Mumbai: Mobile phone penetration in India is set to rise to 85-90% by 2020 from the current levels of 65-75%, according to a report issued by Omidyar Network on Wednesday.
However, only half of the smartphone owners in the country are going to subscribe to network data service by 2020.
“Consumers tend to be savvy with respect to data deals and will seek out resourceful and cost-effective ways to access data services," noted the report.
According to Smita Aggarwal, director of investments at Omdiyar Network, access to data doesn’t imply usage.
There are three important factors which determine the adoption of digital tools. These are trust, usability and social collaboration. Trust deals with product reliability and clear hand holding at the time of requirement.
Usability involves broadening the property of the tool to fit in the entire cycle of money and social collaboration means people using the same channel.
According to the report, only 44.1% of women own a mobile phone compared with 73% of men, and women comprise only 35% and 25% of mobile internet and Facebook users, respectively.
This increased emphasis on fraud coming from banks makes people doubt the safety of the banking system itself and they believe that banks are not in full control of the money entrusted to them, prompting consumers to consider other options, said the report.
Another factor that emerged was consumer misunderstanding of banking terminology, such as the difference between a personal identification number (PIN) and an account number. Many people were confused over which type of banking information can be shared and which can’t.