Assocham along with research firm RNCOS has come out with an interesting study on the mobile wallet market in India. As per their research, there is immense potential in the growth of the market, as it can reach Rs 30,000 crore between 2016 and 2022, maintaining a growth rate of massive 141% year on year.
This is the most bullish prediction made by Assocham regarding mobile wallet market in India, which has witnessed sluggish growth within the overall digital payments ecosystem. For the financial year 2015-16, mobile wallets accounted for just Rs 154 crore worth of transactions.
The research is clearly influenced by the demonetization move, which has made the usage of digital currency as mandatory, rather than optional. But, can the growth be sustained for the next 6 years?
Mobile Wallets Is The Next Big Thing In Digital Sector?
Besides predicting the market of mobile wallets in India, the study by Assocham-RNCOS also focuses on the market value of mobile wallet transactions; and there is immense growth predicted there as well.
The report states that the market value of m-wallet transactions will grow at a rate of 154% between 2016 and 2022, and will reach Rs 55 lakh crore from current Rs 20,600 crore.
If we talk about total value of mobile wallet transactions, then it is expected to reach Rs 12,000 crore by 2022, which is right now around Rs 50 crore.
If we look at the overall mobile payments niche, then mobile wallet related payments accounted for just 21% share; which is expected to reach 79% by end of 2022. This means that mobile payments would be slowly dominated by mobile wallets.
What Is Driving Mobile Wallet Usage in India?
The report attempts to demystify the usage of mobile wallets in India, and found that there are mainly three types of transactions happening in this sector:
- Money transfer (between peer to peer; from wallet to bank and bank to wallet): The particular type of transaction accounts for largest 38% share
- Mobile Recharge and Bill Payments (electricity, water, landline, DTH etc): These types of transactions account for 31% share
- Online shopping, movie tickets, travels expenses, online food ordering: Such transactions account for 31% share
The report mentions that companies involved in mobile wallet transactions should ensure greater safety mechanism like OTP powered transactions and PINs for completing transactions. Safety is the biggest issue which is hampering the growth of mobile wallets in India, says the report.
You can access the more details from the report titled ‘Indian m-wallet market: Forecast 2022’ right here.
Mobile Wallet Limit Increased by 100%
Meanwhile, in a related news, RBI has decided to increase monthly limit for user to Rs 20,000 from Rs 10,000; and for merchants to Rs 50,000.
This comes in the wake of less currency in the market since the demonetization move announced by PM Modi two weeks back.
This news was shared by RBI via its notification dated November 22.