The Indian e-commerce market is growing at the rate of knots courtesy rapid digital transformation
- In 2022, there were a record-breaking 74 billion
UPItransactions, the highest in digital paymentvolumes.
- There has been a huge rise in digital payments with 9.3 billion transactions in June 2023, with a total transaction value of ₹1,475 lakh crore.
- Fintechs disbursed 10 times higher consumption loans in FY 2022-23 as compared to FY 2018-19.
India has cemented its position as a pioneer in developing and integrating digital infrastructure. Stats show that 1.3 billion individuals have enrolled in Aadhaar, which stands as the world's largest and most expansive unique digital identity program in the world. According to a research report by TransUnion CIBIL there is more. In 2022, there were a record-breaking 74 billion UPI transactions, the highest in digital payment volumes in the world.
The Indian smartphone usage for financial services has increased. Data shows that there were 28 billion app downloads in 2022 in the country which accounted for 5% of total global app downloads. One in three Indians own a smartphone – over 667 million smartphone owners in 2022 in India, as per the data. India also had 531 million net-commerce users and out of this almost half shopped online in the reported year, thus making it a sheer volume attraction for the
Digital adoption has led to an e-commerce boom
A rise in digital penetration, rise in the young population and increase in per capita income are mega trends which have accelerated the transition to digital.
Digital adoption has led to a boom in e-commerce, because India has the lowest cost per GB of mobile Internet data in the world at only ₹13, 531 million social media users. 77 million Indians shop through social media platforms with users shopping through social media platforms having gone up 36% since last year.
Active Internet users largely spend their time on a few activities- entertainment (85%), communication (77%), social media (70%), net commerce (52%) and online shopping (34%).
Simultaneously there has been a huge rise in digital payments with 9.3 billion transactions in June 2023, with a total transaction value of ₹1,475 lakh crore. What is more, 36% of digital payment users are from rural India.
Fintechs fuel consumption through personal and consumer loans
Another prominent trend is the rise of
A strong focus on personal lending has thus helped fintechs to scale faster than any other lender in this segment. Fintechs disbursed 10 times higher consumption loans in FY 2022-23 as compared to FY 2018-19. Number of fintechs has grown from 33 in 2018-19 to 70 in 2022-23.
Fintech NBFCs (non-banking financial companies) are also able to provide loans in a faster and more efficient manner due to higher digitisation, KYC check and risk checks with automated scoreboards. 57% of personal loans and 70% of consumer durable loans are processed on the same day in FY 2022-2023. Also younger borrowers are taking more loans from fintech lenders with the percentage of population taking loans from fintech lenders who are below the age of 25 going up to 52% in FY 2022-FY 2023 from 21% in FY 2018- FY 2019.
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