New Delhi: India’s e-commerce market is poised to grow by 84 per cent to $111 billion by 2024 on the back of accelerated adoption of digital technologies amid the Covid-19 pandemic, a report by fintech firm FIS said on Wednesday.
The report noted that countries, including India, have seen a shift in consumer behaviour caused by Covid-19, and new payment trends are shown to be on the rise. FIS, in its 2021 Global Payments Report, examined current and future payment trends across 41 countries.
India’s e-commerce market is projected to grow by 84 per cent between now and 2024 to about USD 111 billion (from about USD 60 billion in 2020) driven by mobile shopping, which is projected to grow 21 per cent annually over the next four years, the report said.
Digital wallets (40 per cent) followed by credit card and debit card (15 per cent each) were the most popular payment methods online in 2020. Also, purchases made with digital wallets are expected to increase their market share of online payments by 2024 to 47 per cent.
Besides, ‘Buy Now, Pay Later’ emerged as the fastest growing online payment method in India. While it is only 3 per cent of the market currently, it is projected to increase to 9 per cent by 2024 based on the analysis in the report.
“The Indian e-commerce industry has witnessed a huge upsurge due to Covid-19 and there is substantial room for future growth,” Phil Pomford, Worldpay Managing Director (Asia Pacific) from FIS said.
E-commerce capability is no longer limited to just traditional websites, while physical retail has blended with the digital world, he added.
“The shop floor is now in the palm of our hands, and consumers expect the same hassle-free and convenient shopping experience, whether they are purchasing in-app, through their social feeds or in the real world. Merchants will be well-positioned to be successful if they put customer experience at the heart of the checkout process,” he said.