India’s e-Commerce growth to be driven by digital payments

30 May,2014

By A Correspondent

 

The Indian e-Commerce market as of December 2013 stood at INR 62,697 crore though only 25 million of over 231 million internet users transact online. And, security still emerges as the major issue for online transactions.

 

As per IAMAI, PCI & IMRB report the digital payments industry is expected to grow at a rate of 40 per cent to reach INR 120,120 crore by December 2014.

 

According to Asit Oberoi, Sr. President & COO – Yes Bank, “Though security is a concern for many, it is imperative to point out that the evolving and tech savvy customer today, is more confident transacting online. The digital payments industry is witnessing a steady growth and that goes on to show the acceptance of online transaction.” While global online utility bill payment hovers around 18 per cent, in India it is around 10 per cent.

 

Speaking at the 6th IAMAI National Conference on Digital Commerce, Ravi Sundarajan, Chief operating Officer – Webaroo said that China is set to be the world leader in e-Commerce in the next 18 months. “With over 240 million online shoppers, China is set to be the new leader in e-Commerce. In China 6 per cent of retail sales accounts for online shopping and has been growing at an exponential rate in the last ten years and compared to that only 1 per cent of retail sales accounts for online shopping in India.” According to him, “If India has to become a world leader in e-Commerce, mobile apps; sms marketing has to evolve.”

 

Speaking about engaging internet users in online retail, Nitin Bawankule, Director – e-Commerce & Online Classifieds, Google India, said, “When Google started GOSF in 2012, 50 per cent of the shoppers were first time buyers. In 2013 GOSF, 55 houses and 285 cars were sold with 40 per cent of the shoppers being women. This clearly shows how consumers are increasing spend on through the internet, though India is way behind when compared to other countries.”

 

In the US, there are 245 million internet users and 156 million online buyers, while China has 538 million internet users with 270 million online buyers. Closer home, Sri Lanka, with 3.2 million internet users, has 2 million online buyers and Australia, which is a similar economy to India, has 20 million internet users with 11 million online buyers. Unfortunately, India, with over 231 million internet users, has mere 25 million online buyers.

 

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