Every year in this ongoing decade, we all have come across at least one report by a reputed research firm glorifying the pace of growth of the digital ecosystem in the country. According to a recent study by industry body ASSOCHAM, eCommerce market in India might touch $38 billion mark in 2016, a 67% increase over the $23 billion revenues in 2015. As in case of online retail, one might give credit to the CoD concept to propel the populous to shop online, however it is the payment industry which is working its magic behind the scenes to make the Digital India dream a reality.
Online transactions are not only restricted to online retail or travel anymore, with the influx of mobile and ‘on-demand’ based businesses, customers are looking for convenience and ease of access for products and services at all times. India is witnessing a year on year growth of close to 40% in digital transactions, at EBS too we are observing a similar pace.
Electricity bills, cab fares, event bookings etc. – the list of possible services where digital is replacing paper, is endless. And for businesses, both big and small, the automation of payment collection has become the first step towards scale.
5 Trends Which Are Changing The Game
The payment industry in itself keeps on evolving with the ever changing consumer sentiments and the needs of the businesses. Innovations in this space is thus a continuous process, while the adoption of each of new development takes its own pace to penetrate, here are 5 such trends which are changing the way India pays
- Shift to Mobile
In February 2016, a report by Counterpoint Research stated that India has become the second largest smartphone market in the world with 220 million smartphone users. Thus, it does make economic sense for businesses to have a mobile first/mobile ready platform. Payment system providers are now offering ready-to-integrate development kits for mobile app companies to deliver a native payment experience.
- Wallets & Banking Apps
Savvy consumers are now even ditching their credit/debit cards when it comes to making a purchase online, all thanks to wallet and banking apps which allow swift checkout experience. In fact at EBS we have already integrated a number of mobile wallets & banking apps to allow companies to provide this experience.
- Wallet & PoS Integration
Another notable development that is happening with the onset of the wallet adoption is the usage of these instruments beyond the digital space. Restaurants, brick and mortar stores which depend upon PoS systems for payment collection can also give wallet users an option to use the same instead of swiping their bank cards.
- Government Support
Also, to keep up with the pace of the global economy, the Government too is pushing out policies to encourage a movement towards a cashless society. This is happening through various initiatives: Payment banks, Bharat Bill Payment Services, proposal to do away with surcharge / convenience fees, etc.
- Contactless Payments
Payments via NFC is a development that has already come into practice. However now contactless payment is the next step, where in a tangible scenario customers can make payments by flashing their card at the terminal.
What Lies Ahead
Evidently the future of digital payments also lies in giving the best transaction experience to the end user while easing the payment collection process for any business. The next big step lies in transforming smartphones into payment instruments, which firms like Apple (via Apple Pay) are already trying to do so.
India is yet to experience the adoption of the contemporary international trends like the above mentioned wallet & PoS integration, contactless payments, mass transit payments etc. Nonetheless the pace at which technology revolution is happening already, and the way even the lower economic classes are adopting digital innovations, the country might get on an accelerated highway to going cashless in the foreseeable future.
If you too are exploring a next-gen payment system for your business, check out EBS.
E-Billing Solutions (EBS) established in the year 2005 is headquartered in Mumbai. EBS offers a secure payment system while supporting multiple payment options including international payments. It is a fully owned subsidiary of Ingenico Group. With its acquisition by Ingenico, a global leader in seamless payment, EBS has now access to world class product and solutions to augment its existing services.
Disclaimer: This column is powered by E-Billing Solutions (EBS)