Mobile-shopping to drive e-commerce up 84 per cent by 2024

BENGALURU:  Mobile shopping will push up India’s e-commerce sector by a whopping 84 per cent to reach $111 billion by 2024, a new report by global tech leader FIS said.  The report, which captured changing consumer behavior due to the pandemic, noted that while digital wallets and buy-now-pay-later options are taking the world by storm, legacy methods such as cash and credit cards have begun to take a backseat.

Skyrocketing digital commerce has, in fact, received a boost from the pandemic with the convergence of physical and technology channels. Mobile shopping has been estimated to grow by 24 per cent annually in India alongside a massive growth in smartphone users and access to cheap data.

The FIS report noted that digital wallets (40 per cent) followed by credit cards (15 per cent) and debit cards (15 per cent) were the most popular payment methods online in 2020.

In the future, 47 per cent of all online purchases in India are expected to be made through digital wallets. 
Cash payments have been continually declining since 2019 and will be the least used transaction method in the near future, the report added.

Buy Now, Pay Later is also the fastest growing online payment method in India. Currently only 3 per cent of the market, based on an analysis of the report, it is projected to increase to 9 per cent by 2024.