Tag: india mobile phones

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.

Huawei looks into manufacturing mobile phones in India

The company has been looking into expanding its manufacturing efforts into the country.

A delegation of representatives from Huawei have now met with Ravi Shankar Prasad, India’s Telecom Minister, as the company has been thinking of expanding their manufacturing of mobile phones from China into India.

The company is looking for ways to continue its mobile device production with additional advantages.

At the moment, Huawei is looking over certain potential business models for manufacturing the mobile phones in India, while they also consider certain potential tax incentives for making the move. The delegation was led by the CEO in India, Jay Chen. They met with the Telecom Minister in order to discuss the intentions of the company for making their way into India for the purpose of manufacturing. Prasad explained that “We had a very elaborate talk and they have said that till now they have invested $2 billion in India in the last 16 years.”

The company already has a facility in the country and are already selling mobile phones in India.

Mobile Phones ManufacturingPrasad stated that “They have a facility in Sriperumbudur… they are selling one million phones in India… if you are selling one million phones, you better start manufacturing here and they have promised me, they will explore the possibility.” He also pointed out that Huawei is in discussions with Foxconn for the moment, on a contract basis. The minister stated that India welcomed the business.

At the moment, the Indian offices from Huawei are serving forty different mobile networks around the globe. That said, the decision to begin the manufacturing of the mobile devices in India is not yet a done-deal.

When asked about the intentions of the company for manufacturing mobile phones in India, one of the delegation members underscored the fact that it still depends on a number of different factors. Among those factors includes business volumes and Huawei has yet to complete its evaluation of the figures within that category, including various business models, policies and regulations within the country and tax incentives. At the moment, the company manufactures network equipment in India not consumer devices.