The integration of payment gateway has become one of the most critical aspects of any business in every industry.As I am working in the technology world from the last 3-4 years, specifically with payment gateway integration, I got numerous information about payment gateway. Let's have a look at it.
With the increasing internet penetration and awareness about the ease of online transactions, consumers are changing their preferences for making payments online. The hurdle free transactions generate confidence among the users for switching to online transactions. This rapid adoption of the online method of payment is fueling the payment gateway market growth in India.
Further, Indians mostly use their digital/mobile wallets when making e-commerce purchases. According to a study by ASSOCHAM-RNCOS, mobile wallet transactions are projected to cross INR 275 trillion by 2022 in India.
For instance, according to TRAI, the total internet subscriber in India as in September 2019 is 687.62 million, and according to the RBI, the mobile payment transaction volume increased by about USD 10 billion in 2018, owing to increasing internet penetration and smartphones in the country.Demonetization was a massive currency culling exercise taken up by the government in November 2016, which made 86% of the currency in circulation invalid. The step was taken to fight against black money, terror financing, and counterfeit currency. This was a major driving force for the adoption of different payment gateways in the country.
According to the National Payments Corporation of India, Unified Payments Interface (UPI), transactions will see a boost due to the outbreak of Covid-19. The umbrella organization for operating retail payments and settlement systems in India said that the relevance of UPI would grow in the 'phygital' world, combining the physical and digital space, in a post-COVID world.
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 an online extension of its grocery business under the JioMart brand across 200 cities. Products offered on JioMart include fruits and vegetables, dairy and baked goods, staples, snacks and branded foods, beverages, and personal and home care.
In short, The Indian Payment Gateway market is moderately competitive in nature. The companies operating in the market are executing mergers and acquisitions, strategic partnerships to gain market share.