| Globally, the digital wallet market size was valued at USD 1,043.1 billion in 2019 and is projected to reach about USD 7,580 billion by 2027, growing at a Compounded Annual Growth Rate (CAGR) of 28.2% from 2020 to 2027. In 2019, India had 73.9 million people using digital wallets. The estimated value of mobile transactions in 2020 across India was INR 36.5 trillion, equivalent to USD 4.9 trillion. The value is expected to more than triple by 2024. The increased penetration of the internet and smartphones and targeted government initiatives has spurred growth in digital payments in India. What are digital wallets? A digital wallet – or e-wallet – is software that enables users to make payments electronically, using a computer or mobile device. Digital wallets are primarily accessed through mobile applications and have improved safety and convenience in transactions as one need not carry cash, debit, or credit cards to make payments. In financial terms, digital wallets are a form of Prepaid Payment Instrument (PPI), which facilitates the purchase of goods and services, including the transfer of funds, against the value available on the instrument. The value available refers to the amount paid for by the user through cash, from a bank account, credit card, or other PPIs. PPI options for digital payments have been around in India since 2002, but the use was restricted to gift cards, forex cards, meal reimbursem*nts, etc. However, the introduction of digital wallets has led to the country’s surge in digital payments in prepaid instruments. Oxigen wallet is the first-ever e-wallet in India, launched in July 2004. In 2006, the media firm Times Group, in association with YES Bank, introduced Wallet365.com. But, the use of digital wallets picked up pace after the launch of Mobikwik in 2009. In addition, Paytm, Google pay, PhonePe, Amazon pay, Airtel money have captured the country’s digital wallet market in recent years. There are three types of digital wallets
How are digital wallets facilitating healthcare payments in India? The evolution of digital wallets has made health finance easy, informative, and comprehensive. The COVID-19 pandemic has prompted many companies of all the industries in the country to re-evaluate the operations performed. The versatility and technological innovation backing digital wallets has contributed to helping with the payments provide access to important information to its users. Especially in the health sector, digital wallets allow the patients to self-manage their medical expenses and offer more. An international example is M-TIBA, a digital wallet by PharmAccess and Safaricom to facilitate inclusive healthcare in Kenya. It is a three-way platform that connects patients, healthcare providers, and healthcare payers. It enables the exchange of money and data between these three parties, allowing financing within the healthcare sector. Every kind of healthcare product and service provider in India today has options to pay through mobile wallets. We can see this in online consultation providers such as Practo and Lybrate, Apollo 247, or online pharmacies like Netmeds, MedPlus, and PharmEasy. Online booking and payment for diagnostic tests saw a 60-70% increase in tier 1 cities since the COVID-19 outbreak. Diagnostics providers also provide the option to transact through digital wallets. Digital wallets have also been used to purchase other healthcare products and essentials, from masks to health insurance policies. Thus, digital wallets have enabled fast, convenient, and secure payments for healthcare in India. What is the future of digital wallets? Future trends in mobile wallets are the enhancement of loyalty rewards, security and simplicity, artificial intelligence, and cryptocurrency. Also, companies that have investments in mobile wallets have been devising ways to expand their reach in rural areas, which can significantly impact the country’s development. The government also has encouraged private and public partnerships to increase the volume of transactions through mobile wallets. In May this year, the Reserve Bank of India has issued a guideline for all PPIs, including digital wallets, to become interoperable by April 2022. This regulation removed the limitation of using the amount in one wallet only on expenses made through the same wallet. Users can send money from one mobile wallet to various other wallet brands and withdraw cash from Point-of-Sale machines. This move will lead to increased acceptance and volumes for wallet providers. More importantly, this interoperability can expand digital adoption and payments as it will provide more value and ease of use for current and new customers. Other digital payment modalities have also disrupted the financial payments landscape in India, with the Unified Payments Interface (UPI) being the largest one, perhaps. In Quarter 1 of 2021, around 1.13 billion transactions were made through mobile wallets, while UPI-based payments numbered around 2.3 billion. The value of the transactions was about INR 411.75 billion for mobile wallets and crossed INR 5 trillion for UPI. Stay tuned to this space to read more about UPI in India in our upcoming blog post! Have more to add to the conversation? Read more about the Fintech for Health program here. If you have questions, or would like to work with us, please email us here. Authors: Prashanthi Krishnakumar, Program Manager at ACCESS Health International For more information contact [emailprotected] |
FAQs
Which digital wallets are used in India? ›
- Paytm.
