Outside of Japan, India was the fastest growing JCB region in 2021, accounting for 29% of total JCB growth[1]
TOKYO & LONDON, Nov 29, 2022 – (JCN Newswire) – JCB International Co., Ltd., the international operations subsidiary of JCB Co., Ltd., has identified a significant opportunity for European merchants and acquirers to tap into the rapidly growing Indian payments market, with JCB’s data showing a 70% growth in Cardmembers between Q4 of 2021 and Q2 of 2022.[2]
Projected to have the third-largest number of high-income households by 2030, the region is set to contribute $1.8 trillion to global consumption growth.[3]
Traditionally a “cash-first” society, there has been a significant shift towards digital and card payments as part of a “less-cash” movement in recent years. This has been accelerated by government initiatives such as Digital India introduced with the specific aim to “transform India into a digitally empowered society and knowledge economy”.[4]
The National Payment Corporation of India (NPCI), set up by the Reserve Bank of India and Indian Banks’ Association, has been a major factor in enabling widespread digital payments in the region. Reinvesting profits into growing India’s payment ecosystem, the umbrella organisation operates retail and settlement payment systems throughout India and has a comprehensive services portfolio that makes them a central figure in the market.
In terms of spending, research shows most Indians are optimistic in the wake of the Covid-19 pandemic, with consumer and retail spending including fresh produce, health and wellness goods, new vehicle purchases, and travel. As restrictions ease and travel is possible once more, the appetite to do so has only intensified, with outbound tourism set to surpass $42 billion by 2024 and Indian firms expected to facilitate easier travel through better connected flights.[5] Already one of the world’s fastest growing aviation markets in 2019, there is an expectation that the number of daily fliers will exceed pre-pandemic numbers by the early 2023[6] with the likes of London, Paris, Dubai, Toronto, and Amsterdam being the most popular international destinations.
This spending increasingly takes place online, too, with Indians willing to spend abroad from their home – especially with recognised brands and in frictionless and secure ecommerce environments. Access to reliable internet and low-cost data[7] makes it easier to go online at a time when traditional shopping methods have been more difficult amidst pandemic restrictions. The ecommerce sector alone is expected to grow by 96% between 2021-2025[8] and worth $200 billion by 2026.[9] 43% of international transactions from JCB Cards came from ecommerce spending.[10]
These figures have been released alongside the launch of JCB’s latest whitepaper, ‘Prosperity Awaits – Tapping into the Indian Market’, which includes exclusive insights for European merchants and acquirers on Indian spending patterns, and the importance of building customer relationships early to capitalise on the opportunities.
Ray Shinzawa, Managing Director, JCB International (Europe) Ltd., commented: “The Indian market is growing at a rapid rate and boasts one of the world’s fastest-growing economies.[11] This is providing opportunities for merchants and acquirers outside of South Asia to grow their presence in the region and unlock the potential it, and its population of over 1.4 billion people, has to offer.[12] JCB’s place in the payment ecosystem means we are well-positioned to help our European merchants and acquirers navigate and make their mark in this vast region” he continued.
Satoru Mori, Managing Director, JCB Card International (SouthAsia) Private Ltd., said: “There is a real opportunity for European merchants and acquirers to have success in the Indian market. The region is putting significant time and resources into embracing a digital outlook and this benefits modern payment methods. Meanwhile, the population itself is willing to spend as we emerge out of the pandemic. It is all about providing a painless and secure process that will allow individuals to trust you with their disposable income.”
Download and read the full whitepaper here.
https://www.thepaymentshub.net/content/files/2022/11/Prosperity-Awaits—Tapping-into-the-Indian-Market.pdf
About JCB
JCB is a major global payment brand and a leading credit card issuer and acquirer in Japan. JCB launched its card business in Japan in 1961 and began expanding worldwide in 1981. Its acceptance network includes about 39 million merchants around the world. JCB issues cards across various countries and regions internationally with more than 140 million cardmembers. As part of its international growth strategy, JCB has formed alliances with hundreds of leading banks and financial institutions globally to increase its merchant coverage and cardmember base. As a comprehensive payment solution provider, JCB commits to providing responsive and high-quality service and products to all customers worldwide. For more information, please visit: www.global.jcb/en/
MEDIA CONTACTS:
JCB International (Europe) Ltd.
Victoria Perea-Usher: Marketing@jcbeurope.eu
JCB (Head Office in Japan)
Ayaka Nakajima: jcb-pr@jcb.co.jp
[1] JCB Proprietary Data 2022, per JCB Card International (SouthAsia) Private Ltd.
[2] JCB Proprietary Data 2022, per JCB Card International (SouthAsia) Private Ltd.
[3] India consumption growth: India to have third-largest number of high income households by 2030: McKinsey Report – The Economic Times
https://economictimes.indiatimes.com/news/economy/indicators/india-to-have-third-largest-number-of-high-income-households-by-2030-mckinsey-report/articleshow/86089869.cms?from=mdr
[4] Digitalindia | Digital India Programme | Ministry of Electronics & Information Technology(MeitY) Government of India https://www.digitalindia.gov.in/
[5] India’s outbound tourism to surpass $42bn by 2024: Report – Times of India
https://timesofindia.indiatimes.com/business/india-business/indias-outbound-tourism-to-surpass-42-bn-by-2024-report/articleshow/93407481.cms
[6] As international travel opens up, Indians spend lavishly | Business and Economy News | Al Jazeera
https://www.aljazeera.com/economy/2022/3/28/as-international-travel-opens-up-indians-spend-lavishly
[7] Mobile Data In India Is Among The Cheapest Across World: See Comparison in Photos
https://www.news18.com/photogallery/tech/mobile-data-in-india-is-among-the-cheapest-across-world-see-comparison-in-photos-5011783.html
[8] India’s e-commerce market set to increase 96 percent to $120 billion by 2025, new FIS study finds | Business Standard News
https://www.business-standard.com/content/press-releases-ani/india-s-e-commerce-market-set-to-increase-96-percent-to-120-billion-by-2025-new-fis-study-finds-122030200987_1.html
[9] Top 10 Ecommerce Sites in India – Ecommerce Guide https://ecommerceguide.com/top/top-10-ecommerce-sites-in-india/
[10] JCB Proprietary Data 2022, per JCB Card International (SouthAsia) Private Ltd.
[11] India, fastest-growing major economy, projected to grow 6.4% in 2022: UN | Business Standard News
https://www.business-standard.com/article/current-affairs/india-retains-top-spot-as-fastest-growing-major-economy-un-report-122051900021_1.html
[12] World Population Prospects 2022: Summary of Results
https://www.un.org/development/desa/pd/sites/www.un.org.development.desa.pd/files/wpp2022_summary_of_results.pdf