Professional Documents
Culture Documents
INDIA
1. Introduction
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1. Introduction
In October 2013 the Cross-border Ecommerce Community was launched (http://www.crossborder-ecommerce.com).
The co-creators and partners in this initiative believe that we are stronger collectively, when we bundle our knowledge.
We provide facts and figures on mature and emerging markets, preferred payment methods, logistics, risk and fraud,
as well as ecommerce legislation and regulation. Our community is designed to become the industrys knowledge
hub offering a deeper understanding of the various influences in ecommerce. We provide key insights that can result
in exciting initiatives and ultimately lead to international expansion for the benefit of all stakeholders within the global
dynamic of ecommerce.
More than ten thousands reports have been downloaded since the beginning of the CBEC initiative, which is indicative
of the high market interest in such comprehensive intelligence. The feedback and response we have received have
been really positive and we are happy to see that our reports have successfully addressed the market need.
We are committed to investing further effort, resources and time not only in extensive research, but also in publishing
the updated versions of the reports based upon 2013 data.
The diversity of payment methods, coupled with developing cross-border business models are considered key to
building and increasing your business. We address the markets need for more clarity and guidance by generating
valuable content on mature and developing markets which is a great asset in strategic decision making and
corresponding approaches. We share need-to-know insights, well documented research papers, industry reports
and info-graphics that highlight global opportunities creating a profitable cross-border ecommerce platform for
businesses to grow.
COUNTRY REPORT INDIA COPYRIGHT 2015 THE PAYPERS. ALL RIGHTS RESERVED
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Total Population
- 1.26 billion
- Second largest in the world, after China.
COUNTRY REPORT INDIA COPYRIGHT 2015 THE PAYPERS. ALL RIGHTS RESERVED
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Age Breakdown
- Under 13% of the population of India are over 55.
Age Breakdown in India
5.7%
7.0%
28.5%
0-14
15-24
25-54
55-64
65 and over
40.6%
18.1%
Religion
- India is largely Hindu, at 80.5% of the population.
Religions of India (%)
None (0.1%)
Other (1.8%)
Sikh (1.9%)
Christian (2.3%)
Muslim (13.4%)
Hindu (80.5%)
COUNTRY REPORT INDIA COPYRIGHT 2015 THE PAYPERS. ALL RIGHTS RESERVED
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Urban Population
- 32%
Internet Penetration
- 243 million people
- 19% penetration
- Over 90% of internet subscriptions registered by the end of 2013 were mobile connections.
Mobile Penetration
- 899 million
- 71%
Tablet Penetration
- 9.3%
Smartphone Penetration
- 10%
- The penetration rate is growing at 150% year on year.
Online Shoppers
- 25 million
Ecommerce Sales
- USD 14.9 billion (including e-retail and ecommerce).
- Average order value increased from USD 17 to USD 30 from 2012 to 2013.
Ecommerce Penetration
- 11,5%
COUNTRY REPORT INDIA COPYRIGHT 2015 THE PAYPERS. ALL RIGHTS RESERVED
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Mobile Commerce
- Analysts forecast the mobile commerce market in India to grow at a CAGR of 71% over the period 2012-2016.
- More than half (53%) of online consumers in India make mobile purchases for entertainment services, cinema,
theatre shows, DVDs, sport games.
- Mobile commerce contributes 3% of total ecommerce, approximately USD 450 million
- Mobile commerce grew 800% from 2012 to 2013.
Most Popular Mobile Purchases (% of shoppers)
E-books (40%)
Mobile OS Platforms
- Android is the preferred mobile operating system in India at 84.7%.
Preferred Mobile Operating Systems in India
0.6%
2.5%
0.5%
11.7%
Android
iOS
Blackberry RIM
Windows
Other
84.7%
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the UK (24.2%)
China (22.4%)
DHL Shop the World! Consumer attitudes towards global distance selling, 2014
The Reserve Bank of India has raised the financial limit for online transactions from USD 3.000 to USD 10.000,
giving more scope for high-end, luxury items.
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Dell had the largest value share percentage of online retail in India in 2013, accounting for 8%.
The value of goods sold by Amazon India in a year topped USD 1 billion. Fashion was one of the fastest growing
categories.
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23.8%
Visa
MasterCard
American Express
Other
68.3%
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4%
3%
3%
Credit and Debit Card
6%
Paypal
34%
6%
Cash or Cheque
Bank Transfer
Prepaid Card
6%
8%
Other
6%
ITZ Card
OxiCash
24%
DataMonitor Financial
Find out more about online payment methods in India and how to increase conversion.
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According to data from November 2014 provided by NPCI (National Payments Corporation of India), IMPS witnessed
a 22% growth between August and September 2014. There was also a 6% increase in total number of mobile money
IDs (MMID) issued during that period.
In March 2014, Mahindra Comviva, a global provider of mobility solutions, launched its mobiquity Wallet, a platform
designed to transform the banking experience. The solution is designed to be flexible and is one of the first wallet
platforms to use NFC SE and HCE, QR Code, biometrics and BLE. It enables remote and proximity payments with
support for in-app purchase, as well as mobile and web checkout.
mPOS
Although cash is still prevalent, a handful of companies started to focus on enriching the point-of-sale (POS) or the
point at which a customer makes a payment to a merchant in exchange for goods or services and, taking the high
mobile penetration in the country, mobile POS seems to be a good fix for a huge pain-point for Indian small and midsized merchants.
