GlobalData’s E-Commerce Analytics has shown that the ecommerce sales in India are forecasted to rise at a compound annual growth rate (CAGR) of 18.2% between 2021 and 2025, to reach USD 120.1 billion in 2025.
According to GlobalData, ecommerce payments in India grew by 12.2% in 2020 and is estimated to register a growth of 16.8% to reach USD 61.5 billion in 2021.
Over the past one year, despite a decline in consumer spending, economic slowdown, and uncertainty caused by COVID-19, ecommerce sales continued to surge. Ecommerce retailers Flipkart, Amazon, and BigBasket have seen an increase in orders each month since the outbreak of the virus.
To support non-cash payments, ecommerce companies are offering multiple digital payment options. For instance, in June 2021, Flipkart introduced quick response (QR) code-based payment for pay-on-delivery shipments, enabling consumers to switch from cash on delivery to UPI-enabled digital payment.
Buy Now, Pay Later solutions are also gaining popularity in India amid COVID-19. In April 2020, Amazon launched Amazon Pay Later, enabling consumers to purchase in three to 12 monthly installments. A growing number of companies such as LazyPay, Simpl, and ePayLater are also offering similar payment services. ThePaypers