Mobile wallet industry to reach Rs.1500 billion in next 5 years
Posted on: 29/Dec/2016 9:34:08 AM
A study conducted jointly by trade body Assocham and business consulting firm RNCOS has said that 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. 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 And Network Security.
According to the study, 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. 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. 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. 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.
The 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. 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.
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.
