JCB identifies India as a key market for European merchants to propel digital payments
By Leandra Monteiro
JCB International the international operations subsidiary of JCB has identified a significant opportunity for European merchants and acquirers to tap into the rapidly growing Indian payments market, with JCB’s data showing a 70% growth in Cardmembers between Q4 of 2021 and Q2 of 2022.
Projected to have the third-largest number of high-income households by 2030, the region is set to contribute $1.8 trillion to global consumption growth.
Traditionally a “cash-first” society, there has been a significant shift towards digital and card payments as part of a “less-cash” movement in recent years. This has been accelerated by government initiatives such as Digital India introduced with the specific aim to transform India into a digitally empowered society and knowledge economy.
The National Payment Corporation of India (NPCI), set up by the Reserve Bank of India and Indian Banks’ Association, has been a major factor in enabling widespread digital payments in the region. Reinvesting profits into growing India’s payment ecosystem, the umbrella organisation operates retail and settlement payment systems throughout India and has a comprehensive services portfolio that makes them a central figure in the market.
Spending is increasingly taking place online with Indians willing to spend abroad from their home – especially with recognised brands and in frictionless and secure e-commerce environments. Access to reliable internet and low-cost data makes it easier to go online at a time when traditional shopping methods have been more difficult amidst pandemic restrictions. The e-commerce sector alone is expected to grow by 96% between 2021-2025 and be worth $200 billion by 2026. 43% of international transactions from JCB Cards came from e-commerce spending.
Ray Shinzawa, Managing Director, JCB International (Europe) Ltd commented, “The Indian market is growing at a rapid rate and boasts one of the world’s fastest-growing economies. This is providing opportunities for merchants and acquirers outside of South Asia to grow their presence in the region and unlock the potential it, and its population of over 1.4 billion people, has to offer. JCB’s place in the payment ecosystem means we are well-positioned to help our European merchants and acquirers navigate and make their mark in this vast region” he continued.
Satoru Mori, Managing Director, JCB Card International (SouthAsia) Private Ltd said, “There is a real opportunity for European merchants and acquirers to have success in the Indian market. The region is putting significant time and resources into embracing a digital outlook and this benefits modern payment methods. Meanwhile, the population itself is willing to spend as we emerge out of the pandemic. It is all about providing a painless and secure process that will allow individuals to trust you with their disposable income.”
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