PayPal, BFSI News, ET BFSI



Paypal’s report reflects the current and upcoming global shifts that will shape the future of cross-border commerce.

The report identifies potential areas of growth for Indian businesses while studying the behavioral patterns of Indian consumers in making online purchases and exploring India’s market in depth.

Below are some key global findings:

Changing behavior of online shoppers globally

A groundswell of new shoppers came online around the world, surging adoption by nearly 28% in 2020.

Greater comfort level with cross-border shopping was led by India, Brazil, and Mexico.

Shoppers demonstrated a willingness to try a wider range of digital payment types, led by Buy Now, Pay Later (BNPL) payment schemes and digital wallets.

Smartphones are becoming the primary access point for global shopping, forecasted to be used for an estimated 67% of all online purchases in 2021.

Behavioral drivers

22% said they became more comfortable cross-border shopping since the pandemic.

56% of respondents said their online shopping increased during the pandemic.

Cross-border shopping trends in India:

Annual e-commerce revenue stands at $55bn with a growth of 19.8%.

43% of online shoppers are more comfortable making cross-border purchases than they were pre-COVID.

49% of online shoppers have made cross-border purchases with almost 31% belonging to the 25-34 age segment, 26% from the 18-24 segment, and 22% from the 35-44 segment.

60% find international goods via online search and 40% through social media, like Facebook and Instagram

Online marketplaces are the preferred platforms for shopping, websites of retailers and stores come a close second followed by social media marketplaces.

The top products that saw a demand in cross-border purchases were clothing (41%), consumer electronics (30%), and cosmetics (24%).

Indian shoppers, while shopping on international sites, are looking for higher product quality (40%), access to items not available in their own country (33%), and discovering new and interesting products (31%).

The top modes for making cross-border payments were PayPal (36%), Debit cards (27%), and Credit cards (26%).