Analysis of the market of cashless payments in India
The relevance of research
The Fast Payment System (FPS) is a service that allows individuals to instantly (24/7) transfer money using a mobile phone number, regardless of which bank the sender's or recipient's accounts are opened with. This requires that these banks are connected to the Faster Payments System. Access to the system is possible through the mobile application of banks connected to the SBP, both from a smartphone or tablet, and from a computer
Purpose of the study
Analysis of the state of the market for non-cash payments, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market of non-cash payments
Content
Part 1. Volume of the non-cash card payments market by Visa, Mastercard, World (by amount and quantity, with growth rates)
1.1. Market volume of payments through the System of fast payments by Visa, Mastercard, World (by amount and quantity, with growth rates)
1.2. The volume of the market for payments through Remote banking services by Visa, Mastercard, World (by amount and quantity, with growth rates)
1.3. The volume of the market of cash transactions (by amount and quantity, with growth rates)
1.4. The volume of non-cash payments through ATMs (by amount and quantity, with growth rates)
1.5. Share of intrabank transactions in the total volume (by amount and number, with growth rates)
Part 2. The volume of non-cash payments of Sberbank
2.1. The volume of the market for payments through Remote banking services by Visa, Mastercard, World (by amount and quantity, with growth rates)
2.2. The volume of the market of cash transactions (by amount and quantity, with growth rates)
2.3. The volume of non-cash payments through ATMs (by amount and quantity, with growth rates)
2.4. Share of intrabank transactions in the total volume (by amount and number, with growth rates)
Part 3. Volume of RNKB non-cash payments
3.1. The volume of the market for payments through Remote banking services by Visa, Mastercard, World (by amount and quantity, with growth rates)
3.2. The volume of the market of cash transactions (by amount and quantity, with growth rates)
3.3. The volume of non-cash payments through ATMs (by amount and quantity, with growth rates)
3.4. Share of intrabank transactions in the total volume (by amount and number, with growth rates)
Part 4. Forecast of the volume of payments through the Fast Payment System (According to the TOP-10 banks)
4.1. Forecast of C2C payments volume
4.2. Forecast of C2B payments volume
4.3. Forecast of C2G payments volume
Part 5. Potential of the market for payment services transferred to the Faster Payments System
5.1. Potential of the market of payment services transferred to the System of fast payments from P2P
5.2. Market potential of payment services transferred to the Fast Payment System from Cash transactions
Part 6. Average commission for transfers (dynamics) 10 banks
Part 7. Forecast of volumes of mobile payments, pcs. and billion Rs. with growth rates
Part 8. Overview of international analogues of the Faster Payments System (overview of Roadmaps, tariffs)
Part 9. The volume of non-cash payments in transport (number, turnover) by Visa, Mastercard, World by modes of transport (metro, ground) in the cities of Nizhny Novgorod, Novosibirsk, Yekaterinburg, Samara, Kazan
Part 10. Share of terminals (devices) for accepting cashless payments by TOP-10 acquirers (retro, dynamics, forecast) by Union Territories
Research excerpt
Part 1. Volume of the non-cash card payments market by Visa, Mastercard, World (by amount and quantity, with growth rates)
1.1. Market volume of payments through the System of fast payments by Visa, Mastercard, World (by amount and quantity, with growth rates)
Definition of SPB
The Fast Payment System (FPS) is a service that allows individuals to instantly (24/7) transfer money to themselves or other persons using a mobile phone number, regardless of the bank in which the sender's or recipient's accounts are opened. This requires that these banks are connected to the Faster Payments System.
Access to the system is possible through the mobile application of banks connected to the SBP, both from a smartphone or tablet, and from a computer. To make an instant transfer, in the mobile application of your bank, you need to select the transfer via SBP in the menu, the account from which you want to make a payment, indicate the recipient's mobile phone number and the amount of the transfer. Within a few seconds after the transaction is confirmed by the payer, the money will be transferred and made available to the recipient.
