94 pc of Indians think digital wallets made shopping easier
The acceleration of all things digital has prompted Indians to turn to digital and contactless payments, digital wallets, digital gift cards and QR codes as the pandemic has reshaped consumer behavior.
According to a new survey from global payment service provider Blackhawk Network, “69% of respondents will buy more frequently from retailers that accept digital payments.”
India has become a forerunner in the adoption of mobile commerce compared to its global counterparts. The survey found that 54% of those surveyed will spend more money if they can use digital payment methods.
Frequent online shopping This is a trend that will not collapse in 2021, India ahead of other countries. The survey finds that 93% of Indian respondents prefer to use digital wallets on a regular basis compared to the average of 55% of their global counterparts.
94 percent of Indian shoppers said digital wallets made shopping easier and the vast majority (98 percent) shopped from an online retailer only in the past 12 months.
The pandemic has spurred the adoption of digital payments in India, and consumers are increasingly embracing innovative ways to transact using their mobile devices.
âIn addition to the widespread adoption of mobile wallets, digital gift cards, rewards and loyalty points, consumers are increasingly looking for retailers who have adopted digital and contactless payments,â said Theresa McEndree, manager Global Marketing, Blackhawk Network.
âThe pandemic has intensified the demand for digital wallets as contactless payment is seen as the new normal. India is a very liquidity-driven market, the digital payment industry is still very nascent, but rapidly evolving. The opportunities for retailers have multiplied over the past year. Consumers are drawn to retailers who offer fast, transparent and secure digital payments. As we begin to take one more step in our economic recovery, the winners will be merchants who meet the daily digital payment preferences of today’s shoppers, âshe added.
âThe pandemic has been a major catalyst for changing consumer spending and payment habits that retailers cannot afford to ignore. In terms of mobile commerce adoption, our research shows that Indians are leading the way compared to their global counterparts. The survey also shows that shoppers spend more money and have a closer connection with retailers who offer more transparent digital payment methods, regardless of which channel they shop through. permanent, âsaid Radhakrishna Venketeshwaran, vice president, head of strategic development, products and engineering, Blackhawk Network.
Main trends in India:
– The rise of e-commerce has created buying relationships with retailers that offer digital payments.
– The adoption of digital wallets, digital gift cards, QR codes and barcodes has accelerated over the past 12 months. Survey data indicates that these digital payment methods have an impact on how shoppers think about a particular brand and how likely they are to frequent that retailer. Compared to other countries, India leads in the frequent use of all digital payment methods – PayPal, digital wallets, peer-to-peer applications, and barcodes or QR codes. 85% of respondents will buy more frequently from retailers that accept digital wallets, while 91% of respondents are more likely to buy from a retailer if they accept the digital payments they use.
– QR codes make contactless payments a reality in India – Contactless payment innovations such as QR codes keep Indian businesses on the move, hands-free. QR codes, or barcodes on a mobile device, were more commonly used in grocery stores and online-only retailers. On average, the probability of scanning a QR in India is higher than in any other country. 20% of Indian respondents used a QR code or barcode for the first time during the pandemic, and 69% say they use them more frequently.
– Gift Cards Helped People Connect to Ecommerce in 2020 – The donation ecosystem in India is constantly evolving and is already experiencing a significant leap from last year. The trend around gifts has mostly shifted to digital, with nearly 59% of gift card transactions done with online-only merchants, and the rest are fueled by offline stores. Digital gift cards have also seen a huge increase in popularity as they are an easy to send and use contactless payment option. A whopping 92% of Indian respondents believe they will spend beyond the value of the gift card / redeemable points value compared to 77% of the world average. 75% of Indian respondents prefer to buy a digital gift card rather than a physical card, with 50% buying it for the sole purpose of âshopping onlineâ.
– Barriers to widespread adoption of digital payment remain – With this trend on the rise, equal attention needs to be paid to implementing an appropriate level of encryption and security in the digital payment ecosystem. While most regions rated secure payment process (47%), easy payment process (39%) or fast payment process (36%) as the top 3 important factors when making a payment, countries who consider these factors to be less important include India, the Netherlands and Australia. In India, the use of peer-to-peer payment apps is almost as common among online-only retailers (49%) as it is in grocery stores (44%) and department stores (41%). India ranked last (13%) among all countries in choosing âsecure payment processâ as the most important factor when making a payment.
– In-store purchases will rebound – Despite the rise of e-commerce during the pandemic, in-store shopping will rebound globally as consumers missed the in-store shopping experience. 33% of Indian shoppers surveyed rate the ability to see and touch items in store before making a purchase critical. Four in ten respondents believe they will shop online more frequently in 2021, and this goes up to six in ten in India and Brazil. Indian shoppers have increasingly adopted door-to-door deliveries since the start of the pandemic, with 23% paying online compared to 12% of those polled globally. 51 percent of Indian respondents are inclined to continue this behavior.