Digital Payment to attribute Indias e-Commerce Growth
India has 60% - 65% of unbanked population
Online utility bill payment is less than 10%
New Delhi, May 29, 2014: The Indian e-Commerce market as of December 2013 stood at INR 62,697 though only 25 million of over 231 million internet users transact online. Security still is the major issue for online transactions. According to Asit Oberoi, Sr. President & COO Yes Bank, Though security is a concern for many, it is imperative to point out that the evolving and tech savvy customer today, is more confident transacting online. The digital payments industry is witnessing a steady growth and that goes on to show the acceptance of online transaction. While global online utility bill payment hovers around 18%, in India it is around 10%.
As per IAMAI, PCI & IMRB report the digital payments industry expected to grow at a rate of 40% to reach INR 120,120 crore by December 2014.
Speaking at the 6th IAMAI National Conference on Digital Commerce, Ravi Sundarajan, Chief operating Officer Webaroo said that China is set to be the world leader in e-Commerce in the next 18 months. With over 240 million online shoppers, China is set to be the new leader in e-Commerce. In China 6% of retail sales accounts for online shopping and has been growing at an exponential rate in the last ten years and compared to that only 1% of retail sales accounts for online shopping in India. According to him, If India has to become a world leader in e-Commerce, mobile apps; sms marketing has to evolve.
Speaking about engaging internet users in online retail, Nitin Bawankule, Director e- Commerce & Online Classifieds, Google India, said, When Google started GOSF in 2012, 50% of the shoppers were first time buyers. In 2013 GOSF, 55 houses and 285 cars were sold with 40% of the shoppers being women. This clearly shows how consumers are increasing spend on through the internet, though India is way behind when compared to other countries.
In the US, there are 245 million internet users and 156 million online buyers, while China has 538 million internet users with 270 million online buyers. Closer home, Sri Lanka, with 3.2 million internet users, has 2 million online buyers and Australia, which is a similar economy to India, has 20 million internet users with 11 million online buyers. Unfortunately, India, with over 231 million internet users, has mere 25 million online buyers.
country user Buyers usa 245 156 china 538 270 Sri lanka 3.2 2 Australia 20 11 india 231 25
About IAMAI The Internet and Mobile Association of India [IAMAI] is a young and vibrant association with ambitions of representing the entire gamut of digital businesses in India. It was established in 2004 by the leading online publishers, but in the last ten years has come to effectively address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, ecommerce and mobile & digital payments among others. Ten years after its establishment, the association is still the only professional industry body representing the online and mobile VAS industry in India.
The association is registered under the Societies Act and is a recognised charity in Maharashtra. With a membership of 160 plus Indian and MNC companies, offices in Delhi, Mumbai and Bengaluru, the association is well placed to work towards charting a growth path for the digital industry in India.