The payment landscape in India
When it comes to the ecosystem of digital payments, India is supposed to have the most evolved system compared to 25 other countries included UK, China and Japan…
Demonetization couples of years ago, Government incentives and massive smartphone adoption, including convenience and cash back programs from e-commerce giant like Flipkart and Amazon have drastically increased the adoption of digital payments. Other reason like rise of non-banking payment institutions (payments bank, digital wallets, etc.) and increasing consumer readiness to the digital payment platform have contributed to this shift.
According to a report by Google and Boston Consulting Group (BCG), the Indian digital payments industry is estimated to touch $500 billion by 2020, contributing 15 per cent to the country’s GDP.
Digital payments now account for about 30% of transactions and continue to grow dramatically. The key leader is Paytm, used in approximately 30% of digital transactions followed by PhonePee (owned by Flipkart) and Mobikwik.
The GAFA are of course present with Google Pay, Amazon Pay and Whatsapp.