The world of business is always changing and there are so many issues that entrepreneurs and company owners need to consider on a daily basis.
Something which will have been on the agenda of many organizations in recent times is the issue of payments, as the way that many consumers pay for goods and services has changed massively recently. Now, new research has hinted that further developments could be seen in the years ahead.
Significant growth expected
Towards the end of August, The Economic Times reported on a new study from RedSeer Consulting which revealed that digital payments in India are expected to grow significantly across the next five years.
While the digital payments market was estimated to be in the region of Rs 2,162 trillion in 2019/20, it is forecast to reach Rs 7,092 trillion by 2025. The report also suggested that the number of mobile payment users will grow by five times to reach around 800 million by the same year.
Looking at the factors behind such growth, RedSeer’s report suggested that government efforts on financial inclusion and the digitization of merchants could play a major role. It also found that wallets would have a significant impact.
Such findings clearly highlight why it is important for those within the business world to stay up-to-date and ensure they are prepared on the issue of digital payments. Fortunately, there is plenty of evidence that many companies have already embraced them.
Embraced by many areas
For example, digital and mobile payments have a presence in the streaming world, as Gadgets360 reported back in 2017 on how Netflix was adding support for UPI payments in India. Back in March, we reported on how PhonePe had also become the first digital payments service to launch Visa Safe Click, a one-click card feature created in partnership with the global brand.
In addition, Business Insider India reported last year on a survey by CUTS International, which found that 48 percent of merchants in the country now accept digital payments. This has become even more prevalent in solely online vendors, that rely on quick, safe, and secure overseas transactions. One industry where these developments have proven to be especially key, is in the online gambling industry. As an example, the online casino comparison site AsiaBet illustrates here how many online casinos for Indian players accept a range of methods for deposit and withdrawal, with Skrill proving particularly popular.
Businesses should note that consumers are keen on the concept too, as a study by YouGov and ACI Worldwide found that digital payments were the preferred option for 42 percent of people in India. In contrast, just 29 percent of people said they preferred card payments and only 27 percent opted for cash.
Intriguingly, it even seems like connectivity problems may not be able to hold digital payments back from reaching their potential. In recent weeks, sites including Electronic Payments International have reported on the Reserve Bank of India’s plans to launch a pilot scheme that would allow digital payments to be made in an offline mode. It is hoped that the plans will mean people across regions with poor internet can still make use of such systems. The pilot is expected to take place in March next year and banks and other non-banking organizations are set to be involved.
Bright future ahead
All in all, it is clear that there is plenty going on in the world of digital payments in India. Not only that, but the concept is expected to have a very bright future going forward as well.
With this in mind, business owners and entrepreneurs undoubtedly need to ensure that the issue is on their radar. There are plenty of signs that consumers are embracing such payment methods, so failing to move with the times could have some big consequences for companies.
