India’s e-commerce market projected to touch $111 billion by 2024: Report

With covid-19 pushing more and more Indian shoppers online, the country’s e-commerce market is expected to jump 84% to reach $ 111 billion by 2024, according to the findings of a report by financial technology firm FIS. FIS offers tech solutions to merchants, banks and capital market firms globally.

The 2021 Global Payments Report by Worldpay from FIS, which examines current and future payments trends across 41 countries, found that global trends in digital commerce accelerated during the pandemic. Countries, including India, saw a shift in consumer behaviour caused by covid-19, and new payment trends are seen to be on the rise.

The report found that growth in India’s e-commerce market will be driven by mobile shopping which is projected to grow 21% annually over the next four years.

It said that digital wallets (40%) followed by credit card (15%) and debit card (15%) were the most popular payment methods online in 2020, the year of the pandemic in which India saw one of the strictest lockdowns beginning March. The report suggests that purchases made with digital wallets are expected to increase their market share of online payments by 2024 to 47%.

“The Indian e-commerce industry has witnessed a huge upsurge due to covid-19 and there is substantial room for future growth,” said Phil Pomford, managing director of Asia-Pacific, Worldpay from FIS. “E-commerce capability is no longer limited to just traditional websites, and physical retail has blended with the digital world. 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,” he said.

Merchants will need to put customer experience at the heart of the checkout process. “Those who position themselves with digital payments capabilities will be well-positioned to capture the next wave of growth in the retail and e-commerce market in India,” he added.

On in-store payments, the report said, the Point of Sale (PoS) market in India is projected to increase by 41% between now and 2024 to $1,035 billion.

The most popular in-store payment method is cash at 34%, followed by digital wallets (22%) and debit card payments (20%).

The report projects digital wallets will overtake cash as the most popular in-store payment method by 2024, accounting for 33% of payments.