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 PaymentsBy Mode of PaymentCCIL Operated SystemsRTGSCredit TransfersDebit Transfers and Direct DebitsCard PaymentsPrepaid Payment Instruments (PPIs)Paper-Based InstrumentsBy Type of IndustryOnline TravelFinancial ServicesRetail (Online and Offline)OthersCredit and Debit Card Coverage
By Number of Credit and Debit Card Transactions PoSATMBy Credit and Debit Card Transaction Value PoSATMBy Number of ATMs and PoS TerminalsBy Number of Outstanding CardsVisit This link Request for Custom Report
Immediate Payment Service (IMPS) Consumer Payment Landscape
By Type of InstitutionSmall Finance BankPSUPrivate and Payments BankPublic and Private InstitutionsRegional Rural BankCo-operative BanksAadhaar Enabled Payment System (AePS) Consumer Payment Landscape
By Types of Banks: Number of AePS Operator Mainline Commercial BanksRegional Rural BanksCo-operative BanksPayment BanksSmall Finance BanksIndia PoS Terminal Market
By Number of Terminals Active TerminalInactive TerminalBy Metro and Non-metro citiesBy End User Industry Large EnterprisesSME’sMicro MerchantsKey Target Audience
Banks and Financial InstitutionsCash Reconciliation CompaniesPayment AggregatorsPayment Network CompaniesPayment Interface CompaniesM-Wallet CompaniesPayment Gateway CompaniesPoS Terminal CompaniesM-PoS Terminal CompaniesTime Period Captured in the Report
Historical Period: FY16-FY22Base Year: FY22Forecast Period: FY22– FY27FCompanies Covered:
M-Wallet CompaniesPaytmMobikwikFreechargeOxigenTelecom 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 CompaniesPayUPaypalRazorpayOthers (CC Avenue and Citruspay)PoS Terminal CompaniesIngenicoVerifone IndiaPineLabsPAX TechnologiesEzetapItzcashM-PoS CompaniesM-SwipePayswiffMosambeeBijlipayKey Topics Covered in the Report
India Payment Services MarketRegulatory Framework in India Payment Services MarketIndia Payment Services Market SegmentationIndia Payment Services Market Future Outlook and ProjectionsCredit and Debit Card CoverageImmediate Payment Service (IMPS) Consumer Payment LandscapeAadhaar Enabled Payment System (AePS) Consumer Payment LandscapeUnstructured Supplementary Service Data - Bharat Interface for Money (USSD-BHIM) Consumer Payment LandscapeUnified Payments Interface (UPI) Consumer Payment LandscapeCross Comparison of Different Payment Modes (IMPS, AePS, USSD-BHIM and UPI) in India Payment Services MarketIndia Bill Payment MarketIndia Omni-Channel Payments Processing MarketIndia Bank Reconciliation Software MarketIndia Digital Payment MarketIndia Cloud Security Services MarketIndia Payment Security Services MarketIndia M-Wallet MarketIndia Payment Gateway MarketIndia Point of Sale (PoS) Terminal MarketIndia m-PoS MarketCUG Cards / Prepaid Closed Loop CardsCloud / Security Outsourcing in Payments TechnologyGovernment RegulationsAssessment of COVID Impact on Contactless Transactions and POS TerminalsCoverage on OMC Digital SpaceResearch MethodologyFor more insights on the market intelligence, refer to the link below:-
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