It is early days for India’s mobile wallet space which has considerable potential for growth. Competition is intensifying among homegrown and foreign players. Facebook-owned (NASDAQ:FB) WhatsApp is a late entrant. However, its position as India’s most popular messaging app could be a significant advantage as it competes to carve a slice of India’s mobile wallet pie which could turn out to be a revenue stream in the future for the app which currently makes no money.
The mobile payments market is a growth sector in India. A report by Research and Markets found India’s mobile wallet market grew 48.85% during the review period 2012-2016. Growth was fuelled by rising smartphone penetration, increasing mobile internet penetration and rising disposable income. The trend is expected to continue.
India overtook the United States last year to emerge as the world’s second-largest smartphone market, after China, according to Counterpoint Research. Twenty years ago just 1% of India’s population had mobile phones. Today, with 1.16 billion subscribers at the end of February 2017, India’s mobile phone penetration is over 90%. Technology market research firm Counterpoint Research estimates about 300 million (about 25%) of those are smartphone users and the rest are on feature phones making India the only market where feature phones continue to grow according to Deloitte. Smartphone penetration is expected to increase to 58% by 2020 which should drive mobile internet usage and mobile wallet adoption.
With the majority of Indians……………………..READ MORE