Why Mobile Wallets are the Future of eCommerce Payments in India
Mobile payment wallets really represent the future of retail banking. Although the debit and credit cards still rule the roost, a phenomenon that is fast catching up is the ability of users to do all their banking from the comfort of their phones. These mobile payment systems have literally taken over the retail banking market in many countries and users are able to make payments from their mobile phones to buy things everywhere including online.
Although mobile payment gateways still represent a very tiny proportion of the overall banking transactions, it is its fast rate of growth that is proving promising. In a country like India, the rate of growth of mobile wallets as payment portals has increased drastically in the past year alone.
As more users adopt mobile payment options and as more merchants incorporate mobile wallets into their checkout process including through building an app, mCommerce payment is going to become an integral part of ecommerce in the future. There are various other innovations in this sector that are also contributing to a high rate of usage such as the introduction of payment banks as well as prepaid instruments. To tap into this growing niche, many commercial banks are also tapping into the mobile payment revolution bringing the mobile influence into traditional banking.
Young Users Driving the Mobile Revolution
The most promising demographic as far as mobile adoption is concerned are the younger users who are more comfortable with mobile devices and are, thus, more likely to adopt any nice mCommerce apps that enable them to buy everything from the comfort of their mobiles or smartphones.
The traditional payment options such as cash and credit and debit cards are still being used in order to load cash into mobile wallets but these wallets are increasingly emerging as a preferred payment option.
Currently, they are mainly being used for settling payments for app-based services such as paying for taxi, meal deliveries, doing mobile recharge or even the payments of utility bills. Many online eCommerce websites are also, increasingly, adopting mobile payment options. Even though they are increasingly being used, they are mostly applied in covering the small payments but most users still use the credit cards and cash for transactions of high-value.
How Mobile Wallets Can Engage Customers
There are various ways in which mobile payments systems can engage your customers. With the growth of the smartphone market, it is now possible for consumers to run mobile payment apps on their phones that can integrate well with other functionality such as loyalty programs or even the debit cards as well as credit cards in order to facilitate the ease of payment. For this to work, two things are required. These are:
- A mobile wallet application that is installed on the Smartphone
- An eCommerce retailer that can accept mobile payments
Benefits of Offering Mobile Wallets
The main benefit of having mobile wallets is the convenience that it offers users. If you are retailer in India offering mobile payment options, you are going to tap into a much larger base of users in India who do not have access to credit cards but still want to make online purchases from eCommerce websites that have enabled mobile wallets.
Mobile Wallets Providers in India
India has been saying a fairly rapid growth in the recent years in the mobile payments sector. The industry is still fairly new but the ecosystem has been growing impressively in the past few years and now has a couple of players in the industry. In India, currently, there are 12 main players in the mobile payments sector. These include the following:
- Airtel Money
- Citrus Pay
So impressive has the mobile payment revolution in India, 41% of India E-commerce sales are from Mobile. The bulk of the users, some 80 million, are with the Paytm. However, the volume of the transactions by the mobile wallets is still fairly small.
Why Mobile Wallets is the Future in India
India still has a large proportion of the population that is still unbaked while at the same time, the mobile adoption rates in India are quite high. That means it is fairly easier to reach out to the bulk of users in India.