Smartphone Penetration is on rise in India Elevating M commerce Payments Sector: Ken Research
Posted on 23 January 2017 by KenResearch Banking Financial Services and Insurance,
Ken Research declared the recent publication on “Consumer payments country snapshot: India 2016,” which offers insights on the consumer payments market in India, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless. Further it includes the shrewd examination of the main regulatory players in the Indian market and analyzes the consumer attitudes to financial services by life stage and the major payment card types in terms of both card holding and usage. Moreover, publication identifies the major competitors in card issuing and how their positions in the market have evolved over the last five years. This publication helps in exploring the online payment market in India by merchant type and payment tool, as well as providing a five-year forecast for the development of the market.
India will remain the fastest growing G20 economy. Private consumption will be supported by the increase in public wages and pensions and by higher agricultural production, on the back of a return to regular rain fall. Private investment will revive gradually as excess capacity in some sector decreases, infrastructure projects mature, corporate deleverage, banks empty their loan portfolios, and also the Goods and Service Tax (GST) is implemented.
Despite commendable fiscal consolidation efforts at the central government level, the combined debt of states and central government remains more as compared with other emerging economies. Inflation expectations are adjusting down at a slow pace. Overall there is little space for accommodative policies, although some monetary impulse is still to come, as recent cuts in policy rates are yet to be reflected fully in lower lending rates. Reforming public banks’ balance sheets and improving their governance would support the comeback in investment. Creating more and better jobs will require policies to enhance the ease of doing business further, in specific faster and more predictable land acquisition, and upgrading social and physical infrastructure.
Despite the high public deficit compared with other emerging economies, there is space to make public finance more growth-friendly and inclusive. The ongoing landmark GST and subsidy reforms are promising. The government plan to cut the corporate income tax rate while broadening the base. More revenue could be raised from the personal income tax, and its redistributive impact developed, to finance higher spending on health, education, housing, transport and water infrastructure and make growth more inclusive.
India is the second largest consumer market globally; India being a cash-driven economy. However, digital payments will see growth in the Indian market. The key opportunity is the digitization of payments only if they are as easy to access, convenient, and secure as cash then they will contribute to the growth of financial inclusion in the country. The driving factors in such process will be the expansion of Smartphone penetration, enhancing access to the internet, and the development of a digital payments infrastructure.
As the move to non-cash payments accelerates, cards will be used more frequently by Indian consumers. Providers should increasingly promote card adoption and use through merchant partnerships, reward programs, and benefits on day-to-day spending as well as educating consumers about the advantages of using payment cards over cash.
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Ankur Gupta, Head Marketing & Communications