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.
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.
Denny |
December 28, 2016
The largest mobile wallet in India has been delisted for iPhone and iPad due to technical problems.
At a time when mobile payments have taken off explosively in India, the Paytm app has been delisted for iPhone and iPad users. The Apple App Store no longer offers the mobile wallet after Paytm found technical issues such as bugs. The company worked hard to produce an update to iron out the problems and was awaiting Apple’s approval at the time of the writing of this article.
The temporary removal of the mobile payments application occurred on the heels of a service outage.
The Paytm app had been experiencing issues. The entire service was behaving oddly last week and for a stretch before then. It suffered a serious outage and then triggered a range of issues for days following, even after the mobile wallet was taken down from the App Store. That said, many people were quite surprised when the application was entirely delisted.
The reason is that while all updates for iPhone and iPad apps require Apple’s approval, the older version of the application will typically remain available for download until the updates receive the nod. In this case, the updates were awaiting approval and the entire app was taken down.
The reason for the Paytm app removal was not because Apple decided to intervene and delist it.
Instead, it was the choice of Paytm to take its mobile wallet down. According to a spokesperson from the company, “We have currently removed the app from the App Store to stop adding incremental new users to our existing base.”
The company then expanded on the statement by making a blog post that read “Today we found a bug in our iOS App where certain app users were not able to pay thereby hanging their app. Soon the system logged them out preventing them from further accessing their account.”
Currently, Paytm has more than 170 million registered users. The version of the app that runs on Android and the web-based platform are working without any problems at all, says the company. It continues to be available to download at Google Play and for browser users.
This may be good news for Android device users as the Paytm app and other mobile wallets have become a necessity for millions of people for the last couple of months. Ever since India decided to take some of its larger currency notes out of circulation – which are now being replaced with new versions – there has been a shortage of cash and consumers have needed to look to other methods of paying for products and services.
