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The standard of payment gateway in India adapts quickly with fast growth of E-commerce

Tuesday, 31 Aug, 2021

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Indian e-commerce witnesses an extraordinary development that leads to huge possibilities for new startups and foreign companies to invest. Accompanying that, the local Government has also imposed some new regulations in the payment industry which require payment gateway in india to meet. You can find that PayCEC is the best payment gateway in India which can help your business scale up domestically and globally.

Online payment gateway in india - PayCEC

Online payment gateway in india - PayCEC

1. Overview of India E-commerce market

1.1. Great performances and predicted number in 2024 - 2025

Indian e-commerce has been on the rise, it is predicted to overtake the US e-commerce market by 2034. Indian e-commerce will increase at a 27 % CAGR from US$30 billion in 2019 to US$99 billion in 2024. Groceries and fashion/apparel are set to be the main drivers of incremental development. According to Forrester Research, e-commerce sales in India are expected to increase by 7-8 % in 2020. The Indian online grocery market is expected to grow to US$ 18.2 billion in 2024.

The Indian e-commerce market has grown as more Indians have begun to shop online rather than going outside their homes. From October 15 to November 15, 2020, India's e-commerce festive sale season generated gross sales of Rs. 58,000 crore (US$ 8.3 billion), up 65 % from Rs. 35,000 crore (US$ 5 billion) last year.

1.2. High mobile usage volume benefits personal care, beauty and wellness segments

According to a report by Bain & Company, India's social commerce gross merchandise value (GMV) in 2020 will be US$ 2 billion. With growing mobile usage, it is estimated to reach US$ 20 billion by 2025, and US$ 70 billion by 2030. In the fourth quarter of 2020, India's e-commerce order volume climbed by 36%, with the personal care, beauty, and wellness (PCB&W) market benefiting the most.

The e-commerce business is seeing massive investments from global players, like Facebook, which is investing in Reliance Jio. Google also announced its first investment in Jio Platforms, valued at $4.5 billion. This was followed by Reliance Retail's acquisition of Future Group, extending the Ambani Group's foothold in the e-commerce industry.

1.3. “Digital India” programme & the booming in number of India internet users

Increased internet and smartphone adoption have fueled most of the industry's expansion. The ‘Digital India' program is expected to expand the number of internet connections to 776.45 million by September 2020. 61 % of all internet connections were made in metropolitan areas, with 97 % of those connections being wireless. By 2024, online retail penetration is predicted to reach 10.7%, up from 4.7 % in 2019.

Furthermore, by 2025, India's internet buyers are estimated to number 220 million. As a survey released by IAMAI and Kantar Research, India's internet users are predicted to reach 900 million by 2025. The figure is projected to rise from 622 million in 2020, with a CAGR of 45 % between 2020 and 2025.

1.4. Xiaomi and Samsung play as key roles in smartphone market

In the first quarter of 2021, smartphone shipments in India surged by 23% YoY to 38 million units. Because new product launches and demand have been postponed from 2020. With 26% of the Indian smartphone market, Xiaomi was first, followed by Samsung (20 % ). The trend has triggered a growing demand for payment gateway in India for mobile devices.

1.5. The Government of India's current policies and regulatory frameworks

The government of India's policies and regulatory frameworks are projected to boost the sector's growth. The frameworks include 100 % FDI in B2B E-commerce and 100 % FDI through the marketplace model of B2C and others. As per the new FDI policy, online entities through foreign investment cannot offer the products which are sold by retailers in which they hold equity stake.

In June 2021, the Government e-Marketplace portal served 6.87 million orders worth Rs.116,291 (US$ 15.67 billion). There were 2.0 million registered sellers and service providers for 52,651 government buyers.

(Source: Indian E-Commerce Industry Report (May, 2021))

2. Some growing sectors in India E-commerce

With a share of 48 %, electronics is the most popular online shopping category, followed by clothes with a rate of 29 %.

E-Commerce has made it easier for major American businesses to access the Indian market. It has emerged as one of the fastest-growing trade channels for international goods and service transactions.

Due to rising income levels and improved awareness, there is a growing hunger for international brands and higher-quality foreign products. Lifestyle products, consumer electronics, apparel, footwear, jewelry and accessories, health and beauty, household goods are doing well online. Moreover, art and collectibles, event tickets, and online music are just a few of the categories.

eCommerce in India can be broadly categorized as: domestic and cross-border, B2B and B2C, marketplace and inventory based.

Digital payments, hyper-local logistics, analytics-driven customer engagement, and digital ads have all helped India's eCommerce grow at a faster rate. Regarding digital payments, it is crucial to implement an online payment gateway in India for online merchants to enhance customer engagement and improve buying back.

Some growing sectors in India E-commerce

Some growing sectors in India E-commerce

3. Online payment landscape in India

3.1 Cashless payment is on the raise

Cash payment was shortly replaced by Card payment. For eCommerce businesses, cash transactions resulted in significant administration expenses, reducing profits; however, digital payment solutions are rapidly expanding to overcome these issues.

