Surging Investments in MPOS, mWallet and NFC to Drive Indian Mobile Payment Service Industry: Reports
firstname.lastname@example.org 2015-07-15 01:21:00
The Indian payment market is largely driven by transactions through mobile point of sale terminals and mobile banking and has shown 15 fold growth to reach US$ 1.4 billion in 2015 compared to 2012, according to research reports.
Acknowledging that the mobile payment industry has seen a whopping 147.6% revenue growth in 2014-15 as compared to the previous year, the report by Research and Markets titled, "India Payment Services Industry Outlook to 2019 - Surging Investments in MPOS, mWallet and NFC to Drive Growth" said each segment in the mobile payment market has been subjected to a gamut of different factors such as merchant acquisitions, number of units sold and reach amongst customers that play a decisive role in determining respective revenues.
Also, according to a report by GrowthPraxis, the market for mobile enabled payments in India has grown more than 15 times to reach its current size of US$ 1.4 billion by the end of FY'15 from US$ 90 million at the end of FY'12. The report further indicated that mobile payments are mostly done through remote payment mode. Payment services provided by mobile payment firms are presently in the realm of net banking service. Utility bill payments currently hold a share of 34 per cent of the mobile payments value while domestic remittance and prepaid top-ups account for 26 per cent and 30 per cent, respectively.
The Research and Markets report was made after a comprehensive analysis of various aspects such as market size of the payment industry, mobile wallets, mobile banking and MPOS payments along with online payments and payment gateways.;
Moreover, each segment in the payment industry in India comprises a different set of players. For example, in mobile banking sector, financial institutions such as banks operate independently by using an application developed by a software firm. However, in mobile POS market, there is a link between the financial institution and the gateway to execute transactions. Mobile wallets have witnessed collaborations between banks and telecom companies to provide pre-paid wallet services to customers.
The payment market in India is changing rapidly, the report noted, adding, "The advancement in technology and a high rate of acceptance of mobile devices have enabled the growth of payment and banking. Also, the increase in internet penetration across both rural and urban sectors has created a platform for software and payment companies to provide solutions that can propel the financial services."
Refuting this, the GrowthPraxis report said that penetration of mobile in proximity payments in India is currently miniscule with less than 2 per cent flowing into it. The basic problem with proximity payments is the absence of adequate infrastructure for mobile payment acceptance. Another big challenge is the lack of readiness by players to interoperate so as to adopt the technology at scale.
Pointing out that the total number of POS terminals is less than 700,000 in India which equates to 5.4 per cent penetration, it said, to add to the woes more than 13 million retail stores are fragmented and unorganized across the country with almost little capability to acquire POS terminals.
- K. Ramanathan email@example.com
- How the retail industry fared in 2018 and what in store for 2019? 2018-12-29 12:58:00
- Datalogic Debuts Wireless Charging Technologyat NRF 2019 2018-12-29 12:41:00
- HID Global Unveils Fastest Retransfer Printer FARGO HDP6600 2018-12-28 17:14:00
Subscribe to Newsletter