The Digital Payments 2020 report said that digital payment industry in India is expected to reach USD 500 billion by 2020. The USD 500 billion accounts for about 15 per cent of the gross domestic product (GDP). The report was jointly published by Google and Boston Consulting Group (BCG). The report says that by 2020, over 50 per cent of Internet users in the country will be using the mode of payment.
The report projects that the non-cash contribution in the consumer payments segment will double to 40 per cent. The estimates say digital technology in India will influence up to 45 per cent of all retail sales by 2025. It says that the non-cash transactions will exceed cash transactions by 2023. It says that the about 81 per cent of the existing users of the digital payments prefer it over other methods of non-cash payments.
IT highlights that the 90 per cent Indian consumers will be using digital payment mode for both online as well as offline points of sale in fields. It says that over 60 per cent of digital payment value will be contributed by offline points like unorganised eateries, transport and retail among others. Three activities where digital payment is used in excessive at present include payment of utility bills, online shopping and buying movie tickets.
Besides, the report counts on union government’s plan to develop 100 smart cities across India as well as Digital India. Digital India aims at increasing the optical fibre network to thousands of villages where two-third of the population lives. In addition, the report also appreciates the country for the use of mobile and digital technologies for creating educated as well as digitally literate user base.
The Google-BCG study report provides a comprehensive overview on the ongoing transformation in digital payments in India. It also talks about its impact on the overall payment landscape of the country. The report is based on Nielsen’s qualitative and quantitative research with over 3500 respondents (digital consumers: 1,516, remittance users: 917 and merchants: 917), combined with BCG and Google’s industry intelligence.
The report was prepared on the basis of a qualitative and quantitative research executed by Nielsen. The insights of the research were combined with Google and BCG’s industry intelligence as well as BCG’s proprietary sizing model. To conduct the research, Nielsen conducted 14 group discussions as well as 26 in-depth interviews for users and merchants. These inputs were used in making a comprehensive merchant and consumer quantitative survey.