Internet is being used for many other purposes apart from being used as a communication medium. Net commerce has been a new trend over the last few years and is likely to grow exponentially year on year in an under-penetrated country like India. Today, people want to save time and money and therefore prefer purchasing various products and services online. The payment for such online purchases is done in different ways. Debit card, credit card, prepaid cash cards, and online transfers are some of the modes of payment for online shopping.
Among the various modes of online payment, debit card is being used mostly. A report of I-Cube 2009 states that out of 13.6 million Internet users who look for information of various products and services, around 7.47 million people purchased them online. Among those online shoppers, debit cards were ever used by 61% of them and most used by 37%. Credit cards were the second preferences for online payment by Indian online shoppers. Around 50% of the 7.47 million online purchasers ever used credit card and 35% of them mostly used them.
Some people place the order online but pay for it offline later. However, about 24% ever used and 18% of the online shoppers mostly used this mode of payment. Prepaid cash cards, demand drafts, and mobile payments were the other modes which were least used. Around 10%, 4%, and 3% of people ever used prepaid cash cards, demand drafts, and mobile payments respectively. However, around 8%, 1%, and 1% of the online shoppers mostly used the prepaid cash cards, demand drafts, and mobile payments respectively. It can be therefore said that debit and credit cards are the mostly used modes of online payments by Indian online shoppers.