The mobile payment transaction volume in India is likely to witness exponential compounded annual growth rate (CAGR) of over 90 per cent to reach 153 billion by FY 2022 as against a meagre 3 billion in FY 2016, noted a recent ASSOCHAM-RNCOS joint study.
“Mobile payment transaction value in India is also likely to register over 150 per cent CAGR and cross Rs 2,000 trillion by FY 2022 from just over Rs 8 trillion as of FY 2016,” noted the study titled ‘Indian M-wallet market,’ jointly conducted by ASSOCHAM and research firm RNCOS.
“Flagship government initiatives such as Digital India together with union government’s announcement about demonetising Rs 500 and Rs 1000 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,” said a senior official of Assocham.
The report underlines that with over one billion mobile subscribers by 2022, India has a promising potential for internet on mobile, and the same is expected for payments and business transactions on mobile. Mobile banking segment contributed largest share of 49 per cent in Indian mobile payment market with over 386 million transactions worth Rs 4,000 billion in FY16, with majority being money transfers, the study noted. Besides, share of mobile banking in M-payment market has increased tremendously from eight per cent in FY14 to 49 per cent in FY16.