With the mobile subscriber base increasing to 600 million in India, mobile payment is fast gaining ground, and has already achieved a 10% penetration among mobile users, say industry analysts. In FY 2008-09, m-payment did not comprise even 1% of the total payment modes used in India . However, analysts say, this number is expected to increase to 2% in the next 2-3 years. Utility payments through mobile phones during FY 2008-09 accounted for the largest amongst all the other m-payments activities. It accounted for almost 60% of the total transaction. M-commerce spending globally is expected to reach $18.4 billion within five years.
Several m-payment service providers in India are working towards its mass adoption. ?The new RBI guidelines are much in sync with promoting m-payment in India . The entry point of handsets at Rs 1000-2000 makes it difficult for mass adoption of m-payment but as the customer matures, the service will evolve,? says Ajay Adiseshann, founder and MD, PayMate. M-payment services are available in multiple variants i.e. application download, IVR, SMS and GPRS-based.
