DIGITAL PAYMENTS MARKET ANALYSIS

Lack of adequate internet connectivity is one of the major challenges restraining the growth of digital payments acceptance in rural areas across the globe. Rural communities, especially in developing countries still grapple with poor connectivity infrastructure which limits their access to online payment options. With a large part of the world's population residing in villages, lack of internet poses as a huge barrier for consumers in rural areas to fully embrace digital payment technologies and transact online.

This is hindering rural consumers from experiencing the benefits of safety, convenience, and accessibility that digital payment platforms provide. Traditional cash still remains the preferred mode of transaction for everyday purchases in villages due to the lack of speedy internet access. Digital payment players find it difficult to expand into remote rural geographies and onboard merchant partners where internet penetration is low. Merchants in villages are also reluctant to make investments in digital payment acceptance infrastructure like POS machines if the internet connection is unreliable affecting transaction success rates.

Market Opportunities: Innovations like digital wallets

Digital wallets have emerged as a very convenient way for people to make payments for both online and in-store purchases. As more commerce moves to digital platforms and there is increasing adoption of smartphones, digital wallets allow people to store payment details and other information on their mobile devices to make quick and secure transactions. This avoids the need to manually enter card or bank details for each purchase. Leading this transition, countries like China have already seen the widespread usage of digital wallets like Alipay and WeChat Pay contributing to a significant portion of total online retail sales.