Photo of Indian woman during Holi

Fast growing e-commerce market in India

India's 1.2 billion consumers are shopping online at unprecedented rates and global merchants cannot miss this opportunity. 

India is the second largest country in terms of population and ranks to be the fastest growing e-commerce market globally. With an average growth rate of 30%, the e-commerce market is expected to reach a massive $103 billion by 2020, of which approximately 50% will account for cross-border e-commerce. Such success originates from the impressive smartphone penetration, making India the second largest smartphone market. Additionally, internet users have risen from a mere 7.5% of the population in 2010 to 33% in 2016. To gain access to this rapidly flourishing market, offering local payment methods can greatly improve cross-border e-commerce prospects. 

With the revocation of the most popular banknotes, India was launched into forceful demonetisation by the Indian government in November 2016. This had a substantial positive impact on the adoption of digital payments over the past year. The number of issued credit and debit cards has significantly increased, as well as card transactions. It’s important to note that local debit card Rupay has 38% of all debit cards, and can only be offered by local payment processing. Subsequently, in 2017 digital transactions experienced an outstanding 300% growth.

Map of India

As much as credit cards have grown, there are still 32 debit cards per credit card in the market. In that same regard, Netbanking is India’s online bank transfer payment method that is very popular and is used three times more than card payments. PayU supports Netbanking from more than 50 banks in India. With a simple login and PIN, consumers can pay with bank transfers using their local bank and PayU in India.   

E-wallets are a popular and convenient alternative payment method in India, having grown by 500% between 2014 and 2016. Citrus Wallet, powered by PayU and many other e-wallets are a simplified mode to transact online and offline. Unified Payments Interface (UPI), is a government initiated wallet that is quickly growing as a preferred payment method in India. UPI enables all bank account holders to transfer money in real-time through their mobile devices.

Credit at the Point Of Sale is an innovative payment tool for merchants and consumers, that results in increased conversion rates. LazyPay, a PayU powered credit solution in India, permits consumers to defer their payment for a set period. It ensures a fast, yet simple, payment method on day-to-day purchases. This is especially powerful for consumers making payments via a mobile device or on the go and has many of the same benefits as a one-tap payment.

As the number one e-commerce payment gateway in India, PayU has thorough knowledge of the intricate, and rapidly advancing Indian market and payment landscape. However, to take full advantage of the enormous opportunity in India, merchants must consider processing locally. Through the provision of all the most prominent traditional and alternative payment methods, PayU provides global merchants with the ability to process local payments.

Now, merchants selling digital goods and services, can process local payments in India through PayU without the need to open a local entity. Contact us to learn more! 

Payment Methods Available in India With PayU

Credit and Debit Cards 

Visa Logo
Mastercard Logo
American Express Logo
Diners Club Logo
JCB logo
Rupay logo
Visa Electron Logo
Accept payments with Maestro Cards through PayU

Alternative Payment Methods

UPI India Logo
PayU supports Netbanking with 50+ Indian Banks
Lazypay Logo