India adopting mobile wallets faster than US, UK and China: Survey

The report cited demonetisation as the main reason for this surge in the popularity of mobile wallets.

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India has been faster than the US, UK and China in adopting mobile wallets, according to a survey done by data and analytics company GlobalData. The report  says 55.4 percent of survey respondents from India said they have a mobile wallet and use it.

This was significantly higher than data from the US and UK, where only 14.7 percent and 8.1 percent respondents said they have and use mobile wallets.

China and Denmark followed India, with 54.3 percent and 49.3 percent respectively.

Source: Globaldata

 Mobile wallet transactions in India will cross the Rs 1 trillion mark early this year, as per the Consumer Payments Insight Survey. Mobile transactions in India grew from Rs 24 billion in 2013 to Rs 955 billion in 2017.
The report cited demonetisation as the main reason for this surge in the popularity of mobile wallets, saying that mobile wallets have now become the mainstream payment method in India.

“While medium to large-value transactions continue to be made through digital banking channels, the low-value day-to-day transactions are carried out through mobile wallets.”, GlobalData said.

Ravi Sharma, senior analyst at GlobalData’s Payments practice, said “The growth in mobile wallet market is fueled by the government’s policies to promote electronic payments, coupled with rise in smartphone penetration, and improved telecom and payment infrastructure.”

Source: GlobalData

Paytm leads the mobile wallets market in India, accounting for 9.9 percent of the share in the value of e-commerce transactions.