A research report on Indian payment industry by Google / BCG suggests that the payment industry in India will grow to $500 billion by 2020, contributing to 15% of GDP .
More than 50% of India’s internet users will use digital payments by 2020.
Top 100 million users will drive 70% digital payments GMV
Further, by 2020, non-cash contribution in the consumer payments segment will double to 40%. Already 81% of existing digital payment users prefer it to any other non-cash payment methods. Online, shopping, payment of utility bills and buying movie tickets have emerged as the three top things that a user primarily interacts with.
Further, the reports reveals that Indian consumers, are 90% as likely, to use digital payments for both online as well as offline transactions. Over 60% of digital payments value will be contributed by offline points of sale such as unorganized retail, eateries, transport etc.
The report also highlights that micro-transactions will form a substantial portion of the industry, with over 50% of person-to-merchant transactions expected to be under INR 100. The report predicts that the value of remittances and money transfer that will pass through alternate digital payment instruments will double to 30% by 2020.