Mobile Wallets Adoption in India

Often Mobile wallet refers to a software application on mobile and web which will serve as a payment method. This will include topping up mobile recharges, purchasing items online & offline, pay school fee etc. A mobile wallet can link to individual bank accounts for easy transactions. The customer has the ability to choose which method he/she is comfortable with paying using a smartphone or just user credentials on a website or offline POS. As India built first ever AADHAR biometric system, a mobile wallets provider might integrate with their service. For example, this integration might give a chance to a mobile wallet provider to know the location, personal information of a customer.

A mobile wallet is helpful for cash-less economy and transparency in payments. After demonetization in India, several banks started offering mobile wallets to solve liquid cash problem.

According to Indian budget plan 2017, suggest that only Rs.300000/- a customer can pay on cash whereas any other transaction after the limit should be paid electronically. This will give a great opportunity for mobile wallet providers and banks to grow much faster.

A mobile wallet is now offering various levels of services like e-commerce purchase, top-up mobile recharges, offline Point-of -Sale(accepting payments), pay bills to various service providers and what not…..!

As the customer usage increased, mobile wallet providers should build better security features. The banks earned a decent level of trust from the users over the years, if the banks offer mobile wallets with better security and safety features then it is good chance to gain more market share.

Where does it lie in product adoption curve?

In easy terms, mobile wallet providers and users are increased in high numbers after the demonetization. So, the people got to know more about mobile wallets and internet banking significantly.

I think the product adoption is in between early adopters, early majority, and late majority. The product like PayTM is dominating the mobile wallet industry. They started with mobile top recharges and now they are offering services like e-commerce, bill payments, offline POS etc.

Generally, what is the product adopters profile in mobile wallet industry?

Early Adopters: Tech savvy people who believe in the digital economy. Generally, the age between 23–45 years. The user base is in tier 1 and tier 2 cities.

Customer profile : Engineer, student, popular retail merchant etc.

Early Majority: These customers often read the news and check with early adopters before deciding of using mobile wallet services. They come from various parts of the country which includes rural, urban and city level. The smartphone users who is able to transact online.

Customer profile: Student, small shop owners, and mobile recharge providers etc.

For example, the wallet industry leader PayTM offering offline POS for small and medium merchants in rural and semi-urban areas. Majority supermarkets will go with PayTM wallet service.

Another example, Ola Money is introduced in recent time which is able to use for paying taxi fare with Ola. Ola money got bigger and able to purchase with certain e-commerce websites, movie tickets etc.

Late Majority: Often takes the time to understand underlying service and observe user. Most people who are not tech savvy and also not able transact online.

For example, PayTM POS for offline stores is really impressive move but to attract rural/semi-urban customers are very difficult. The customers look for advantages and disadvantages before taking a decision.

Laggards: Generally, more age range people and doesn’t like to pay online. As the Indian government is passing G.O. for payment after Rs. 300000/- should be paid electronically, the customer doesn’t have any other alternative, they might just follow others to transact online.

Customer profile: A farmer in urban areas, retired teacher etc.

Factors and challenges which affected rate of mobile wallet adoption

  • Security and safety of the funds is the most challenging
  • Convenience in buying products online
  • Wallet brand loyalty
  • Necessity
  • Internet Connection

Growth and product adoption comparison with other payment methods

The mobile wallet providers are the most beneficial in generating a real revenue stream to all the stakeholders of the mobile ecosystem like customers, banks, mobile operators, wallets etc.


  • Attract more customers to get more market share
  • Constant flow of money into wallet accounts


  • Easy of use
  • No need to fill personal details again and again while purchasing online/offline
  • Smartphone for everything

Mobile operator:

  • Partnering with mobile wallet to offer cash back which will help them to attract more customers
  • Multiple mobile top-up recharge offers on wallet
  • Easy payment method with customer details

Mobile Wallets:

  • Attract more and more customers
  • Offer many more services
  • The constant flow of money into mobile wallet accounts which is directly/indirectly helping wallet provider valuation.

Growth hacks used

  • Partnering with the more useful consumer business provider.

Example: PayTM partnering with Uber

  • Offering many more services like bill payments.

Example: School fee payment in local town school.

  • Cashback offers on various services.

Example: Cash back in bus tickets, e-commerce purchase, mobile top-up etc.

  • User Experience improvement
  • Online advertisements
  • Social media marketing
  • Partnering with financial institutions
  • Referral payments


So, to conclude. The government of India encouraging people to more cash- less economy. The advantages being more transparent in paying and ease of use.

Mobile wallets can penetrate into our daily life in near future. An Auto rickshaw driver to pilot, a student to the college dean, general customer to small shop owner etc. adopting mobile wallets into their life.