Nilaya Varma, associate director, PricewaterhouseCoopers, said: "Earlier, Indians were circumspect about using e-payment as they were comfortable paying in cash and through checks." Moreover, Internet access was expensive and not available everywhere.

"Today, the proliferation of telecommunications networks and mobile phones has filled this gap," Varma told ZDNet Asia in an e-mail interview. As a result, India's retail e-payments market is likely to grow by nearly 70 percent in the next two years.

The travel industry too has witnessed a lot of activity in the area of e-payments. According to a survey undertaken by market research company eMarketer, India's online travel market is predicted to grow by 46 percent per annum between 2007 and 2011 and generate earnings of US$4 billion by 2011.

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