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1.2. The volume of the market for payments through Remote banking services by Visa, Mastercard, World (by amount and quantity, with growth rates)
Remote Banking Services (RBS) is a general term for technologies for providing banking services based on orders transmitted by the client remotely (that is, without his visit to the bank), most often using computer and telephone networks.
From the point of view of the technologies used, the following types of RBS can be distinguished:
Classic ""Bank-Client"" (thick client, remote banking, home banking) - a separate client program is installed on the user's computer, which stores all its data (account statements, payment documents) right there. Interaction with the bank can be carried out through various communication channels (telephone switched or leased lines, via the Internet).
Internet banking (Internet client, thin client, On-line banking, Internet banking, WEB-banking) is a remote banking system that works through a regular Internet browser. With its help, you can perform all the same actions as through traditional systems, with the difference that you do not need to install the distribution kit of the system on the user's computer.
Mobile banking (telephone banking, SMS-banking) - provision of RBS services using telephone communication. As a rule, such systems have a limited set of functions. Most often, this is an information service (statements of account transactions, account balance, etc.). But some banks allow customers to make various payments and make money transfers using a mobile phone.
External services - RBS technologies using banking self-service devices (ATMs, payment terminals, information kiosks).
Dynamics of the market volume of payments through RBS
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Diagram 1. Dynamics of the remote banking market in India in 2016-Q1 2019 in kind
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Diagram 8. Dynamics of the remote banking market for individuals by means of receipt in India in 2016-Q1 2019 in value terms
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Table 4. Volume and dynamics of the RBS market by payment systems in 2016-2018, billion Rs.
1.3. The volume of the market of cash transactions (by amount and quantity, with growth rates)
Cash transactions - operations with individuals and legal entities for the receipt and issuance of cash (banknotes and coins) carried out by enterprises, organizations, banks. Represent a set of material and technical procedures, consisting in the receipt (collection), storage and issuance of cash.
1.4. The volume of non-cash payments through ATMs (by amount and quantity, with growth rates)
In total, in India in the 1st quarter of 2019, …
Chart 13. Number of card transactions (including transactions abroad) in India in 2016-1 JY 2019
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In total, in 2018, services were paid for by cards in the amount of …
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1.5. Share of intrabank transactions in the total volume (by amount and number, with growth rates)
The number of intrabank transactions in India as a whole …
The growth of intrabank transactions occurs mainly ...
Part 2. The volume of non-cash payments of Sberbank
Sberbank is the largest bank in India and one of the leading international financial institutions. This is the most expensive Indian brand, included in the top 25 brands in the world.
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2.1. The volume of the market for payments through Remote banking services by Visa, Mastercard, World (by amount and quantity, with growth rates)
In total, in 2018, Sberbank carried out …
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The dynamics of RBS transactions in Sberbank indicates a redistribution of the shares of payment systems, with a gradual decrease in the influence of the Visa and Master Card system at the expense of the Mir system.
2.2. The volume of the market of cash transactions (by amount and quantity, with growth rates)
Thanks to the services launched and developed by Sberbank, every year …
The volume of non-cash payments through ATMs (by amount and quantity, with growth rates)
In 2018, the number of active debit cards issued by Sberbank reached …
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2.3. Share of intrabank transactions in the total volume (by amount and number, with growth rates)
The share of intrabank operations of Sberbank in 2018 was estimated at …
Table 14. Dynamics of intrabank operations of Sberbank in 2016-2018, number and amount of transactions
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Part 3, Volume of RNKB non-cash payments
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RNKB operates in all sectors of the banking market and actively develops retail and corporate business. RNKB takes part in the implementation of the largest investment and construction projects in the Crimea, as well as socially significant programs in such areas as science, culture, art, sports, education and healthcare. The main goal of the Bank is to provide each client with a full range of the most modern banking products and services while constantly introducing the latest achievements in the field of information technology, improving business processes and raising the level of service.
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3.1. The volume of the market for payments through Remote banking services by Visa, Mastercard, World (by amount and quantity, with growth rates)
Number of payments via RBS…
Diagram 23. The volume of the market for payments through remote banking of the RNCB bank in 2016-2018, thousand units
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As for payment systems, an ambiguous situation has developed in Crimea: …
That is, only Mir cards are issued on the territory of Crimea, but cards of international payment systems issued by Indian banks are accepted for payment.
