Indian Economic system Revolutionising with mobile wallets
December 2, 2016
Have you ever thought that you can make the payment for groceries from you mobile phone? Have you ever though that you can transfer money to another account without standing in the long queues? A country with less than 3% of internet penetration has moved to 30% in just 4 years.. I believe this is a beginning.
Digital wallets are the future for our country. You may want to say that we Indians always follow the western world, but digital wallet is something which took years to happen here. The fear of loss of money is one of the major reasons for this. 75% of our population is yet to access internet and they haven’t explored any of the online shopping or payment options. Is this going to be changed? Indians always have the mentality to say no to the technology until they don’t have an option.
It was the radical move by the PM Shri. Narendra Modi on 8th November 2016 changed all the equations till then. Demonetisation has created a financial crisis and shortage for liquid cash in the country. Citizens were forced to use cashless money. This move has brought in lot of first timers to cashless money. According to PayTm their active customer base has increased by 200% in the last 23 days. They have also received More than 100000 requests from merchants for new sign up. Well this is the figure of just one player. Reliance Jio, vodafone and Airtel has introduced their own mobile wallets. Everyone has started with lucrative offers and many users are expected to sign up in the coming days. Thanks to Modi’s surgical strike on black money.
So is that means the country is going to transform in the next one month. Sadly, it’s a BIG NO. According to IMRB International, the smartphone penetration in the Urban India is 43% and Rural India is just 5%. I believe the smartphone and internet penetration is going to increase in this financial year in Urban India. Thanks to the top metros and cities of the country. People using mobile wallets to book cabs, pay the grocery bill, electricity bill, book tickets and finally they are doing online transactions too. But Rural India is going to be the biggest challenge. Its still a virgin market.
What motivates the Rural India to buy SPs?
Its not the price of the phone or the local language barrier. Its just the first time usage barrier. The country need to be educated. People should know the advantages of using digital wallets. I believe the recent programs by Intel to support the CSS and give free internet connectivity in the Rural India will reduce this gap. Facebook is also planning to give free internet to access social media. Moreover the free internet by Reliance Jio will be a huge motivation for many of the young generation to start using internet.
Growth of Digital wallets will be positively favoured by the Internet penetration in Rural India. While we agrees that freebies are not the answer for this, the benefits of WWW will bring in more users to the world of Internet. This will slowly create a positive atmosphere of trust in internet. The next generation are the soldiers of digital wallets. According to Technavio, by 2018 the mobile wallet market in India will grow at a CAGR of 140%. With more mobile POS and payment options from mobile the future of mobile wallet in the country looks bright.
I am a passionate Software engineer and CEO of an IT company named Entero Software Solutions Pvt.Ltd . I like to work with passionate people and love to accept challenges .
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