New Delhi [India], June 17 : India has witnessed the fastest jump in alternative payment share for e-commerce payments in the Asia-pacific region from 20.4 per cent in 2018 to 58.1 per cent in 2023 as per a report by GlobalData, a data and analytics company.
Options for payment other than traditional cash include UPI, debit cards and credit cards among others.
"This significant uptake of alternative payment solutions can be attributed to the widespread usage of mobile wallets, largely driven by UPI, which facilitates mobile payments in real-time simply by scanning QR codes," GlobalData report elaborated.
The report highlights that in the Asia-Pacific (APAC) region, the payment solutions such as mobile and digital wallets have displaced traditional payment methods like cash and bank transfers on e-commerce payments.
The report states that such alternative payments are already popular in countries like China and India and are gaining traction in other APAC markets as well.
China has however led the way in 2023, with alternative payments accounting for nearly two-thirds of the total e-Commerce payments value in 2023 in the entire Asia Pacific region. However, India is also not behind with a significant surge in alternative payment methods since the year 2018.
The e-commerce analytics by the company revealed that even cash-intensive countries in APAC such as the Philippines, Malaysia, and Indonesia, are witnessing a similar trend.
"While most Asian markets are traditionally cash-dominated, the adoption of alternative payment methods for both online and in-store payments is growing across many markets in the region, outpacing the West. This trend is driven by the rising smartphone and internet accessibility, increasing convenience of electronic payments, and the proliferation of mobile and QR code-based payment solutions" said Shivani Gupta, Senior Banking and Payments Analyst at GlobalData.
It also highlights that within the Asia-Pacific region, China and India have higher adoption rates of alternative payment methods as compared to their peers.
According to the company's 2023 Financial Services Consumer Survey, alternative payment solutions account for more than 65 per cent of the e-Commerce transaction value in China, the largest e-Commerce market globally. It represents a significant increase from 53.4 per cent in 2018.
Other Asian markets like Indonesia, Hong Kong, Singapore, and the Philippines are also seeing high adoption of alternative payment solutions.
"Alternative payment solutions accounts for lion share in e-Commerce markets across many APAC countries, supported by rising internet and smartphone penetration, and growing acceptance of digital payments by merchants. With the convenience, speed, and security they offer, coupled with high expected growth in overall e-Commerce market in the region, these payment tools are anticipated to further gain traction and disrupt the consumer payment space in the region" said Gupta.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor