Online payments overtake cash during ecommerce sales in India

Wednesday 4 October 2017 10:29 CET | News

Ecommerce and online payments companies have reported an increase in digital payments during September’s festive sales in India.

Amazon India said nearly 55% of all transactions during its flagship Great Indian Festival sale were done using online banking and debit and credit card payments. During last years edition, digital payments accounted for 42% of all transactions on the platform. At Paytm Mall, which hosted its first festive season sales in September 2017, fewer than 1% of all orders were paid for by cash on delivery. Customers instead too advantage of the company’s high cashback offers for payments made through its e-wallet.

For example, payments gateway PayU India recorded 166 transactions per second during the festive sales, a significant jump from 16 transactions per second during last years sales. On a normal day, PayU sees 3-6 transactions per second. 

Analysts estimated that online payments comprised 55-60% of all ecommerce transactions during the festive sales. Typically, payments by cash on delivery account for about 60% of all ecommerce purchases on regular days. 

Although cash on delivery provided a significant nudge to ecommerce adoption in India, it poses several challenges to ecommerce retailers, mainly due to high rejection rates, especially for fashion products. However, a growing confidence in online payments may help ecommerce expansion in India grow even more. 

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Keywords: online payments, ecommerce sales, India, online retail, PayU, Amazon India
Categories: Payments & Commerce | Ecommerce
Countries: World
This article is part of category

Payments & Commerce