The report titled “India Payment Services Market Outlook to 2026” provides a comprehensive analysis of the payment services, payment gateway, m-wallet, POS Terminals, credit and debit card, payment security and prepaid instruments market in India.
The
report focuses on the overall competitive landscape; government role and
regulations, growth drivers, COVID impact, trends and developments. Furthermore
the report emphasizes on payment service market size, India payment service
market segmentation by Payment Card Usage (Cash Payments and Cash Withdrawals),
by Number of Outstanding Debit Cards (PSU and Private Banks), by Number of
Outstanding Credit Cards (PSU and Private Banks), by Modes of Payment (RTGS,
Credit Transfers, Debit Transfers, Direct Debits and Card Payments); credit and
debit card coverage segmentation by Number of Transaction (PoS and ATM), by
Transactional Value (PoS and ATM), by Number of Outstanding Cards; IMPS
segmentation by Type of Institution
(Small Finance Bank, PSU, Private and Payments Bank, Public and Private
Institutions, Regional Rural Bank and Co-operative Banks); AePS segmentation by
Types of Banks - Number of AePS Operator (Mainline Commercial Banks, Regional
Rural Banks, Co-operative Banks, Payment Banks and Small Finance Banks); PoS
Terminal segmentation by Number of Terminals (Active and Inactive Terminals),
by Metro and Non-metro cities, by End User Industry (Large Enterprises, SME’s
and Micro Merchants) and by Metro and Non-metro cities.
The report also covers a comprehensive overview of IMPS,
AePS, USSD-BHIM, and UPI ecosystem along with insights on CUG cards, open loop
prepaid cards, NCMC cards, RuPay cards, omni-channel processing market, bank
reconciliation software market, IOT spending, RBI guidelines, cloud and
security outsourcing in payments technology, competition scenario and
competitive landscape of m-wallet players, market share of m-wallet companies, OMC
digital space and future of digital payments in India. The report concludes
with future market projection of all the markets described above highlighting
the major opportunities and cautions for the overall India payment services
market.
India Payment Services Market
India
payment services market which has traditionally been dominated by cash
witnessed advancement towards digital transactions both in terms of value and
volume during demonetization phase in India. The advent of unprecedented
situation of COVID-19 showcased a shift towards adoption of digital payment
medium from traditional medium of physical transactions. The total market size for the India Payment
service market has risen from INR XX trillion in FY’16 to INR XX in FY21,
during the review period. Regulatory authorities such as the Reserve Bank of
India (RBI) and the National Payments Corporation of India (NPCI) play a major
role in establishing guidelines for effective working within India’s payments
landscape. In India, merchant payments were observed to be the central aspect
of all payment services for large enterprises as well as MSMEs, which are
increasingly becoming integrated with PoS devices. In addition to this,
emergence of consumer mobile wallets in India, and UPI, especially for retail
transactions has helped consumers with person-to-person funds transfer,
therefore facilitating small value transactions. Surge in growth of electronic
payments in India, along with rising E-commerce and M-commerce transactions are
further expected to give a boost to numerous entities including payment gateway
service providers and payment aggregators that facilitate online payments in
the country. Besides all these advancements, cash still dominates the entire
payment landscape in India and is further expected to hold a majority share in
future.
Over the
years, money has transformed from coins to physical cash and is now available
in electronic / digital form or plastic cards. Plastic cards for instance, ATM
cards, debit and credit cards are used by customers as an electronic payment
tool, thereby helping in clearing and settling the payment process. Increasing
penetration of credit cards in metro areas coupled with rising usage of RuPay
cards in tier 2 and tier 3 cities are some of the driving forces in India
consumer payments landscape. In terms of total number of outstanding cards,
credit cards were observed to grow at a five year CAGR of XX% whereas; debit
cards grew at a five year CAGR of XX% during the review period FY’2016-FY’2021.
India IMPS (Immediate Payment Service) Consumer
Payment Landscape
IMPS in India have become pioneer of instant money transfer, when compared to other digital payment modes. IMPS was witnessed to gradually gain traction as almost all major banks have extended their services, thereby enabling bank account holders to access accounts and transfer funds using mobile phones. In order to fuel the usage of IMPS, the National Payments Corporation of India (NPCI) launched new apps and services such as BHIM app and UPI payments. As of 31st March 2016, IMPS transactions were evaluated at XX million which were witnessed to increase to XX million transactions annually as of 31st March 2021, thus growing at a five year CAGR of XX% during the review period FY’2015-FY’2018.
India AePS (Aadhaar Enabled Payment System) Consumer Payment
Landscape
AePS is a
bank led model which allows online interoperable transaction at PoS terminals
through the business correspondent of any bank. Implementation of AePS allowed
online financial transaction using the Adhaar card authentication, especially
in the rural areas. Some of the basic banking transactions using AePS include
balance enquiry, cash withdrawal, cash deposit and Adhaar to Adhaar funds transfer.
