IANS | 19 Jun, 2024
India has witnessed the fastest jump in alternative remittance share for
e-commerce payments in the Asia-Pacific (APAC) region, from 20.4 per cent in
2018 to 58.1 per cent in 2023, a new report has said.
According to the data and analytics company GlobalData, this jump can be
attributed to the widespread usage of mobile wallets, largely driven by UPI
(Unified Payments Interface), which enables mobile payments in real time simply
by scanning QR codes.
The report highlighted that alternative payments are already popular in
countries like China and India, and are gaining traction in other APAC markets
as well.
"While most Asian markets are traditionally cash-dominated, the
adoption of alternative payment methods for both online and in-store payments
is growing across many markets in the region, outpacing the West," said
Shivani Gupta, Senior Banking and Payments Analyst at GlobalData.
"This trend is driven by the rising smartphone and Internet
accessibility, increasing convenience of electronic payments, and the
proliferation of mobile and QR code-based payment solutions," she added.
In addition, the report revealed that cash-intensive countries in the
region such as the Philippines, Malaysia, and Indonesia, are also witnessing a
similar trend.
"Alternative payment solutions account for the lion’s share in
e-commerce markets across many APAC countries, supported by rising Internet and
smartphone penetration, and growing acceptance of digital payments by
merchants," Gupta said.
She also mentioned that with the convenience, speed, and security they
offer, coupled with high expected growth in the overall e-commerce market in
the region, "these payment tools are anticipated to further gain traction
and disrupt the consumer payment space in the region."
--IANS