The propensity of Indian consumers to pay for things online continued over the last year, as digital payments rose 55 percent from 2016 to 2017, according to a government policy think tank in the country. At a speech before payments industry leaders, Ratan P. Watal, principal advisor at Niti Aayog, said the increase represents an acceleration after a compound average annual growth rate of 28 percent between 2011 and last year.
India represents an enormous opportunity for online sellers around the world. Report after report indicates growth in the Indian e-commerce market will continue until it threatens the U.S. as the second largest e-commerce market in the world. Large scale investment in India as an e-commerce destination has begun, and Watal said the increase in digital payments came even as the Indian government took steps that were advantageous to cash.
“These figures are truly reflective of the fact that India today stands at the cusp of a digital payments revolution,” he said. “Due to innovations in digital payment technologies and increasing consumer satisfaction, the growth trends in digital payments are positive and will continue to dominate the payments landscape in India. This is very critical in the light of the fact that the government has set a target of 25 billion transactions to be achieved by March 2018.”