India Payment Gateway Market is anticipated to grow at a robust pace during the
forecast period, 2024-2028. Payment gateway acts as an intermediary
between the e-commerce site and bank. Online payment encrypts sensitive
information and is used for the authentication of the online transaction. It is
also used for preventing fraudulent activities by providing card verification
value (CVV) and address verification system (AVS). Moreover, the popularity of
the digital payment modes such as credit/debit cards, net banking, mobile
wallets and increasing number of customers using smartphones for online
transactions are further driving the growth of payment gateway market. Moreover, collaboration of e-commerce
sites with various payment gateways are offering cashbacks to retain their old
customers and attract new customers.
India payment gateway market has been
growing rapidly in recent years owing to the country's increasing adoption of
digital payments. There are several factors driving the growth of the payment
gateway market in India. Firstly, the government's push toward a digital
economy has led to the adoption of digital payments in the country. The
introduction of UPI (Unified Payments Interface) has made it easier for
consumers to make payments using their mobile phones. Secondly, the rise of
e-commerce and the increasing number of online transactions have also
contributed to the growth of the payment gateway market. As more and more
consumers shop online, they are increasingly using digital payment methods. Thirdly,
the increasing penetration of smartphones and the internet has also led to the
growth of the payment gateway market in India. With more consumers having
access to smartphones and the internet, it has become easier for them to make
digital payments.
The Indian payment gateway market is
dominated by players such as Paytm, Razorpay, BillDesk, and CCAvenue. These
companies offer a wide range of payment solutions, including card payments, net
banking, UPI, and digital wallets. Overall, the payment gateway market in India
is expected to continue its growth trajectory in the coming years, driven by
the country's increasing adoption of digital payments and the rise of
e-commerce.
Growth of Mobile Payments in India
Mobile payments have experienced
significant growth in India over the past decade, driven by a combination of
factors such as increasing smartphone penetration, the government's push toward
a cashless economy, and the availability of affordable mobile data plans.
The growth of mobile payments in India
has been primarily driven by digital wallets and Unified Payments Interface
(UPI) apps. UPI is a real-time payment system that allows users to transfer
money between bank accounts instantly using a mobile device. In August 2021,
the UPI system processed over 3.5 billion transactions worth more than $66
billion.
Several major players dominate the mobile
payments market in India, including Paytm, PhonePe, Google Pay, and Amazon Pay.
These companies have invested heavily in building their user base and expanding
their services to include bill payments, e-commerce, and other financial
services.
The growth of mobile payments in India
has also had a significant impact on the country's unbanked population, who
previously had limited access to financial services. With the rise of digital
wallets and UPI, it has become much easier for people to send and receive
money, pay bills, and make purchases using just a mobile phone.
Overall, the growth of mobile payments in
India is expected to continue in the coming years, driven by the continued
adoption of smartphones and the government's push toward a cashless economy.
Increase In E-Commerce Transactions in India
India has experienced a significant
increase in e-commerce transactions in recent years, driven by factors such as
increasing internet penetration, growing smartphone usage, and a surge in
online marketplaces.
According to a report by the Internet and
Mobile Association of India (IAMAI), the Indian e-commerce market was worth
$38.5 billion in 2017 and is expected to grow to $200 billion by 2026.
Additionally, a report by the Reserve Bank of India (RBI) shows that the volume
of digital transactions in India has increased by 55% from 2016 to 2021, with
the pandemic accelerating the adoption of digital payments.
One of the key drivers of e-commerce
growth in India is the increasing number of internet users. The number of
smartphone users in India is also on the rise. Another significant factor
contributing to the growth of e-commerce in India is the rise of online
marketplaces, such as Amazon, Flipkart, and Snapdeal. These platforms offer a
wide range of products and services, competitive pricing, and convenient
delivery options, making it easier for consumers to shop online.
Furthermore, the Indian government's
initiatives to promote digital payments and create a cashless economy have also
played a significant role in boosting e-commerce transactions in the country.
Initiatives such as the Unified Payments Interface (UPI), which enables instant
money transfers between bank accounts through mobile phones, have made digital
payments more accessible and convenient for consumers.
