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Trends in retail payments to watch out for in 2023
Trends in retail payments to watch out for in 2023

December 5, 2022

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With its digital economy expected to touch $800 billion by 2030, India is today the fourth largest retail market in the world. Retail contributes to 10% of the country’s GDP and is expected to rise exponentially in the years to come. [1] The retail payment infrastructure is also undergoing a seismic shift, with digital payments adoption increasing among consumers.

Some of the key trends in retail payments to watch out for in 2023:

1. Software-led innovations – Today, a POS terminal at the retail checkout counter is no longer just a payment acceptance device. The out-of-the-box hardware deployments are being accentuated through innovative software layers helping merchants extract more from their devices. From leveraging the integrated POS app ecosystem for managing various aspects of their store retail operations, to enabling analytics access to derive actionable insights, retailers can do a lot more from their digital payments POS devices today. Innovative pursuits will continue to happen in this space in 2023 and beyond.

2. Enabling affordability for the consumers – Building a seamless tech-enabled in-store retail payment experience is the key to woo the young consumers in India who have already embraced digital payments in a big way. A trend that is expected to grow bigger in 2023 is the digital pay later option at the checkout where merchants can with a few taps of the POS device convert a regular purchase into instalment purchase, thereby enabling a convenient and affordable way for consumers to shop.

3. Increased partnership between banks and fintech companies – There is no denying the fact that traditional banking has benefited a great degree from the evolution of fintech in India. In 2023 and beyond, it is expected that increased convergence of traditional banking with modern fintech companies will happen leading to a new era of growth for retail merchants in India.

4. Democratization of technology for innovative pursuits – Open APIs in the fintech space present a great opportunity to fast-track innovative pursuits. More companies need to open their APIs and invite external developers to build on top of their existing tech solutions for the benefit of the masses.


2023 will see the focus shift in a major way to bring the benefits of financial technology to the millions of small and medium scale retail merchants in India. The evolving landscape of digital retail payments will play a pivotal role in the future growth of the retail sector in India.


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