May , Chennai, India,: FSS (Financial Software and Systems), a global payments technology company, today, released a report titled – India Payment Trends 2018, that highlightskey Indian consumer payment trends in 2018 and analyzes their spending habits and patterns. FSS Payment Gateway processed 58% of India’s e-commerce transaction valueamounting to USD 32.7 Billion.
The key highlights from the report include –
- October was the busiest month with $73.19 Million transactions, 11% higher than the monthly average of USD 65.8 Million
- On average, customers spent 8% more during the festive season
- Friday is the busiest time of the week, with 27% of the total sales generated between 3.00 and 6.00 PM
- VISA has the highest market share; accounted for 47% of total transaction volume and value
- Debit cards accounted for 74.5% of the total volume, while credit cards dominated in terms of value (58.2% of the total)
- Mobile wallets, travel, transport and hotels, and E-tail are the top three merchant categories that contribute 80% to the total volume
- Over 90% of the failed transactions are due to “do not honor” and customer related issues; monthly average rate of successful transactions stood at 88.9%
Merchants recorded a huge spike in sales between October and December as compared to the rest of the year. This was propelled by the onset of the festive sales season in the country. October was the busiest month in terms of sheer volume and value of transactions processed –the volume stood at 73.2 Million transactions and value at USD 1.9 Billion during this period.
FSS Payment Trends 2018 Report: Fridays between 3.00 PM and 6.00 PM are happy shopping hours for Indian consumers
An increase in adoption of digital payments and growing consumer familiarity with digitalpaymentsis a key factorpropelling higher sales. Given debit cards were preferred by consumers, accounting for74% of total transactions(589 Million)while credit cards accountedfor less than 25% of the transactions (201Million).
Commenting on the study, Suresh Rajagopalan, President, Retail Payments, FSS said, “India’s e-commerce market is poised for major growth and online payments will cross the USD 150 Billion mark in the next five years. FSS isat the forefront of e-tail revolution, with our Payment Gateway processing over 50% of the country’se-commerce traffic in value terms. Our ability to understand emergent transaction trends combined with scalable, reliable, secure payment processing rails makes us aninvaluable partner to drive business growth.”
FSS Payment Gatewayprovides scalable secure payment rails for processing online transactions to Tier One Banks and merchants. Beyond processing transactions,the Gateway extends a rich functionality set to merchants to grow and differentiate their business. This includes new popular payment methods such as Wallets, QR Codes, bank transfers, UPI and link payments for small and medium merchants, one-click checkout,real-time fraud detection capabilities and advanced analytics offering rich insights into business performance. Benchmarked at 4,000 transactions per second, the Gateway is highly scalable to support peak transaction volumes.
The 2018 Global Payments Report provides a snapshot of the e-tail transacting landscape in India.The report draws on FSS experience in providing Payment Gateway solutions and other publicly available data. The data was compiled and analyzed using Paynalytix, FSS digital payments intelligence solution.