India’s Digital Payment Journey is Headed in An Exciting New Direction

Posted in Payments By Bhavesh Mehta - Jan 4,2020
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Being largely a cash-obsessed economy, India’s nascent digital payment story is exciting. Increased penetration of mobile internet backed by progressive regulatory policies has transformed the Indian payment industry. The digital revolution will provide a whole new meaning to the movement of money in the economy.

With the growth of e-commerce companies in India, digital payments picked up pace followed by the emergence of digital wallet companies. Lucrative offers and cash backs were rolled out to lure consumers to use these new payment channels. Ease of use, attractive offers and increased smartphone penetration helped digital wallet companies find their way to the consumer’s phone as well as the pocket. One of the earliest entrants to the digital space, Bajaj MarketsS, helps customers use the payment ecosystem through different means of payment instruments such as credit cards, EMI card and UPI (unified payment instrument). In a short period, the digital payments industry has evolved to an extent that you can seamlessly buy economical and trendy electronics and appliances, with your Bajaj Finserv EMI Card on Bajaj Markets.

To expand their reach, the digital wallets started encouraging customers to use them for offline point of sale (POS) transactions too, like at shopping malls, supermarkets, grocery stores, restaurants and fuel retail stations. These POS transactions are expected to become a majority contributor to the digital payments platform in the near future. It would not be wrong to say that digital wallets are playing a unique role in driving the growth of digital payments sector.

The other important pillar of the digital payment story is the online ticketing, travel and events companies like IRCTC (Railways), Makemytrip, Yatra, Ibibo, Cleartrip (Airlines and hotels), Trivago (hotels), redBus (buses), Bookmyshow (movie and event ticketing), and Bajaj Finserv EMI Store. Customers can buy the best Samsung phones, the latest iPhone models, top television sets, the newest laptops, along with a host of other items from the Bajaj Finserv EMI Store. Such portals tap into a fresh wave of consumers to transact online. The demand for services from these websites is being supported by innovative payment solutions like the Bajaj Finserv EMI Card. Besides using it to buy products from Bajaj Markets, people are also utilising the Bajaj Finserv EMI Card to buy flight tickets, movie tickets and holiday packages. What’s more, on the Bajaj Markets App, one can get their hands on special discounts and exciting deals. The Bajaj Markets App also makes the digital payments process all the more streamlined with convenient payment options, so that you can fully experience the ease of going cashless. With added perks like a personalised customer portal and round the clock assistance from the chatbot, YARA, the Bajaj Markets App will ensure you have all your needs attended to. In addition to this, you get access to a vast digital marketplace with 500+ digital and lifestyle products. You’re bound to be spoiled for choice!

So no wonder, as per projections, the digital payment industry is gaining momentum and should grow at an exponential rate. Nearly 81% of existing digital payment users prefer the medium over other non-cash payment methods like cheques or demand drafts. If we talk about the top 3 categories for digital transactions in India, it would be the online shopping, payment of utility bills (like electricity, mobile bills, water bills, etc.) and movie tickets. As stated in one of the reports by Google and Boston Consulting Group (BCG), the Indian digital payments industry is estimated to touch $500 billion by 2020, contributing 15% to the country’s GDP.

Another interesting angle to India’s digital payment story is that it is going to be dominated by micro-transactions (transactions of value lower than Rs 100). As per the Google-BCG report, 50% of person-to-merchant transactions will under Rs 100. It is important to note that alternate digital payment instruments like digital wallets, UPI, payment banks, Bharat QR are expected to grow fiercely and estimated to double their contribution to 30% in the digital payments industry.

Bajaj Markets, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Bajaj Markets, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Bajaj Markets App.

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