Abstract
Digital payments in finance is equally important to invention of wheel was for transport. Digital payments in India are expected to grow over three-folds to Rs 7,092 trillion by 2025 on account of government policies around financial inclusion and growing digitisation of merchants, according to a research report. The country's digital payment market was worth around Rs 2,162 trillion in 2019-20.The current 160 million unique mobile payment users will multiply by 5 times to reach nearly 800 million by 2025. According to the report, wallets will continue to play a key role in its growth with the continuous increase in both frequency and user base. "COVID-19 seems like another demonetisation-like catalyst for the industry. Digital payment providers have been quite hands-on in terms of responding to this situation, by offering enhanced support on essentials such as offering groceries, masks, sanitisers, COVID-19 insurance, offering integration with donations to PM fund and other essential product and services. The present study is an attempt to highlight the scope of growth of M- Wallets in the current economic scenario of India along with comparing the basic competitive features of M Wallet players specifically focusing on ease of operation and cost incurred for the consumers. It is felt that there is a need for technological advancement by the m-wallet companies which would ultimately result in reduction in transaction cost and expansion in user base and hence revenue.
Highlights
According to market research firm techARC, India had 502.2 million smartphone users as of December 2019, which means over 77 per cent of Indians are accessing wireless broadband through smartphones
The phone itself has become a unique identifier like email that is standardized across merchants and consumers, removing the need for bank account numbers or anything that is proprietary in a local ecosystem
Mobile payments are taking over the world in form of feature phone–based services like MPesa and smartphone-based NFC payments
Summary
According to market research firm techARC, India had 502.2 million smartphone users as of December 2019, which means over 77 per cent of Indians are accessing wireless broadband through smartphones. Mobile phones shapes how consumers search, purchase, and pay for goods and services. Mobile payments are taking over the world in form of feature phone–based services like MPesa and smartphone-based NFC payments. India has one of the www.psychologyandeducation.net lowest usage of digital payments globally. There are three main drivers of growth for the phenomenon: Strong growth in smartphones: The digital payments landscape in India has witnessed unprecedented growth mainly because of increased Smartphone penetration. There is a requirement to promote electronic wallet more than ever, an e-wallet, with which mobile payments can be made even in remote areas of the country. It is recognized that the lack of awareness and consumer confidence in digital payments is a gap that needs to be addressed. The technology savvy era presented a world where business-consumer relationship is summarily becoming digital. One area of the financial industry that is rife with innovations is the payment sector
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