Digital Payment Industry In India Reached INR 85,800 Crore In 2013: Net Banking Still Most Favourite !

Must Read

Elon Musk Added Over $100 Billion To His Net Worth In Just 1 Year, Leaves Jeff Bezos Behind

Jeff Bezos may the world's richest person in the world but it's Elon Musk who has been...

iPhone 12 Plagued With Serious Problems: Should You Buy It, Still?

A serious problem with Apple iPhone 12, identified recently, is good enough to give a second thought...

Elon Musk Overtakes Bill Gates And Becomes the 2nd Richest Person in the World

It's been a good week for Elon Musk and his electrical vehicle business Tesla. Earlier this week,...

The massive adoption of plastic money and internet have been driving the Digital Payment Industry for last few years. In 2014, however, India is going to take down a barrier of digital payment industry’s growth rate of 40% and the industry will touch a mark of INR 120,120 Crore ( US$ 20.02 billion). Last year the industry outgrew to INR 85,800 Crore (US$ 14.3 billion), according to the latest IAMAI report titled INR 85,800 Crore Digital Money.

The internet in India has become a viable source to do many things including transactions pertaining to payments. In today’s fast moving world, people tend to transact on internet than triggering the traditional styled offline transaction. The explosive adoption of smartphone and mobile internet in India has fuelled the growth of digital payment industry  further.


In accordance to the report that is constructed by IMRB International, Payment Council of India and Internet and Mobile Association of India on Digital Payments of India, country has gained a Compound Annual Growth Rate (CAGR) of 10 percent in digital payments since 2010 till 2013 year-end.


Payments on electronic media have increased because of explosive growth in Etailing sites, online Travel sites for tickets and accommodation in hotels and resorts, financial services for paying fees, rents and other needed transactions. These transactions are now done through internet to reduce time wastage. The transition modes mainly are through card transactions, mobile wallet, cash/ cash on delivery, transfers through net banking, but do not include remittance.

2013 marked 800 million transactions in India on electronic media. While the Net banking remained the most favored mode of payment among internet users in India, the report gave a good insight on increase in plastic money, which reached to 53% of total transactions. This includes both debit and credit cards and its clearly highlights that Debit Card transactions were preferred mode of payments among people over Credit Card. The reasons, though, remain unknown but proceeding volume on Credit cards reached to 21% as compared to 32% through Debit Card.

In 2013, operative industry for travelling acquired almost 58 per cent of electronic payment industry of India. The financial services took 23% digital payment industry and the rest 19% came from electronic retailing, digital downloads that include electronic books (e-books), movies, videos, applications, music and remainder came through real estate, matrimonial sites and Job portals.

Delhi, Mumbai, Chennai, and Kolkata gathered top positions in electronic payment industry and took a share of 60 percent of the digital payment market in India. Besides metros, 25% was the market share of Ahmedabad, Pune, Bangalore, and Hyderabad in electronic payments while just 15 percent came from townships and small-scale cities.

Market for digital payments in India is poised to grow on an exponential fast pace in next few years. Out of 1.3 billion population only 213 million users were on Internet by end of last year and less than 10% of this are buying things online. Various Cash Back, Gift Coupons and zero surcharge offers on Debit/Credit Cards are fueling the trend to use plastic money. Banks are equally doing their share of contribution by emphasizing on the use of plastic money to keep the maintenance of cash records and ATMs low.


The growth in digital payment industry will be mainly garnered through e-commerce market, which was valued $16 billion in 2013 and is estimated to grow to $56 billion by 2023. This domain will keep its pace famished, because 50 percent of Indian population is working professionals and belongs to 18-35 years of age group. This directly acts as push for ecommerce market in India as 90% of online shoppers are from this age group only.


Please enter your comment!
Please enter your name here

Latest News

Backed By First-Time Shoppers, Flipkart And Amazon Dominated Festive Online Sales in India

It seems like Flipkart and Amazon squeezed the most out of the month-long festive season in India...

Amazon Gets Slapped With Penalty As GOI Prepares To Tighten The Noose On Ecommerce Players!

In a recent move, the Indian Government slapped Amazon on its wrist for not mentioning the country of origin detail for products...

Facebook’s Past Comes Back To Bite As South Korea Fines Them For 2018 Scandal

The social media behemoth Facebook Inc. (NASDAQ:FB) has once again proved they are the true arch-nemesis of modern-day user-privacy!

Amazon Future Group Dispute Deepens As Singapore Court Turns Down Future Group Plea

The dispute between Amazon and Future Retail is, apparently, far from over anything soon as the Singapore International Arbitration Centre (SIAC) has...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market. A few days back, Google...

Twitter Account Verification Is Back, But Has it Lost Its Mojo?

Twitterati queue up! As the Twitter account verification process which is responsible for awarding blue badges prepares to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This