The Payment Service Market in India has grown significantly owing to the launch of new and innovative payment products by the payment companies, the rising need for faster payment modes, and a strong push from the Government and regulators toward the adoption of digital channels.
India Payment Service Market Overview: The Payment Service Market in India is currently at the growth stage and is a fragmented market. India Payment Services Market which has traditionally been dominated by cash witnessed advancement towards digital transactions during demonetization phase in India. The flagship Digital India Program was launched in India in 2015, with a vision of transforming India into a digitally empowered society and knowledge economy. During the COVID-19 pandemic, cash transactions decreased. However, the nation was already moving toward a cashless culture before the outbreak, and the pandemic only accelerated the trend.
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India Payment Service Market Growth: The India Payment Service Market saw a growth of CAGR of ~11% from FY’17-FY’22 in terms of transaction volume due to the launch of new and innovative payment products by the payment companies, the rising need for faster payment modes, and a strong push from the Government and regulators toward the adoption of digital channels. Increased mobile and internet penetration in the country has resulted in significant shift towards use of mobile/internet-based payment systems for effecting payments for purchase of goods and services. Introduction of lightweight acceptance infrastructure (QR codes) has further facilitated the use of mobile based payments across the country. This has led to a larger population having access to convenient payment systems at their disposal.
Impact of Coivd-19 on the Payment Service Market in India: Contactless transaction in the form POS terminal transaction had suffered with nationwide lockdown. Not only was the installation capacity was harmed, but also transactional volume suffered heavily. As more and more consumers shifted to digital payment ecosystem for buying essential and daily need products, there was tremendous downfall in the transactional amount. Although, PoS terminal witnessed slight downfall in the short run, however in the long run the market could expect tremendous recovery eventually leading to opportunity. As people are much more concerned about their health, they are constantly exploring ways for contactless payments. Digital payment service market is expected to witness massive growth in the future and PoS terminal would continue to strengthen the growth of the digital payment market.
Effects of Increased Mobile and Internet Penetration: The advent of innovative electronic payment systems that leverage on technology which can be used through internet and mobile, has led to electronic payment systems dominating the retail payment space. Increased mobile and internet penetration in the country has resulted in significant shift towards use of mobile/internet-based payment systems for effecting payments for purchase of goods and services. Introduction of lightweight acceptance infrastructure (QR codes) has further facilitated the use of mobile based payments across the country. This has led to a larger population having access to convenient payment systems at their disposal.
Analysts at Ken Research in their latest publication “India Payment Service Market Outlook to 2027F- driven by government initiatives & rising need for faster payment modes” by Ken Research observed that India Payment Service Market is in the growing phase. The launch of new and innovative payment products, increasing demand for cashless transaction due to Covid19, increasing smartphone adoption, a growing need for faster payment modes, and a strong push from the Government and regulators towards adoption of digital channels are some of the factors that will contribute to the India Payment Service Market growth over the period of FY23F-FY27F. It is expected that India Payment Service Market will grow at a CAGR of 5.7% in terms of transaction volume for the above forecasted period.
Key Segments Covered
India Payment Service Market
- By Mobile and Desktop Payments
- By Mode of Payment
- CCIL Operated Systems
- RTGS
- Credit Transfers
- Debit Transfers and Direct Debits
- Card Payments
- Prepaid Payment Instruments (PPIs)
- Paper-Based Instruments
- By Type of Industry
- Online Travel
- Financial Services
- Retail (Online and Offline)
- Others
Credit and Debit Card Coverage
- By Number of Credit and Debit Card Transactions
- PoS
- ATM
- By Credit and Debit Card Transaction Value
- PoS
- ATM
- By Number of ATMs and PoS Terminals
- By Number of Outstanding Cards
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Immediate Payment Service (IMPS) Consumer Payment Landscape
- By Type of Institution
- Small Finance Bank
- PSU
- Private and Payments Bank
- Public and Private Institutions
- Regional Rural Bank
- Co-operative Banks
Aadhaar Enabled Payment System (AePS) Consumer Payment Landscape
- By Types of Banks: Number of AePS Operator
- Mainline Commercial Banks
- Regional Rural Banks
- Co-operative Banks
- Payment Banks
- Small Finance Banks
India PoS Terminal Market
- By Number of Terminals
- Active Terminal
- Inactive Terminal
- By Metro and Non-metro cities
- By End User Industry
- Large Enterprises
- SME’s
- Micro Merchants
Key Target Audience
- Banks and Financial Institutions
- Cash Reconciliation Companies
- Payment Aggregators
- Payment Network Companies
- Payment Interface Companies
- M-Wallet Companies
- Payment Gateway Companies
- PoS Terminal Companies
- M-PoS Terminal Companies
Time Period Captured in the Report
- Historical Period: FY16-FY22
- Base Year: FY22
- Forecast Period: FY22– FY27F
Companies Covered:
- M-Wallet Companies
- Paytm
- Mobikwik
- Freecharge
- Oxigen
- Telecom Operators (Jio Money, Airtel Money, Idea Money, Vodafone M-Pesa)
- Others (SBI Buddy, PayZapp by HDFC, Pockets by ICICI and other bank wallets)
- Payment Gateway Companies
- PayU
- Paypal
- Razorpay
- Others (CC Avenue and Citruspay)
- PoS Terminal Companies
- Ingenico
- Verifone India
- PineLabs
- PAX Technologies
- Ezetap
- Itzcash
- M-PoS Companies
- M-Swipe
- Payswiff
- Mosambee
- Bijlipay
Key Topics Covered in the Report
- India Payment Services Market
- Regulatory Framework in India Payment Services Market
- India Payment Services Market Segmentation
- India Payment Services Market Future Outlook and Projections
- Credit and Debit Card Coverage
- Immediate Payment Service (IMPS) Consumer Payment Landscape
- Aadhaar Enabled Payment System (AePS) Consumer Payment Landscape
- Unstructured Supplementary Service Data – Bharat Interface for Money (USSD-BHIM) Consumer Payment Landscape
- Unified Payments Interface (UPI) Consumer Payment Landscape
- Cross Comparison of Different Payment Modes (IMPS, AePS, USSD-BHIM and UPI) in India Payment Services Market
- India Bill Payment Market
- India Omni-Channel Payments Processing Market
- India Bank Reconciliation Software Market
- India Digital Payment Market
- India Cloud Security Services Market
- India Payment Security Services Market
- India M-Wallet Market
- India Payment Gateway Market
- India Point of Sale (PoS) Terminal Market
- India m-PoS Market
- CUG Cards / Prepaid Closed Loop Cards
- Cloud / Security Outsourcing in Payments Technology
- Government Regulations
- Assessment of COVID Impact on Contactless Transactions and POS Terminals
- Coverage on OMC Digital Space
- Research Methodology
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