Mobile wallets are set to get hugely popular, as post demonetisation, government is making efforts to promote cashless transactions.
One of the main motives of demonetisation was to make Indian economy go ‘cashless or digital way’ instead of using cash in every transactions.
Indians predominantly use cash in majority of transactions, but post demonetisation, they are forced to use cash less modes of payments due to cash crunch. Due to this development, mobile wallet companies like Paytm have benefited a lot.Paytm users and transactions have grown phenomenally immediately after demonetisation.
Observing the trend post demonetisation, industry body The Associated Chambers of Commerce and Industry of India (ASSOCHAM) came up with a report on ‘Mobile Wallet industry outlook : Post demonetisation.’
The Assocham report points out that mobile wallet retail spends may see fourfold increase in near term and mobile wallet transactions will increase at a compounded annual growth rate (CAGR) of over 160 per cent to rise from just over half a billion in Financial Year (FY) 2016 to 260 billion by FY 2022.
In terms of value, m-wallet transactions in India are set to grow at a CAGR of over 200 per cent to reach Rs 275 trillion by FY 2022 from Rs 206 billion in FY 2016.
ASSOCHAM released this report in Hyderabad on Tuesday. Assocham prepared this report in association with RNCOS, a business consultancy.