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India Mobile Wallet Market

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India Mobile Wallet Market, By Type (Open, Semi-Closed, Closed), By Ownership (Banks, Telecom Operators, Device Manufacturers, Tech Companies), By Technology (Near Field Communication (NFC), Optical/QR Code, Digital, Text-Based), By Region (North India, South India, West India, East India) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: January 2022
  • Report ID: BWC21213
  • Available Format: PDF
  • Page: 113

Report Overview

India's mobile wallet market is driven by an increasing number of banked people and an increasing number of smartphones. Furthermore, various government initiatives promoting the adoption of mobile wallets and digital payment infrastructure in the country support the market's growth.

India Mobile Wallet Market- Industry Trends & Forecast Report 2027

India mobile wallet market was worth USD 30.1 billion in 2020 and is further projected to reach USD 429.2 billion by the year 2027, growing at an impressive CAGR of 46.3% during the forecast period. The growing trend of mobile wallets among Indian consumers is influenced by the increasing smartphone penetration and rising banked population in the country. Additionally, the government of India is taking various initiatives to boost the digital payment ecosystem in the country and has introduced various digital wallets like UPI, BHIM, Aadhaar Pay, etc., which are expected to boost the India mobile wallet market during the forecast period.

India Mobile Wallet Market

 

Source: BlueWeave Consulting

India Mobile Wallet Market- Overview

According to the definition by Cashless India, “a mobile wallet is a way to carry cash in digital format.” Through mobile wallets, one can link their bank account as well as debit and credit card to make and receive payments and transfer money online. Paytm, PhonePe, GooglePay, YONO by SBI, Mobikwick, etc., are some of the most popular mobile wallets in India. Data encryption makes mobile wallets a safe method of payment, since they protect sensitive data from fraud and data theft.

India Mobile Wallet Market Forecast and Trends

Growth Drivers

Favorable Government Initiatives

After the government announced demonetization in 2016, mobile wallets and digital payments gained significant traction. Moreover, various incentives and measures are being announced by the government of India to promote the use of credit/debit cards and mobile wallets for digital payments. For instance, the Prime Minister of India launched BHIM (Bharat Interface for Money) that provides a fast, secure, reliable medium to make digital payments through mobile phones. Such initiatives are anticipated to boost the trust of the general public in mobile wallets and drive its overall market growth during the forecast period.

Expanding Digital Payment Infrastructure

The use of mobile wallets in India is reaching new heights and is overtaking the USA, the UK as well as China. Virtual mobile-based wallets are growing in popularity across the country as they help in enhancing the speed of transactions. Earlier, mobile wallets such as Paytm, PhonePe, GooglePay, etc., could only make payments on e-commerce platforms. However, the technology has now penetrated low-value day-to-day use at supermarkets, grocery stores, street vendors, and gas stations. India's mobile wallet market is also expected to grow at a fast pace due to increased smartphone penetration and improved telecom and payment infrastructure.

Restraints

Poor Internet Connectivity and Security Issues

Despite the increasing number of internet users in India, a large percentage of the population, especially in rural India have no access to the Internet. Thus, many small towns and villages have shown a slow adoption rate due to poor internet connectivity or a reluctance to move on from traditional processes. The large rural-urban gap in access to the internet will directly affect the use of mobile wallets in the country, negatively affecting the market's growth. The security risk associated with mobile wallets is another factor that is restricting the India mobile wallet market. Mobile wallets include sensitive information such as credit/debit card details that carries the risk of cyberattacks.

Impact of COVID-19 on India Mobile Wallet Market

The India mobile wallet market witnessed tremendous growth amid the sudden outbreak of the COVID-19 pandemic in 2020. Increasing incidences of COVID-19 in the country have led consumers to make payments via mobile wallets instead of using cash. These cashless transactions are aligned with social-distancing norms that prevent community transmission of the virus. As Mint reported, digital payment platforms such as PhonePe, AmazonPay, Paytm, and others have seen a 50% increase in transactions through their digital wallets since the start of the COVID-19 pandemic.

India Mobile Wallet Market - By Type

Based on types of usage, the India mobile wallet market is segmented into open, semi-closed, and closed segments. The semi-closed type segment holds the largest share in the India mobile wallet market. Paytm, Airtel Money, MobiKwik, and PayUMoney are the most popular examples of semi-closed wallets in the Indian market. By providing a high level of security for online payments, these wallets make online shopping easier. They also facilitate quick transactions and seamless refunds. This concept's wide service coverage is another factor that contributes to its success.

India Mobile Wallet Market - By Ownership

Based on ownership, the India mobile wallet market is segmented into banks, telecom operators, device manufacturers, and tech companies. The India mobile wallet market is dominated by tech companies such as Paytm, GooglePay, MobiKwik, PhonePe, etc. They are the market leaders in providing open e-wallets that are accepted everywhere, including a local shop. On the other hand, the telecom industry is also booming with e-wallets like Airtel Money, Vodafone M-Pesa, Jio Money, etc., increasing penetration in the mobile wallet market.

India Mobile Wallet Market - Regional Insights

Geographically, the India mobile wallet market is segmented into North India, South India, West India, and East India. South India dominates the India mobile wallet market with a high number of smartphone users in states like Tamil Nadu, Andhra Pradesh, Karnataka, etc. The high literacy rate of states such as Kerala also plays a crucial factor in propelling market growth. Furthermore, North India is also emerging as a potential region for the growth of mobile wallets due to the expanding banking and e-commerce sector in states like Delhi and Uttar Pradesh.

