Mobile Wallet Payments: The Next Big Wave in India

With more than 1 billion telecom connections, the use of mobile for electronic payments is set to create a dent in the volume of cash transactions.

The payments landscape in India is at a point of inflection. New business models and fresh thoughts to product design and delivery is needed to change the Indian payment habits. The product needs to be nimble, affordable technology and with the mobile handset as a channel of delivery of services.

In India, where most of the population doesn’t have credit and debit cards, the mobile phone is fast becoming a tool that acts as a catalyst for digital payment solution. After e-commerce, the digital and wallet payments will be the next big wave.

The latest statistics include:

• 49% of the users in metro and tier 1 cities have an intent to use the mobile wallet services in the future, however in Mumbai and Delhi it is expected to rise to around 7 in 10.
• 52% of the individuals are aware about Mobile Wallet payment in metros and tier 1 cities in India, however the awareness levels in Delhi and Mumbai are higher with 67% and 74% respectively
• Mobile Wallets are being used the most for Mobile recharge (67%), followed by online shopping and travel bookings
• 15% of the consumers have used wallet service in the past six months; PayTM is the most preferred service provider with 40% of consumers using the app followed by free charge and Airtel Money.