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Digitization Of Wallets

Numbers indicate there are more mobile wallet users in India than credit card users. Surprising, isn’t it, considering the duration for which both entities have been around. But then again, if you think about it, there are reasons for it. With a digital storm engulfing India and brands becoming extremely conscious about how to make consumer convenience their prime focus, no wonder mobility in payment methods have caught on with consumers. Today a lot of people have easier access to phones than banks.

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According to a study by RNCOS, a Business Consulting Service firm, the mobile wallet market in India is estimated to touch $183 million by 2019, growing in leaps and bounds from the $53 million in 2015. Transactions that were essentially meant for smaller ticket items like recharge and top ups, have now expanded to include bill payment, shopping, cab, airline, hotel bookings and money transfer.

For mobile commerce digital wallets have obviously been a good news, as making online payments for products and services through digital wallets is easier and hassle free as compared to using debit/credit cards. Besides the ease of transaction, the lure of exclusive discounts and cashback are also a reason for the popularity of digital wallets. Mobikwik, for example, is offering 14% cashback on Myntra in the week leading up to Valentine’s Day! Recently FreePaisa announced its association with PayUmoney to facilitate transfer of earnings to the PayUmoney account of users. FreePaisa users can now spend their earnings across 1,00,000+ ecommerce sites, including the Myntra app.

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From gradually becoming comfortable with online payments in general, consumers have now quickly jumped on the bandwagon of wallets for the greater ease and value for money it provides. At Myntra’s 4th Annual Brand Summit, Nandan Nilekani mentioned how five years down the line the entire ecosystem of business and technology is going to become very relevant for the retail business, especially e-commerce players like Myntra.“Think of a world in 2020. Almost everyone will have a bank account to transact from; most people will have a digital identity in the form of an Aadhar card; and, 600-700m people will have smartphones. It is a very different world. In this world the way we do business, the way we transact and do commerce, the way we entertain and the way we educate – everything is going to be different.”

We can say that developments in finance and technology are definitely going to be a big part of this. Watch out this space for more interesting insights!
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