ReportWire

Tag: Amazon Pay

  • Alternative payments drive 58% of e-commerce: Report

    Alternative payments drive 58% of e-commerce: Report

    [ad_1]

    The e-commerce sector is witnessing a growth in the use of alternative payment methods, which accounted for nearly 58 per cent in 2023, according to a report by data and analytics company GlobalData. Mobile and digital wallets have eclipsed traditional payment modes, according to the report.

    Use of cash has fallen significantly, with an increase in preference for Amazon Pay, Google Pay and card payments, among other alternative options.

    Demonetisation effect

    “Alternative payments have gained huge traction in India since the demonetisation in 2016. The Covid-19 pandemic has accelerated this trend as both consumers and merchants preferred digital payments to avoid exposing themselves to disease vectors such as cash. The growing popularity of alternative payment brands among consumers and merchants also supported this trend,” said Ravi Sharma, Lead Banking and Payments Analyst at GlobalData.

    According to GlobalData’s 2023 Financial Services Consumer Survey, alternative payment solutions have consistently gained popularity in the last five years

    Payment cards are the second most popular e-commerce payment method in India, with a share of 25.7 per cent, with credit and charge being the preferred card types, accounting for 15.4 per cent in 2023. Cash, which is widely used for in-store payments in India, accounts for only 6.2 per cent share in online purchases.

    E-commerce growth

    The growth of India’s e-commerce market is supported by rising internet and smartphone penetration.

    India’s e-commerce market is projected to see a compound annual growth rate (CAGR) of 20.9 per cent, from $147.5 billion in 2024 to $315.5 billion in 2028. As per the Telecom Regulatory Authority of India, there were 881.3 million internet subscribers, up from 865.9 million in December 2022.

    According to e-commerce retailer Flipkart, the online shopper base in India is anticipated to increase to 400–450 million by 2027. In 2019, the company launched an initiative called Flipkart Samarth Programme to help small and medium enterprises sell their products online. As of December 2023, the programme has spread to 28 states across the country.

    “The uptrend in e-commerce sales in India is likely to continue over the next few years supported by the growing consumer preference, improving payment infrastructure, and growing popularity of alternative payment solutions,” Sharma added.

    [ad_2]

    Source link

  • PhonePe’s operating revenue jumps more than double in FY22

    PhonePe’s operating revenue jumps more than double in FY22

    [ad_1]

    Walmart-owned fintech platform PhonePe has said its core losses, excluding ESOP-related costs, have narrowed because of the strong growth across all its businesses. As per its filing, its consolidated operating revenue has more than doubled (2.3X), growing by 138 per cent to Rs 1,646 crore during the year ended March 31, 2022, from Rs 690 crore in the previous year. “The increase in revenue is primarily driven by the robust growth PhonePe has seen across all its lines of businesses,” the filing stated. 

    The Bengaluru-based fintech’s, which competes with Paytm, Google Pay, and Amazon Pay, EBITDA or earnings before interest, taxes, depreciation, and amortisation, without accounting for ESOP (Employee Stock Ownership Plan) costs, narrowed 15 per cent to Rs 671 crore during the year. 
    The company had last reported a net loss of Rs 1,727.87 crore in FY 2021, as per its latest available financial statements that it filed with the Registrar of Companies.  
    However, the Bengaluru-based startup’s expenses also jumped over the last year. To promote its insurance distribution business, PhonePe had floated a marketing campaign during the ICC Cricket World Cup in 2021 and IPL in 2022. This led to hike in costs, the company said.
    Its employee costs also increased slightly on new hires as it added more product lines, including wealth services. 
    “The marketing expenses, which form a major chunk of the company’s costs, grew about 62 per cent to Rs 866 crore during the year. The increase is largely attributable to the marketing campaign for its new Insurance distribution business during the ICC Cricket World Cup in 2021, and again during IPL in 2022,” the PhonePe statement said. 
    The employee cost rose by 41 per cent to Rs 555 crore in FY 2022.
    The fintech giant is one of the leading UPI payment platforms in the country. In 2020, it was divested from Flipkart. At present, Flipkart is still the largest shareholder in PhonePe.

    [ad_2]

    Source link