m-wallet to grow by CAGR 211% between 2016-22 due to demonetisation

Mobile wallet transaction is expected to carry out majority of transactions in the next 10 years with its market value to set to grow by CAGR of 211% between 2016 to 2022, an ASSOCHAM-RNCOS study revealed.

Reduced prices of internet due extensive competition, cheap smartphones, advancement of new technologies such as 4G and demonetisation will result in the market value of m-wallets reach Rs 275 trillion by 2022, the study suggested.

The report mentioned that the average wallet spend for retail which was about Rs 500-700 prior to demonetisation is expected to increase to Rs 2,000-10,000. The share of mobile wallet in the total mobile payment volume transactions is expected to rise from 20% in 2016 to 57% by 2022.

In 2016, the report says, total m-wallet transaction was 0.6 billion, which is expected to reach 260 billion by 2022, growing at a CAGR of 163%. Cash in the e-wallets that people keep have grown by 1000% and average number of transactions too has gone up from 3 to 18 since demonetisation.

"All small and large merchants, street dwellers have started accepting mobile wallet payments post demonetisation move," the report said.

Indian m-wallet market in 2016 was around Rs 1.54 billion which is expected to grow at a CAGR of 196% during 2017 to 2022 and reach Rs 1512 billion by the end of 2022, the study suggested.

The findings of the study show that the total transaction volume of the m-payment in India was 2.9 billion and is expected to grow at a CAGR of 132% between 2016 to 2022 to reach around 460 billion by the end of 2022.

Overall mobile payment may grow at a CAGR of 150% between 2016 to 2022 to reach Rs 2205 trillion.

The report also said that after banks and telecom companies, software service companies will venture into the m-wallet market. The extremely competitive and highly fragmented m-wallet market in India will see more tie-ups happening between m-wallet companies and several entities like restaurants, grocery stores, and ticket booking websites.

Mobile wallets will soon offer instant loan facility for short term to its customers, the report added. The study, however, suggested that RBI should relax its current policies and allow cash withdrawals from the semi-closed wallets while easing the rules of bank licensing to promote m-wallets.

The study also pointed out that while the young users prefer internet and mobile banking over traditional transactions, consumer’s mindset is the biggest factor that hinders the growth of Indian m-wallet market as they are more skeptical about the safety and security issues as in the case of internet banking.

For more tech news visit: www.latestwebtechnology.com