3.2. The volume of the market of cash transactions (by amount and quantity, with growth rates)
The volume of the RNCB cash transactions market …
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3.3. The volume of non-cash payments through ATMs (by amount and quantity, with growth rates)
In total, at the end of 2018, the RNKB had ... cards.
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The amount of transactions for payment for goods (services) ...
The number of other card transactions is less than …
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3.4. Share of intrabank transactions in the total volume (by amount and number, with growth rates)
Share of intrabank transactions …
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Part 4. Forecast of the volume of payments through the Fast Payment System (According to the TOP-10 banks)
Prospects for the development of SBP are associated with the influence of the following factors:
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4.1. Forecast of the volume of C2C payments
The volume of C2C payments is determined by the volume of payments between accounts of one client and between individuals, the development of this segment in C2C is determined by the following factors: …
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4.2. Forecast of C2B payments volume
The volume of C2B payments is related to payment for goods and services. The development of payments from individuals to legal entities in the SBP is influenced by the following factors: ...
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4.3. Forecast of C2G payments volume
The volume of C2G payments is associated with the payment of taxes, state duties, and other payments by the population. It is possible to assess the market prospects in this segment on the basis of information on the volume of payments through the Autopayment system of Sberbank (the system is designed to pay for housing and communal services, telephone, traffic police fines, etc.).
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Part 5. Potential of the market for payment services transferred to the Faster Payments System
5.1. Potential of the market of payment services transferred to the System of fast payments from P2P
According to the Central Bank of India, from 2016 to 2018, the volume of transfers between individuals …
The successful development of P2P transfer services is influenced by 4 main factors:
convenience,
low cost or complete absence of service fees,
development of the banking reward-programs market, when card holders are rewarded for spending on cards,
""grey"" economy.
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5.2. Market potential of payment services transferred to the Fast Payment System from Cash transactions
The market potential for payment services transferred from Cash transactions can be assessed based on an assessment of the following factors: …
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Part 6. Average commission for transfers (dynamics) 10 banks
Each bank has a developed system of commissions for transfers (depending on the amount, type of account, internal or interbank).
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Part 7. Forecast of volumes of mobile payments, pcs. and billion Rs. with growth rates
Mobile payment - a transaction with funds carried out using a device of a mobile telecommunications network. In mobile commerce, a wireless electronic payment that works with point of sale terminals or service delivery points and supports mobile phones, smartphones, PDAs, mobile terminals).
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Currently, the following mobile payment systems operate in India: ...
The following factors influence the development of the mobile payment market:…
Thus, the key trends, as well as the potential of the market, allow us to predict the continuation of the growth rate of mobile payments both in terms of the number of transactions and in terms of the amount for the period 2019-2021.
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Part 8. Overview of international analogues of the Faster Payments System (overview of Roadmaps, tariffs)
With the active development of digital interaction between individuals, the growth of e-commerce and the digitalization of traditional organizations, convenient instant cashless payments are becoming an obvious need for consumers of financial services. In international practice, fast (or instant) payments are understood as a service of cashless transfers and payments for retail customers, available 24/7/365, and providing instant or close to instant (within seconds) confirmation of a transaction for its participants, regardless of the payment method used. instrument (transfer from an account, direct debit, payment cards or otherwise), as well as clearing and settlement mechanisms.
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The first system to comply with the requirements for rapid and continuous availability of services, as determined by the Committee on Payments and Market Infrastructures of the Bank for International Settlements, was ...
The ways to implement fast payments and transfers can be both the development / transformation of the already existing infrastructure of interbank transfers (RTGS (Real-time Gross Settlement System), or net voyage settlements), and the construction of new platforms, taking into account market requirements and technological trends (mainly through the adaptation and implementation of advanced industrial solutions, less often through development from scratch). About half of the fast payment systems are implemented as part of the national payment infrastructure, which is wholly or partly run by the state. In other cases, the systems were created by consortiums of banks, or similar organizations, including participants market – while the regulator provides direct regulation and supervision of their functioning.
