42
Payments Regulation in Asia
cash remains the second most used POS method. As a share of total POS spending, cash declined 45 percentage points, credit and debit card increased 8%, and digital wallet increased 28% from 2017-2022, this most likely can be attributed to the proliferation of UPI facilitating card, QR-code, and account-based payments. From an ecommerce standpoint, digital wallets nearly doubled as a share of spending from 26% to 50% between 2017 and 2022 (Figure 14). This dramatic shift could prove to be a case study for the application and continued support of government intervention. The growth of UPI and other digital platforms has provided more transparency in the flow of money than previously provided by cash usage. Bank transfer declined 4% while cash-on-delivery dropped 14% between 2017-2022. The general trend of cash use declining in India could be contributing to cash-on- delivery spend dropping. Credit card use declined 5% while debit card usage remained stable. The other notable development is the emergence of Buy Now, Pay Later (BNPL) accounting for 4% of ecommerce spend. This could be attributed to BNPL platforms being a more accessible line of credit than traditional credit cards that usually require credit histories and formal collateral that may not be widespread considering India’s prior cash dependence.
60%
Account-to-account (A2A) Buy now pay later (BNPL) Cash on Delivery (CoD)
50%
40%
Credit card Debit card Digital wallet Others Prepaid card PrePay
30%
20%
10%
0%
2017 2018 2019 2020 2021 2022
Figure 14. India Ecommerce Payments Mix (2017-2022) 91
91 WorldPay-FIS Global Payments Report (2018-2023). For 2019, due to an absence of WorldPay re- porting for this period, CMSPI estimated the payment method splits by generating average growth rates of the surrounding years.
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