The Digital Payments 2020 report, jointly published by Google and Boston Consulting Group, projects that non-cash contribution in the consumer payments segment will double to 40%, timesofindia.indiatimes.com reports.
Another finding is that the smartphone explosion will make non-cash transactions exceed cash transactions by 2023. The report also notes that 81% of existing digital payment users prefer it to any other non-cash payment methods.
Half of Indias internet users will use digital payments and the top 100 million users will drive 70% of the gross merchandise value.
Online shopping, payment of utility bills and buying movie tickets have emerged as the top three user activities. The report also said 90% of Indian consumers are likely to use digital payments for both online and offline points of sale such as unorganised retail, eateries and transport.
Micro-transactions will form a substantial portion of the industry with over 50% of person-to-merchant transactions. The value of remittances and money transfer that will pass through alternative digital payment instruments will double to 30% by 2020.
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