Following demonetisation, mobile transactions have gone up significantly and have doubled in the last one year according to a research by Counterpoint Technology Market Research. The study revealed that mobile payments have reached $1 billion per month in 2017. The rapid rise in mobile payment technology was also aided by the increased penetration of low-cost 4G smartphones in India. The research also noted that India’s mobile transaction growth will be faster than China due to the increase in 4G penetration.
Total mobile transactions made in 2017 exceeded 3.1 billion in 2017. In 2016, the total number of mobile transactions made in a year was 1.6 billion. The transactions are expected to be worth $13 billion by the end of 2017.
The government has also aided cashless transactions by launching its own system in the form of BHIM-Aadhar platform. This app allows transactions to be conducted simply by sharing a thumb print in a biometric device. The research notes that the simplicity of these transactions is also one of the reasons for their rapid growth. Moreover, these transactions also increased because of the new initiatives and promotions made by the mobile wallet companies.
Mobile transactions may have increased significantly in the last one year. However, card transactions did not increase significantly due to the lack of proper infrastructure in rural areas of the country. Considering the ongoing trend, India will directly move to mobile payments skipping the use of credit and debit cards in the near future.
India is a country where broadband penetration has not reached its full potential. However, the rise of 4G smartphones is changing the nature of cashless transactions. Especially after the launch of Reliance Jio, the use of mobile internet has increased significantly in India. The low cost of 4G data in the recent times have significantly contributed to the growth of digital transactions.