New Delhi, Aug 30 (IANS): Led by growing consumer preference for online shopping and strong internet penetration, India’s e-commerce market value is set to increase at a compound annual growth rate (CAGR) of 18.7 per cent, from $147.3 billion this year to $292.3 billion in 2028, according to a new report.

The future of e-commerce payments in the country appears promising, driven by the government’s initiatives such as ‘Make in India’ and ‘Startup India,’ as well as the rising number of online shoppers.

The e-commerce market in the country is growing at a fast pace and is forecast to surge by 23.8 per cent this year, says GlobalData, a leading data and analytics company.

Ravi Sharma from GlobalData said that the uptrend in e-commerce sales in India is likely to continue over the next few years, supported by the growing consumer preference, improving payment infrastructure, and growing popularity of alternative payment solutions.

The latest Telecom Regulatory Authority of India (TRAI) data revealed that there were 954 million internet subscribers as of March, up from 881 million in March 2023.

This strong momentum is encouraging merchants, especially small and medium enterprises (SMEs), to enter the e-commerce space.

The report mentioned that among payment tools, alternative payment solutions are most preferred by online shoppers.

India’s e-commerce sector witnessed a seismic shift, with alternative payment methods commanding a staggering 58 per cent share of the market in 2023.

“Alternative payment solutions have consistently gained popularity among Indian consumers in the last five years, with some of the popular brands being Amazon Pay, and Google Pay,” said Sharma.

Payment cards are the second most popular e-commerce payment method in India, occupying a share of 25.7 per cent with credit and charge being the preferred card types, accounting for a 15.4 per cent share in 2023.

Cash has seen a drop in the market share for online purchases, accounting for only 6.2 per cent share, said the report.