The Mobile Wallet industry is expected to increase its transaction volume in the next coming years. Deloitte consultancy published a report saying that the transactions via mobile wallet to reach Rs 32 trillion (Rs 32 lakh crore) by 2022. The report also mentioned that Value of the transactions is also expected to reach Rs 32 trillion by 2022, growing at a rate of 126 per cent. The volume growth is likely to be at a compounded rate of 94 per cent, it added.
Mobile wallet industry is the only industry which profited by demonization. Many people started using mobile wallets for cash transactions, alternative for money. The report says, as the penetration of mobile Internet and smartphones aggregate, mobile wallets, with their ease of use and convenience, are expected to continue growing in popularity.
However, they could be some challenges for mobile wallets coming to their way. There could be apathy in the adoption of mobile wallets as cash transactions have been the medium for a long time. The report says Credit cards form one of the biggest challenges in adoption of mobile wallets.
Mobile wallet giant PayTm has over 100 million wallet users, double the number of users of Visa and Maestro combined in India. Many Financials institutions/ e-commerce/ lifestyle shops are coming up with their wallet such as SBI Buddy, ICIC Pocket and even movie ticket booking platform Book My Show own wallet to name a few.
Thereby the report said security breaches and frauds leading to financial losses are big factors in the adoption of digital payment technologies. If the stakeholders want to gain widespread adoption of mobile wallet payments, they need to create secure transactions that cultivate customers trust. With the introduction of Unified Payment Interface (UPI), there’s a lot of competition going on among mobile wallet companies. They also started moving beyond their core service and delivering parallel services.