Based with more than 900 million mobile subscribers, India is a growing market for mobile Internet services. The country has around 213 million mobile Internet users by June 2015. There were around 173 million mobile web users by the end of 2014 and is it growing at an average of 33% to 35% in the rural areas alone. This trend of using mobile internet has caught up like a wild fire across the country so much so that few e-commerce companies are shutting down their desktop website versions. Technologies have picked and Indians have almost started using the mobile payment mythology for their purchases, though it is just the start for the payment system, experts from the financial background who are well-versed with the technology say that there is a lot to follow as we just see a small tip of the iceberg.
Let us today glance through some of the important numbers that provides idea about the growing mobile payment in India.
Though the mobile-payment (m-payment) system is available in India since 2010, there is just a tiny fraction of users who have experienced it. According to research studies the industry has grown by more than 15 times and will be worth $1.4 billion by the end of 2015. The same was calculated to a mere $90 million in the year 2012.
Further analysis of the industry shows that Indians are mainly interested and concentrating on remote payments, services like smartphone recharge and paying for net banking services top the reasons of payment.
34% of the share roots up to the utility bills payment, prepaid top-ups and domestic allowances make up for 30% and 26% respectively.
The prepaid top-ups payment alone is projected to grow at a rate of 38% followed by m-shopping (mobile shopping) purposes.
Mobile Payment in India is set to have a CAGR of 140.87% for2014-2018
However, the penetration rate of mobile payment is very low at around 2% as payroll cards still dominate the payment industry in India. Both credit and debit payment methods made up to 73% in 2011 which needless to mention must have grown by many time now.
Though there are a number of homegrown companies like Paytm, FreeCharge (Snapdeal owns it now), they surely face huge competition from global player Amazon, Google Wallet and others which are striving hard to dig in strong into the Indian untapped market.