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 To see more White Papers, please go to the GlobalCollect Knowledge center: http://www.globalcollect.com/payment-service-provider/Knowledge-center/

1. India
E-commerce projected to grow 45% in 2011 – 2014 General statistics 2011
After a relatively slow start e-commerce in India has taken off in Population 1,189,172,906
2010. 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, English
more payment options. Interaction and „personal‟ contact are very
important to the Indian online shopper. Capital New Delhi
GDP per capita US$:3,500
Fast 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-commerce
Two-factor authentication for CNP mandatory
Since 2009 the RBI (Reserve Bank of India) has mandated two-factor authentication
for CNP transactions. This immediately caused an increase in decline rates. As of
2010 these are improving.
Since February 2011 also transactions via mobile or IVR are subject to two-factor
authentication. Banks have distributed tokens amongst their customers or use
SMS/text messages.
Mobile commerce
Despite the huge penetration of mobile phones, mobile commerce and mobile payments are still at a low
level. 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 policy
The 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 continues
to strengthen the cards and payments market and has helped encourage payment innovation. Although
India is still a cash-based society, there is an evident market shift to electronic payments with growing card
acceptance.
Cash still most popular - Debit cards more and more widespread
It is estimated that more than 150 million debit cards are currently in circulation with 400 million forecast by
2013, with a similar rapid growth projected for prepaid cards. From a merchant acceptance standpoint, there
are an estimated 500,000 point of sale (POS) terminals with rapid growth of acceptance locations and
diversification of acceptance locations from beyond major metropolitan cities to smaller cities and rural areas
across India. Until recently, credit cards had seen little movement but forecasts predict that 30 million credit
cards will be in circulation by 2013.

3. Repatriation
Repatriation of collected funds is limited and can only be done by entities which are authorized by the
Reserve Bank of India to do collections and have a repatriation certificate.
Taxes
The 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 ATM's.
ItzCash is India's 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 10,000
Sources
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
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