As of 31st March 2017, total approved AePS transactions were
evaluated at XX million transactions which witnessed an increase to XX million
transactions as of 31st March 2021, thus growing at a four year CAGR
of XX% during the review period FY’2016-FY’2018.
India Bharat Interface for Money (Ussd-bhim) Consumer
Payment Landscape
BHIM is a
payments app launched by the NPCI which helps in making simple, easy and quick
transactions using UPI business model which is an upgraded version of IMPS,
thereby facilitating transfer of funds 24x7. BHIM app basically allows users to
send as well as request money, scan & pay, generate QR code and check
account balance. The NPCI has also added fingerprint scan and Aadhaar based payments
in BHIM app. As of 31st March 2017, USSD BHIM transactions were
recorded at XX million which were observed to increase to XX million
transactions as of 31st March 2021, thus displaying a massive growth
rate of XX.
India UPI (Unified Payments Interface) Consumer Payment
Landscape
UPI is digital payment system that allows multiple bank accounts into a single mobile application, thereby merging several banking features and merchant payments. In India, along with account holders, banks and financial institutions also make use of NPCI’s UPI platform to offer direct digital payments from accounts without sharing account details by creating a unique UPI ID or VPA (Virtual Payment Address). UPI has seen a humongous surge in recent years, owing to the sudden increase in adoption of QR based UPI transactions in retail spaces. In terms of transaction volume, UPI transactions were witnessed to increase from XX million in FY’2017 to XX million in FY’2021 whereas, in terms of transaction value, UPI transaction size went from INR XX billion in FY’2017 to INR XX billion in FY’2021; therefore showcasing extra-ordinary five year CAGR of XX% and XX% respectively, during the assessment period.
India M-Wallet Market
A mobile
wallet is digitally equivalent of physical wallet, where a consumer can store
money, make payments or transfer money to other wallet accounts under the same
company. M-wallet transactions in India were observed to grow at a massive five
year CAGR of XX% over the review period FY’2015-FY’2021. Compared to other
payment modes in India, M-wallet service providers have emerged as the most
significant contributor in promoting electronic payments in the country owing
to the increasing usage of internet and smartphone users in the country. Some
of the major companies having semi-closed wallets include Paytm, Mobikwik,
Oxigen wallet and others whereas, closed wallet type companies include SBI
E-Buddy, HDFC PayZapp and telecom operators such as Airtel Money, Jio Money,
Vodafone M-Pesa and others. Social gifting is on the verge of becoming a
popular trend among young tech-savvy customer base which could drive money
transfer through mobile wallets, especially on festive occasions in near
future. Over the forecast period, mobile-wallet transaction volume are further
expected to increase to XX million by the fiscal year ending 2026 and on the
other hand, India m-wallet transaction size is further anticipated to increase
to INR XX billion in terms of transaction value by the fiscal year ending 2026;
thus displaying a five year CAGR of XX% and XX% respectively.
India PoS (Point of sale) Terminal Market
PoS
terminals were launched as a computerized replacement of cash register where
customers can make an online transaction with the help of their debit or credit
cards. Parties involved in a transaction processing include the issuer bank,
the acquirer bank, the payment gateway and lastly, the PoS device company.
India PoS terminal market was heavily dependent up on the card acceptance
infrastructure consisting of ATMs and PoS terminal devices. India PoS terminal
market size was evaluated at XX thousand device installations in FY’2016, which
witnessed an increase to XX thousand device installations in FY’2021, thus displaying
a 5 year CAGR of XX% over the review period. In terms of number of device
installations, metro cities were witnessed to dominate India PoS terminal
market majorly due to higher usage and penetration of debit and credit cards in
these cities whereas, non-metro cities were observed to catch up by spreading
awareness regarding PoS devices enabled with Adhaar enabled Payment System
(AePS) and Micro ATMs in rural India. Large retail formats, such as Big Bazaar,
Shoppers Stop and other malls have seen increase in installation of traditional
PoS systems that work on GPRS technology. Introduction of QR code bases system
and NFC payment technology is further expected to give a boost to the country’s
PoS terminal market over long term.
India Payment Services Market Future Outlook and Projections
The India
Payment Services Market is expected to grow at a CAGR of XX% between FY’21 and
FY’26, reaching a market size of INR XX Trillions. It is expected that the
growth in payment services market would be exacerbated by the rapid adoption to
digital payment ecosystem. COVID-19 has further accelerated the shift to
digital payment modes. One of the key requirements for long-term growth and a
faster adoption of Fintech solutions at last-mile touch points is the customers
trust over digital payment modes and to overcome hesitance among consumer about
the security of such platforms, while handling their transactions.
