The mobile wallet industry is expected to maintain the pace of its current expansion with transaction volume expected to touch 32 billion by 2022, said a report. Value of the transactions is also expected to reach Rs 32 trillion by 2021, growing at a rate of 126 percent, said the report by consultancy Deloitte. Also Read - How to recharge FASTag account for Electronic Toll CollectionAlso Read - FASTags: How to get FASTag wallet ID and activate it
The volume growth is likely to be at a compounded rate of 94 percent, it added. As the penetration of mobile Internet and smartphones aggregate, mobile wallets, with their ease of use and convenience, are expected to continue growing in popularity, the report said.
The report, however, noted that some challenges maybe posted along the way. There could be an inertia in adoption as cash transactions have been the norm for a long time. Also, credit cards from one of the biggest challenges in adoption of wallets, it said. Further, the report said security breaches and frauds leading to financial losses are big factors in the adoption of digital payment technologies. “Therefore, ensuring the security of the technology systems is the key.” ALSO READ: Mobile wallets real power lies beyond payments: Research
Introduction of UPI has created greater competition going forward. Also, industry players have begun moving beyond their core service and delivering collateral services.