Mobile Wallets Adoption in India.
In this new digital era, mobile devices have become one of the most prominent consumer products ever to be launched.These devices and the services provided by them rapidly became basic necessities of daily life.Increasing adoption of mobile devices and e-commerce led to the evolving mobile payments landscape, banks are at something of a crossroads.The alternative mobile payment forms are increasing worldwide. Understanding motivations and barriers of adoption will help all the participants of the mobile payment ecosystem ranging from smart phone producers to banks and small and large vendors to design sustainable strategies.How fast will consumers adopt digital wallet products,and how is the market likely to unfold? The answers, of course, depend on the nature of the products offered and consumers’ willingness to adopt them. This article provides insight into the how the consumer adoption curve relates to mobile payments technology.
Where does it lie in product adoption curve?
People in this segment tend to be early adopters of mobile wallets. They enjoy trying new things with their mobile phones,including making payments. If they have concerns about security or are interested in promotional offers, the concerns are typically minor.More important are convenience and the prospect of being able to leave their wallets and cards at home.Product attributes likely to attract this segment include a seamless mobile payments experience coupled with intuitive new features and interfaces.
Profiles of adopters — (early adopters, early majority and so on).
Mobile payment systems in India haven’t reached mass adoption however in certain developed cities these options are used by a significant portion of active mobile users.As the youngest group in survey (47 percent are under the below age of 35), mobile enthusiasts value traditional credit card attributes, including fraud alerts, Product attributes likely to attract this segment include a seamless mobile payments experience coupled with intuitive new features and interfaces. A compelling wallet offering has integrated merchant and peer payments.
Factors and challenges which affected rate of mobile wallet adoption.
Security concerns around using mobile wallets are largely based on perception.The key to growth going forward will be to alleviate concerns over privacy and security. This is followed by lack of usability versus credit cards or cash and not being top of mind as a form of payment.Among non-mobile purchasers, around 55% cited a preference for existing payment methods as a main reason for avoiding mobile payments.Perceived lack of value to making payments through a mobile device was another reason consumers avoid using mobile wallets.Localisation of the wallets also hindered the adoption.
Growth hacks used
One will love the way mobile wallets has fulfilled the basic necessity of their customers with the payment integration modes. Ideally, it was launched to do mobile recharges which is a daily basic need for all of us. Most people have prepaid mobiles, so getting a recharge done with few clicks, without going to a store, worked well. Next what they enabled was online bill payment. They knew that no customers like to stand in the queue, so they made paying bills easier. Whether it was DTH or Loan EMI, Insurance Premiums or Municipality Bills all could be done via wallet .Another hack that worked for them to attract more customers was to provide cashback offers on every bill payment. With the launch of the apps, the companies grabbed the millennials as well.A recent integration of online movie ticket purchase gave a good blow to wallet competitors. As movie ticket came with cashback of Rs.100–200 every time at wallets.Major growth hacking idea that wallets launched after demonetization in November 2016. They are allowing customers to make all kinds of payments, do shopping and transfer money with or without the internet.
Security concerns around using mobile wallets are largely based on perception and should begin to disappear once consumers realize that mobile payments are generally more secure than using a plastic card for making purchases.The largest hurdle before mobile payment usage can become widespread will be for habit driven consumers to finally ditch their traditional payments methods.