India PoS Terminals Market Future Outlook and Projections
Over the forecast period FY’21-FY’26, total
number of cumulative PoS terminal device installation is estimated to expand at
a CAGR of XX%, standing XX thousand device installation by the end of FY’26.Increased penetration of debit and credit cards, growing
E-commerce sector, rising disposable income coupled with the government’s
initiative towards promoting a cashless economy will provide a beneficial
opportunity for growth of PoS devices in India in future.
Key Segments Covered in India Payment
Services Market:-
India Payment Services Market
By Payment Card Usage (Cash Payments and Cash Withdrawals)
By Number of Outstanding Debit Cards (PSU and Private Banks)
By Number of Outstanding Debit Cards: Market Share of Banks
(State Bank of India, Bank of Baroda, Paytm Payments Bank, Punjab National
Bank, Union Bank of India, Bank of India, Canara Bank, ICICI Bank and others)
By Number of Outstanding Credit Cards (PSU and Private Banks)
By Number of Outstanding Credit Cards: Market Share of Banks
(HDFC Bank, State Bank of India, ICICI Bank, Axis Bank, Ratnakar Bank, Citi
Bank, Kotak Mahindra Bank, American Express and others)
By Modes of Payment (RTGS, Credit Transfers, Debit Transfers,
Direct Debits and Card Payments)
Credit and Debit Card Coverage
By Number of Credit Card Transactions (PoS and ATM)
By Credit Card Transaction Value (PoS and ATM)
By Number of Debit Card Transactions (PoS and ATM)
By Debit Card Transaction Value (PoS and ATM)
By Number of ATMs and PoS Terminals
By Number of Outstanding Cards (Credit and Debit Cards)
Immediate Payment Service (IMPS)
Consumer Payment Landscape
By Type of Institution (Small Finance Bank, PSU, Private and
Payments Bank, Public and Private Institutions, Regional Rural Bank and
Co-operative Banks)
Aadhaar Enabled Payment System (AePS)
Consumer Payment Landscape
By Types of Banks: Number of AePS Operator (Mainline
Commercial Banks, Regional Rural Banks, Co-operative Banks, Payment Banks and
Small Finance Banks)
India PoS Terminal Market
By Number of Terminals (Active and Inactive Terminals)
By Metro and Non-metro cities
By End User Industry (Large Enterprises, SME’s and Micro Merchants)
By Metro and Non-metro cities
Key Target Audience:-
Banks and Financial Institutions
Cash Reconciliation Companies
Payment Aggregators
Payment Network Companies
Payment Interface Companies
M-Wallet Companies
Payment Gateway Companies
PoS Terminal Companies
M-PoS Terminal Companies
Time Period Captured in the Report:-
Historical Period: FY’15-FY’21
Forecast Period: FY’21-FY’26E
Payment Service Companies in India:-
M-Wallet Companies
Paytm
Mobikwik
Freecharge
Oxigen
Telecom Operators (Jio Money, Airtel Money, Idea Money,
Vodafone M-Pesa)
Others (SBI Buddy, PayZapp by HDFC, Pockets by ICICI and
other bank wallets)
Payment Gateway Companies
PayU
Paypal
Razorpay
Others (CC Avenue and Citruspay)
PoS Terminal Companies
Ingenico
Verifone India
PineLabs
PAX Technologies
Ezetap
Itzcash
M-PoS Companies
M-Swipe
Payswiff
Mosambee
Bijlipay
Key Topics Covered in the Report:-
India Payment Services Market
Regulatory Framework in India Payment Services Market
India Payment Services Market Segmentation
India Payment Services Market Future Outlook and Projections
Credit and Debit Card Coverage
Immediate Payment Service (IMPS) Consumer Payment Landscape
Aadhaar Enabled Payment System (AePS) Consumer Payment
Landscape
Unstructured Supplementary Service Data - Bharat Interface
for Money (USSD-BHIM) Consumer Payment Landscape
Unified Payments Interface (UPI) Consumer Payment Landscape
Cross Comparison of Different Payment Modes (IMPS, AePS,
USSD-BHIM and UPI) in India Payment Services Market
India Bill Payment
Market
India Omni-Channel
Payments Processing Market
India Bank
Reconciliation Software Market
India Digital Payment
Market
India Cloud Security
Services Market
India Payment Security
Services Market
India M-Wallet Market
Market Share of M-Wallet Players in India
Competitive Landscape of India M-Wallet Market
Trends and Developments in India M-Wallet Market
India Payment Gateway Market
India Point of Sale (PoS) Terminal Market
India Point of Sale (PoS) Terminal Competitive Landscape
India Point of Sale (PoS) Terminal Market Segmentation
India Point of Sale (PoS) Terminal Market Future Outlook and
Projections
India m-PoS Market
CUG Cards / Prepaid Closed Loop Cards
Cloud / Security Outsourcing in Payments Technology
Government Regulations
Assessment of COVID Impact on
Contactless Transactions and POS Terminals
Coverage on OMC Digital Space
For More Information,
refer to below link:-
Related
Reports:-
