India Payment Gateway Market Size and Share Analysis www.deekpay.com

India Payment Gateway Market Analysis

As a result of increased Internet usage and growing awareness of online transactions.India Payment GatewayThe market is booming. India Payment Gateway Market size is estimated to be USD 1.21 Billion in 2024 and is projected to reach USD 2.66 Billion by 2029, growing at a CAGR of 17.161 TP3T during the forecast period (2024-2029).

integrated (as in integrated circuit)Payment Gatewayhas become one of the most critical aspects of any business in every industry. It allows the collection of money through the customer's preferred bank without compromising on sensitive data.

Consumers are changing their online payment preferences as Internet penetration increases and awareness of the convenience of online transactions grows. Accessibility has given users the confidence to shift to online transactions. This rapid adoption of online payment methods is driving the growth of the payment gateway market in India.

digital paymentAlways one of the highlights of the Government's Digital India programme, online payment platforms and services have become popular in India. After demonetisation, there has been a tremendous growth in digital transactions, which has led to the sudden emergence of payment gateway providers.

Digital payments in IndiaRising trend fuelling the payment gateway market. The Government of India is launching a number of initiatives to help expand the digital payments space, with an emphasis on moving towards a cashless economy. For instance, the Digital India initiative is a flagship programme of the Government of India with the vision of transforming India into a digital society.

According to Worldline, asset-light technology will emerge and establish merchant acquiring in the near future. Asset-light refers to the acceptance of all forms of digital payments, including cards, not at the traditional POS, but on the merchant's mobile phone. On this technology platform, merchants using mobile apps will be able to accept payments via QR codes and cards. This will further increase the adoption of digital payments across India.

While awareness and adoption of digital payments is increasing, the Government of India needs to further strengthen the digital infrastructure to ensure consistent coverage and penetration in Tier II and Tier III cities and rural areas. Small merchants need acceptance tools that are cost-effective and easy to enable. In many cases, it is difficult for small merchants to simultaneously control digital wallets,UPIand payment methods such as bank apps.

During the epidemic, small towns have been at the forefront of a resurgence in digital payments and transactions. According toNational Payments Corporation of IndiaThe volume of transactions will increase due to the outbreak of New Crown, it said. The Umbrella Organisation of Retail Payment and Settlement Systems Operators in India (UPI) said that in the post outbreak era, UPI will grow in importance in the "physical" world, combining the physical and digital spaces.

Recommended Reading:What is UPI?

India Payment Gateway Market Trends

This section covers the key market trends that experts believe are impacting the payment gateway market in India:

Growing volume of e-commerce transactions drives market growth

The growth in e-commerce transactions is increasing the adoption of various payment gateways in India. According to Brand Equity Foundation India, the Indian e-commerce industry has been on an upward growth trajectory and is expected to overtake the US to become the second largest e-commerce market in the world by 2034. The e-commerce market size is expected to reach $64 billion by 2020 and $200 billion by 2026.

Various government regulations are driving the e-commerce industry in the country. In India, B2B e-commerce is allowed 100% of FDI.According to the new guidelines for FDI in e-commerce, 100% of FDI is allowed under automated routes in e-commerce marketplace model.

As merchants and users avoid crowding in shops and community shops due to the new crown outbreak, merchants will start receiving and managing orders digitally while requesting online payments.Flipkart's PhonePe and Google Pay allow users to digitally identify community shops in the customer's location, which are open and offering services, as well as allow users to make payments through their respective apps. According to the Reserve Bank of India, retail payments in April 2020 UPI TradingThe amount is more than INR 1511 billion.

New vendors are entering the e-commerce space, which will boost the use of various payment gateways in the country.In May 2020, Reliance Industries launched the online expansion of its grocery business in 200 cities under the brand name of JioMart.JioMart offers a range of products including fruits and vegetables, dairy and bakery products, staples, snacks and branded food products, beverages as well as personal and home care.

The surge in credit card transactions and other products like UPI is also encouraging. According toReserve Bank of India's data, debit card transactions are at INR 6.8 trillion and credit card transactions at INR 7.1 trillion in 2019 and 2020, up 21% and 33% year-on-year, respectively.

Government of India's initiatives to promote market growth and regulatory standards

Reserve Bank of India March 2020 releasePayment aggregator (PA) and Payment Gateway (PG) Guidelines are extremely important to drive the development of Payment Gateways in India. In addition to protecting customer funds (as per the Reserve Bank of India's Guidelines on Electronic Payment Transactions Involving Intermediaries, 2009), the new guidelines also signify the recognition of PAs as authorised entities and give them flexibility and control over their operations and fund management.

As per the new norms of the Reserve Bank of India (RBI), no loans or interest will be allowed to be earned on the escrow account and the operations of the PA will constitute a designated payment system. Interest can be accrued on the "core component", calculated on the basis of the average daily outstanding balance, and transferred to a separate account, thereby creating a new source of income for the PA.

In addition, in order to facilitate payments through the indigenous real-time payment system, the Government has announced the exemption from payment through UPI and RuPay Merchant Discount Rate (MDR) fees for transactions conducted by payment methods.

In addition.NPCI There are also plans to work with the Indian Income Tax Department to enable the use of UPI for tax payments. All these initiatives are expected to increase the adoption of payment gateways in India.

Asset-light technology will soon emerge and build merchant acquisition, according to Worldline. Asset-light refers to the acceptance of all forms of digital payments, including cards, not at a traditional POS but on a merchant's mobile phone. On this technology platform, merchants using mobile apps will be able to accept payments via QR codes and cards. This will further increase the adoption of digital payments across India.

Overview of the Indian Payment Gateway Industry

The Indian payment gateway market is highly competitive. The market is highly concentrated due to various large and small players. The major players in the market are PayU, Paytm, Razorpay Software Private Limited, PayPal India Private Limited, CCAvenue, BillDesk, Instamojo Technologies Private Limited etc. These companies are increasing their market share by establishing multiple partnerships, investing in projects, and launching new products in the market.

In March 2022 Razorpay acquired IZealiant Technologies, a provider of innovative payment solutions for banks. The acquisition gives supporting banks an outstanding technology infrastructure that enhances the payment experience for end users. Banks are key stakeholders in the payments ecosystem. By acquiring IZealiant Technologies, both companies can build industry-first solutions for banks to create a world-class payment experience for businesses and customers. In September 2021 PayU acquired Billdesk, a payment gateway company, an acquisition that has helped PayU, the company's payments and fintech business with a presence in more than 20 markets, to become the world's leading provider of online payments by total payment volume (TPV). The combined entity will have a total of 4 billion transactions per year. PayU, a Prosus-backed fintech company, acquired Billdesk when the Indian payments space gained significant traction in 2021.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.