New Delhi: The mobile payment transaction volume is likely to register a compounded growth rate of over 90% to reach 153 billion by FY22, driven by demonetization of Rs500 and Rs1,000 notes, a study on Thursday said.
This is against a meagre 3 billion transactions in FY16, as per the Assocham-Rncos joint study. Mobile payment transaction value in India is also likely to register over 150% CAGR and cross Rs2,000 trillion by FY22 from just over Rs8 trillion as of FY16, the study titled Indian M-wallet market said.
The digital payment sector might register unprecedented growth, thereby replacing traditional cards and cash as the primary payment method over the next several years but what is required is to make such systems more foolproof, Assocham secretary general DS Rawat said.
“Flagship government initiatives such as Digital India, together with Union government’s announcement on demonetizing Rs500 and Rs1,000 denomination notes will act as key catalysts and enablers of this transformation, more so with ever-increasing Internet and mobile penetration as adoption of digital payments is all set to witness a massive surge in the coming years,” he added.
With over one billion mobile subscribers, India has a promising potential for Internet on mobile and the same is expected for payments and business transactions on mobile, he said. Mobile banking segment contributed largest share of 49% in Indian mobile payment market with over 386 million transactions worth Rs4,000 billion in FY16, with majority being money transfers, the study noted. Besides, share of mobile banking in mobile-payment market has increased tremendously from eight per cent in FY14 to 49 per cent in FY16.