May 22, 2014
India’s massive population of 1.2 Billion makes even modest market developments, extremely significant in this rapidly emerging economy. The creamy layer of 80-100 million people are all fitted with latest smartphones, connected homes and good per capita income. These are the people who do credit card transactions, transfer funds online, use mobile banking apps quite often and are even trying early versions of mobile wallet. The digital payments industry in India is expected to grow by 40% to reach $20.48 Billion by the end of 2014, according to a study released on 21st May 2014 by IAMAI (Internet and Mobile Association of India), PCI (Payments Council of India) and IMRB. This is a result of a surge in the number of persons utilizing debit or credit cards, cash cards as well online transactions.
Other payment methods included Digital downloads (downloads of e-Books, music and movies) and other online services, such as websites for searching jobs (4%), real estate (2%) and matrimonial (2%).
You must be thinking by now what is so great about these numbers. Nothing much if you compare but its a good start. In a country which had 97% to 98% transactions being done in cash its promising to see 40% growth in digital payments.