer, coupled with the high expected growth of the overall e-commerce market in the region, these payment tools are expected to further gain popularity and disrupt the consumer payment space in the region,” Gupta said. (OR)

This report is auto-generated from ANI news website. ThePrint is not responsible for its content.