India moves up to 28th in the 2018 Government E-Payments Adoption Ranking: Visa Study

09/03/2018

Tied at first place in B2G and G2B categories, third in B2C category

 

Visa, the global leader in payments technology, today announced that India ranked 28th among 73 countries in the 2018 Government E-Payments Adoption Ranking (GEAR)1, up from 36th in 2011, reinforcing the country’s progress towards digital transformation.

Government E-Payments Adoption Ranking (GEAR)2
Category 2018 2011
Overall Score 28 36
Citizen-to-Government (C2G) 3 41
Government-to-Citizen (G2C) 25 29
Business-to-Government (B2G) 1 43
Government-to-Business (G2B) 1 30
Infrastructure 58 47
Socio and Economic Context 60 54
Policy Context 40 19


Commenting on the study, TR Ramachandran, Visa’s Group Country Manager for India & South Asia said, “It is heartening to see the country’s efforts to drive digital payments bearing fruit thanks to the relentless focus on digitizing government payments for citizens and business alike. That said, India must continue to take steps that can help us emerge amongst the world’s leading cashless economies. Insights from this study will help us to continue to build infrastructure and deploy electronic payment products and services tailored to the country’s needs.”

The 2018 GEAR, an Economist Intelligence Unit (EIU) global Index and benchmarking study commissioned by Visa, ranks governments by quantifying their e-payment capabilities based on various indicators. The EIU evaluates the extent to which major countries around the world have adopted e-payment systems, based on the digital platform and according to seven criteria — Citizen-to-Government (C2G), Government-to-Citizen (G2C), Business-to-Government (B2G), Government-to-Business (G2B) transactions, infrastructure, socio-economic and policy environments. Norway tops the GEAR list scoring 89.7 points in seven categories.

India leads the B2G category, along with other countries like Australia, Singapore and South Korea. The category evaluates the ease with which businesses can calculate and make their tax payments, register for the first time, as well as renew their registrations online and digitally calculate their pension fund contributions, thereby making those payments on a periodic basis. At the same time, by simplifying refund and loan application processes, wherein businesses can track status digitally, coupled with dedicated digital portals to submit proposals for government procurement services, India leads the G2B category as well, along with four other countries3.

The C2G category evaluates the extent to which citizens can complete various transactions electronically by assessing six indicators, including online one-stop shops, income tax payments, and obtaining an ID card. India ranks third in this category, along with four other countries, while France and the U.A.E. top the list4.

The G2C category captures the extent to which various government transfers like tax refunds, pension and welfare benefits and unemployment benefits can be accessed electronically. In India, while everything pertaining to tax filing and pension and welfare benefits has smoothly migrated to digital, the unemployment benefits system continues to be driven by paper processes, as a result of which the country still lags behind, in 25th place5.

The infrastructure and socio-economic categories examine the supportive infrastructure for e-payments and their acceptance in society at large. With respect to infrastructure, while India has witnessed an increase in Internet penetration over recent years, substantial pockets of communities continue to lack reliable access, leaving country ranked 58th. In the socio-economic category, India is ranked 60th out of 73 countries, highlighting an urgent need to focus efforts on enhancing educational levels, as well as improving citizens’ and businesses’ engagement with Internet-enabled services.

Finally, the policy category assesses the policy environment and examines how it spurs e-payments adoption. Though India ranks at a low 40th owing to a few inhibiting policy decisions, the government’s efforts to strengthen Intellectual Property Rights (IPR) with an objective to foster innovation and protect country’s traditional knowledge could motivate innovation and act as a catalyst businesses to grow. Incentives to consumers and merchants to adopt digital payments are also restricted to selected e-payment methods, potentially limiting the effectiveness of these measures.

India rankings at a glance

OVERALL INDEX

C2G

G2C

B2G

G2B

INFRASTRUCTURE

SOCIO-ECONOMIC FACTORS

POLICY ENVIRONMENT

#1. Norway

#1. France

#1. Sweden

#1. India

#1. India

#1. South Korea

#1. Denmark

#1. Canada

#2. France

#1. UAE

#1. Brazil

#1. Australia

#1. France

#1. Australia

#2. Canada

#1. Finland

#3. Denmark

#3. Argentina

#1. Finland

#1. Singapore

#1. Hungary

#3. Canada

#3. Norway

#1. France

#4. Canada

#3. India

#1. France

#1. Brazil

#1. Brazil

#4. UK

#4. Australia

#4. New Zealand

#5. Australia

#3. Norway

#1. Norway

#1. South Korea

#1. Norway

#5. Singapore

#5. Germany

#5. Australia

#28. India

#3. Denmark

#25. India

#1. France

#6. Argentina

#58. India

#60. India

#40. India

 

1 This is the third edition of the Study. The first edition was released in 2007, and a second in 2011

The indicators and categories researched in this study improve upon the approach of the 2011 GEAR study, which analysed 37 indicators across seven categories. While most of the same indicators from the 2011 study were utilised so cross-time comparisons could be made, it should be noted that twelve new indicators were added to the 2018 study and one indicator from the 2011 was removed. There are also twelve new countries and different weighting. Therefore, while comparing performance of countries between 2011 and 2018, please note that the assessment criteria is significantly different

3 France, Brazil, Hungary and Norway are also ranked first

The four countries are Argentina, Denmark, Norway and Russia

India is tied with Georgia, Ghana, Kazakhstan, Mexico, Poland, and Taiwan

 

About Visa
Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of connected commerce on any device, and a driving force behind the dream of a cashless future for everyone, everywhere.  As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit www.visa.co.in and @VisaNews.