Mobile payments in India are now growing faster than card payments as more consumers and businesses embrace digital payments amid the pandemic, according to the 2021 India Mobile Payments Market Report.
According to the report, payments made through apps that bypass credit cards increased by 67% to $478 billion in 2020. They register more than $1 trillion in annualized value in 2021.
“…we expect mobile payments to continue to grow faster than cards due to an increasing consumer preference for using smartphones to pay,” the report released by the research team states. on financial institutions from S&P Global Market Intelligence.
By comparison, the value of credit card transactions in the industry fell 14% in fiscal year 2021. For banks, the ongoing pandemic reduced credit card exchange revenue by $524 million. credit by its estimates, as consumers retreated amid foreclosure measures.
“Mobile payments in India have accelerated their lead on cards amid the Covid-19 pandemic. Large tech companies that intermediate mobile payments are becoming financial supermarkets by cultivating partnerships with financial institutions and securing regulatory licenses.
He also said that the demand for cash is slowing down in the wake of the growing adoption of mobile payment. For every ATM withdrawal, Indians made 3.7 transactions using mobile phones in 2020.
He also predicted that there would still be room for rapid growth in digital payments in India over the next few years.
“Based on a review of instant payments in four major Asia-Pacific economies, India processed the highest number of real-time transactions in 2020,” he said, while noting that the country’s real-time transactions per capita of 16 in 2020 was the lowest in the group, which includes Australia, Thailand and Singapore.
While PhonePe and Google Pay continue to dominate mobile payments, the report says it does not expect India’s mobile payments market to become a duopoly like in mainland China, where Alipay and WeChat handle the bulk of payments. mobile payments.
“Payment fintechs with business-to-business models burn a lot less money than their consumer-facing brethren,” he added, adding that big fintechs that work closely with large and small businesses are ready. to expand abroad and diversify their activities.