Globalcollect India Country Factsheet
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Globalcollect India Country Factsheet

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E-commerce projected to grow 45% in 2011 – 2014 ...

E-commerce projected to grow 45% in 2011 – 2014
After a relatively slow start e-commerce in India has taken off in 2010. This is due to the expansion of internet penetration. More importantly trust in buying online is growing as well as growth in more payment options. Interaction and „personal‟ contact are very important to the Indian online shopper.
Fast Facts:
- E-commerce turnover 2010: 4.8 Billion USD
- Average net user visits sites 25 times/month, spends 28 minutes per visit
- Aged 15-24 are the heaviest users with an average of 17 hours a month
- Aged 25-35 shop the most online
- Online travel most popular followed by social networking, online matrimony and online gaming
- Net user spends on average 2.5 minute per e-commerce site

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Globalcollect India Country Factsheet Document Transcript

  • 1. IndiaE-commerce projected to grow 45% in 2011 – 2014 General statistics 2011After a relatively slow start e-commerce in India has taken off in Population 1,189,172,9062010. This is due to the expansion of internet penetration. More Currency Indian Rupee (INR)importantly trust in buying online is growing as well as growth in Major language Hindi, Englishmore payment options. Interaction and „personal‟ contact are veryimportant to the Indian online shopper. Capital New Delhi GDP per capita US$:3,500Fast Facts: E-commerce turnover 2010: 4.8 Billion USD Internet usage 2011 Average net user visits sites 25 times/month, spends 28 minutes per visit Users (total) 100,000,000 Aged 15-24 are the heaviest users with an average of 17 hours a month Users broadband 12,320,000 Aged 25-35 shop the most online Online travel most popular followed by social networking, online Penetration 8.3% matrimony and online gaming Mobile subscribers 851,695,668 Net user spends on average 2.5 minute per e-commerce site % Users in Asia 10.4%Break-down online consumers Mode of Payment (source: IRCTC)Online shoppers B2C e-commerce by industry
  • 2. Payment preferences Because of security concerns internet banking dominates online payments market. Prepaid cash cards are mostly used for low transaction values (videogaming and social media). Consumers however are getting more confident to buy and pay online which is the biggest accelerator for the growth of e-commerceTwo-factor authentication for CNP mandatorySince 2009 the RBI (Reserve Bank of India) has mandated two-factor authenticationfor CNP transactions. This immediately caused an increase in decline rates. As of2010 these are improving.Since February 2011 also transactions via mobile or IVR are subject to two-factorauthentication. Banks have distributed tokens amongst their customers or useSMS/text messages.Mobile commerceDespite the huge penetration of mobile phones, mobile commerce and mobile payments are still at a lowlevel. Smartphones are not widespread yet. Blackberry and Nokia are the market leaders in smart phones.Until 3G has sufficient coverage Apple devices will not reach the popularity as in the mature markets.More than 95% of the mobile subscribers are prepaid.Financial inclusion policyThe Indian regulator, the Reserve Bank of India (RBI), has also undertaken several initiatives to encourage„financial inclusion,‟ and has actively focused on promoting electronic payments. This stewardship continuesto strengthen the cards and payments market and has helped encourage payment innovation. AlthoughIndia is still a cash-based society, there is an evident market shift to electronic payments with growing cardacceptance.Cash still most popular - Debit cards more and more widespreadIt is estimated that more than 150 million debit cards are currently in circulation with 400 million forecast by2013, with a similar rapid growth projected for prepaid cards. From a merchant acceptance standpoint, thereare an estimated 500,000 point of sale (POS) terminals with rapid growth of acceptance locations anddiversification of acceptance locations from beyond major metropolitan cities to smaller cities and rural areasacross India. Until recently, credit cards had seen little movement but forecasts predict that 30 million creditcards will be in circulation by 2013.
  • 3. RepatriationRepatriation of collected funds is limited and can only be done by entities which are authorized by theReserve Bank of India to do collections and have a repatriation certificate.TaxesThe taxes on e-commerce products are on average around 10%.Payment product spotlight GlobalCollect’s Portfolio in India International cards GlobalCollect supports MasterCard, Visa Bank transfer GlobalCollect supports Local bank transfers eWallet GlobalCollect supports PayPal and Moneybookers (not in INR) Cashcard The support for cashcards is on the future’s list of GlobalCollect Netbanking The support for Netbanking is on the future’s list of GlobalCollect Mobile The support for mobile is on the future’s list of GlobalCollect PayMate is a spin-off from Coruscant Tec a sister concern with a focus on wireless content. PayMate enables wireless transactions connecting banks, switches, merchants and customers using a mobile phone. ICICI bank is one of the biggest issuers of debit cards and a large internet banking user base. Intenet (or Net) banking is done by directly debiting from the customers online account with a real-time notificiation. ICICI has 614 branches and extensions counters and over 2,200 ATMs. ItzCash is Indias first multi-purpose prepaid cash card used to perform a variety of transactions like shopping, travel booking, mobile top-ups, utility bill payment, gaming etc. The cards can be purchased at approx. 150,000 outlets and come in denominations between Rs 100 and Rs 10,000Sources IAMAI: “Digital Commerce” –||March 2011 IRCTC (Indian Railway Company): Largest e-commerce company in India || July 2011 Internet WorldStats || September 2011 Telecom Regulatory Authority of India || 8 Aug 2011 Creditcards.com ||June 2011 V2.0