The e-commerce market in India continues to expand. According to The Economic Times, Goldman Sachs said the market could rise above $100 billion soon. Experts attribute the success of e-commerce in the country to the accelerated penetration of smartphones and other Internet-connected devices. People in India are quickly adopting new technology.
Many electronics and tech companies have invested significantly in the Indian market, according to The Economic Times. These investments will drive even more online electronic payments in the future. Bharti Airtel, a telecommunications company, launched 4G service in hundreds of cities, and Reliance Jio Infocomm, a mobile telephone company, will launch a similar service in the fourth quarter of 2015.
Foxconn Technology Group, a Taiwanese electronics maker, plans to invest $1 billion each year for the next 5 years, and Uber said it wants to invest $1 billion over a period of six to nine months in India industry.
The Economic Times reported The Reserve Bank of India issued 11 payment bank licenses, allowing more banks to operate in the country that can handle the growing e-commerce demands. These licenses should increase the number of electronic payments made in the immediate future.
"In the next few years, India will be the second-biggest market for us [after the US] – there is no doubt," Diego Piacentini, senior vice president for international business at Amazon, told The Economic Times.
Big Indian e-commerce players duke it out
Devin Wenig, eBay president and CEO, told Multichannel Merchant a portion of his company's global growth can be attributed to India. Indian consumers utilize the website more, and a portion of them use eBay for their shopping.
"We've got a great business in India that continues to grow very nicely," Wenig told Multichannel Merchant. "We feel like we're investing appropriate amounts to grow the eBay brand, the buyer acquisition has been strong, the GMV growth has been strong, and we're going to keep watching it and keep investing in it to grow our organic eBay platform."
Wenig said to Multichannel Merchant there is a significant amount of hype around the Indian e-commerce market, but a lot of actual data is behind the excitement. He went on to say that it's an interesting market and there will be many emerging players within it. Wenig said that his company will be one of the leaders. Competition, however, is tough. eBay currently battles with e-commerce marketplaces Snapdeal and Flipkart for the top spot.
According to Multichannel Merchant, Snapdeal and Flipkart each held a special shopping day in October and both companies produced record sales. Snapdeal reported customers placed 65 orders per minute during their Electronics Monday Sale on Oct. 12.
Brought to you by PacNet Services, your one-stop global payment processing solution.