Mobile wallet payments in India will cross the Rs 531.8 trillion mark by 2028, witnessing a compound annual growth rate (CAGR) of 18.3 percent between 2024 and 2028, according to a recent report by GlobalData, a London-based data and analytics company.
The report highlights that the value of mobile wallet payments in India has witnessed remarkable growth, achieving a CAGR of 72.1 percent between 2019 and 2023, reaching 202.8 trillion rupees ($2.5 trillion) in 2023. This was mainly to the concerted efforts of the government to promote digital payment. methods, especially the mobile wallet-based instant payment solution—unified payment interface (UPI).
The Reserve Bank of India (RBI) recently announced plans to facilitate cash deposits in banks through the unified payment interface (UPI), traditionally popular for peer-to-peer (P2P) transactions, bill payments, business transactions, and other digital payments. .
UPI game changer
Since its launch in April 2016, UPI has gained a large user base, reaching 300 million users in October 2023, according to GlobalData.
Currently, UPI payments from Prepaid Payment Instruments (PPI) are only possible through the website or mobile application provided by the PPI issuer. However, the RBI intends to allow the use of third-party UPI apps to make UPI payments from PPI wallets.
The RBI’s recent proposal aims to enable cash deposits at Cash Deposit Machines (CDM) using UPI, eliminating the need for an ATM or debit card.
The growing reach of mobile payments is attributed to several factors including the government’s push towards digital payments, widespread use of UPI-based QR code payments and high merchant acceptance. The solution offers fast, secure, convenient and cost-effective money transfers and payments, with the potential to further disrupt the overall payments landscape in India.
(tagsTo Translate)Mobile wallet payments