Competitive Landscape

The leading players in the India mobile wallet market are Paytm, Google Pay, BHIM Axis Pay, PhonePe, Mobikwik, Yono (SBI), Citi MasterPass, ICICI Pockets, HDFC PayZapp, Amazon Pay, and other prominent players.

The market is highly consolidated and dominated by a handful of players such as Paytm, Google Pay, etc. Therefore, it is considered dense for the new entrants. The market players significantly invest in research and development activities to improve the offerings of the platforms as well as boost their security and encryption. Furthermore, they adopt organic market strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., to stay ahead in the competition. However, the dominating players also resort to inorganic strategies such as advertising and marketing to create consumer awareness and micro-target a specific audience to boost their growth and expand their customer base.

Recent Development

  • In December 2021, Western Union and NPCI International Payments Limited (NIPL) announced that they had signed a Memorandum of Understanding (MoU) to bolster real-time payments in India through bank accounts, mobile wallets, or cards.

Scope of the Report

Attributes Details
Years Considered Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Facts Covered Revenue in USD Billion
Market Coverage North India, South India, West India, and East India
Product Service/Segmentation By Type, By Ownership, By Technology, By Region
Key Players Paytm, Google Pay, BHIM Axis Pay, PhonePe, Mobikwik, Yono (SBI), Citi MasterPass, ICICI Pockets, HDFC PayZapp, Amazon Pay, and other prominent players.

By Type

  • Semi-Closed
  • Closed 

By Ownership

  • Banks
  • Telecom Operators
  • Device Manufacturers
  • Tech Companies

By Technology

  • Near Field Communication (NFC)
  • Optical/QR Code
  • Digital
  • Text-Based

By Region

  • North India
  • South India
  • West India
  • East India
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Favorable Government Initiatives
        2. Expanding Digital Payment Infrastructure
      2. Market Restraints
        1. Poor Internet Connectivity and Internet Accessibility
      3. Market Challenges
        1. Issues Associated with Data Theft and Cybersecurity
      4. Market Opportunity
        1. Flourishing e-Commerce Sector
        2. Increasing Number of Smartphone Ownership
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. India Mobile Wallet Market Overview
    1. Market Size & Forecast by Value, 2017-2027
    2. Market Size and Forecast, By Segment
      1. By Type
        1. Open
        2. Semi-Closed
        3. Closed 
      2. By Ownership
        1. Banks
        2. Telecom Operators
        3. Device Manufacturers
        4. Tech Companies
      3. By Technology
        1. Near Field Communication (NFC)
        2. Optical/QR Code
        3. Digital
        4. Text-Based
      4. By Region
        1. North India
        2. South India
        3. West India
        4. East India
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on India Mobile Wallet Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Paytm
    2. Google Pay
    3. BHIM Axis Pay
    4. PhonePe
    5. Mobikwik
    6. Yono (SBI)
    7. Citi MasterPass
    8. ICICI Pockets
    9. HDFC PayZapp
    10. Amazon Pay
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: India Mobile Wallet Market Segmentation

 

Figure 2: India Mobile Wallet Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2020

 

Figure 4: India Mobile Wallet Market Size, By Value (USD Billion), 2017-2027

 

Figure 5: India Mobile Wallet Market Share (%), By Type, By Value, 2017-2027

 

Figure 6: India Mobile Wallet Market Share (%), By Ownership, By Value, 2017-2027

 

Figure 7: India Mobile Wallet Market Share (%), By Technology, By Value, 2017-2027

 

Figure 8: India Mobile Wallet Market Share (%), By Region, By Value, 2017-2027

 

 

List of Tables

 

 

Table 1: India Mobile Wallet Market Size, By Type, By Value, (USD Billion), 2017-2027

 

Table 2: India Mobile Wallet Market Size, By Ownership, By Value, (USD Billion), 2017-2027

 

Table 3: India Mobile Wallet Market Size, By Technology, By Value, (USD Billion), 2017-2027

 

Table 4: India Mobile Wallet Market Size, By Region, By Value (USD Billion), 2017-2027

 

Table 5: Paytm Financial Analysis

Table 6: Paytm Business Overview

Table 7: Google Pay Financial Analysis

Table 8: Google Pay Business Overview

Table 9: BHIM Axis Pay Financial Analysis

Table 10: BHIM Axis Pay Business Overview

Table 11: PhonePe Financial Analysis

Table 12: PhonePe Business Overview

Table 13: Mobikwik Financial Analysis

Table 14: Mobikwik Business Overview

Table 15: Yono (SBI) Financial Analysis

Table 16: Yono (SBI) Business Overview

Table 17: Citi MasterPass Financial Analysis

Table 18: Citi MasterPass Business Overview

Table 19: ICICI Pockets Financial Analysis

Table 20: ICICI Pockets Business Overview

Table 21: HDFC PayZapp Financial Analysis

Table 22: HDFC PayZapp Business Overview

Table 23: Amazon Pay Financial Analysis

Table 24: Amazon Pay Business Overview

Market Segmentation

By Type

  • Open
  • Semi-Closed
  • Closed 

By Ownership

  • Banks
  • Telecom Operators
  • Device Manufacturers
  • Tech Companies

By Technology

  • Near Field Communication (NFC)
  • Optical/QR Code
  • Digital
  • Text-Based

By Region

  • North India
  • South India
  • West India
  • East India
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