Cashless payments on e-commerce platforms in India will increase to 58.1% in 2023

Cashless payments on e-commerce platforms have increased in India over the last 6 years. OR

India has witnessed the fastest growth in the share of alternative payments e-commerce payments In Asia-Pacific region from 20.4% in 2018 to 58.1% in 2023, according to a report by GlobalData, a data and analytics company. Payment options other than traditional cash include UPI, debit cards AND credit cards among others.

“This significant use of alternative payment solutions can be attributed to widespread adoption mobile walletslargely powered by UPI which facilitates real-time mobile payments simply by scanning QR codes”, the GlobalData report was developed.

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 found that these types of alternative payments are already extremely popular in countries such as China and India, and are also gaining popularity in other APAC markets.

However, China led the way in 2023, with alternative payments accounting for almost two-thirds of the total e-commerce payment value in 2023 that occurred across the Asia-Pacific region. However, India is also not far behind, seeing a significant increase in the number of alternative payment methods since 2018.

The company’s e-commerce analytics showed that even APAC countries that traditionally have a high demand for cash, such as the Philippines, Malaysia and Indonesia, are seeing a similar trend.

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

The report 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 increasing adoption 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 growth expectations of the overall e-commerce market in the region, these payment tools are expected to further gain popularity and disrupt the consumer payments space in the region,” Gupta said.