mobile shopping Archive

Indian mobile wallet market will be 190 percent bigger by 2022

The country’s effort to go cashless has led to an unprecedented growth in smartphone digital payments.

A new study predicted that the Indian mobile wallet market will experience a growth rate of more than 190 percent by fiscal year 2022. The forecast was made as a result of research conducted by Assocham, a trade organization, and RNCOS, a business consulting firm.

The prediction was that mobile payment transactions are likely to reach a CAGR of over 160 percent per year.

That rate will continue to increase from the current fiscal year through to 2022. At that time, the mobile wallet market will be worth 250 billion, said the prediction. That is a substantial increase over the current size of the market which is estimated to be just over half a billion.

The report on the forecast suggested that there are several reasons that the use of mobile payments in India is growing exceptionally quickly. To start, e-commerce as a whole is on the rise. This is a trend occuring worldwide. Moreover, mobile internet penetration is also growing rapidly, meaning that more consumers have access to these options than ever before.

That said, the mobile wallet market is rising faster in India than in most other areas of the world.

Mobile Wallet Market With rising smartphone penetration, the Indian environment is also aligning well for mobile wallet use in a way that is not being experienced in other areas of the globe. For one thing, there is an increase in disposable incomes. More people have money to spend on areas outside of vital essentials.

With all these factors combined with the country’s efforts to reduce the use of cash, people are turning to their phones to pay for products and services. This is, after all, a country that is greatly unbanked and in which it is not necessarily commonplace to have credit cards. Therefore, when cash is not an option, people are turning to the option they already have in their hands: mobile phones.

This has created a nearly ideal opportunity for mobile wallet market growth and it appears as though this will continue for at least another five years.

Mobile commerce sales reached $24 billion over the holidays

A new Adobe Digital Insights report showed that smartphones played a considerable role in online shopping.

Mobile commerce sales came to just over $24 billion throughout the holiday shopping season this year. In fact, Adobe Digital Insights data showed that smartphones and tablets brought in that amount from November 1 through December 24.

That doesn’t include online purchases made over mobile devices at the last moment before Christmas.

Among all the mobile commerce sales this holiday season, smartphones were behind the vast majority. In fact, 68 percent of m-commerce purchases came from smartphones. Tablets were responsible for the remaining 32 percent. This represents a shift in usage as it looks as though people are now leaning toward their phones when they previously preferred the larger screened mobile devices.

Retail mobile commerce sales from smartphones brought in $16.63 billion, with $7.92 billion from tablets.

Mobile Commerce SalesDuring the holiday shopping period, mobile devices were used for 31 percent of online retail sales, said the Adobe Digital Insights data. The remaining 69 percent of online purchases from retailers was through laptops and desktops. Last year, mobile shoppers represented 28 percent of purchases and in 2014, they made 19 percent of the purchases.

Adobe Digital Insights analysts predict that m-commerce will continue to take on a rising share of online sales. In fact, they stated that it is likely that this trend would have kicked in as early as the winding down of the holiday season. The reason is that from December 21 onward, many people were attending holiday functions and were more likely to have a smartphone in hand than to be seated at a work computer.

The report pointed out that the current mobile shopping experience still involves a certain degree of friction. This is primarily the result of the increased challenges involved in filling in purchase forms online. That said, it also underscored the fact that a growing number of retailers are working on improving that experience.

Retail mobile commerce sales could greatly benefit from the reduction of that friction. Some retailers are looking into options such as payment card information capture through the device camera, for example.