India Mobile Payments Market - Growth, Trends, COVID -19 Impact, Forecasts (2022 - 2027)

India Mobile Payments Market is segmented by Type (Proximity Payment, Remote Payment)

Market Snapshot

India Mobile Payments Market
Study Period: 2020-2027
Base Year: 2021
CAGR: 14.8 %

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Market Overview

The India mobile payments market is expected to grow at a CAGR of 14.8% over the forecast period (2022 - 2027). The stores and services are rapidly adopting mobile payment applications, such as Paytm, Google Pay, BHIM Axis Pay, PhonePe, Mobikwik, Yono (SBI), and ICICI Pockets, HDFC PayZapp, Amazon Pay, and others to accept and transfer payments. With increasing internet penetration and rapid growth in online retailing, this trend is expected to continue over the forecast period.

  • In India, Payment apps and e-wallets provide their user's coupons, discounts, prizes, and loyalty points, among other benefits. Many companies partner with digital wallet solutions to offer deals, discounts, and coupons for utilizing payment apps. E-wallets create an excellent environment for providing deal-seeking consumers with various incentives, allowing mobile wallet apps to stand out in the market.
  • In India, payment apps give customers ease because they may make payments using their mobile phones, either through contactless payments or scanning QR codes. The payment apps in India can be made using either Samsung Pay, Android Pay, or Apple Pay. One can easily leave cash and credit cards at home and make payments with their phones instead. Payments done with a mobile wallet are frequently simpler and faster than swiping or inserting cards, resulting in a significant boost in the mobile payment market.
  • In India, retailers are increasingly accepting UPI-based mobile payment apps and QR code payments, which results in increasing demand for the Mobile Payment Market. For instance, According to an ACI Worldwide Report, the year 2021 saw India's real-time transactions increase to a staggering 48.6 billion, nearly threefold that of the closest challenger China with 18 billion transactions and almost seven times greater than the combined real-time payments volume (7.5 billion) of the world's leading economies: the United States, Canada, the United Kingdom, France, and Germany.
  • Furthermore, The growing popularity of UPI-based mobile payment apps and QR code payments among businesses, together with the increased use of digital payments during the COVID-19 pandemic, enabled real-time payments to secure 31.3 percent of total payments transaction volume in the country in 2021.
  • The unexpected COVID-19 pandemic breaking out in the country has boosted the Indian mobile Payments sector. Because of mobility restrictions and a large reliance on banks, there is enormous space for mobile wallet adoption across the country. During the pandemic, many previously reluctant citizens began using mobile wallets. During COVID-19, the market had a strong increase due to its reliance on e-commerce platforms.
  • Furthermore, the growing number of smartphone users due to work-from-home and online schooling scenarios is likely to impact the growth of the Indian mobile payments market during the forecast period.

Scope of the Report

Mobile payment is a payment made for a product or service through a portable electronic device such as a tablet or cell phone. The study tracks mobile payment applications based on transaction type: Proximity and Remote payment. The study tracks key market metrics, underlying growth influencers, and significant industry vendors, supporting India's mobile payments market estimates and growth rates throughout the anticipated period. The study looks at COVID-19's overall influence on the Country's payment ecosystem.

BY TYPE (Market share in percentage based on relative adoption)
Proximity
Remote

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Key Market Trends

An Increase in Smartphone Owners and Internet Users Will Drive Market Growth.

  • According to Hootsuite, Internet penetration in India reached almost 47% by 2021, up from roughly 4% in 2007. Although these data appear modest, they meant that nearly half of the world's 1.37 billion people had an internet connection that year. The country ranks second in the world in terms of active internet users.
  • India's number of active internet users is increasing gradually, resulting in a boost for the mobile payments market according to TRAI; the nation's capital city, Delhi, had over 44 million internet members as of June 2021, making it the leading service region in urban India. There were around 496 million internet subscribers in metropolitan India.
  • Reward strategies are adopted by many market players, including Google and Amazon, to maintain a loyal customer base and create new consumers for the mobile payment services. For instance, many service providers offer scratch cards that contain a certain amount for transactions through their applications. With such reward strategies, the consumer tends to pay through mobile payment apps, resulting in a boost for the mobile payments market
  • Most first-time digital customers on E-commerce websites now do their transactions using mobile devices, notably smartphones. With a rising number of data analysis techniques available, merchants can customize their services to increase sales as e-commerce purchases become more frequent and as the number of smartphone users increases, resulting in a huge surge in the mobile payment market.
  • According to Newzoo, China had more smartphone users than any other country in 2021, with over 950 million. India had 492.78 million smartphone users, following only China. These two countries are expected to maintain their position leading the smartphone user rankings. Thus, with increasing the number of smartphone users in the country, the Indian mobile wallet market is also anticipated to surge in the upcoming years.
India Mobile Payments Market

Technological Advancements Expect Significant Growth in the Mobile Payments Market

