India's e-commerce market to reach $111 billion by 2024, up 21% annually

Fintech company FIS recently released a report stating that India's e-commerce market will grow 84% to $111 billion by 2024 (from around $60 billion in 2020), with an annual growth rate of 21% expected over the next four years , amid the accelerated adoption of digital technologies during the COVID-19 pandemic .

The FIS report pointed out that digital wallets (40%), credit cards and debit cards (15% each) are the most popular online payment methods in 2020. By 2024 , the market share of shopping with digital wallets is expected to increase to 47%.

In addition, “buy now, pay later” has become the fastest growing online payment method in India. Although it currently accounts for only 3% of the market, according to FIS analysis, this proportion is expected to rise to 9% by 2024 .

Phil Pomford, Worldpay managing director for Asia Pacific at FIS, said: “The Indian e-commerce industry has seen tremendous growth due to COVID-19 and there is a lot of room for growth in the future.”

He added that e-commerce capabilities are no longer limited to traditional websites, and physical retail has been integrated into the digital world. And all of this stems from digital payments.

“ For consumers, whether they’re buying through an in-app store , a social feed or a store in the real world , they expect the same easy and convenient shopping experience. Merchants who put the customer experience at the heart of the checkout process will be successful. ”

Pomford said those who have digital payment capabilities will be well positioned to capture the next wave of growth in India's retail and e-commerce markets.

The report also predicts that India’s POS market will grow 41% to $1,035 billion between now and 2024. The company added that the most popular in-store payment method in India is currently cash at 34%, followed by digital wallets at 22% and debit cards at 20%.

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

India

E-commerce market

Digital Payments