mCommerce to overtake desktop sales by 2020Worldpay data shows mobile leads as the fastest growing channel in India, set to double by 2022
January 15, 2018
LONDON, January 15 2018 – India’s mCommerce market is one of the fastest growing in the world, as consumers increasingly turn to their phones to pay for goods and services. Growing at a rate of 28 percent annually, the Indian mCommerce market will more than double over the next four years, set to be worth $54.0bn in 2022, according to new data from Worldpay, Inc. (NYSE: WP; LSE: WPY), a global leader in the payments technology industry. Mobile commerce is also on track to overtake desktop sales as the online channel of choice as early as 2020 in India.
In its annual Global Payments Report, Worldpay found that India’s mCommerce growth is driven by the rise of eWallets; currently accounting for a quarter of online sales, eWallets are forecasted to make up 44 percent of the market by 2022. eWallets are also gaining popularity in-store, growing at a rate of 39 percent each year. Already familiar with using smartphones for social networking, Indian consumers are using their trusted mobile devices to pay for goods both online and offline.
Worldpay’s report, which examines online shopping in 36 countries across five continents, found that mCommerce currently accounts for 38 percent of the $1.3tn global eCommerce market, and is set to grow by a staggering 19 percent over the next four years. By 2022, the largest mCommerce markets in the world are forecasted to be China ($1.18tn), U.S. ($0.36tn), UK ($115.3bn), France ($62.3bn) and India ($54bn).
Ron Kalifa, Executive Director at Worldpay, Inc., said: “India is a mobile-first country, with the majority of digital time being spent on smartphones. As the number of mobile users increases exponentially over the next few years, so will the rise of mCommerce and eWallets for payments.
While the use of cash remains popular, it will decrease dramatically over the next four years – and merchants must prepare for the increased use of mobile instead.”
Worldpay has published guidelines for merchants to help capitalise on the global mCommerce opportunity:
- Consider developing a branded app, as the majority of shoppers prefer apps over mobile browsers when shopping on their smartphone.1 It’s no longer enough to just have a mobile-optimised website – if you’re not prioritising a transactional app for your brand, you’re not putting your best foot forward.
- Use biometrics to speed the journey. Shoppers are becoming increasingly familiar with fingerprint scanning and facial recognition, so do not shy away from using these methods as a form of authentication. Biometrics place payments at the back of the user’s mind, making the payment seem ‘invisible’.
- Identify the most popular payment methods in each territory in which you operate. There’s no one size fits all in any region so you’ll need to understand the best options for your company.
To learn more about these key insights and trends in global payments, visit https://worldpay.globalpaymentsreport.com
About the 2018 Global Payments Report
The 2018 Global Payments Report offers a snapshot of the current payment landscape across 36 countries globally. Worldpay’s Market Intelligence team compiles the Global Payment Report using a combination of authoritative third-party vendors and other publicly available data. This compiled data was analyzed using Worldpay’s proprietary data model and categorization scheme, with support from McKinsey. The report also draws upon Worldpay’s decades of experience in providing global eCommerce solutions, informed by our processing of more than 40 billion transactions annually via more than 300 payment types, across 146 countries and 126 currencies.
The projected growth figures contained in this report were sourced from GlobalData and McKinsey and relate to the industry as a whole, not Worldpay’s business. The data has been collected using consumer surveys, B2B surveys and input from local research teams. 45,000 consumers were surveyed globally.
Any indicative predictions based on the data we have used should be treated as such. No representation or warranty, expressed or implied, is made by Worldpay, Inc.3 and/or any of its affiliates, directors, officers, employees, agents or advisers as to the reliability, accuracy, timeliness or completeness of any information, opinions or analysis contained in this document, which is not intended to be relied upon by you or any person for any purpose whatsoever.
Worldpay, Inc. (NYSE: WP; LSE: WPY) is a leading payments technology company with unique capability to power global omni-commerce. With an integrated technology platform, Worldpay offers a comprehensive suite of products and services, delivered globally through a single provider. Worldpay processes over 40 billion transactions annually, supporting more than 300 payment types across 146 countries and 126 currencies. The company is focused on expanding into high-growth markets and customer segments, including global eCommerce, integrated payments and B2B. Visit us at www.worldpay.com.
1Worldpay Mobile Payment Journey 2018
2In April 2018, the Reserve Banks of India published restrictions on how payment transaction data must be held, specifically requiring that this information must not be stored outside of India for all domestic Indian transactions.