In conclusion, the growing volume of
e-commerce transactions in India can be attributed to several factors,
including increasing internet and smartphone penetration, the rise of online
marketplaces, and government initiatives to promote digital payments. As India
continues to embrace digital technology, the e-commerce sector is expected to
grow even further in the coming years.
Adoption of Blockchain Technology in
India Drive Payment Gateway
Blockchain technology can be used to
drive payment gateways in India through the development of smart contracts.
Smart contracts are self-executing agreements that can be programmed to
automatically trigger payment transactions when certain conditions are met.
This could be used to facilitate payments between businesses and suppliers, or
between individuals and service providers, without the need for intermediaries such
as banks or payment processors. Overall, the adoption of blockchain technology
in India has the potential to revolutionize the way payments are made and
processed in the country. However, there are still several challenges that need
to be addressed, including regulatory issues, security concerns, and technical
barriers to adoption. Nonetheless, with the right support and infrastructure in
place, blockchain-based payment gateways could become a key driver of economic
growth and innovation in India.
India Payment
Gateway Market Recent Developments
- In 2021, Paytm
introduced a new feature called ‘Buy Now Pay Later’, which allows users to make
purchases on credit and pay back in installments. Paytm has also introduced a
new feature called ‘Paytm Postpaid’, which allows users to buy now and pay
later.
- In 2021, the company
raised USD 160 million in its Series E funding round, which was led by Sequoia
Capital and GIC. With this funding, Razorpay plans to expand its product
offerings and invest in new technologies.
- In 2021, CCAvenue announced
a partnership with Paytm Payments Bank to offer merchants a range of financial
services, including digital banking, lending, and insurance.
- In 2021, BillDesk
announced a merger with PayU, another leading payment gateway provider in
India. The merger is expected to create one of the largest payment gateway
providers in the country.
- In 2021, Instamojo
raised USD 15 million in a funding round led by prospective unicorn,
'Rocketship.vc', and saw participation from the existing investors, including
Base Capital and Gunosy Capital. The funding will be utilized to expand the
company's offerings and to grow its team.
- Overall, there is a
lot of activity in the Indian Payment Gateway market, with several companies
investing in R&D and forming partnerships to develop new technologies and
products. The payment gateway market in
India is highly competitive, with several established players and many new
entrants. With the increasing adoption of digital payments, this market is
expected to continue to grow in the coming years.
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Market Segmentation
India Payment Gateway market is segmented based
on type, enterprise size, vertical and
region. Based on type, the market is segmented into hosted, bank
integrated, and self-hosted. Based on enterprise size, the market is
segmented into large enterprise, and small & medium enterprise (SME). Based
on vertical, the market is further divided into retail, travel &
hospitality, healthcare, education, government, utilities, and others. On the
basis of region, the market is fragmented into South India, North India, West
India and East India.
Market Players
Major
market players in the India Payment
Gateway market are PayU, Paytm, Razorpay
Software Private Limited, PayPal India Private Limited, CCAvenue, BillDesk, Instamojo
Technologies Private Limited, One MobiKwik Systems Private Limited, IMSL-Fiserv,
Ingenico.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 –
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million and CAGR for 2018-2022 and 2024-2028
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Report coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments covered
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By Type
By Enterprise Size
By Vertical
By Region
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Country scope
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India
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Regional scope
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North India, South India, East India, West India
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Key companies profiled
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PayU, Paytm, Razorpay Software
Private Limited, PayPal India Private Limited, CCAvenue, BillDesk, Instamojo
Technologies Private Limited, One MobiKwik Systems Private Limited,
IMSL-Fiserv, Ingenico
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Customization scope
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10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
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Pricing and purchase options
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Avail
customized purchase options to meet your exact research needs. Explore purchase options
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
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Report Scope:
In this report, the India Payment Gateway
market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
India Payment Gateway Market, By Type:
o
Hosted
o
Bank Integrated
o Self-hosted
·
India Payment Gateway Market, By Enterprise Size:
o
Large Enterprise
o
Small & Medium Enterprise (SME)
·
India Payment Gateway Market, By Vertical:
o
Retail
o
Travel & Hospitality
o
Healthcare
o
Education
o
Government
o
Utilities
o Others
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India Payment Gateway Market, By Region:
o
North India
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South India
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East India
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West India
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India Payment
Gateway market.
Available Customizations:
With the
given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
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