India Sees a 58% Surge in Non-Cash Payments on E-commerce Platforms in 2023: Report

India has experienced a remarkable surge in the adoption of alternative payment methods for e-commerce transactions, according to a recent report by GlobalData. The share of non-cash payments in India’s e-commerce sector skyrocketed from 20.4% in 2018 to 58.1% in 2023, marking the fastest growth rate in the Asia-Pacific (APAC) region. This dramatic increase is largely attributed to the widespread use of mobile wallets, particularly driven by the Unified Payments Interface (UPI), which facilitates real-time mobile payments through QR code scanning.

GlobalData’s report underscores that while cash has traditionally dominated payment methods across Asia, countries like India and China have rapidly embraced alternative payment solutions. The trend is gaining momentum in other APAC markets as well, spurred by increasing smartphone and internet penetration, the growing convenience of electronic payments, and the proliferation of mobile and QR code-based payment technologies.

Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, highlighted that the shift towards alternative payments is transforming consumer behavior across the region. “Alternative payment solutions are dominating e-commerce markets in many APAC countries, driven by expanding digital infrastructure and the growing acceptance of digital payments among merchants,” Gupta noted.

Moreover, the report identifies countries like the Philippines, Malaysia, and Indonesia as also witnessing a notable shift towards non-cash payments in e-commerce. These nations, known for their cash-intensive economies, are embracing digital payment methods due to their convenience, speed, and enhanced security features.

Looking ahead, Gupta anticipates continued growth and disruption in the consumer payment landscape across APAC. “With the e-commerce market expected to expand significantly, these alternative payment tools are poised to gain further traction,” she emphasized. The trend reflects a broader regional shift towards digital financial inclusion and underscores the transformative impact of mobile and QR code-based payment solutions on the future of commerce in Asia-Pacific.

Back to top button