iNDICA NEWS BUREAU-
In 2016 India went through one of the most monumental and controversial acts that disrupted life for literally everyone in the country – demonetization. While the effectiveness of the act is widely debated and criticized, it pushed India to a new age of banking, almost overnight.
Today in India, every industry and business, from big corporates to a roadside vendor accepts online payment one way or another. In fact, integration of payment gateway has become a critical aspect for any business.
Without compromising sensitive baking information, people are able to easily transfer through the customer’s preferred bank. This simplification is a win-win for both customers and businesses.
With smartphones and the internet penetrating every nook and corner of India, it’s clear that this is not a trend anymore, rather a new way of banking. As a matter of fact, many consumers today prefer for making payments online.
The hurdle free transactions generate confidence among the users for switching to online transactions. This rapid adoption of the online method of payment is fueling the payment gateway market growth in India.
The payment gateway market in India is boosted by an increase in digital payment trends in India. Government initiatives are helping enhance the digital payment space and put an emphasis on moving towards a cashless economy.
For instance, the Digital India program is a flagship program of the Government of India with a vision to transform India into a digitally empowered society.
According to the National Payments Corporation of India, Unified Payments Interface (UPI), transactions will see a boost due to the outbreak of COVID-19. The umbrella organization for operating retail payments and settlement systems in India said that the relevance of UPI would grow in the ‘phygital’ world, combining the physical and digital space, in a post-COVID world.
Here are some of the key market trends expected in the digital payment front:
- According to the Indian Brand Equity Foundation, the Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second-largest e-commerce market in the world by 2034.
- As per new guidelines on FDI in e-commerce, 100 percent FDI under automatic route is permitted in the marketplace model of e-commerce.
- As merchants and users avoid crowding in shops and neighborhood stores due to coronavirus pandemic, merchants will start taking and managing orders digitally, while requesting for payments online remotely.
- New vendors are entering the e-commerce space, which will boost the use of various payment gateways in the country. In May 2020, Reliance Industries launched an online extension of its grocery business under JioMart brand across 200 cities.
In addition to this, Government of India is coming up a slew new reforms and policies to boost the market growth that is favorable to consumers and businesses to encourage the adaption faster and incubate innovation.