Mobile wallet market in India is projected to generate $11.5 billion by 2022, said Research and Markets.
According to India Mobile Wallet Market (2016-2022) report, India has emerged as one of the fastest growing mobile wallet markets in Asia Pacific.
m-wallet transactions in India registered more than 130 percent growth in financial year 2014-15 – fuelled by increasing penetration of smartphones and tablets and growth in mobile internet subscribers in India.
Telecom and broadcasting vertical is the leading revenue contributor in the overall market followed banking vertical. Banking vertical is expected to grow with the fastest CAGR amongst all verticals. In application market, recharge application captured lion share of the market.
Contactless payment booms
Juniper Research recently said the number of mobile wallets using contactless technology will reach 200 million in 2016, growing at more than 100 percent from 2014.
The report said wallets run by mobile operator consortia continue to fare badly, with the U.K.’s Weve dropping its planned wallet, and Softcard folding in the U.S.
In developing markets, there has been a significant upscaling of wallet usage for savings and loan disbursements, while more than 100 million are now in use for micro-insurance.
Significant security issues
Mobile wallet players face significant security challenges since smartphone apps are becoming popular among consumers and merchants to pay and to accept payments.
According to a report from LexisNexis Risk Solutions, m-commerce merchants noticed a 70 percent spike in the revenue lost to fraud in 2014. The telecom analysis report said 21 percent of fraudulent transactions are attributed to the mobile channel.
“The security of such on device apps should be at par when it comes to protecting card data and cryptographic keys and functions. Most smartphones can be encrypted which makes them even more secure and inaccessible by other users,” said V Krishna Kishore, chief operating officer at Paynear Solutions.
Juniper Research said that the increased rollout of contactless payment services using fingerprint scanners will push the number of biometrically authenticated transactions to nearly 5 billion by 2019 against less than 130 million in 2015.
Airtel M-Commerce Services, Citrus Payment Solutions, ItzCash Card, MMP Mobi Wallet Payment Services, My Mobile Payment, Novopay Solutions, One MobiKwik Systems, Oxigen Services, Paytm Mobile Solutions, PayU Payments and Vodafone M-Pesa are some of the leading mobile wallet players in India.
Oxigen targets Rs 8,000 crore this year
Oxigen Wallet, launched in 2008, is the first virtual wallet in India to be integrated with NPCI (National Payments Corporation of India) that allows for Instant Money Transfers anytime, anywhere using IMPS. Oxigen wallet is accepted at more than 9000 merchant locations and over 10000 online sites like bookmyshow, ebay, PVR etc.
Oxigen has crossed total annual gross transaction value of Rs 5,500 crore in 014. Oxigen aims to touch the transaction value at Rs 8,000 crore during the current year.
Vodafone M-Pesa, which has 90,000 M-Pesa agents, has received in-principle approval from RBI for payments bank.
Sunil Sood, MD and CEO of Vodafone India, said: “We are already providing people in remote areas a convenient way to, transfer money and make payments in a safe and secure manner. We partnered with several government bodies to run pilots for enabling direct transfer of wages/subsidies.”
Indian telecom network operator Idea Cellular has 150,000 PPI digital wallet users.
RBI has given in principle approval to set-up the Payments Bank to Aditya Birla Nuvo (ABNL). It will launch consumer services by second half of calendar year 2016 and aims to cash in on Idea Cellular’s 2 million plus retail distribution channel across 375,000 towns and villages.
FreeCharge, which has 29.8 million registered users, recently said it will adopt Aadhar as the primary KYC tool for opening and upgrading wallets. Consumers, who enroll for a FreeCharge wallet with Aadhaar authentication, can enhance balance limit to Rs 1 Lakh from Rs 10,000. There will be no monetary limit on transactions.
Baburajan K
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