Chart of the Week: India’s mobile wallet payments market to hit $4.1t in 2025
In 2022, the market will grow to $1.7t, according to GlobalData.
The mobile wallet payments market in India is expected to be worth $4.1t in 2025, according to forecasts by GlobalData.
The data and analytics firm estimates that the market will grow at a compound annual growth rate (CAGR) of 42.7% between 2021-2025.
In 2022, the market is expected to be worth $1.7t (INR125.1t).
The availability of high-speed internet facilities at low cost, coupled with the rise in smartphone penetration has provided the foundation for mobile payments to thrive in India, according to Sowmya Kulkarni, senior payments analyst at GlobalData.
“This is also supported by progressive government reforms, growing financial literacy, rise in tech-savvy consumers and proliferation of mobile payment solutions,” Kulkarni said.
Mobile wallets have now become an integral part of Indian consumers' payments and are also preferred by merchants of all sizes, from big supermarkets to neighbourhood ‘kirana’ shops, Kulkarni added.
This growth has been largely driven by state-backed instant payment system UPI, he added. This enabled users to make payments directly from their bank accounts using recipients’ mobile numbers or by scanning a QR code.
“Mobile wallets market in India is in a high growth phase. Government’s push and improving mobile payment acceptance infrastructure will further drive the mobile wallets usage, thereby helping the government’s broader objectives to become a less cash economy,” Kulkarni said.