India's Digital Payment Market Set to Double by 2030, Says Kearney-Amazon Pay Report

A recent study by Kearney and Amazon Pay forecasts that India's retail digital payments market is poised to double to $7 trillion by 2030 from current levels. The report, titled 'How Urban India Pays,' highlights the increasing adoption of digital payments, suggesting a transformative shift in consumer behavior driven by online purchases.

The survey revealed that 90 percent of respondents prefer digital payments for online transactions. This strong preference is contributing to a broader acceptance of digital payments for offline purchases as well, indicating a potential long-term change in consumer habits.

Affluent consumers, in particular, are at the forefront of this trend, with the highest Degree of Digital Payment Usage (DDPU). They reportedly use various digital payment methods for 80 percent of their transactions.

"Millennials and Gen X are leading the adoption of all types of digital payment instruments," the report noted. It also highlighted that both men and women are embracing digital payments equally, with digital transactions accounting for 72 percent of their payments, reflecting significant gender parity.

The study, which surveyed over 6,000 consumers and more than 1,000 merchants across 120 cities through both online and offline methods, included a diverse representation of regions, income groups, city categories, age brackets, and genders.

India's e-commerce market has also been booming, valued at $75 billion to $80 billion in 2022, and is projected to grow at a compound annual growth rate (CAGR) of 21 percent until 2030.

The findings underscore the rapid digitization of the Indian economy and the growing reliance on digital payment methods, which are expected to play a crucial role in shaping the future of commerce in the country.