According to a recent report published by IBEF, the Indian ecommerce industry is expected to grow substantially by 2034 in becoming the second-largest ecommerce market in the world. As per predictions, the ecommerce market should reach $200 billion by 2027 up from $38.5 billion in 2017.
Supported by rising income and ease in payment methods, the ecommerce industry is likely to show such growth prospects. With credit cards in the scenario and a total internet user base of 665 million, ecommerce is expected to reach newer heights.
With multiple credit card bill payment opportunities in light, purchasing products online as well as making bill payments online both has been made easier. Further, look at the pointers on how credit cards influence the ecommerce industry.
How does credit card influences the ecommerce industry?
Here is an estimation of rising credit card usage in the fiscal year 2019 up from 2018, according to The Economic Times.
- The number of credit cards grew to 48.9 million from 37.4 million.
- Amount transacted grew to 6.07 lakh crore from 4.6 lakh crore.
- The number of transactions grew to 1.7 billion up from 1.4 billion.
With a subsequent rise of shopping credit cards, it has created a greater impact on the Indian ecommerce market, primarily because of drive towards digitisation and a cashless economy. Customers can easily purchase products online in a few clicks that save them from the hassles.
Moreover, the two major influences of credit card online bill payment on e commerce are as follows.
- Eliminated cash requirements – Using credit cards for ecommerce transactions is now more convenient as customers don’t have to carry any cash or pay in cash for that matter. At the time of purchase, the credit card issuer pays on behalf of the customer and the amount is deducted from the available credit limit which they can pay online later.
- Easy credit card bill payment method – Since credit cards let users make payments online without hassle, they are more likely to buy things online, resulting in the growth of the ecommerce industry. Not only is the payment for purchase easier, paying credit card bills for a billing cycle is easier as well. Nowadays, individuals are provided with several convenient ways to pay their credit card bills like a mobile app, net banking, NEFT, NACH, etc. Customers can opt for any of such options to clear their credit card dues.
Ease and convenience of credit card bill payment have contributed to the growth of the ecommerce industry in India, undoubtedly. Nonetheless, they provide customers with several other benefits that make it a lucrative and preferable payment method.
Benefits of using a credit card for shopping
- Customers can pay less by using a welcome bonus in one of the eligible products purchased online.
- Accelerated reward points are assured with online purchases. Cards like the Bajaj Finserv RBL Bank SuperCard offers customers double reward points for online purchases than offline ones.
- Shoppers can avail more discounts and cashbacks for the purchases made online. The partnered stores offer more rewards than general ones when paying via a shopping credit card.
- Shoppers can pay with the accumulated reward points for a specific amount of purchase.
- Customers can gain substantial annual savings by shopping with a credit card if they know how to use a credit card wisely.
- Converting big purchases into easy EMIs is possible with credit cards. Consequently, shopping in ecommerce sites is easier than before.
Credit card lenders offer customers with several such lucrative offers that add to their ecommerce shopping experience giving it a boost.