  • Digital payments have transformed India's face. Indeed, UPI helped India establish itself in the global market for digital payments. Hundreds of FinTechs are now active in the digital payments space, offering various solutions. From utility bills to grocery shopping, digital payments have found a home even in small towns.
  • According to BFSI.com, In India, UPI leaders like Google Pay and PhonePe have previously depended on incentives to attract consumers and encourage them to use their systems more frequently. As of April 2022, PhonePe and Google Pay had approximately 47% and 34% market share, respectively. WhatsApp Pay has a minuscule 0.04% market share.
  • According to NPCI, In June 2021, India's unified payments interface (UPI) providers recorded 2.8 billion digital payment transactions worth more than five trillion Indian rupees. This was an increase compared to May 2021. An increase in UPI transactions resulted in a significant boost in the mobile payment market.
  • Near-field communication (NFC) is the most practical digital payment solution. Furthermore, Google Pay is emerging as the major backer of NFC to increase mobile payment using contactless technology and tap-to-pay with credit and debit cards. This type of technology enables contactless, encrypted, and highly secure payments, driving industry expansion.
  • The major competitors in the Indian mobile wallet market have increasingly created collaborations with service providers and financial institutions to provide users with a powerful and seamless mobile wallet platform.
  • For instance, In January 2022, TerraPay, a major global payments infrastructure provider, inked a Memorandum of Understanding (MOU) with NPCI International Payments Limited (NIPL), the International branch of the National Payments Corporation of India, is a strategic step further toward expanding the payment solutions industry (NPCI). Through this collaboration with NIPL, Indians with an active UPI ID can receive real-time, international payments into their bank accounts via TerraPay's adaptive and secure payments technology.
India Mobile Payments Market

Competitive Landscape

The India Mobile Payments Market is moderately competitive, with only a few players like Paytm, Google Pay, PhonePe, and others dominating. As a result, it is seen as difficult for new entrants. Furthermore, prominent market participants engage heavily in R&D operations to improve the security and encryption of their platforms and expand their offers. They also use partnerships, mergers, acquisitions, joint ventures, and various other organic techniques to keep ahead of the competition. Inorganic marketing and advertising tactics are also used by the dominant businesses to raise consumer awareness, micro-target certain demographics, and increase their market share.

  • April 2022 - The International arm of the National Payment Corporation of India, NPCI International Payments Ltd (NIPL), has announced that BHIM UPI is now available at NEOPAY terminals across the UAE. This project would enable millions of Indians who travel to the UAE to make payments using BHIM UPI securely and conveniently. Launching the BHIM UPI in the UAE is a significant step toward boosting digital payments in the country.
  • January 2022 - Apple Inc. is developing a new service that would enable small companies to accept credit card payments directly on their iPhones without needing additional hardware.

Recent Development

  • June 2022 - Following a difficult start, Meta-owned WhatsApp Pay's decision to launch its cashback campaign appears to be boosting the company's digital payments targets on the Unified Payments Interface (UPI) network.
  • April 2022 - Bharat Bill Payment System, a one-stop platform for all recurring payments across categories, has partnered with FAARMS to provide recurring payments for all farmers across India. Farmers can use the FAARMS app to conveniently obtain a wide range of products and services, including seeds, fertilizers, insecticides, animal feed, and other items delivered straight to their door.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Market Sizing and Estimates of India Mobile Payments Market

    3. 4.3 Industry Attractiveness-Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of COVID-19 Impact on the market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Booming E-Commerce Sector Propelling the India Mobile Wallet Market Growth

      2. 5.1.2 An Increase in Smartphone Owners and Internet Users Will Drive Market Growth.

      3. 5.1.3 Favorable Government Initiatives

    2. 5.2 Market Challenges

      1. 5.2.1 Poor Internet Connectivity and Security Issues

    3. 5.3 Market Opportunities

      1. 5.3.1 Move towards Cashless Society

    4. 5.4 Key Regulations and Standards in the Mobile Payments Industry

    5. 5.5 Analysis of Business Models in the Industry

    6. 5.6 Analysis of the Increasing Market Penetration of Mobile Wallets

    7. 5.7 Analysis on Enabling Technologies (Coverage to include NFC, QR, etc.)

    8. 5.8 Commentary on the growth of Mobile Commerce and its influence on the Market

  6. 6. MARKET SEGMENTATION

    1. 6.1 BY TYPE (Market share in percentage based on relative adoption)

      1. 6.1.1 Proximity

      2. 6.1.2 Remote

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 PAYTM PAYMENTS BANK LIMITED (Paytm)

      2. 7.1.2 PhonePe

      3. 7.1.3 Alphabet Inc. (Google Pay)

      4. 7.1.4 Amazon Payments, Inc. (Amazon Pay)

      5. 7.1.5 ICICI Bank Limited (ICICI Pockets)

      6. 7.1.6 Freecharge Payment Technologies Pvt. Ltd.

      7. 7.1.7 State Bank of India (Yono SBI)

      8. 7.1.8 Bharti Airtel (Airtel Money)

      9. 7.1.9 HDFC Bank Limited (HDFC PayZapp)

      10. 7.1.10 Meta Platforms, Inc. (WhatsApp pay)

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The India Mobile Payments Market market is studied from 2020 - 2027.

The India Mobile Payments Market is growing at a CAGR of 14.8% over the next 5 years.

PAYTM PAYMENTS BANK LIMITED, PhonePe, Alphabet Inc. (Google Pay.), Amazon Payments, Inc. (Amazon Pay), ICICI Bank Limited (ICICI Pockets) are the major companies operating in India Mobile Payments Market.

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