With the advancement of e-commerce, there are many features which are expected to be more prominent and witness increasing usability in the upcoming days. Mobile wallets happen to be one of them. A mobile wallet is a mode of payment which an e-commerce store or website keeps the information on your credit/debit card with itself. Instead of keying in the details each time you make a transaction, the mobile wallet ensures that you can automatically make payments from the application. It is extremely convenient and saves a lot of time. Here, we discuss the future of mobile wallets.
1) More Mobile Accessibility
According to a report from market research firm Indian Market Research Bureau (I.M.R.B.) the number of internet users in the country is expected to reach 465 million by the end of the year. The report points out that 77% of urban users and 92% of rural users consider mobile as the primary device for accessing the internet. With increasing infrastructural spending and greater advancement into Tier II and Tier III cities, mobile usage is due to increase rapidly. This will surely help increase the usage of mobile wallets in such areas.
2) Increasing Usage of Cashless Transactions
As explained above, mobile wallets digitally store the information on credit and debit cards. Which means that any increase in mobile wallet usage is directly dependent on the frequency of debit and credit card usage. Going by the increase in cashless transactions, there is a lot of scope for mobile wallet expansion. Consider the numbers: Credit card usage increased by 47.1% in March 2017 from the transactions held in March 2016. Debit card usage saw a 140.2% increase. These numbers from a recently released MediaNama study show how the country is adapting to cashless transactions, and this bodes well for the future of mobile wallets.
3) Potential Entry of Established Giants
As we have seen in e-commerce, it is possible for giants and small time firms to co-exist as they do not eat up the competition but encourage a greater number of transactions. The same applies to mobile wallets. International giants like Apple, Google and Samsung have well-established mobile wallets which have not yet entered into the domestic market. Once they arrive, interest will surely increase but not go away from the established players like Paytm, Airtel, MobiKwik etc. Both the established and the international brands will ensure an increased attention towards mobile wallets and help increase the number of users.
4) Increase Usage of Cryptocurrencies
One of the recent international investment trends has been in the realm of cryptocurrencies. Popularised by Bitcoin and taken forward by Ethereum, these are currencies which do not belong to a particular country but can be utilized by anyone across the world and work on a highly securely encrypted network which provides safety and anonymity. While countries across the world where lapping on to Bitcoins, financial restrictions limited their usage and popularity in India. Now, things are changing. The Reserve Bank of India is considering using the chain of technology employed by Bitcoins in its own banking. They are also becoming a great source of investment among youngsters as an alternative to stock markets. The rising usage of cryptocurrencies will surely lead to an increasing usage of mobile wallets.
5) Greater Inclusion Of Technology
India is in an extremely interesting situation as e-commerce and digital technology is spreading across to all corners of the country. It will result in an increasing usage of technology and digital transactions across various mediums like mobile apps, social media, and technological innovations which one cannot even think about right now. With increasing familiarity of the digital medium and greater transactions on it, we will surely see a rise in the usage of mobile wallets.
As you can see, mobile wallets have a bright future. If you are thinking of incorporating it in your own store, then go ahead because this is the right time!