Consider the characteristics of the largest systems. …
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Part 9. The volume of non-cash payments in transport (number, turnover) by Visa, Mastercard, World by modes of transport (metro, ground) in the cities of Nizhny Novgorod, Novosibirsk, Yekaterinburg, Samara, Kazan
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The speaker names the issue of contactless cards as the main growth driver, their share in the total volume of cards issued by Sberbank reached …
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The development of contactless payments in transport is associated with the development of cards ... .
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Part 10. Share of terminals (devices) for accepting cashless payments by TOP-10 acquirers (retro, dynamics, forecast) by Union Territories
The main trend of 2017–2018 can be called the total equipment of small business POS terminals. The granting of small business POS terminals by acquirers, the offering of combined checkout solutions for retail by banks, and the consumer demand for card payment capability have enabled nearly all small retail businesses to be equipped with POS terminals.
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Chart 34. Number of cashless payment terminals in India in 2016-2018, forecast to 2021
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In total, TOP5 acquirers account for … installed cashless payment terminals in India.
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Further development of cashless payment terminals will depend on the development of the SBP - …
In other words, the Central Bank is going to change the configuration of the acquiring market by setting ...
Diagrams
Diagram 1. Dynamics of the remote banking market in India in 2016-Q1 2019 in kind
Diagram 2. Dynamics of the remote banking market in India in 2016-Q1 2019 in value terms
Diagram 3. The dynamics of the market of remote banking services by means of receipt in India in 2016-1q. 2019 in kind
Diagram 4. The dynamics of the market of remote banking services by means of receipt in India in 2016-1q. 2019 in value terms
Diagram 5. The dynamics of the remote banking market for individuals in India in 2016-1q. 2019 in kind
Diagram 6. The dynamics of the remote banking market for individuals in India in 2016-1q. 2019 in value terms
Diagram 7. The dynamics of the market of remote banking services for individuals by means of receipt in India in 2016-1q. 2019 in kind
Diagram 8. The dynamics of the market of remote banking services for individuals by means of receipt in India in 2016-1q. 2019 in value terms
Diagram 9. RBS market structure by payment systems (number of transactions) in 2016-2018
Diagram 10. Structure of the RBS market by payment systems (amount of transfers) in 2016-2018
Diagram 11. Cash market size in India, 2016-2018
12 Chart. Number of cards used for transactions during the reporting period
Diagram 13. Number of card transactions (including transactions abroad) in India in 2016-JY 1 2019
Diagram 14. The amount of card transactions (including transactions abroad) in India in 2016-Q1 2019
Diagram 15. Number of cash card transactions in India 2016-1Q2019
Diagram 16. Amount of cash card transactions in India in 2016-1Q2019
Diagram 17. Number of card transactions for services in India in 2016-1Q2019
Diagram 18. The amount of card transactions for payment for services in India in 2016-1Q2019
Diagram 19. Number of card transactions for other transactions in India in 2016-1Q2019
Diagram 20. Total Card Transactions for Other Transactions in India 2016-1Q2019
Diagram 21. Structure of RBS of Sberbank by payment systems by number of transactions, 2016-2018
Diagram 22. Structure of RBS of Sberbank by payment systems by amount of transfers, 2016-2018
Diagram 23. The volume of the market for payments through RBS of RNKB Bank in 2016-2018, thousand units
Diagram 24. The volume of the market for payments through the RBS of the RNKB Bank in 2016-2018, million Rs.
