Demonetisation effect: Average e-wallet spends to touch Rs 10,000 next year
Post-demonetisation, e-wallet or mobile-wallets (m-wallet) started gaining momentum due to the severe cash crunch on account of 86% of currency being made illegal overnight.
“…the average wallet spend for retail has witnessed a huge jump and is expected to increase from Rs 500-700 prior to Rs 2,000-10,000 in the near term, a joint study by ASSOCHAM and RNCOS said in report dated December 27.
The report further added that volume transaction was estimated to go up to 57% by 2022 from 20% in FY16.
“The government has hinted of not remonetising all of the scrapped currency and aims to fill the gap by promoting digital/cashless payment mode, this is bound to further boost prospects for m-wallet sector in India,” said Chartered Accountant, D.S. Rawat while releasing the study.
The report said, “M-wallet transactions in India are likely to grow at a compounded annual growth rate (CAGR) of over 160% to rise from just over half a billion in FY16 to 260 billion by FY22 driven by growing usage of smartphones, robust mobile internet penetration, growth of e-commerce sector
together with increasing disposable incomes.”
M-wallet transactions in India will grow at a CAGR of over 200% to reach Rs 275 trillion by FY22 from Rs 206 billion in FY16, the report said.
The report also highlighted that share of mobile banking segment in mobile payment market is likely to register significant increase from eight per cent in FY14 to 56% in FY17.
The study however noted that the existing challenge for the sector is to bring copious number of shoppers preferring cash on delivery (COD) and other modes of payment on m-wallet platform.
“However, with the ease of payment along with other benefits offered by m-wallets, users preferring COD will switch to the m-payment platform in the coming years as it has a significant potential to grow, and expand its user base as we go ahead,” the report said.