Posted By:Infra Bazaar
Mumbai: In the past few years, the payments acquired in India were changed from standard payment methods to digital payment methods witnessing some aggressive growth. If the growth is increased gradually sooner India’s Digital Payments will hit $500Billion by 2020, contributing to 15% of India’s GDP (Gross Domestic Product), as per the recent report by Google and Boston Consulting Group.
The report which is submitted by Google and Boston Consulting Group is based on Nielsen’s qualitative and quantitative research with over 3,500 representatives (digital consumers – 1,516, exporters – 917 and remittance users – 917) the research was done across 9 locations in India which are Delhi, Mumbai, Bangalore, Visakhapatnam, Surat, Indore, Lucknow, Ludhiana and Coimbatore.
As per the report, by 2020, non-cash (includes demand drafts, cheques, net-banking, credit/debit cards, mobile wallets and UPI) contribution in the consumer payments will become double which is up to 40%. Already 81% of the users who are currently using the digital payment methods, all of them love to transact by non-cash payment methods. 90% of the Indian consumers like digital payment methods for both online payments and offline payment methods. Over 60% of the payments were the digital payments, and contributed by offline points for sale.
Major Highlights of the Report:
Payment Ecosystem Expectation in next 5 years:
Challenges over Digital Payments:
The research has shown that the 1 out of 2 non-users haven’t used digital payments because they found that the product is too complicated to understand and 61% of people found it is too difficult to use. Additionally, the universal acceptance of digital payment methods and merchant concerns around the speed of transactions during peak hours, have emerged as other inhibitors to usage. In order to accelerate the appraisal of a successful and economically visible payment in India, one must focus on building simplified products for the end users, addressing the customer needs.