Besides the mobile wallet offering, Mahindra Comviva also provides a mobile POS solution, payPLUS, which enables
merchant acquirers to minimise infrastructure investments on POS systems, yet equip all of their merchant partners
with solutions that cater for the evolving demands of consumers. Enabling merchants to accept card payments by
using just their mobile phones, payPLUS allows small, medium and large enterprises alike to be equipped with a
payment acceptance system.
Mswipe launched a mobile POS solution in India in 2012 with a card reader which can be attached to any mobile
phones audio input jack. With Mswipes mobile swiper, merchants can make their mobile phones to accept card
payments. The device can be activated in three steps: it requires to be plugged into the audio jack of the phone,
launch the application and swipe. Mswipe works with about 7.000 merchants in India and Sri Lanka. Additionally, in
December 2013, the Mswipe team launched an EMV compliant mobile POS solution dubbed Wisepad. It is Bluetoothenabled and requires no physical connection to the phone. Besides enabling cash transactions, it also allows the
merchant to cancel unsettled transactions, review the last 30 transactions and check the days summary.
Ezetap Mobile Solutions was founded in 2011 and, similar to other companies already mentioned, its solution turns
merchants' mobile device into a point-of-sale that is able to read cards and complete a range of financial transactions,
including credit card sale, bill payment and ATM cash withdrawals or deposits.
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Near Field Communication (NFC) payment-related initiatives continue to be nascent in India, targeting basic
activities such as purchasing tickets for transportation or entertainment products.
NEC India, one of the companies pushing NFC in the local market, did Indias first commercial deployment on
an NFC payment solution in March 2013 with PVR Cinemas along with Blackberry.
In May 2013, Indian online fashion and lifestyle shopping portal Yebhi.com launched 30 virtual stores inside
cafs across Delhi and Bangalore by using both NFC tags and QR codes.
In 2012, Nokia India was reportedly in talks with a majority of the metro rail projects in the country to introduce a
NFC-based ticketing system for its consumers. According to mydigitalfc, Nokia partnered with the India-based
mobile payments company Paymate for NFC solutions and tied up with banks for this service.
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PayU: an international payment gateway that is currently operating in 16 countries worldwide. PayU is owned
by Naspers Group, a South Africa-based media and internet company. PayU provides merchants with online
payment acceptance. Payment methods include acceptance of all major credit/debit card (VISA, MasterCard,
American Express and Diners), locally issued Indian cards and Net Banking. PayUs value added service include
24/7 fraud monitoring team and advanced fraud prevention filters.
Payzippy: an online payment gateway service owned by Flipkart Payment Gateway Services Pvt. Ltd. of India.
Payzippy lets merchant accept payments online (web or mobile) from their customer through the following
payment method: card payments (VISA, MasterCard, Maestro and American Express) and net banking (banks
supported are: HDFC, Axis, SBI, ICICI, Indus Ind, KOTAK and YES Bank).
Find out more at the most relevant PSPs, payment gateway services and processors in India here.
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Most recent research by Aite Group shows that 41% of Indian cardholders experienced fraud in the past five
years (compared with 37% in the five years to 2012). Indeed, for prepaid cards, more people in India said they had
experienced fraud (18%) than in any of the other sixteen countries surveyed.
Interestingly, the survey also found that, of the countries studied, Indian consumers had the highest levels of confidence
in their financial institutions to protect them against fraud.
The central bank has been active in efforts to prevent payment fraud, including the adoption of PCI DSS by June 2013,
and a move towards a real-time fraud monitoring system. RBI recognized an increasing need to identify early warning
signals to capture fraud close to their occurrence.
Most of the large banks reported their readiness for migration to the use of PIN for debit card transactions at the
point of sale by June 2013. In September 2013, RBI mandated a liability shift designed for the following issue where
a cardholder uses a terminal that does not adhere to mandated standards and, instead, will be compensated for any
loss, with the responsibility lying with the acquiring bank.
Though there are now large numbers of cards in circulation, RBI has recognised that only 5% of debit cardholders
and 10% of credit cardholders use their cards abroad. In July 2013, in order to counter the potential fraudulent use of
domestically-issued cards in other countries, RBI stipulated that all new debit and credit cards were to be issued only
for domestic use, unless international use is specifically sought by the customer.
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Online merchants looking to expand in this very large market need to focus on service excellence and knowledge
of their customers. They need to be prepared for an increase in fraud over online and mobile channels and provide
additional protection for channels where 3D Secure is not available. Indeed, where possible, the combination of
3D Secure authentication with other fraud prevention techniques, which can identify and enable genuine
transactions that have failed 3DS authentication, can offer a powerful and effective weapon against fraudsters.
For more information on cross-border and domestic ecommerce fraud, mobile fraud, fraud prevention and the importance
of tailored fraud rules, visit www.aciworldwide.com.
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