Top Retail Brands

Here's why you should load up your mobile wallet!

Today, when every industry has adapted to the use of digitization, how can digital wallet payment entities lag behind. What makes digital wallet the next big thing? Let's find out.

Tags: Mobile wallets, Indian retail industry, Paytm, Flipkart, Google, UPI, Facebook, WhatsApp, Alibaba, Tencent, RBI, India Post

BY Shwetha Satyanarayan  |  Feb 09, 2018  |  comments ( 0 )  | 
Here's why you should load up your mobile wallet!

It’s been over a year since India took the plunge into cashless economy, and while consumers are still getting accustomed to the digital leap, a latest report seems to be promising that mobile wallets are the new future. According to Capgemini’s World Payment Report, the mobile wallet industry will grow to $4.4 billion by 2022.

Although big ticket players like Paytm, Flipkart and Google have UPI and other services that leverage the inter-bank transaction standard, the report has projected a compound annual growth rate (CAGR) of 148% over five years. The report has thrown light on a new paradigm especially at a time when other global giants like Facebook and WhatsApp have bet on UPI instead of building their own digital wallets, in a bid to disrupt India’s mobile payments space.

However, the report, which has analyzed the global payment modes, has stressed that the growth of mobile wallets in India will be much higher than the overall growth of the digital payment ecosystem. “Growth of non-cash transactions, which include UPI and other inter-bank digital transactions, will only be at CAGR of 26.6%,” it said.

Riding on this wave, international majors Alibaba and Tencent are vying entry into the digital payment space in India. Further, with Reserve Bank of India (RBI) allowing interoperability between pre-paid payment instruments or digital wallets, just like it would be similar to the introduction of UPI for banks, the move will only build momentum for the mobile payment industry.

Rise of payment banks
As the need and demand grows for mobile payments, a hybrid model in the form of payment banks seems to be a desired winner. With a recognized license from the RBI, Paytm, Airtel and India Post are set to function in the fashion of banks, albeit not fully. With a high number of smartphone users and strong internet penetration, mobile payment in India is expected to grow in rapid speed. 

Related Articles

  • Back End
    Google master to decide
    Googles newly launched search engine nicknamed as Mobilegeddon is going to affect mobile
  • Eretail
    Facebook moves into
    Social networking giant Facebook is all set to venture into the burgeoning e-commerce sector after
  • Eretail strikes a
    The order was placed a young bride from Mumbai who recently visited the site in search for her
  • Back End
    Alibaba to launch mobile
    World's biggest e-commerce giant Alibaba is experimenting with an app which is a combination of
  • Investments
    WeChats movie ticket
    Beijing Weiying Technology, a movie ticket booking platform that is embedded in WeChat, Chinas
  • Trends
    India Post opens
    India Post, the Government operated postal system in India has extended its support to eBay India.



Please add your comment:

Not readable? Change text.

Enter the characters as seen on the image (case insensitive)

Notify me of followup comments via e-mail

Subscribe for daily newsletter