The digital payments industry might not be as evidently important to the mainstream as other industries, but it does provide us with interesting analysis about how the future of technology and the economy might look in India. The cash-lite revolution throughout India has seen several movements forward in 2019 and this looks to continue into 2020 and beyond. But just how much further will the digital payment sector in India grow throughout 2020?
India’s revolution in digital payments methods has had many catalysing factors. Affordable internet and the proliferation of smartphones means that more people than ever before can access online resources. This means they can change where they bank and move towards e-wallet options, which might have been inaccessible beforehand. The willingness to accept the new technology has also been a key factor and shown by many of the people excited to move away from cash.
The government has also been very supportive of the industry, amending regulations to make the industry more accessible and removing red tape written before the industry was even conceived that might have prevented it from growing. Indeed, India is expected to see a growth of digital payments between 2019 and 2023 of around 20% and will contribute 2.2% to the global digital payments industry.
Industries are already urging customers to move towards these new ways of making financial transactions. As shown by the online casinos accepting Indian players, there are already several supported digital payments facilities. These include standard options such as Visa and Mastercard, as well as e-wallets such as Skrill and Neteller, and increasingly in India with Astropay and Paysafecard. Indeed, many online shopping retailers also accept Astropay and other digital payment solutions.
Person-to-person methods of making payments have seen a larger rise than person-to-merchant methods, which could be because the latter has been in play for longer. Worldline suggests that payment via mobile phones and QR codes at point-of-sale will increase further throughout 2020. Although many will still opt to pay cash or other traditional means, the fact that there is even the option shows the willingness of the nation to adopt new technologies and move forwards.
The key barrier is the accepted way of merchants taking payments, but with enough emphasis on improving and streamlining this, there could be some changes. This will fit in with the goal of reducing dependency on cash and allowing more people to thrive in the digital payments sphere. Cashless India remains a flagship programme from the government to move towards digital means of payment and away from a cash-based system.
The digital payments industry represents one that will usher in change and positive movement for India’s economy. The scope for what digital payments can do is almost limitless and many sectors can take advantage by getting involved and opening up their businesses to more people and more methods of digital payment. The trick now is to show just how beneficial digital payments are compared to standard cash and how this could help those who are still sceptical.