India Mobile Wallet Market Analysis

India Mobile Wallet Market Analysis, Forecast & Opportunities, 2016-2022

India is one of the fastest growing economies of the world, with a vast population of over 1.30 billion people. India is world’s youngest nation, with nearly 60% of population below 35 years. This young population enjoys high smartphone ownership and they tend to look for services that can ease their lifestyle. India has already become world’s second biggest smartphone market after overtaking the United States. Apart from growing economy and population growth, India is also witnessing other trends, like surging internet penetration, rising smartphone ownership, modernisation of lifestyle due to urbanisation coupled with improvement in education level. These trends make India a favourable market for multitude of products and services like mobile wallets.

According to MarketMonitor research report “India Mobile Wallet Market Analysis, Forecast & Opportunities, 2016-2022”, mobile wallet market registered whopping growth, with a CAGR of 48.85% during review period of 2012-16. The market advanced on the back of rising smartphone ownership, surging internet penetration, increasing disposable income and convenience associated with such services. The market is forecast to gain immensely during forecast period of 2017-22, due to Government’s decision to demonetize INR 500 and INR 1000 currency notes and focus to make India a cashless and digital economy. This will help the industry and directly benefit companies like Paytm, FreeCharge, Oxigen and others.

In 2016, every category like money transfer, recharge, and utility bill payment recorded strong growth due to an array of benefits like cashback offers offered by these mobile wallet companies. Market also gained due to companies’ increased focus to promote the adoption of mobile wallets by all the players. As far as competitive landscape is concerned, mobile wallet market is a fragmented market with tens of players, wherein top three players account for over 60% of the market in value terms. Besides, mobile wallet companies are offering wide range of offers, like discounts and cashback offers to promote mobile wallets’ usage for booking movie tickets, paying utility bills and booking air tickets. This factor has also contributed towards increasing demand of mobile wallets in the country. And, the market is forecast to reach USD 4.4 billion by 2022, with a CAGR of over 148% during 2017-22.

As per Adarsh Raj, Research Director MarketMonitor Consultancy, “India’s GDP per capita has tripled over the past decade, and World Bank suggests that at the current GDP per capita level, expenditure should accelerate from current levels, benefitting varieties of sectors, including mobile wallet market. Average households in urban as well as in rural areas have seen an upsurge in smartphone ownership and internet usage, following availability of low cost mobile phones, improvement in job prospects in metro tier II and tier III cities, increase in double income households and government’s effort to boost rural income. These positive factors are helping Indian consumers to adopt more mobile wallets.”

India Mobile wallet Market Analysis, Forecast and Opportunities, 2016-2022 elaborates the following aspects of market in the country.

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