India Sees 58% Surge in Non-Cash Payments on E-commerce Platforms in 2023
India's non-cash payments on e-commerce platforms surged by more than 58% in 2023, marking the fastest growth in the Asia-Pacific (APAC) region, according to a recent report by GlobalData. The rise has been attributed primarily to the widespread adoption of mobile wallets, driven significantly by the Unified Payments Interface (UPI), which facilitates real-time mobile payments through QR code scanning.
The report highlighted that India, alongside countries like China, is leading the shift towards alternative payment methods in both online and offline transactions. This shift is fueled by increased smartphone and internet accessibility, the convenience of electronic payments, and the proliferation of mobile and QR code-based payment solutions.
Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, underscored the trend, noting, "While most Asian markets traditionally favor cash transactions, the acceptance of alternative payment methods is gaining momentum across the region, outpacing Western counterparts".
Countries such as the Philippines, Malaysia, and Indonesia, known for their cash-intensive economies, are also witnessing a similar trend towards alternative payment solutions. These methods now dominate e-commerce markets across APAC, buoyed by expanding internet penetration, smartphone usage, and growing merchant acceptance of digital payments.
Gupta further emphasized the growth prospects for these payment tools, citing their convenience, speed, and enhanced security features. With the overall e-commerce market in the region poised for substantial expansion, these alternative payment solutions are expected to further disrupt and redefine consumer payment preferences across APAC.
The report's findings reflect a significant shift in consumer behavior towards digital payments, underscoring India's rapid adaptation to mobile-driven payment technologies and setting the stage for continued innovation and growth in the digital economy sector.
