Japan-based international payments brand and credit card issuer, JCB, has flagged the Indian payments market as a key growth opportunity for European merchants and acquirers.
According to its own data, India recorded a 70 per cent growth in card users between Q4 2021 and Q2 2022 and the region is expected to contribute $1.8 trillion to global consumption growth by 2030.
Figures also showed that Indian consumers picked up their spending in the wake of the COVID-19 pandemic on things including fresh produce, health and wellness goods, vehicles and travel, as optimism regarding a return to normal and pre-COVID tourism levels grew.
Outbound tourism is set to exceed $42 billion by 2024 and the number of daily fliers will overtake pre-pandemic numbers by early 2023, with London, Paris, Dubai, Toronto and Amsterdam touted as the most popular international destinations.
India’s e-commerce sector is also forecasted to grow by 96 per cent between 2021 and 2025 to be worth $200 billion by 2026.
“The Indian market is growing at a rapid rate and boasts one of the world’s fastest-growing economies,” Ray Shinzawa, Managing Director at JCB International (Europe) Ltd., said.
“This is providing opportunities for merchants and acquirers outside of South Asia to grow their presence in the region and unlock the potential it, and its population of over 1.4 billion people, has to offer.
“JCB’s place in the payment ecosystem means we are well-positioned to help our European merchants and acquirers navigate and make their mark in this vast region.”
The growth in India’s payments markets comes as it has generally been considered a “cash-first” society but has recently enjoyed a large pivot towards digital and card payments as part of a “less-cash movement” accelerated by federal initiatives such as Digital India and the National Payment Corporation of India (NPCI).
Established by the Reserve Bank of India and Indian Banks’ Association, the NPCI has had a large hand in enabling digital payments across the region.
“There is a real opportunity for European merchants and acquirers to have success in the Indian market,” Satoru Mori, Managing Director at JCB Card International (SouthAsia) Private Ltd., said.
“The region is putting significant time and resources into embracing a digital outlook and this benefits modern payment methods.
“Meanwhile, the population itself is willing to spend as we emerge out of the pandemic. It is all about providing a painless and secure process that will allow individuals to trust you with their disposable income.”