According to the Reserve Bank of India, Indians had 944 million debit/credit cards available for online payment in June 2018. As for e-commerce businesses, 61% of customers pay with debit/credit cards. This shows that individuals are becoming more comfortable with using payment cards via online payment gateway in India for purposes other than ATM withdrawals, and many online shops now require debit/credit card payment for high-value transactions, which will help e-tailers expand their revenue.

Cashless payment via online payment gateway in India

Cashless payment via online payment gateway in India

3.2. Digital payments will change the game

Digital payments, according to industry experts, will be a game changer for the domestic e-commerce market. The existing trend of cash-on-delivery domination will be reversed in the next five years.

According to a Google India and BCG analysis, digital spending via online payment gateway service providers in India is predicted to reach $100 million by 2020 due to growth in purchasing by women and new internet users from smaller cities.

The Reserve Bank of India's announcement of a Unified Payments Interface (UPI) is predicted to be a game changer. Even COD transactions will be possible with the UPI because it will allow eCommerce delivery employees to receive money electronically.

Digital payments with payment gateway service providers in India

Digital payments with payment gateway service providers in India

(Source: Privacy Shield framework - India Country Commercial Guide )

4. Regulations for payment gateway providers in India

4.1. Tokenization

Tokenization, which aims at improving the safety and security of the payment gateway in India, refers to replacement of actual card details with a unique alternate code called the token, which shall be unique for a combination of card, token requestor, and identified device. This is the mandatory feature that payment gateway service providers in India have to meet that standard.

Instead of using the actual card details, this token is used to perform card transactions in contactless mode at point of sale terminals and also at online payment gateway in India like virtual POS.

The Reserve Bank’s guidelines for online payment gateway service providers in India and payment aggregators, introduced in March 2020, barred merchants from storing “customer card and related data" on their servers. The guidelines also barred payment aggregators from storing card credentials of customers on their databases or on servers accessed by the merchant. Payment gateway in India has become more secure thanks to the new compliance rules that require all payment gateway providers in India to meet.

4.2. PCI DSS Compliance

Apart from Tokenization, all online payment gateways in India need to comply with international regulations when it comes to payment service. PCI DSS (Payment Card Industry Data Security Standard) is one of the most important features in the payment system. Although the providers are payment gateway providers in India or located in another country, they still have to implement PCI DSS compliance rules in their services.

4.3. 3D Secure - SCA (Strong Customer Authentication)

The Strong Customer Authentication regulation requires online payment gateway in India use 3D Secure for debit/credit card payments. 3D Secure is optional in other regions but can still be used as a tool to reduce fraud. As a result, to enhance the confidence of shoppers and merchants in e-commerce, payment gateway in India must adapt with the security requirement.

5. Best online payment gateway in India

There are various best online payment gateway in India for online enterprises to choose. It depends on the type of business model that online merchants may select local payment gateway providers in India or international ones to not only support the local market but also for global e-commerce.

Introducing PayCEC - The best payment gateway in India

PayCEC is one of the best payment gateway in India due to its full security features. While local payment gateway in India may only focus on the domestic market, PayCEC acts as an international payment gateway service provider in India market and regional, cross-border markets.

Payment gateway charges in India

Fees and charges vary from time to time and depend on the different online payment gateway service providers in India. At PayCEC, we treat clients fairly no matter where their locations are. Payment gateway charges in India will apply the same as our international clients with a cost effective package. You can refer to the following link for more details.

Check the latest PayCEC Payment gateway charges in India!

PayCEC - The best online payment gateway in India

PayCEC - The best online payment gateway in India

Multi currency support

Why do we confidently believe that PayCEC is the best online payment gateway in India? It is because of the ability of the multi-currency process. PayCEC is a payment gateway service provider in India that enables online merchants in India accept online debit/credit card payments from main issuers namely Visa, Mastercard, American Express …

Discover more features that benefits your business in India

PayCEC is more than just a payment gateway in India, we look toward the global e-commerce and aspire to facilitate the international e-commerce becoming more lively and hustle.

Find out more about the best features!

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About PayCEC

PayCEC international payment gateway was established in response to the growing need of businesses to accept online payments more quickly and easily. In the digital era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.

PayCEC international payment gateway is a truly global payments platform that not only allows customers to get paid instantly and securely, but also withdraws funds to their business accounts in various currencies.

We have created an open and secure payments ecosystem that entrepreneurs and businesses choose to securely transact with each other online and on any device. We proudly maintain the highest level of client advocacy in the industry.

PayCEC Team

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We are honored to serve as your reliable business partner and financial service provider in the industry and other business-related services. With the help of our professional staff, to help merchants to achieve their goals for the development and expansion of the international business market.

Our payment flow has developed in the e-commerce world to perform seamlessly and effectively across all platforms and devices. We take pleasure in combining technology with customer service, to solve your concerns at the moment.

PayCEC is a fully worldwide payment network that not only allows merchants to be paid immediately and securely, but also allows them to withdraw money in multiple currencies to their company accounts.