Mobile commerce is reshaping how consumers shop and transact, driven by the widespread adoption of smartphones and mobile apps. To stay competitive, businesses must ensure seamless, secure and reliable payment processing. Payment gateways play an important role in enabling smooth transactions and supporting business growth in today’s fast-changing digital economy.
India’s digital commerce sector is growing at an unprecedented pace, propelled by affordable smartphones, expanding internet access and advanced digital payment gateways. Future Market Insights projects the market to rise from USD 160 billion in 2025 to USD 640 billion by 2035, with mobile commerce driving this transformation.
This blog explores how payment gateways enhance mobile commerce, improve customer experience and drive business success.
The rise of mobile commerce
Mobile commerce is transforming India’s retail landscape, driven by smartphone adoption, affordable data and growing reliance on apps for shopping and subscriptions. Over 75% of online purchases now happen via mobile devices, a trend set to grow as digital payments become more widespread.
To stay competitive, businesses must offer smooth and secure mobile payment experiences. A well-integrated payment gateway ensures seamless transactions, enhancing customer satisfaction and driving growth.
The role of payment gateways in mobile commerce
As India’s digital commerce market grows at a CAGR of 15.7% from 2025 to 2035, secure and efficient payment gateways are essential for smooth transactions. These gateways facilitate the transfer of payment data between customers, merchants and banks, ensuring a frictionless checkout experience.
What’s driving the rise of mobile payments?
With more people in India using smartphones to shop online, businesses need to make the payment process easy and mobile-friendly. A good payment gateway helps make this happen by offering fast, safe and simple ways to pay.
Now, let’s look at what’s driving this growth and how payment gateways are helping businesses offer better mobile payment experiences.
Faster payments, fewer drop-offs
To stay competitive in the fast-moving world of mobile commerce, businesses need tools that remove barriers to purchase.
Today’s leading payment gateways offer capabilities designed to improve both the merchant experience and customer journey. Key enablers of seamless mobile payments include:
- Quick onboarding to help businesses start accepting payments faster.
- Two-click checkout to reduce drop-offs and improve conversion rates.
- Support for 100+ payment methods, including UPI, debit/credit cards, wallets and BNPL options.
- Loyalty point redemption to allow customers to pay using reward points.
Flexible payment options
With rising online spending, especially from India’s growing middle class, affordability has become a major driver of purchase decisions. Key affordability features boosting mobile commerce include:
- Zero or low-cost EMI to make purchases more accessible.
- Debit and credit card EMI to cater to a wider audience.
- Cardless EMI and BNPL for customers without traditional credit access.
- Customised discounts, cashback and promotional offers to drive engagement.
AI and machine learning for fraud prevention
With over 10 billion UPI transactions per month, security is paramount in mobile payments. Payment gateways leverage AI-powered fraud detection to enhance security and optimise success rates using:
- Real-time fraud prevention to detect suspicious transactions.
- Transaction optimisation for higher success rates and minimal payment failures.
UPI transforming payments
Unified Payments Interface (UPI) has been a game-changer for India’s digital economy. UPI-powered advantages such as speed, simplicity and secure flows have made it the preferred method of payment across customer segments. UPI-powered advantages include:
- UPI intent flows for direct and secure mobile payments.
- UPI deep links to enable cash-on-delivery payments via messaging apps.
Reaching new markets
With over 900 million internet users expected by 2030, rural and smaller urban areas are set to lead the next phase of e-commerce growth.
Digital commerce penetration beyond metro areas is expected to account for over 50% of the market by 2030, requiring businesses to ensure their payment systems are inclusive and adaptable.
Global reach through multi-currency support
Cross-border commerce is expanding rapidly, with B2B digital commerce projected to reach USD 360 billion by 2030. Payment gateways enable businesses to process international transactions seamlessly. Global payment features that simplify international transactions include:
- Multi-currency processing for smoother cross-border transactions.
- Automated currency conversion for a seamless international payment experience.
Sustainability in digital commerce
With more businesses adopting green practices like eco-friendly packaging and EV-based delivery, digital payments are playing a role in driving sustainability. Payment gateways support these efforts through:
- Digital invoicing to eliminate the need for paper bills.
- Paperless transactions that reduce the carbon footprint of commerce.
The future of mobile commerce and payment gateways
India’s retail e-commerce market is expected to hold a 60% value share by 2025, driven by fashion, electronics and groceries. To stay ahead, businesses must integrate scalable, secure and feature-rich payment gateways that align with evolving consumer expectations.
Why businesses need robust payment gateways:
- Higher conversions: A frictionless checkout experience encourages repeat purchases.
- Reduced cart abandonment: Faster transactions increase completion rates.
- Enhanced security: Encrypted payments ensure safe transactions.
- Seamless cross-border payments: Multi-currency support allows global expansion.
Simplify mobile payments and scale with a smart payment gateway.
With digital commerce expected to grow 4x by 2035, adopting advanced payment gateways is vital for secure, seamless mobile transactions—enhancing user experience, streamlining operations and enabling global business expansion.
By using AI-led fraud detection, UPI, affordability tools and cross-border features, businesses can unlock growth. As digital payments evolve, integrating an advanced payment gateway such as Plural can be key to long-term success.
Sources:
https://www.futuremarketinsights.com/reports/india-digital-commerce-market
