The average mobile phone user makes at least one financial transaction using their smartphone in a week. Convenience has taken precedence in todays fast-paced life, even if it comes with a fee. From utility bills, fund transfers, movie bookings to flight bookings, online financial activities are an integral part of the tech-savvy Indians online engagement
A report published by the investment bank MAPE Advisory Group and consulting firm MXV, states that the rise in the number of transactions through mobile wallets has seen a steep increase in the last two years, from 33 million to 256 million. It even overtook the mobile banking transactions, which grew to 172 million from 53 million between 2014 and 2015.”Mobile wallet is getting a boost from e-commerce and its ability to aggregate multiple payment modes is expected to further amplify adoption of alternative payment systems,” Jacob Matthew, MD and co-founder of MAPE, said.
Fintech is that part of technology that empowers the financial services industry into becoming a powerhouse which enables financial systems in companies to be more resourceful. This infrastructure is set up through various developmental schemes and programs, likeFree wifi zones for the rural areas, Smart Cities Mission, Digital India program by the PM etc., all of which aim at easy accessibility and better opportunities for all. In the last two years alone, about $1.3 billion has been invested in the Fintech segment in the country, with a majority of it, $964 million, going to payments Â companies such as Paytm, Freecharge, and BillDesk. About $50 million was put in wallet companies and mobile point of sale companies (mPoS) Citrus, MobiKwik and Ezetap among others, the report added.
Right now, the investment figures appear bleak but with the introduction of Aadhaar identification number and a bank account through Jan Dhan Yojana, internet and smartphones are readily available, and the number is only expected to rise by 2020. The turning point came when the internet penetration in the country crossed 30% contributing to a quarter of the count in digital transactions of the banking sector. By 2022, online transactions will easily account for 50% of all financial transactions. Mobile banking adoption, in fact, has already superseded the web banking phenomena in the country.
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