What is common thread among the business men, students, IT professionals, rural farmers and Kirana store owners? Smart phone. With more than 1billion telecom connections, the use of mobile as a platform to create access and incentivize usage of electronic payments will create a dent in the cash volume 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.
- 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 be around 67% and 69% respectively
- 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.
By Bhasker Canagaradjou, Head – Ipsos Business Consulting, India