Cashless payments in India on e-commerce platforms increased by over 58% in 2023: report

A new report shows that India has seen the fastest growth in the share of alternative money transfers for e-commerce payments in the Asia-Pacific (APAC) region from 20.4% in 2018 to 58.1% in 2023. According to data and analysis by GlobalData, this jump can be attributed to the widespread use of mobile wallets, largely driven by UPI (Unified Payments Interface), which enables real-time mobile payments simply by scanning QR codes.

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

“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,” said Shivani Gupta, senior banking and payments analyst at GlobalData.

“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,” she added.

Additionally, the report revealed that cash-intensive countries in the region such as the Philippines, Malaysia and Indonesia are also seeing a similar trend.

“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,” Gupta said.

She also mentioned that due to 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 gain traction and disrupt the consumer payment space in the region.”