According to Nitin Gupta, co-founder & CEO, PayU India, which owns PayUMoney, an online payments solution) the market has been growing at a compound annual growth rate (CAGR) of 10% since 2010 and its size is pegged at almost USD 1,407 at present. He further states that online payment companies have been investing heavily on technology upgradation.
Findings indicate that nearly 80% of the online transactions are done through computers or laptops. However, the share of transactions done through handheld devices like mobile phones and tablets is growing fast and is expected to reach 30% by 2020.
Citing data from the Internet & Mobile Association of India (IAMAI), CEO of PayU India mentions that online travel booking constitutes nearly 60% of total transactions, followed by financial services (23%) and e-tailing (12%).
Results from a National Payments Corporation of India (NPCL) research point to nearly 800 million online payments that were made in 2013 through the digital mode. Of this, net banking transactions comprised 44%, followed by debit card (32%) and credit card payments (21%).
The threat of cyber fraud still exists, as a survey done by Kaspersky Lab shows, with 49% of internet users worldwide feeling vulnerable while shopping online or making online payments and while 42% said they would utilise the online payment system more often if they had better protection against cyber fraud.
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