Alternative payments on e-commerce platforms in India have increased to 58.1% from 20.4% six years ago

NEW DELHI: India’s share of alternative payments in e-commerce transactions in Asia Pacific increased from 20.4% in 2018 to 58.1% in 2023, including UPI, debit and credit cards replacing cash and bank transfers, according to a GlobalData report.

GlobalData’s report stated: “This significant uptake of alternative payment solutions can be attributed to the widespread use of mobile wallets, driven largely by UPI, which facilitates real-time mobile payments simply by scanning QR codes.”

Increase

Additionally, the report states that alternative payment solutions are also gaining popularity in other APAC markets.

Meanwhile, in 2023, China will lead the way, with alternative payments accounting for almost two-thirds of the total e-commerce payment value across the Asia-Pacific region. GlobalData’s e-commerce analytics also revealed 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 are growing in popularity in many markets in the region, both for online and in-store payments, outpacing the West. This trend is driven by the growing availability of smartphones and the Internet, the increasing convenience of electronic payments, and the proliferation of mobile and QR code-based payment solutions,” said Shivani Gupta, senior banking and payments analyst at GlobalData.

Meanwhile, according to the report, China and India have higher rates of use of alternative payment methods compared to other countries.

Alternative payment solutions account for more than 65% of e-commerce transaction value in China, the world’s largest e-commerce market, up from 53.4% in 2018, according to the GlobalData 2023 Financial Services Consumer Survey.