TECHNOLOGICAL advancements have changed things radically around us. Today, mobile wallets have made cashless transactions from anywhere in the country very convenient for the consumer.
Mobile wallet as a concept is in its nascent stage in India but it has grabbed customer attention very rapidly. Mobile wallet is often confused with mobile banking, but it is actually a much extensive thought that includes using the cellphone as a mode of payment. Today, it is the digital counterpart to the wallet we already have in our handbags.
A study done by TechNavio suggests that the m-wallet market in India will grow at a CAGR of 140.87% over the period 2013-2018. In India, we have companies such as Paytm, MobiKwik and Oxigen which are leaders in this space and with all the big e-commerce players adopted the wallet within their applications, the mobile waller space is bound to grow at an even faster pace.
The lack of appropriate conformity standards causes a number of problems in the smooth adoption of this technology. If a consumer uses a mobile wallet app on his smartphone, it does not necessarily mean that the destination institution has technology that makes the actual transaction possible. If the two technologies are not compatible, the consumer won’t be able to use the installed mobile wallet.
From the hardware compatib-ility point, the variations in mobile wallets also mean varying components. The use of different methods can also lead to confusion, further leading to non-functionality. In India, the Reserve Bank of India is also another influencing factor since policies on monetary transactions are decided and executed by it. Another key challenge in implementing immediacy in mobile payments in India is the visible lack of willingness on the part of various players to work in tandem so that the technology is adopted on a big scale.
With the use of technological advancements such as Loop and Coin, a revolutionary experience for the users can be brought in. Mobile payment service providers and banks need to work together to create a flawless network for the technology to work efficiently. Solving problems efficiently and using the partnership model which is currently taking off in developed economies, will help curtail the problems in the Indian market.
By 2018, mobile wallets are set to become the top preferred practice for in-store and digital payments. This will have a positive effect on the entire mobile wallet payment series, including a drop in insecure and untraceable payments and the related expenses, reduced management risks and greater customer loyalty and satisfaction.
The author is CEO, MindShift Interactive