MOBILE WALLET MARKET IN INDIA: OPPORTUNITY AREAS
When mobile phones got introduced to the Indian market, it was only used for making and receiving calls and for sending text messages. In the last two decades, the functionalities of mobile phones have evolved and expectations of consumers from the mobile phone market in India has changed drastically. Currently mobile phones are used for almost everything—from clicking pictures to recording videos, from watching your TV show to paying your bills. From the mobile phone market of India has evolved a new business called mobile wallet market in India.
With fintech revolution in full swing in India, mobile wallets are steadily gaining popularity as the chosen method of payment for a large part of the urban population. It is true that cash still retains its place as the most used mode of payment, but expert are of the opinion that mobile wallets will soon replace cash payment methods. Recent studies have shown that people’s awareness has increased regarding mobile wallets. Successful mobile wallets in India include Amazon Pay, Apple Pay, Google Pay among others. Factors that have contributed to the popularity of these mobile wallets include secured payment gateway, retail purchases accepting payments through e-wallets, convenient and fast payment.
Opportunity areas for mobile wallet market in India
Rural areas: rural areas contribute greatly to the overall economic development of a country. In remote areas most people do not have access to banks, but having mobile wallets can enable them to conveniently create bank accounts without going to the bank branch. Also, mobile wallets ensure that transparency of financial transactions is maintained.
Payments and loyalty:
Research has shown that consumers are reluctant to use loyalty programs if they are not accompanied with a smartphone app. 69% of consumers have noted that they tend to continuously use loyalty cards if it is on their phones.
Increased number of smartphone users:
There has been a drastic increase in the number of smartphone users with four out of ten people owning a smartphone. With the increased number of smartphone users, there has been an increased number of mobile wallet users. Consumers can now use their smartphones to make payments through wallets.
Mobile banking and inventive payment applications:
More banks are now offering mobile banking services to customers. This service is used to transfer cash, carry out transactions and check balance. This service acts like a catalyst to increase cashless payments that in turn facilitates the use of mobile wallets.
With the number of internet users increasing rapidly every year, it is estimated that there will be 650 million internet users by 2020. With customers becoming more digitally sound the preference for digital money will increase considerably. Several companies have come up with their mobile wallets and the idea of ‘Digital India’ is facilitating the growth of the mobile wallets market in India. Mobile wallets will be used as complete financial management tools in the future. A lot of initiative is being taken to make digital payments a reality in India.