A new report says that India has witnessed the fastest jump in the share of non-cash payments on e-commerce platforms in the Asia-Pacific region, growing from 20.4 per cent in 2018 to 58.1 per cent by 2023. According to data and analytics company GlobalData, this surge can be attributed to the widespread use of mobile wallets, largely powered by UPI (Unified Payments Interface), which enables mobile payments in real-time by just scanning a QR code, reports IANS.
Most Asian markets are traditionally cash-intensive
The report highlights that alternative payments are already popular in countries such as China and India, and are gaining popularity in other Asia-Pacific markets as well. Shivani Gupta, senior banking and payments analyst at GlobalData, said that while most Asian markets are traditionally cash-dominated, the adoption of alternative payment methods for both online and in-store payments is growing in many markets in the region, outpacing the West. She said the trend is driven by rising smartphone and internet penetration, the increasing convenience of electronic payments, and the proliferation of mobile and QR code-based payment solutions.
Trend even in cash-dominated countries
Moreover, the report showed that similar trends are being observed in cash-dominated countries in the region such as the Philippines, Malaysia and Indonesia. Gupta said that alternative payment solutions hold the largest share of e-commerce markets in many Asia Pacific countries, supported by rising internet and smartphone penetration and growing acceptance of digital payments by merchants.
He also mentioned that with the convenience, speed, and security they offer, along with the high expected growth in the overall e-commerce market in the region, these payment instruments are expected to gain further momentum and disrupt the consumer payments sector in the region.
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