The “India Transaction Gateway Market 2020-2025: Development, Trends, Forecasts” report was added to ResearchAndMarkets.com’s offering.
The Indian Transaction Gateway Market is forecast to enroll a CAGR of 15% over the forecast period 2020 to 2025.
The integration of payment gateway has grown into among the most essential areas of any company in each industry. It enables collecting money via the client’s favored bank without endangering sensitive information.
Together with the increasing internet penetration and consciousness about the simplicity of internet transactions, customers are changing their tastes for making payments on the internet. The barrier free trades create confidence among the consumers for switching to internet transactions. This accelerated adoption of the internet method of payment is fueling the payment gateway market growth in India.
For example, based on TRAI, the entire online subscriber in the nation as in September 2019 is 687.62 million; and based on RBI, the mobile payment transaction volume rose by roughly USD 10 billion in 2018, because of growing internet penetration and tablets from the nation.
The payment gateway market in India is fostered by an increase in electronic payment tendencies in India. Government initiatives are assisting improve the electronic payment area and set a focus on moving towards a cashless economy. As an example, the Digital India application is a flagship program of the Government of India having a vision to transform India into a digitally enabled society.
Demonetization was a huge currency culling practice consumed by the authorities in November 2016, which created 86% of the money in circulation invalid. The measure was taken to battle against black cash, terror finances, and counterfeit money. This was a significant driving force for the adoption of various payment gateways from the nation.
As an example, only during the week of demonetization, Paytm started viewing a 200 percent growth in downloads and also a ten-fold gain in the accession of cash from the pocket directly on the night of demonetization. A year after, the Paytm retailer foundation had swollen to 5 million from about 800,000 annually earlier.
As stated by the National Payments Corporation of India, Unified Payments Interface (UPI), trades will notice a boost as a result of epidemic of COVID-19. The umbrella company for operating retail payments and compensation systems in India explained that the significance of UPI would increase in the ‘phygital’ planet, combining the physical and electronic distance, within an post-COVID world.
Crucial Market Trends
Growing E-Commerce Transactions to Drive Market Development
- The growth in e-commerce trades is raising the adoption of different payment gateways in India. According to the Indian Brand Equity Foundation, the Indian e-commerce business was on an upward growth trajectory and is expected to exceed the US to become the second-largest e-commerce marketplace on earth by 2034. The e-commerce marketplace is predicted to reach USD 64 billion by 2020 and USD 200 billion by 2026.
- Different authorities regulations are fostering the e-commerce sector in the nation. In India, 100 percentage FDI is allowed at B2B e-commerce. According to new recommendations on FDI at e-commerce, 100 percentage FDI under automatic route is permitted in the market model of e-commerce.
- As retailers and consumers prevent crowding in stores and local shops because of coronavirus pandemic, retailers will begin accepting and handling orders while asking for payments online liberally. Flipkart-owned PhonePe, in addition to Google Pay, let users to recognize local stores in a client’s area, digitally, that have been available and providing, while enabling users to cover them via their various programs. According to RBI, UPI trades for the month of April 2020 stood in too much INR 1511 billion to retail payments.
- New vendors are entering the e-commerce area, which will raise the usage of different payment gateways from the nation. In May 2020, Reliance Industries found an internet expansion of its grocery company under JioMart brand over 200 cities. Products provided on JioMart contain fruits and veggies, dairy and baked goods, staples, snacks and branded meals, drinks, and personal and healthcare.
Favourable Government Initiatives and Regulatory Standards to Boost Market Growth
- The RBI’s March 2020 guidelines on Payment Aggregators (PAs) and Payment Gateways (PGs) are critical to induce the rise of payment gateways in India. The new guidelines apart from protecting client funds (according to the RBI’s 2009 Instructions for Digital Payment Intermediaries), additionally state recognition of PAs as approved entities and provide flexibility and management with operations and capital management.
- Under the new standards of RBI, for the bank accounts, neither loans nor bringing interest is permissible. The PA’s surgeries will constitute predetermined payment methods. Interest may be earned within a center portion,’ calculated on their basis of the average daily unpaid balance and moved into another account, thus developing a new avenue of income for your PA.
- Additionally, to increase payments via home-grown real-time payment methods, the authorities declared the statute of Merchant Discount Rate (MDR) fees on trades done via UPI and RuPay payment manners.
- Moreover, NPCI is likely to collaborate with all the income tax division of India to allow tax obligations using UPI. These initiatives are anticipated to grow the adoption of payment gateways in India.
The India Payment Gateway marketplace is reasonably aggressive in character. The firms working in the marketplace are implementing mergers and acquisitions, strategic partnerships to acquire market share. Important players include Paytm, PayPal India Private Limited, CCAvenue, Amongst Others. Some recent improvements include:
- April 2020 – Paytm Payments Bank partnered with Mastercard to dilemma physical and virtual debit cards. The deal will see the Paytm Payments Bank beta clients issued with cards within a first rollout, followed with its user base in short sequence.
- February 2020 – Whatsapp is likely to establish its own payment gateway Whatsapp Purchase India in a phased manner since the firm has acquired a nod in the National Payments Corporation of India as well. The rollout will permit the messaging program to cultivate its own payment solutions utilizing the authorities UPI scheme.
Key Topics Covered
1.1 Market Definition & Scope
1.2 Research Assumptions
two RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Review
4.2 Business Value Chain Evaluation
4.3 Industry Attractiveness – Porter’s Five Forces Analysis
4.4 PESTEL Analysis
4.5 Market Drivers
4.5.1 Increasing Volume of E-Commerce Transactions from the Nation
4.5.2 Evolving Market Landscape to Pave Way for Entry of New Vendors and the Continuing Technological Advancements (Especially Focused on Safety ) into Additional Assist Penetration of Digital Transactions
4.6 Market Challenges
4.7 Evolution of Payment Gateway Landscape in India
4.8 Essential Government Initiatives and Profession Standards (elimination of MDR & Higher Tax on Money Transactions)
5 INDIA PAYMENTS LANDSCAPE ANALYSIS
6 MARKET SEGMENTATION
6.1 By Organization Size
6.1.1 Small & Medium
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.3 Razorpay Software Private Limited
7.1.4 PayPal India Private Limited
7.1.7 Instamojo Technologies Private Limited
7.1.8 One MobiKwik Systems Private Limited
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
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