The e-commerce landscape in India is undergoing a rapid transformation with the adoption of alternative payment solutions witnessing a significant surge. According to a report by GlobalData, India has experienced the fastest growth in alternative payment share for e-commerce payments in the Asia-Pacific region, jumping from 20.4 per cent in 2018 to 58.1 per cent in 2023. This surge can be attributed to the widespread usage of mobile wallets, driven primarily by Unified Payments Interface (UPI) which enables real-time mobile payments simply by scanning QR codes.
The report highlights that mobile and digital wallets have been displacing traditional payment methods such as cash and bank transfers in the Asia-Pacific region. China has been leading the way in embracing alternative payment methods, accounting for nearly two-thirds of the total e-commerce payments value in the region in 2023. However, India has also shown a significant rise in the adoption of alternative payment solutions since 2018. Even cash-intensive countries like the Philippines, Malaysia, and Indonesia are witnessing a similar trend, showcasing a shift towards digital and mobile payment options.
The increasing adoption of alternative payment solutions in Asia-Pacific can be attributed to factors such as rising smartphone and internet accessibility, the convenience of electronic payments, and the proliferation of mobile and QR code-based payment solutions. Countries like China and India have shown higher adoption rates of alternative payment methods compared to their peers in the region. These payment tools offer convenience, speed, and security, making them an attractive option for consumers and merchants alike.
The financial services consumer survey conducted by GlobalData in 2023 reveals that alternative payment solutions account for more than 65 per cent of the e-commerce transaction value in China, the largest e-commerce market globally. This represents a significant increase from 53.4 per cent in 2018. Other Asian markets such as Indonesia, Hong Kong, Singapore, and the Philippines are also witnessing a high adoption of alternative payment solutions, indicating a growing trend towards digital payments in the region.
With the convenience, speed, and security offered by alternative payment solutions, coupled with the expected growth in the overall e-commerce market in the Asia-Pacific region, these payment tools are anticipated to further gain traction and disrupt the consumer payment space. The rise of mobile and digital wallets, driven by UPI and other technology innovations, is reshaping the way consumers make payments online and in-store, paving the way for a cashless future in the rapidly evolving e-commerce landscape of India and the Asia-Pacific region.
