According to a report by the Internet and Mobile Association of India, Payments Council of India and IMRB, the digital payment industry is expected to grow at the rate of 40 per cent to reach Rs 1.2 billion by the end of 2014.
As per the findings of the report, there has been an annual growth of 10 per cent between 2010 and December 2013 in payments made through digital medium. The modes used for making such payments include credit and debit cards, payments through net banking and payments using mobile wallet, prepaid cash cards and immediate payment systems over the internet excluding remittances.
Further, out of the total 800 million online transactions in 2013, about 53 per cent were carried out through credit and debit cards. The volume of online payments through credit and debit cards stood at 21 per cent and 32 per cent, respectively. The findings of the report indicate that online travel, financial services and e-tailing were the key drivers of digital payment.
The online travel industry, which include air and train ticket bookings, hotel accommodations and tour packages, contributed about 60 per cent of digital payments in 2013 followed by financial services (comprising online mobile recharge and direct to home service, online tax filing, payment of insurance premiums, gas and electricity bills) and e-tailing.
Digital downloads (including downloads of e-books, music and movies) contributed four per cent, while payments for jobs portals, real estate and matrimonials accounted for two per cent of the total digital payments in 2013.
