Tag: india m-commerce

Mobile commerce is exploding in India

Gartner report shows the growth of India’s digital commerce market

India is quickly becoming one of the world’s leading mobile commerce markets. Overall, digital commerce is growing quickly throughout the country, with consumers beginning to favor shopping online rather than visit physical stores. This is due to the convenient nature of e-commerce, and more consumers are beginning to rely on their mobile devices to get their shopping done. A new report from Gartner highlights the growing power of the digital commerce market in India.

More consumers are beginning to use their mobile devices to shop online

According to the report from Gartner, the Indian digital commerce market has reached $7 billion. While digital commerce represents less than one percent of total retail sales in the country, this market is growing very quickly. The market is still in a nascent stage in India, with relatively low Internet penetration slowing the adoption of online shopping. The market has grown by 40% year on year, with business to business commerce leading the way. Notably, mobile commerce is the primary channel powering the growth of the market.

Low Internet penetration is slowing the adoption of mobile commerce

Mobile Commerce Taking off in IndiaConsumers appear to favor shopping with their smartphones and tablets, as they can get their shopping done no matter where they are in the country. In 2014, more than 40% of all digital commerce transactions came from mobile devices. By the end of this year, more than half of these transactions are expected to come from smartphones and tablets, according to Gartner. The convenient nature of mobile commerce is one of its most attractive features, and more retailers are beginning to embrace the mobile space in order to effectively connect with consumers.

Retailers are embracing the mobile world

As mobile commerce continues to grow, retailers are likely to become more mobile-centric, offering new services to online shoppers. Financial institutions are also embracing the mobile space, introducing new applications that allow consumers to manage their finances with their mobile devices. India is expected to become one of the most prominent mobile commerce markets in the world in the coming years.

Mobile commerce firm to launch its own payment bank

Paytm intends to launch its own bank in India in the near future

Paytm, an Indian electronic and mobile commerce organization, has announced plans to establish India’s first payments bank. The company intends to leverage its extensive mobile commerce experience, especially when it comes to mobile wallets, to establish a lead in the financial sector. The company has already found success in the mobile space by offering consumers access to its mobile wallet platform, which is expected to reach 150 million users by March 2016.

Several companies have been approved to launch their own banks in the country

Paytm is among 42 companies that have received approval from the Indian government to launch payment banks. The banks will take deposits and provide remittance and payment services. These banks are expected to be quite useful for migrant workers that need to send money to their home country. The banks will be unable to issue loans, however, but they will be able to provide a wealth of services to consumers that still do not have bank accounts.

Paytm will see relatively little competition with its new bank

Mobile Commerce - Payment Bank IndiaOperating in the mobile commerce space has given Paytm the experience it needs to find success with its payment bank. The company is expected to launch its payment bank before its competitors, which will give it a significant edge. Alibaba, a Chinese company that has established a major presence in the mobile commerce space, has plans to launch a payment bank of its own through its One97 Communications organization. The company will be significantly slower in launching this bank, however, and Paytm will have streamlined its financial services before any major competition enters the market.

Mobile commerce companies are expanding into new territory

Mobile commerce continues to grow in popularity in India, which has become one of the world’s most attractive mobile markets. As companies specializing in mobile payments find more success, they are beginning to expand into new territory. These companies are bringing more competition into new sectors, which is forcing other companies to provide better services to consumers.