The mobile wallet market in India is projected to surge, with new research pointing to the rising penetration rate of mobile devices, an increased mobile Internet user base and growing government support as contributing factors.
According to TechSci Research’s latest report, India’s mobile wallet market could reach $6.6 billion by 2020.
“A large number of banking, financial services and insurance and telecom companies have entered into the mobile wallet market in India. Tier I cities, such as Delhi, Mumbai, Kolkata, Bangalore, Pune, etc., have been the early users of mobile wallet market for shopping, money transfer, mobile recharge and payments, etc.,” Karan Chechi, research director with TechSci Research, said in a press release.
“The mobile wallet trend is gaining momentum in Tier II cities, such as Jaipur, Lucknow, Chandigarh, Indore, Patna, etc., as well on account of rising smartphone and mobile Internet penetration rates.”
TechSci Research, a research-based global management consulting firm, released its “India Mobile Wallet Market Opportunities & Forecast, 2020” report yesterday (Sept. 22).
The report’s findings show many mobile wallet companies operating within India are now offering attractive deals to consumers and are using increased incentives to bring in new users. By partnering with service providers and financial institutions to enhance the offerings of mobile wallets, providers have contributed to the growth of the market in recent years, TechSci Research said.
“Usage of mobile wallet is growing across various applications, such as money or banking transactions, mobile recharge and bill payments, ticket bookings, utility applications, etc.,” the statement said.
“In addition, approval of payment bank licenses of major companies, such as Paytm, Vodafone, Airtel, etc., is projected to drive growth in the number of banking transactions through mobile wallet over the next five years.”
Last year, India’s Northern and Western regions represented the largest number of mobile wallet users and transactions, but TechSci Research’s report shows that the country’s other regions have also gained momentum in the usage of mobile wallets as a result of the growing smartphone user base and increased awareness of the benefits that come with using mobile wallets.
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