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By the year 2020, nearly $500
billion (33622500 Crores) worth of transactions in India will happen digitally,
using online wallets and other digital payment systems which is 10 times the
level currently, according to the reports of Google India and The Boston
Consulting Group. The people in India traditionally prefer to save and spend in
cash, more than 1.2 billion population doesn’t have a bank account. Previous
Year nearly 78% of all consumer payments in India were made by cash whereas in
developed countries like the United States and United Kingdom only 20% to 25%
of such payments were made, the report said. But the reliance on notes and
coins in India is likely to shrink as spending habits changes and financial
services reaches more people, said the Google BCG report. It expects cash based
consumer payments to fall 40% to 45% by
2025. A keen increase in the use of mobile phones with internet connectivity
will help drive the move to digital payments, said the report.
The Nation has more than 1 billion
mobile subscribers. By the year 2020 the number of smartphone users in the country
would likely be 520 million and the number of internet users is 650 million
which is twice the number currently, according to the reports. Personal
internet banking has become more popular in the country over the past few years
along with digital payment options that allows the users to settle electricity
bills, telephone bills and even taxi bills. The next level of growth will come
when local mom and pop grocery stores start accepting digital payments, said
the report. However, there are plenty of consumers and merchants who still feel
sceptical of digital payments or find them too complicated, said the report.
