India's e-commerce market is expected to increase by 84% by 2024, to $111 billion, according to a new report from global financial technology company FIS. The growth will be driven by mobile shopping, which is projected to grow 21% annually over the next four years, said the report.
The research found that global trends in digital commerce accelerated under the pandemic. Countries including India have seen a shift in consumer behaviour caused by Covid-19, and new payment trends are shown to be on the rise.
"The Indian e-commerce industry has witnessed a huge upsurge due to Covid-19 and there is substantial room for future growth," Phil Pomford, Managing Director of Asia Pacific, Worldpay from FIS, said in a statement.
"E-commerce capability is no longer limited to just traditional websites, and physical retail has blended with the digital world." The "2021 Global Payments Report by Worldpay from FIS" examined current and future payments trends across 41 countries.
In India, "buy now, pay later" is the fastest growing online payment method. Currently only 3% of the market, based on analysis in the report, is projected to increase to 9% by 2024. Digital wallets (40%) followed by credit card (15%) and debit card (15%) were the most popular payment methods online in 2020.
Data in the report shows that purchases made with digital wallets are expected to increase their market share of online payments by 2024 to 47%.
The FIS report found that Point of Sale (POS) market in India is projected to increase by 41% between now and 2024, according to data in the report. The most popular in-store payment method is cash at 34%, followed by digital wallets (22%) and debit card payments (20%). The report projects that digital wallets will overtake cash as the most popular in-store payment method by 2024, accounting for 33% of payments.