Wednesday, Jun 03, 2020 | Last Update : 02:23 AM IST

70th Day Of Lockdown

Maharashtra72300313332465 Tamil Nadu2458613706200 Delhi221329243556 Gujarat17632118941092 Rajasthan92716267201 Uttar Pradesh83615030222 Madhya Pradesh82835003358 West Bengal61682410364 Bihar3945174123 Andhra Pradesh3791241464 Karnataka3408132852 Telangana2891152692 Jammu and Kashmir260194631 Haryana2356105521 Punjab2301200044 Odisha210412459 Assam14862854 Kerala132760811 Uttarakhand9592225 Jharkhand6612965 Chhatisgarh5481211 Tripura4231730 Himachal Pradesh3401186 Chandigarh2972144 Manipur83110 Puducherry79250 Goa73500 Nagaland4300 Meghalaya28121 Arunachal Pradesh2010 Mizoram110 Sikkim100

M-wallet transactions to reach Rs 30K crore

Published : Nov 22, 2016, 2:47 pm IST
Updated : Nov 23, 2016, 8:10 am IST

M-wallet transaction is among the fastest growing paperless modes of payment or banking.

(Representational Image)
 (Representational Image)

Bengaluru: The Indian m-wallet market is expected to grow at a compounded annual growth rate (CAGR) of 141 per cent to reach Rs 30,000 crore by the end of 2021-22, a study said.

The growth, during 2015-16 to 2021-22, would be driven by growing usage of smartphones, robust mobile internet penetration, growth of e-commerce sector together with increasing disposable incomes, said the study by the Associated Chambers of Commerce and Industry of India and research firm RNCOS.

The Indian m-wallet market in 2015-16 was around Rs 154 crore.

It is also anticipated that the market value of m-wallet transactions in India will grow at a CAGR of 154 per cent during FY16 to FY22, and reach Rs 55 lakh crore from Rs 20,600 crore, the study titled 'Indian m-wallet market: Forecast 2022' said.

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, it said.

M-wallet market is segmented into three broad services -- money transfers from wallet to wallet, bank to wallet and vice versa which accounts for 38 percent share, followed by recharge and bill payments for mobile, DTH, landline, electricity and other such services (31 per cent share).

The remaining share of 31 percent is captured by online shopping, hotel/travel/movie ticket reservations, online food order, payment of insurance premium, recharging Metro rail card and others.

While mobile wallet service contributed to 21 per cent share in mobile payment volume transactions in FY16, its share is expected to increase to 79 percent by FY22, the study said.

However, it said the Reserve Bank of India's licensing regime is discouraging mobile wallet growth in the country.

"The present system allows only e-transfer of money and approves semi-closed prepaid instrument issuance while it does not allow 'cash out' from the semi-closed wallet," it said.

Besides, for all the entities (including banks, non-banking finance companies, telecos and others) to operate any kind of m-wallet, there are "copious strict" RBI policies which encumber the growth of m-wallet sector, it said.

"The RBI should relax its current policies and allow cash withdrawals from the semi-closed wallets," it suggested.

Tags: e-wallet, e-payment, m-wallet, mobile wallet, e-commerce
Location: India, Delhi, New Delhi