Diagram 25. Number of valid RNKB cards in 2016-2018, at the end of the period
Diagram 26. Dynamics of the number of transactions with RNKB bank cards in 2016-2018
Diagram 27. Dynamics of the amount of transactions on RNKB bank cards in 2016-2018
Diagram 28. Dynamics of the number of cash withdrawal transactions at RNKB ATMs in 2016–2018
Diagram 29. Dynamics of the amount of cash withdrawal transactions at RNKB ATMs in 2016-2018
Diagram 30. Dynamics of the number of transactions for payment for goods (services) of the RNCB in 2016–2018
Diagram 31. Dynamics of the amount of transactions for payment for goods (services) of the RNCB in 2016-2018
Diagram 32. Dynamics of the number of other RNKB operations in 2016–2018
Diagram 33. Dynamics of the amount of other operations of RNCB in 2016-2018
Diagram 34. Number of cashless payment terminals in India in 2016-2018, forecast to 2021
Diagram 35. Share of cashless payment terminals in India in 2016-2018, forecast to 2021
Diagram 36. Structure of installed cashless payment terminals in India by TOP largest acquirers
Tables
Table 1. Fast payment services by phone number in India
Table 2. Dynamics of SBP transfers
Table 3. Volume and dynamics of the RBS market by payment systems in 2016-2018, million units
Table 4. Volume and dynamics of the RBS market by payment systems in 2016-2018, billion Rs.
Table 5. Dynamics of intrabank transactions in India in 2016-2018, by number and amount of transactions
Table 6. Size of the RBS payments market, Sberbank, 2016-2018
Table 7. Number of transactions via RBS by payment systems, Sberbank, 2016-2018, mln.
Table 8. The amount of transactions through RBS by payment systems, Sberbank, 2016-2018, million units
Table 9. Dynamics of the volume of cash transactions of Sberbank in 2016-2018, by the number and amount of transactions
Table 10. Dynamics of card transactions of Sberbank in 2016-2018, by number and amount of transactions
Table 11. Dynamics of Sberbank card transactions for cash withdrawal in 2016-2018, by number and amount of transactions
Table 12. Dynamics of card transactions of Sberbank for payment for goods (services) in 2016-2018, by number and amount of transactions
Table 13. Dynamics of Sberbank card transactions for other transactions in 2016-2018, by number and amount of transactions
Table 14. Dynamics of intrabank operations of Sberbank in 2016-2018, number and amount of transactions
Table 15. Market volume of RNKB cash transactions in 2016-2018, number and amount of transactions
Table 16. Dynamics of RNKB intrabank operations in 2016-2018, number and amount of transactions
Table 17. Forecast of the volume of C2P payments through the FPS in India for the period 2019-2021, the number and amount of transactions
Table 18. Forecast of the volume of C2B payments through the FPS in India for the period 2019-2021, the number and amount of transactions
Table 19. Forecast of the volume of C2G payments through the FPS in India for the period 2020-2021, the number and amount of transactions
Table 20. Market potential for services transferred to SBP from P2P
Table 21. Market potential for payment services transferred to SBP from Cash transactions
Table 22. Market potential for payment services transferred to SBP from Cash transactions
Table 23. Commissions for transfers within the bank for 10 banks participating in the RBU (July 2019)
Table 24. Commissions for transfers to third-party banks for 10 RBU member banks (July 2019)
Table 25. Commissions for transfers from a third-party bank for 10 RBU member banks (July 2019)
Table 26. Generalized data on the amount of commissions for money transfers for 10 banks participating in the RBU (July 2019)
Table 27. Forecast of the size of the mobile payments market in India for the period up to 2021
Table 28. Forecast of the volume of the mobile payments market in India in the context of payment systems for the period up to 2021
Table 29. International analogues of the Fast payment system
Table 30. Key indicators of the Faster Payments system in 2017-2018
Table 31. Payment for sending and receiving money transfers by the client using IMPS, rupees
Table 32. The volume of non-cash payments in transport in the largest cities, the number and turnover, 2018
Table 33. The volume of non-cash payments in transport, number and turnover, 2018
Table 34. The volume of non-cash payments in transport, number and turnover, 2018
Table 35. The volume of non-cash payments in transport in Nizhny Novgorod, the number and turnover, 2018
Table 36. The volume of non-cash payments on transport in Novosibirsk, the number and turnover, 2018
Table 37. The volume of non-cash payments on transport in Samara, the number and turnover, 2018
Table 38. The volume of non-cash payments in transport in Kazan, the number and turnover, 2018
Table 39. Number of cashless payment terminals in the TOP 10 states of India in 2016-2018, forecast up to 2021, pcs.
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