Mobile Payments Ecosystem Comes of Age in India
Although being young with only a dozen mobile wallet players in the field, India’s mobile payment ecosystem has witnessed steady growth and a rapid adoption of path-breaking innovations as people started realising the benefits of technology in online payments space in 2015 — the most popular being the “mobile wallet”.
Major economies across the world have been witnessing “cashless” transactions, with the industry, estimated to be around $300 billion in 2013, making inroads in many countries in the last five years. Companies such as Apple, Alipay, Google’s Android Pay and Samsung Pay have already put their own solutions in place.
In India, there are around 12 mobile wallet players that include Paytm, MobiKwik, Oxigen, Citrus Pay, Freecharge, Zaakpay, ItzCash, Airtel Money,M-Pesa, and mRupee, and their combined customer base is said to be more than 125 million. Of this, Paytm alone has a lion’s share of over 50 million.
According to a study by research and consultancy firm RNCOS, the current size of the mobile wallet market in India stands at about $53 million (350 crore Indian rupees) and is estimated to touch around $183 million (1,210 crore Indian rupees) by 2019. Cash transactions account for 38 percent, while recharge and bill payments account for 30 percent of the total market.
However, there are minor irritants such as failed transactions forcing the online shoppers to go through the tedious process of filling in details, and the lack of awareness among people. But leading payment gateway company PayUbiz has launched a new feature called Magic Retry, which enables the consumers to retry a failed transaction by simply picking up from the point where the last error message appeared.
Magic Retry is specifically designed for mobile online payment and is said to be first of its kind in the digital and electronic payments ecosystem in the country.