Mobile Wallets - Channel to Blossom

Abstract

The digital payments industry surges into the growth path. It is expected to grow at a pace of 40% in the next five years and value up to INR 420,120 crores by December 2023. The payment mechanism and financial transaction options are getting wide opened with the advent of technology namely net banking, mobile banking, mobile wallets, Immediate Payment Systems (IMPS) through internet and so on. The emerging areas of business such electronic retailing, financial services and insurance, digitalization of media, entertainment, government utility and service payments, healthcare, transportation and hospitality services and others has stretched the boundary of digital payment ambits in a significant ways over the last decade. There is a considerable increase in digital payments over the last ten years in these domains. The major objective of the paper is to understand and comprehend the penetration of digital money into more space and its relative advantages over the cash handling system. The role of Reserve Bank of India is very encouraging in this aspect. Over the last few years, the induction of Payment Banks (PB) and Small Finance Banks (SFBs) were actively functioning in the landscape of digital payments being a strong contender in technology enabled financial service providers. The digital banking space will hereafter covers not just transaction but also deposits, remittances, services through various channels which one might look into load to wallet. There is a possibility of blending this wallet channel to blossom into various industry based applications such as digitized loyalty programmes, tie-up with private players for synergistic results. The pace and efficiency with which financial institutions adopt these services that might make a significant difference to the existing eco system of cash-on-delivery orientation. In addition, this will pave the path for achieving the promise “anytime and anywhere” right to use of money without hazzle and financial information.