A new study published by Worldpay, the leader in global payments, has revealed that the Indian eCommerce market will overtake the US to become the second largest in the world within 20 years, meaning the Indian market will rival China for the position of biggest eCommerce market.
As part of its Global Payments Report 2016, Worldpay examined 30 markets from around the world, including Australia, India, China, Hong Kong, Malaysia, Taiwan, South Korea, and Singapore. The report was compiled using a combination of Worldpay’s insights, along with data, external findings from Datamonitor, Euromonitor, andystats.com and secondary data from a host of other independent sources.
The 2016 study has unfolded some interestingly increasing complexity within the global payments market. It revealed that eCommerce is expected to grow exponentially and this forecasted growth will take place the world over, with India set to become one of the leading markets. Furthermore, it was stated that eCommerce levels are predicted to increase by 28% per year from now until 2020. According to Worldpay projections, India will be the world’s second largest eCommerce market by 2034, thanks to massive surges in internet penetration, a swelling millennial population and the rising uptake of mobile phones.
Around 350 million Indian citizens already readily use the internet, the research cited and that number is anticipated to reach 600 million by 2020.
Access is becoming a major driver for eCommerce in India, with another major factor helping the eCommerce growth in India is the massive uptake of mobile phones. At present, India claims the top spot in the world’s biggest consumer of mobile phones list, partially due to the fact that the price of data plans run two times cheaper than that of their Chinese counterparts, and three times cheaper than those in the United States. 4G is becoming more prevalent and affordable and India is expected to see an increase in purchases through mobile eCommerce, with Millennials leading the charge.