Market Research Report
Payments Landscape in India: Opportunities and Risks to 2021
|Published by||GlobalData||Product code||570417|
|Published||Content info||55 Pages
|Payments Landscape in India: Opportunities and Risks to 2021|
|Published: October 17, 2017||Content info: 55 Pages||
India remains a cash-driven economy, and stood as second-largest consumer market globally. Cash accounts for 96.8% of total payment transaction volume. This is due to a lack of adequate banking infrastructure, limited awareness of electronic payments, and low acceptance at retailers. The share of cash is anticipated to fall gradually over the forecast period (2017-2021) as a result of initiatives by the central bank such as measures to tackle "black" money, cuts in the interchange fees, and the appointment of banking correspondents in rural areas to increase financial awareness.
To tackle the issue of black money and counterfeit currency, the Indian government decided to cancel the INR500 and INR 1,000 notes as legal tender from midnight of November 8, 2016; these are now being replaced with new notes. These notes accounted for more than 85% of the total currency in circulation in value terms, and the move has resulted in a shortage of cash as a result of logistical issues in making the new notes available. The shortage of cash is expected to encourage the use of payment cards and digital wallets in the country.
Contactless card payments are expected to gain traction in India, with all major banks now offering cards with contactless functionality. ICICI Bank was the first to introduce contactless debit and credit cards in India in January 2015. A number of public and private sector banks followed suit, including SBI, Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, IDBI Bank, IndusInd Bank, and Standard Chartered Bank.
Uptake of alternative payments among Indian consumers is gaining traction due to the availability of options such as PayPal, Paytm, FreeCharge, Airtel Money, and more recently, Samsung Pay since March 2017. Supporting banks and card issuers for Samsung Pay include Axis Bank, Citibank, HDFC Bank, ICICI Bank, State Bank of India (SBI), Standard Chartered Bank, and American Express. Other digital wallets launched by banks include Pockets by ICICI Bank in February 2015 and Lime by Axis Bank in September 2015. The entry of new payment solutions is likely to intensify competition in India's alternative payments market.
The report "Payments Landscape in India: Opportunities and Risks to 2021", provide top-level market analysis, information and insights into the Indian cards and payments industry.
Specifically, the report provides the following -
Companies mentioned in this report: State Bank of India, Axis Bank, Bank of India, HSBC, Citibank, HDFC Bank, ICICI Bank, Union Bank of India, Bank of Baroda, Canara Bank, IDBI Bank, IndusInd Bank, Standard Chartered Bank, Visa, Mastercard, American Express, Diners Club.