The mobile payment transaction volume is likely to register a compounded growth rate of over 90 per cent to reach 153 billion by FY22, driven by demonetisation of Rs 500 and Rs 1,000 notes, a study today said.
This is against a meagre 3 billion transactions in FY16, as per the ASSOCHAM-RNCOS joint study.
Mobile payment transaction value in India is also likely to register over 150 per cent CAGR and cross Rs 2,000 trillion by FY22 from just over Rs 8 trillion as of FY16, the study titled 'Indian M-wallet market' said.
The digital payment sector might register unprecedented growth, thereby replacing traditional cards and cash as the primary payment method over the next several years but what is required is to make such systems more foolproof, Assocham Secretary General DS Rawat said.
"Flagship government initiatives such as Digital India, together with Union government's announcement on demonetising Rs 500 and Rs 1000 denomination notes will act as key catalysts and enablers of this transformation, more so with ever-increasing internet and mobile penetration as adoption of digital payments is all set to witness a massive surge in the coming years," he added.
With over one billion mobile subscribers, India has a promising potential for internet on mobile and the same is expected for payments and business transactions on mobile, he said.
Mobile banking segment contributed largest share of 49 per cent in Indian mobile payment market with over 386 million transactions worth Rs 4,000 billion in FY16, with majority being money transfers, the study noted.
Besides, share of mobile banking in mobile-payment market has increased tremendously from eight per cent in FY14 to 49 per cent in FY16.
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