The value of total transactions made by using mobile wallets more than doubled between April and September, compared to the same period a year ago — underlining the increasing preference for this channel, especially for smaller sums or money.
Data released by the Reserve Bank of India showed that between April and September, the value of transactions using mobile wallets rose 101.5 % to about R16,528 crore. In the month of August, the amount of transactions made through these wallets crossed R3,000 crore for the first time and in September, the amount rose 77% year-over-year to R3,192 crore.
The volume of transactions through mobile wallets between the same period stood at 36.31 crore, compared with 29.96 crore, a year ago.
With the emergence of companies like Paytm, Mobikwik and PayU, the growth of mobile wallets has gained much steam in the past few years. For instance, in FY2014, the year Paytm and Mobikwik launched their mobile wallet apps, the total amount of money transacted through wallets stood at about R8,000 crore. This amount grew to R20,583 crore in FY2015 thanks to the spread of the digital wallet, and more importantly their increasing partnerships with e-commerce websites, cab-aggregators as well as restaurant aggregators, analysts say.
With the launch of Unified Payments Interface (UPI) in September, many feared the mobile wallet may soon be a thing of the past. This is because the UPI makes money transfer between two individuals much easier a process than it is with wallets. However, several analysts and company executives have said the potential of the payments space in India is enough to house both channels comfortably.
According to report published recently by a market intelligence agency, TechSci Research, mobile wallet market in India is projected to reach US$ 6.6 billion by 2020. The said growth is projected to come from rising smartphone penetration rate, growing mobile internet user base, and increasing government support.