Contactless Payments are becoming more popular in India — Easebuzz
The payments platform VISA released today a white paper drafted with the help of a payment processor on the increase in contactless payment in India.
Transaktions F2F transactions increased by more than six times in December 2021 compared to December 2018. Contactless transactions were possible, according to the whitepaper.
Approximately 73.6 million credit cards will be in use by March 2022 in India, and there will be 918 million debit cards and 6 million terminals, according to data from the Reserve Bank of India.
After the pandemic, credit card payments recovered more slowly than contactless payments. Contactless transactions in December 2021 were 35 per cent higher than in January 2020.
As more commerce leaders are implementing technologies such as contactless payments and mobile payments solutions, the overall growth in point-of-sale systems has increased rapidly.
Image Source — economics times
Supermarkets have the highest contactless transaction volumes, according to Worldline. Almost 25% of transactions were contactless in supermarkets in January 2020, with this number increasing by 31% in January 2022.
Airline, telecommunications, utility, and insurance firms have experienced diminished growth in both credit and debit card sales.
When multiplexes were shut down in 2020, the entertainment sector plunged, but has since rebounded following the lifting of the lockdown.
The Whitepaper stated that affluent cardholders preferred contactless and cord-on-delivery payment options. Affluent customers used contactless payments for everyday essentials like fuel, food and grocery shopping, and pharmacies.
In Large metro areas, contactless payments were more widely adopted than other payment types, like food and grocery, cloud kitchen, and fuel. These segments accounted for 80% of card volume and 60% of value.
India is Increasingly Adopting Contactless Payments
Image Source — economics times
The top 10 states ranking highest in contactless transactions were Maharashtra, Karnataka, Delhi NCR, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Kerala, Haryana, and Uttar Pradesh. There has been steady growth in Delhi, Bengaluru, Hyderabad, Ahmedabad, Jaipur, and Pune.
FinTech’s like Easebuzz will help contactless payments expand beyond metro areas, while policy efforts will help increase adoption rates in the consumer economy, according to the whitepaper drafted by VISA and Worldline.
Contactless transactions will likely grow in the future due to the growing importance of fuel, apparel, and accessories, lodging, and retail goods.
