Mobile wallet market in India expected to reach Rs 1,512 billion by 2022

Mobile wallet market in India expected to reach Rs 1,512 billion by 2022

The mobile-wallet market in India is expected to grow at over 190 per cent to reach Rs 1,512 billion by financial year 2022 from the current level of about Rs.1.5 billion, says a study conducted jointly by trade body Assocham and business consulting firm RNCOS.

The m-wallet transactions are likely to grow at a compounded annual growth rate (CAGR) of over 160 per cent to rise from just over half a billion in FY16 to 260 billion by FY22.

Growing usage of smartphones, robust mobile internet penetration, growth of e-commerce sector together with increasing disposable incomes are the factor which will drive this growth.

“It is anticipated that market value of m-wallet transactions in India will grow at a CAGR of over 200 per cent to reach Rs 275 trillion by FY22 from Rs 206 billion in FY16,” said the study.

The m-wallet transactions, in market value terms, have grown about 20 times to reach Rs 206 billion in FY16 from Rs 10 billion in FY13.

“The mobile wallet market in India has been greatly benefited by demonetisation and its share in the total mobile payment volume transactions is likely to rise from 20 per cent in FY16 to 57 per cent by FY22,” says the report.

The study titled ‘M-wallet: Scenario post-demonetisation’ was released by D.S. Rawat, secretary general, Assocham, Shushmul Maheshwari, CEO and founder, RNCOS and Babu Lal Jain, chairman of Assocham National Council on Cyber Aand Network Security.

It also revealed that post-demonetisation, the average wallet spend for retail has witnessed huge jump, and is expected to increase from Rs 500-700 to Rs 2,000-10,000 in the near term.

“The government has hinted of not remonetising all of the scrapped currency and aims to fill the gap by promoting digital/cashless payment mode, this is bound to further boost prospects for m-wallet sector in India,” said Rawat.

The study also highlighted that post demonetisation, the mobile payment transaction volume in India is likely to grow at a CAGR of over 130 per cent to reach 460 billion by FY22 from just about three billion in FY16.

Mobile payment transactions in value terms are likely to cross Rs 2,200 trillion mark by FY22 from just over Rs 8 trillion in FY16 thereby clocking a CAGR of 150 per cent.

It also highlighted that share of mobile banking segment in mobile payment market is likely to register significant increase from eight per cent in FY14 to 56 per cent in FY17.

The study however said that it is a challenge for the sector to bring copious number of shoppers preferring cash on delivery (COD) and other modes of payment on m-wallet platform.

However, with the ease of payment along with other benefits offered by m-wallets, users preferring COD will switch to the m-payment platform in the coming years.

With a view to win customers’ trust, companies operating in the mobile-wallet sector should take measures like providing effective, completely secure, private and reliable services, 3-D or OTP (one time password) security options, data back-up system and others to spread awareness among people, it added.

Mobile wallet market in India expected to reach Rs 1,512 billion by 2022,Demonetisation, digital india, Digital payment, m-wallet, Mobile Payment, mobile wallet

UIDAI’s Aadhaar payment app to be launched on 25 December

UIDAI’s Aadhaar payment app to be launched on 25 December

The government has been working on an ‘Aadhaar Payment App‘ to do away with plastic card and point of sales machines (POS) that seem to have done little in times of demonetisation. According to a report from the Economic Times, the new app will be launched on 25 December keeping in mind a faster adoption of a cashless society and to eradicate fee payments charged by card companies, making it an affordable digital payment solution for merchants in rural areas.

The new app will eradicate the need for payment machines for cashless transactions where all a merchant would need is an Android smartphone to run a cashless business.

As per the source, merchants would need to download the Aadhaar Cashless merchant app and connect to a biometric reader, one that is currently on sale for Rs 2,000.

All the customer needs to do is feed in his or her Aadhaar number into the app and select the bank for the transaction. The customer can then use the scanner to identify the customer and authenticate the transaction. Indeed this eliminates the need for One Time Passwords (OTPs), PINs  and much more that are a common requirement for plastic or digital transaction these days.

The app has been developed by IDFC Bank along with UIDAI and National Payments Corporation of India and will be available for download nationwide on Sunday.

Demonetisation: Digi Dhan Abhiyan intends to provide financial literacy to 1 crore citizens from rural India

Demonetisation: Digi Dhan Abhiyan intends to provide financial literacy to 1 crore citizens from rural India:

The Government has launched a Digi Dhan Abhiyan program to educate the citizens of rural India on cashless transactions in the wake of the demonetisation of high value currency notes. According to the Government, training the rural population and familiarising them with digital transactions is another step in the effort to tackle the problems of black money and corruption.

The program involves registering citizens, activating electronic points of sale, enabling merchants to go cashless, sensitizing the local population to electronic transactions, and providing more micro ATMs. The Government is hosting awareness sessions, informing the citizens of the policies and the options available for financial transactions. The citizens are being informed about the various methods of cashless payments available, including banking cards, USSD, AEPS, UPI, Mobile Wallets, point of sale services, internet banking, mobile banking and Micro Atms.

Digi Dhan Abhiyan in Himachal Pradesh. Image: Digi Dhan Abhiyan

The shopkeepers and merchants are being sensitised to accept these forms of payments. The programs are being conducted at the panchayat, district and block levels. The target of the project is to educate over 1 crore or 10 million citizens from rural and semi-urban India, with the goal of reaching every single one of the 2,50,000 panchayats across the country. The plan is to reach at least forty households and ten shopkeepers in every panchayat. There will be an acute focus on women, farmers, merchants and small traders.

Prime minister Narendra Modi is reaching out to the rural population through the program. A translated version of his call to action is “Your mobile phone is no longer just your mobile phone, it is also your bank and your wallet. You can manage all your affairs without having to even touch money.” IT Minister Ravi Shankar Prasad is persuading users to switch to cashless transactions with the message “Cashless Economy is the new era of digital revolution that has made money transfer an easy process. I urge everyone to not only use digital payment system but also encourage and train others in doing the same.”

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The efforts towards making India a cashless economy is tracked on the Cashless India web site. Digi Shala is a free to air channel launched on the Door Darshan network, and available on Dish TV, with the sole purpose of educating the rural population on electronic transactions. The web site for the Digi Dhan Abhiyan is known as Digital Jagriti. The Digital Jagriti web site has real time updates on the progress of the Digi Dhan Abhiyan.

 cashless economy, Demonetisation, Digi Dhan Abhiyan, Digi Shaala, Digi Shala, Digital Jagriti, less cash economy, MEITY, Narendra Modi, Ravi Shankar Prasad