The Indian m-wallet market is expected to grow at a compounded annual growth rate (CAGR) of 141 percent to reach Rs 30,000 crore by the end of 2021-22, a study said.
With a view to win customers' trust, companies operating in the mobile-wallet sector should take measures like providing effective, completely secure, private and reliable services, 3-D or OTP (one time password) security options, data back-up system and others to spread awareness among people, suggested an ASSOCHAM-RNCOS joint study.
"As the mobile payment space evolves, the stakeholders must create secure transactions that foster consumer trust, besides, m-wallet companies must provide a much more secure payment authentication process out to the masses," said Mr Rawat.
The Indian m-wallet market in FY 2016 was around INR 1.54 billion or Rs 154 crore, and it is expected to grow at a compounded annual growth rate (CAGR) of 141 per cent during the period between 2015-16 to 2021-22 and reach till INR 300 billion or Rs 30,000 crore by the end of FY 2022 driven by growing usage of smartphones, robust mobile internet penetration, growth of e-commerce sector together with increasing disposable incomes, the study noted.
It is also anticipated that the market value of m-wallet transactions in India will grow at a CAGR of 154 per cent during the period FY 2016 to FY 2022, and reach INR 55 trillion or Rs 55 lakh crore from INR 206 billion or Rs 20,600 crore, more so as m-wallet transaction is among the fastest growing paperless modes of payment or banking, and it is expected that the majority of transactions will go paperless in the next 10 years.
Besides, in FY 2016, the total m-wallet transaction was 0.6 billion; and it is expected to reach 120 billion by FY 2022, growing at a CAGR of 142 per cent.
It is also recommended that companies in this domain should increase both - the limit of number of transaction and transaction amount even in case of basic account.
"The m-wallet companies must develop a common platform for their application to save money and time as this would ultimately result in reduction in cost and expansion in user base and hence revenue," further noted the ASSOCHAM-RNCOS study.