India Mobile
Wallet Market is anticipated to grow at a rapid pace during the forecast
period, 2025-2029. As India transitions to a more cash-independent economy, the
India mobile wallet market has experienced rapid growth. The industry is
driving the movement to turn India into a cashless economy as a result of the
value and volume of mobile wallet transactions more than doubling in the past
year alone. One of the main drivers of this growth has been the increased use
of smartphones and mobile data packages, and as technology use rises and mobile
data prices fall, the market is poised for additional expansion. The market for
mobile wallets has benefited from favorable legislative conditions as well due
to government initiatives to encourage payment methods other than the standard
cash transaction. Prepaid payment instruments (PPIs) increased from 10% to 22%
of all digital transactions in the months after the policy announcement has
further fueled the industry's expansion.
There are
217 million mobile wallet users in India and is expected to reach 434 million
in 2025. The mobile wallet transaction volume in India is 25 billion and is
expected to reach 71 billion by 2025.
Moreover,
the mobile rate penetration in India was 15.7% in 2020 and is expected to reach
30% in 2025.
The Unified
Payments Interface (UPI) which is an instant payments system was supported by
all significant banks across the country and is used for the online payments by
the numerous mobile applications as a payment interface. In India, UPI has
quickly risen to the top spot for mobile payment methods; in March 2021, there
were more than 2.7 billion transactions. Due to the fair playing field
created by UPI, India's economy is expanding. Since many consumers are
embracing mobile wallets to access digital payments for the first time, making
eCommerce possible for the first time, mobile wallet adoption represents a
substantial incremental opportunity for businesses.
In metro and
tier 1 cities, 49% of consumers have expressed interest in using mobile wallet
services; however, in Mumbai and Delhi, those numbers are anticipated to be 67%
and 69%, respectively.
The mobile
wallet is the digital type of the wallet that can be carried around.
It is an online platform that enables users to maintain funds there, much like
a bank account. A user must register for a mobile service provider account.
After then, funds are added to the mobile wallet account with a debit or credit
card, cash, online transactions from the account, or by using a credit card.
The key distinction between using a mobile wallet and making online purchases
using a bank account is that, in contrast to banks, mobile wallets do not
charge any fees for transactions and spare users from having to enter their pin
number and card information again.
Rising RBI
Initiatives:
The RBI also
serves as a model for collaboration between a central bank and commercial
businesses and is a cornerstone of the nation's quickly expanding digital
payment network.
Over the past
five years, India's volume of digital payments has increased at an average
annual rate of around 50%. Even while that growth rate is among the quickest in
the world. India's Unified Payments Interface (UPI), a special real-time mobile
system, has seen growth rates as high as 160 percent annually.
In June
2022, the volume of transactions more than doubled to 5.86 billion, and the
number of participating banks increased by 44% to 330. Values more than doubled throughout
the same time frame. Additionally, the RBI unveiled a UPI for feature phones in
March (older phones with buttons rather than touchscreens), which has the
potential to link 400 million people in remote rural areas.
Growing
Number of Individual Digital Payment Users in India
According to
NPCI Chief Executive Officer, the number of individual digital payment users
was recorded as tripled to 750 million in 2022, while merchant users increased
by 100 million. The National Financial Switch cash machine network, RuPay, a
debit and credit card issuer with a sizable market share, and a payment system
utilizing the national identity program to provide banking to underserved areas
are just a few examples of the diverse ecosystem of payment systems that the
central bank supports.
Rising
Adoption of Smartphones in India:
The
middle-income segment, which makes up a significant portion of the Indian
population, has easy access to mobile internet because of the availability of
inexpensive internet and low-cost handsets. Therefore, the use of mobile wallets
begun to grow popular among Indians. As of October 2022, India had over
1.2 billion mobile phone subscribers and 600 million smart phone users,
according to the Ministry of Information and Broadcasting. The need to
implement fintech, e-health, and e-learning and mobile wallet will drive
the rising demand for smartphones, which is anticipated to fuel the use of
internet. Moreover, widespread use of smartphones has helped to increase mobile
wallet accessibility. Mobile commerce and mobile ticketing enable smartphone
users to make the most of the mobile wallet functionalities with rapid growth
rates. Due to the increased use of smart devices and the prominence of mobile
commerce, digital organizations must now devote their attention to improving
mobile commerce platforms, services, and apps. Therefore, the increasing number
of internet and mobile users is expected to drive the adoption of mobile
wallets during the forecast period.
