India Payment Services Market Ecosystem
India Payment Service Market is in the growing stage, being driven by the launch of new and innovative payment products, increasing demand for cashless transaction, increasing smartphone adoption, a growing need for faster payment modes, and a strong push from the Government and regulators towards adoption of digital channels.
India’s M-Wallet Ecosystem
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Key Market Findings:
- Over the last few years, India has witnessed a high growth in terms of consumers of e-commerce, which is fueled by explosive adoption of smartphone and digital transactions.
- An exorbitant growth is expected in the future for prepaid and m-wallet transaction driven by tech-savvy millennials who are much more likely to shift to digital payment ecosystem for its convenience.
- Various initiatives by the Government of India, such as digital India, are further driving the adoption of digital wallets and digital payments in the region.
Growing M-Wallet Industry: Mobile wallets in India are acting as a catalyst towards developing the digital payment infrastructure. One of the major growth drivers for the m-wallet industry in India is the rise of e-commerce platforms and the increased dependence of consumers on m-wallet transactions for buying products online. With restrictions imposed nationwide, consumers relied on e-commerce platforms for buying products online. In this whole discourse, m-wallet market witnessed a tremendous growth. It is estimated that M-wallet market has been expanding at a CAGR of ~27% for the period between FY’17 to FY’22. Initially, m-wallets were not used in every day cash transaction due to concerns related to safety and security. However, with the KYC norm being mandatory for a customer to use m-wallets, users are being proactive in using the service. As various players in the market are trying to establish their presence by reaching out to stores, shops etc. even in the remotest area, m-wallet services would eventually be used in all domains leading to the growth of the M-Wallet Market in India.
Rising Digital Payments in the India Payment Service Market: The facilitation of non-bank FinTech firms in the payment ecosystem as PPI issuers, BBPOUs and third-party application providers in the UPI platform have furthered the adoption of digital payments in the country. Digital payments systems have evolved from being viewed as a cost center for banks to a revenue center and a key parameter for customer acquisition. Many banks in the region have introduced their own digital payment app to gain more customer acquisition, such as BHIM Axis Pay, Yono by SBI, HDFC PayzApp, Pockets By ICICI Bank, etc. The digital payment ecosystem will flourish with continuous efforts from the Government, regulators and payment companies to increase awareness and trust.
India Payment Services Market to Grow due to Government Support: The government of India has been extensively focusing on “Digital India” campaign initially launched in 2015 to improve the online infrastructure of the country to ensure that the government services are made available to citizens electronically. Government of India is working extensively with Reserve Bank of India (RBI) to strengthen the digital payment service ecosystem. Launching platforms such as National Electronic Toll Collection (NETC) for nationwide cashless toll transaction through FASTag, as well as setting platforms like Bharat Bill Pay System (BBPS) for promoting payments of bill through digital platforms, are regarded as breakthrough initiatives in the realm of digital payments. The future of India’s Payment Service Market has room for enormous expansion with the continued support from GOI aiming for digitalizing India.
Analysts at Ken Research in their latest publication “India Payment Service Market Outlook to 2027F” 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
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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
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: FY23– 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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