How Mobile Wallet Apps Are Driving Digital Payment In India
In the wake of demonetization drive that was kicked off on 8th March, digital payment has been promoted quite vigorously by the government. As mobile wallets are one of the most convenient ways of paying digitally, they have gained tremendous popularity so much so that they are now virtually leading the digital payment in India. As of now, digital wallet payment accounts for more than 21% of the total digital payment.
This trend is likely to increase and reports predict that the mobile wallet market will be worth Rs 30,000 Cr by the year 2022. This growth can be attributed to a number of factors including increasing usage of smartphone, penetration of mobile internet as well as growth in the popularity of e-commerce. The awareness that is being created by the government against cash payment is also making more and more people switch to mobile wallets.
Emergence of New Mobile Wallets
As many new wallets have emerged, they compete quite fiercely and come up with attractive discounts and offers. Users get attracted to these unrealistic offers and that is how their user base is expanding. As more users are switching to mobile wallets for payment and transfer, the inflow of money through these wallets is an all-time high. Financial institutions, lifestyle online stores, and e-commerce stores have now come up with their own wallets making the transaction easier for the users. .
Integration of Wallets With E-Commerce
E-commerce websites are preferred by the users primarily because making a purchase is quite easy. One of the factors that makes the purchase easier is availability of different payment options. Users are often reluctant to use their credit/debit card details online due to security concerns. Mobile wallets are a better and a safer alternative for making online payments. Every e-commerce store is now integrating mobile wallets as the payment option and making it convenient for the buyers to purchase their favorite stuff.
Acceptance of Mobile Wallet As A Payment Method By Vendors
After the demonetization was announced, 86% of nation’s currency vanished from the market overnight. As an alternative, many local shopkeepers and service providers switched to mobile wallets. Several transactions, both large and small were done using mobile wallets. Even when the cash is back in the market, people are likely to use mobile wallets, as they let them do away with the hassle of keeping the cash. This is going to impact the mobile app development growth in a big way.
Financial inclusion is what mobile wallets need to target and they will be able to rule the Indian economy. The future for the mobile wallets is quite bright as new dimensions like interoperability may be added to them. Apart from the private players, the Indian government has also launched an Aadhaar based wallet to help even the rural people to adopt digital payment and bank transfer. According to Paytm’s CEO, wallet transaction has become a habit and is going to stay. Going by this statement, we can safely say that mobile wallet is here to stay and grow exponentially.