Delhi, Jan. 25, 2022 (GLOBE NEWSWIRE) -- India's mobile wallet market is growing at an impressive CAGR owing to the increasing number of smartphone users in the country. Additionally, the growing awareness among consumers regarding convenient payment options through mobile wallets is also propelling the market forward…
A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the India mobile wallet market was worth USD 30.1 billion in 2020. According to the study, the market is estimated to grow at a CAGR of 46.3%, earning revenue of USD 429.2 billion by the end of 2027. Mobile wallet transactions spiked after the government demonetized Rs. 500 and Rs 1,000 in 2016. The Indian government has provided individuals with a variety of digital wallets, including UPI, BHIM, Aadhaar Pay, and Payment Banks, which have reshaped payment processes.
India's mobile wallet market is, therefore, flourishing at a high rate owing to the increasing number of smartphone users and growing awareness among consumers regarding convenient payment options through mobile wallets. In addition, merchants are adopting mobile wallets at a rapid pace due to the lower set-up infrastructure and transaction fees compared to traditional card-based payment systems. However, poor internet connectivity, limited internet accessibility, and risks associated with cybersecurity may severely hamper the market's growth.
Flourishing E-Commerce Sector Propelling the India Mobile Wallet Market Growth
The flourishing e-commerce sector is among the major driving factors for the India mobile wallet market. Once a user pays on a shopping site for the first time, the mobile wallet saves their data automatically and enables one-tap payments in the future. This makes it convenient for the customers to make payments without any hassle. Additionally, several e-commerce websites partner with mobile wallet platforms to offer attractive deals and discounts, which are projected to drive market growth over the forecast period.
Market Growth will be Driven by the Increasing Number Of Smartphone Owners & Internet Users
According to the IAMAI-Kantar ICUBE 2020 report, India's number of active internet users is projected to surge from 622 million in 2020 to 900 million by 2025, with groundbreaking growth of 45%. According to the report, there will be more internet users in rural India than in urban India by 2025, reducing the gap between urban and rural access to the internet. Likewise, according to data released in 2019 by the Telecom Regulatory Authority of India (TRAI), India's telecom regulator, the country's mobile phone subscriber base exceeds one billion. Thus, with increasing internet accessibility and the number of smart phone users in the country, the India mobile wallet market is also anticipated to surge in the upcoming years.
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The National Payments Corporation of India (NPCI)’s UPI System is a path-breaking Trend in The Indian Mobile Wallet Market
India’s National Payments Corporation of India(NPCI)’s UPI system, which permits inter-bank transactions, is a game-changer in the mobile wallet market. With UPI, users are able to create virtual payment addresses (VPAs) and make easy peer-to-peer payments. Moreover, the use of expensive electronic data capture (EDC) machines or near field communication (NFC) devices have been replaced by the development of UPI quick response (QR) codes for digital payments at various retail outlets.
The Near Field Communication (NFC) Segment Dominates Technology Segment of India Mobile Wallet Market
India mobile wallet market is segmented into near field communication (NFC), optical/QR code, digital, and text-based based on technology. The near field communication (NFC) segment accounts for the largest share in the market as it is emerging as the most viable payment option digitally. Moreover, Google Pay is emerging as the leading supporter of NFC to boost mobile payment via contactless technology and tap-to-pay with credit and debit cards. This type of technology offers contactless, encrypted, and highly secured payments, boosting its market growth.
West India is Projected to Witness Substantial Growth During the Forecast Period
Geographically, India mobile wallet market is segmented into North India, South India, West India, and East India. South India dominates the India mobile wallet market as mobile banking is becoming one of the most popular payment methods in the region. However, North India is anticipated to lead with the highest growth rate in the adoption of mobile wallets during the forecast period. Rapid urbanization and industrialization, along with the increasing penetration of smartphones and internet accessibility, are providing significant growth opportunities to the adoption of mobile wallets in this region. On the other hand, West India is also projected to register substantial growth during the forecast period.
For more info please visit press release of India mobile wallet market: https://www.blueweaveconsulting.com/press-release/india-mobile-wallet-market-setting-records-projected-to-grow-at-a-massive-cagr-of-46-3-by-2027
Impact of COVID-19 on India Mobile Wallet Market
The sudden COVID-19 pandemic outbreak in the country has positively impacted the India mobile wallet market. The limitations on mobility and heavy reliance on banks created significant room for adopting mobile wallets across the country. Thus, many previously unwilling citizens began using mobile wallets during the pandemic. The market also witnessed a sharp surge due to the high dependence on e-commerce platforms during COVID-19. Additionally, growing number of smartphone users due to work-from-home and online schooling scenarios is also expected to influence the growth of the India mobile wallet market during the forecast period.
India Mobile Wallet Market - Competitive Landscape
The leading players in the India mobile wallet market are Paytm, Google Pay, BHIM Axis Pay, PhonePe, Mobikwik, Yono (SBI), Citi MasterPass, ICICI Pockets, HDFC PayZapp, Amazon Pay, and other prominent players. In recent years, wallet providers have increasingly developed collaborations with service providers and financial institutions to provide customers with a strong and seamless mobile wallet platform. Furthermore, mobile wallet usage is increasing across a wide range of apps, including money and banking transactions, mobile recharge and bill payments, ticket bookings, utility applications, and so on. Market players, for instance, are promoting cashless payments via mobile wallets with features, such as mobile vouchers, digital loyalty schemes, digital charity boxes, and dynamic currency conversion.
The market is highly consolidated and dominated by a handful of players such as Paytm, Google Pay, etc. As a result, it is considered dense for new entrants. Moreover, leading market participants significantly invest in R&D activities to boost the security and encryption of their platforms and increase their offerings. Additionally, partnerships, mergers, acquisitions, joint ventures, and many other organic strategies are used by them to stay ahead in the market. The dominant players also use inorganic marketing and advertising strategies to create consumer awareness, micro-target specific audiences, and increase their market share.
The report's in-depth analysis provides information about growth potential, upcoming trends, and the India mobile wallet market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the India Mobile Wallet market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the market's growth drivers, challenges, and competitive dynamics.
Scope of the Report
| Attributes | Details |
| Years Considered | Historical data – 2017-2020 |
| Base Year – 2020 | |
| Forecast – 2021 – 2027 | |
| Facts Covered | Revenue in USD Billion |
| Market Coverage | North India, South India, West India, and East India |
| Product Service/Segmentation | By Type, By Ownership, By Technology, By Region |
| Key Players | Paytm, Google Pay, BHIM Axis Pay, PhonePe, Mobikwik, Yono (SBI), Citi MasterPass, ICICI Pockets, HDFC PayZapp, Amazon Pay, and other prominent players. |
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