Mobile payment transaction volume to rise manifold to reach 153 billion by FY22: Study

0
86

Demonetisation move to push digital payment sector significantly

India CSR News Network

NEW DELHI: The mobile payment transaction volume in India is likely to witness exponential compounded annual growth rate (CAGR) of over 90 per cent to reach 153 billion by FY 2022 as against a meagre about 3 billion in FY 2016, noted a recent ASSOCHAM-RNCOS joint study.

“Mobile payment transaction value in India is also likely to register over 150 per cent CAGR and cross Rs 2,000 trillion by FY 2022 from just over Rs 8 trillion as of FY 2016,” noted the study titled ‘Indian M-wallet market,’ jointly conducted by ASSOCHAM and research firm RNCOS.

“The digital payment sector might register unprecedented growth thereby replacing traditional cards and cash as the primary payment method over the next several years but what is required is to make such systems more foolproof,” said D.S. Rawat, secretary general of ASSOCHAM.

“Flagship government initiatives such as Digital India together with union government’s announcement about demonetising Rs 500 and Rs 1000 denomination notes will act as key catalysts and enablers of this transformation more so with ever-increasing internet and mobile penetration as adoption of digital payments is all set to witness a massive surge in the coming years,” said Rawat.

“With over one billion mobile subscribers, India has a promising potential for internet on mobile, and the same is expected for payments and business transactions on mobile,” he added.

Mobile banking segment contributed largest share of 49 per cent in Indian mobile payment market with over 386 million transactions worth Rs 4,000 billion in FY16, with majority being money transfers, the study noted.

Besides, share of mobile banking in M-payment market has increased tremendously from eight per cent in FY14 to 49 per cent in FY16.

However, mPOS (mobile point of sale) has the largest market share of 66 per cent in volume terms in FY16 which has fallen down from the level of 85 per cent in FY14 owing to significant number of people shifting to mobile banking for convenience and to avoid carrying various cards.

The study also highlighted that mPOS segement’s share in mobile payment is likely to fall further and by FY22, share of mobile banking is likely to rise to 14 per cent in terms of volume.

Disclaimer: Responsibility for the information and views expressed in the above contents/picture lies entirely with the concerned organization(s) that provided the information.

Comments

comments

SHARE
Previous articleKIIT University confers D. Litt. upon Dr. Habil Khorakiwala, Founder Chairman, Wockhardt Group
Next articleAlmost half breast cancer deaths in India preventable
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to editor@indiacsr.in