Digital Payments Adoption to Help Double Business Spending by 2030
Rapid expansion of digital infrastructure for over a decade, including the introduction of Aadhaar, and accelerated consumer adoption during the ongoing Covid pandemic had the country reaping benefits on the retail business side.
A joint white paper published by leading corporate cards and spending management platform EnKash and a consultant services provider Kearney said the current business spends market in India is estimated at USD 6-7 trillion and is set in motion to reach USD 15 trillion by the end of this decade.
Covid-19 also ushered in a new digital dimension to businesses by aiding the migration from physical presence to online marketplace, increased adoption of digital media and emergence of new age players who are enabling the transition at the micro level, and increased cross-border remittances.
To further the prospects, the businesses need to take a step forward and analyze the next level of digitization in their operations, the whitepaper said. End-to-end digitization of the payment process can unfold significant value for businesses.
“Given the thriving small and medium business landscape, it’s critical that their adoption is encouraged and enabled through technological, government enabled and regulatory interventions. We hope this paper starts a conversation towards this end, helping the industry surpass the USD 15 trillion estimates,” the executive summary of the whitepaper said.
At the launch of the whitepaper, Hemant Vishnoi, Co-Founder, EnKash India, said, “The business spends market in India is at an inflection point with an ever-emerging need to transform age-old processes in business spends management.”
“Through this insightful whitepaper in association with Kearney, we aim to identify key challenges and list down potential solutions that will drive the digitization of the business spending value chain. Given the thriving small to medium size businesses & start-ups business landscape in India, an all-in-one business spends solution can create large value and improve overall business efficiency,” Vishnoi said.
Referring to the Indian economy securing its place as the fifth largest economy in the world, a sharp growth from rank 12 in 2007, the whitepaper said this was possible due to the transition into a manufacturing and services-enabled economy.
“A decade into the 21st century, large-scale businesses started adopting online transfers, cards, and other digital modes. However, the mass adoption of digital payments in India got accelerated post-Covid-19 pandemic with fundamental shifts in customer behaviour and digital adoption.”
It further says while demonetization urged businesses to explore alternatives to physical modes of payment, the pandemic normalized it as business as usual and helped gain wider acceptance.