Why you should accept cross-border payments in India
With India’s booming digital commerce sector poised for 35% growth over the next four years, international businesses should have efficient cross-border payment methods to thrive in this promising market.
João Paulo NotiniOctober 11, 2023
In an increasingly interconnected market, global brands should constantly seek new opportunities for expansion and growth. One such opportunity that has gained significant traction in recent years is the prospect of tapping into India’s thriving digital commerce ecosystem.
As the world’s most populous country and a rapidly evolving economic powerhouse, India presents a promising market for international businesses willing to sell there. To do so, global brands should bet on the most efficient cross-border payment methods available there so that local clients can purchase their goods and/or services while funds are received abroad.
Get ready to explore the gigantic Indian market and learn more about the crucial role of cross-border payments in India.
The Indian Digital Commerce’s Landscape
According to Beyond Borders study (Indian edition), India’s digital commerce sector is on a rapid trajectory, poised to achieve 35% growth over the next four years, projected to surpass the milestone of USD 200 billion in volume by 2027. This extraordinary growth positions India as one of the planet’s fastest-growing markets, with future opportunities.
- Projected GDP Growth: India is soon to become the third largest economy in the world, with a projected GDP growth of 6% for 2023, an impressive number considering the global impact of the pandemic.
- Online Shopping Powerhouse: India is the second largest online shopping market globally, with 350 million people contributing to a USD 148 billion digital commerce market. It’s also the fastest-growing region in the world for digital buyers.
- Internet Subscribers: India boasts over 800 million internet subscribers, highlighting the immense potential of the digital market.
- Unified Payments Interface (UPI): UPI is the most popular payment method in the country, offering real-time transactions through QR codes, mobile numbers, and virtual IDs. It transformed a cash-based economy into a digital payments powerhouse.
The Crucial Role of Real-Time Payments in India
In the context of cross-border payments, real-time payments have become a game-changer in India. UPI, or Unified Payments Interface, enables instantaneous money transfers, making it a preferred method for consumers and businesses.
When global brands incorporate real-time payments as a cross-border payment method, they provide Indian customers with a seamless and efficient purchasing experience. This means that cross-border transactions can occur swiftly and securely, aligning with the expectations of today’s international business landscape.
Leveraging WhatsApp Payments
WhatsApp Payments are another emerging trend in India’s digital payment ecosystem that can be seamlessly integrated into cross-border payment solutions.
With a significant user base in the country, integrating WhatsApp Payments can further enhance accessibility for Indian customers, making cross-border transactions more convenient and user-friendly.
Reducing Dependency on Cash
One of the critical objectives of cross-border payments is to reduce the dependency on cash transactions, both in India and internationally.
Cash payments have traditionally dominated India’s consumer landscape. However, the trend is shifting rapidly with the government’s push for digitalization and the convenience of digital payments.
By offering cross-border digital payment solutions, international companies can play a pivotal role in accelerating this transition within India and in their international transactions.
In essence, when integrated with real-time payment methods like UPI and other digital solutions, cross-border payments are reshaping the way global brands interact with Indian consumers and businesses.
The Benefits of Cross-Border Payments for Global Merchants
Businesses can leverage various benefits from cross-border payments, which align with the advantages of entering India’s digital commerce market:
- Cross-Border Digital Commerce Opportunities: In the context of India, cross-border payments through real-time payments, especially UPI, play a pivotal role in enabling cross-border sales and unlocking new opportunities for businesses to reach a global audience.
- Increased Control over International Transactions: Cross-border payments provide businesses with enhanced control over their international financial activities, ensuring smoother operations.
- Risk Diversification: Businesses operating in multiple markets can diversify their risks through cross-border payments, ensuring stability and adaptability in different economic landscapes.
- Expanded Customer Base: Access to cross-border payments opens doors to a more extensive and diverse customer base, facilitating international sales and expansion.
- Optimized Exchange Rates: Cross-border payments empower businesses to manage exchange rates more effectively, minimizing currency-related risks and costs.
- Access to International Financial Services: Cross-border payments provide businesses access to international financial services, facilitating financial operations in multiple countries.
Choosing a Payments Partner for Cross-Border Payments in India
In conclusion, if you are willing to expand your business into India, the focus should undoubtedly be cross-border payments. By embracing UPI and other digital payment methods in your offerings, you are poised to significantly impact India’s burgeoning digital commerce scene.
To do so, you should choose the right payment provider. This choice can be a strategic game-changer for international brands seeking to establish a strong presence and capture the essence of India’s digital commerce scene.
This partner should offer multi-currency support and prioritize security and compliance, optimize for mobile usage, ensure swift settlements, and, most importantly, provide seamless integration with UPI—the bedrock of India’s digital payment system.
Furthermore, the chosen payment partner plays a vital role in reducing the dependency on traditional cash transactions, aligning with the broader goal of fostering a digital, secure, and globally interconnected payment ecosystem.
So, who could be this trusted partner? EBANX has over a decade of experience in emerging countries and a footprint in 25 hyper-growing markets spanning three continents. By partnering with us, you can empower your Indian customers to pay in their preferred way and provide an unparalleled and seamless payment experience.
Choose EBANX and embark on your journey to offer cross-border payments and thrive in the dynamic Indian market. The time is now, and your brand can be at the forefront of this transformation.