Increasing
Use of Mobile Wallets As a Form of Payment:
Mobile wallet
gives retail sales a whole new perspective to expand their market reach. Mobile
devices give clients a simple method to pay, but they also open up a new line
of communication for businesses and financial institutions with their
clientele. Mobile devices make it simple to send and receive information; they
may run specialized programs and keep track of their location. Mobile
connectivity enables businesses and financial institutions to interact with
clients about promotional offers in a way that is useful, targeted, and more
pertinent to their interests. Additionally, companies are able to create new
branded applications that are available for download. This feature can make
consumer interactions extremely personalized by tracking each person's specific
buying habits and demands. An important aspect driving the market's growth in
the coming years is the new opportunity and competitive challenge that such
linked and real-time marketing presents to marketers. Mobile wallet is
assisting businesses in enhancing sales, quality control, and brand recognition
as the number of mobile phones that support integration of wallet applications
and app environments rises daily. Additionally, it has become increasingly
common to use social networking websites and conduct online purchasing. Due to
the enormous and continuous increase in social media and online purchasing
users over the past five years, this trend will actually reach new heights in
the approaching years. All these elements, particularly the rise in mobile data
usage and advancements in payment technologies, are driving the growth of the
India mobile wallet market.
Emergence Of
A Cashless Economy
India is making
an effort to move toward a cashless economy. With the development of
technology, customers and companies are embracing contactless payment methods,
such as mobile wallets, which are regarded as handy, quick, and cost-effective
modes of exchange. The cashless economy has grown and expanded within the
Indian government due to the Digital India platform. Some issues need to be
thought about in order to fully comprehend the effects of a cashless economy.
In addition to lowering the risk associated with carrying and moving large sums
of currency, digital transactions also promote accountability, transparency,
and market efficiency. The government can use the pattern of data transmission
to plan for future expenses such as housing and energy management by exploiting
the data transfers occurring through cashless transactions. Therefore, the
market is expected to expand as a result of the trend toward a cashless economy
during the forecast period.
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Market
Segmentation
The India
mobile wallet market is divided into type, technology, ownership, application
and region. Based on type, the market is divided into semi-closed, open, and
closed. Based on technology, the market is segmented into quick response (QR)
codes, near field communication (NFC), magnetic secure transmission (MST), and
others. Based on ownership, the market is segmented into telecom operators,
device manufacturers, tech companies, and banks. Based on application, the
market is segmented into entertainment & travel, bill payments, food &
drinks, groceries, peer-to-peer transfer, and others.
Market
Players
Major market
players in the India mobile wallet market are One97 Communications Paytm,
Google Payment India Private Limited, BHIM Axis Pay Axis Bank Ltd, PhonePe
Account Aggregator Pvt Ltd, One MobiKwik Systems Private Limited, Yono (SBI),
Citi MasterPass, ICICI Pockets, HDFC PayZapp, and Amazon Pay.
Recent Development
- The Phonepe firm introduced
Pincode, a hyperlocal e-commerce platform that permits online trade
between nearby consumers and local offline retailers.
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Attribute
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Details
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Base Year
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2024
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Historic Data
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2019 –
2023
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Estimated Year
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2025
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Forecast Period
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2025
– 2029
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Quantitative Units
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Revenue in USD Million, and CAGR for 2019-2023 and 2024-2029
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Report coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments covered
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Type
Technology
Ownership
Applications
Region
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Regional scope
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East
Region, West Region, North Region, South Region
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Key companies profiled
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One97 Communications Paytm, Google Payment India Private Limited, BHIM Axis
Pay Axis Bank Ltd, PhonePe Account Aggregator Pvt Ltd, One MobiKwik Systems
Private Limited, Yono (SBI), Citi MasterPass, ICICI Pockets, HDFC PayZapp,
Amazon Pay.
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Customization scope
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10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
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Pricing and purchase options
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Avail customized purchase options to meet your exact research
needs. Explore purchase options
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Delivery Format
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PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
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Report
Scope:
In this report,
the India mobile wallet market has been segmented into following categories, in
addition to the industry trends which have also been detailed below:
- India Mobile Wallet Market, By
Type:
- India Mobile Wallet Market, By
Technology:
- Quick Response (QR) Codes
- Near Field Communication (NFC)
- Magnetic Secure Transmission (MST)
- Others
- India Mobile Wallet Market, By
Ownership:
o
Telecom
Operators
o
Device
Manufacturers
o
Tech
Companies
o
Banks
- India Mobile Wallet Market, By
Application:
o Entertainment & Travel
o Bill Payments
o Food & Drinks
o Groceries
o Peer-to-Peer Transfer
o Others
- India Mobile Wallet Market, By
Region:
o West
o North
o South
o East
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India mobile wallet market.
Available
Customizations:
With the given
market data, TechSci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
India mobile
wallet market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at
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