- Amazon Pay.
- Freecharge.
- Airtel Money.
- JIO Money.
- Google Pay.
- MobiKwik.
- PayUmoney.
The value of mobile wallet payments in India, as per a GlobalData report, grew at a CAGR of 72.1 per cent between 2019 and 2023 to reach Rs 202.8 trillion ($2.5 trillion) in 2023.
How many people in India use digital wallets? ›India is the world's 'capital' in mobile payments. The country is now the global leader in using mobile wallets, with a whopping 90.8% of its population making transactions through them in 2023, according to a survey by GlobalData. This highlights India's rapid progress in adopting digital payments.
Which is the largest e-wallet in India? ›- Paytm. Paytm is one of the most widely used digital wallets in India with over 350 million registered users. ...
- Google Pay. ...
- PhonePe. ...
- Amazon Pay. ...
- Mobikwik. ...
- Hubble Wallet.
The future of digital wallets in India looks promising with the advent of third-party UPI access for PPIs. Combined with the recent RBI move allowing credit lines on UPI, it will empower users, promote financial inclusion, and drive the next wave of growth and innovation in digital payments.
Who regulates digital wallets in India? ›The regularity and issuing authority for issuing the Payment wallet license or a prepaid payment license is RBI. RBI is also responsible for issuing guidelines and rules for prepaid payment wallets.
Is India leading in digital payment? ›India's digital transactions alone clocked in 46 per cent of the entire world's digital payment volumes in 2022, according to the report.
What is the future scope of digital payments in India? ›Growth of UPI
With support from major banks and payment apps, UPI will facilitate over half of all digital payments in India by 2024. New use cases around international remittances and merchant payments will further boost UPI adoption.
Oxigen wallet is the first-ever e-wallet in India, launched in July 2004. In 2006, the media firm Times Group, in association with YES Bank, introduced Wallet365.com. But, the use of digital wallets picked up pace after the launch of Mobikwik in 2009.
What is the limit of digital wallet in India? ›How much money can you add to a digital wallet? According to the Reserve Bank of India (RBI) guidelines, you can add up to ₹ 2 lakh to your digital wallet. However, digital wallet providers may have lower maximum limits applicable to their customers.
How many people use online payment method in India? ›
India currently has around 350 million online transacting users across e-commerce, shopping, travel and hospitality, and OTT and the number is set to double by 2030, a new report showed on Wednesday.
What is India's leading mobile wallet company? ›Paytm is India's largest mobile wallet provider. It offers a range of services, such as mobile recharge, bill payments, ticket booking, online shopping, money transfer, insurance, loans, and more.
What is the market share of digital wallets in India? ›Of the 143 crore PPI wallets in India by December 2023, 63 crore or 44 per cent of them are operated by the Paytm Payments Bank. With a 13 per cent market share or 19 crore wallets, PhonePe holds the second position. One Mobikwik, Ola Financial Services, and Airtel Payments Bank follow the list, RBI data shows.
Which is the largest online payment platform in India? ›- PayU.
- Instamojo.
- CCAvenue.
- Bill Desk.
- JusPay.
- Airpay.
- Cashfree Payments.
- Zaakpay.
Paytm. Paytm is one of the leading online payment apps in India, with over 350 million registered users.
Which crypto wallet is used in India? ›In India, WazirX certainly tops the list of best Bitcoin wallets. With a massive user base of around one billion users, this platform offers investors trading in the top cryptocurrencies such as BTC, ETH, XRP, SOL, TRON, DOGE, ADA and in total 400 plus other cryptocurrencies.
Is Google Wallet available in India? ›Google recently launched its Wallet app for Android smartphone users in India. This free app will be used as a digital hub to store rewards, tickets, and even a car key. Google Wallet launched in India is different from its international version as it cannot store bank cards or make digital payments.
Which is the most secure wallet in India? ›- Coinbase Wallet: This is one of the most popular and well-known crypto wallets in the world, and it's available in India. - Ledger Nano S: This is a hardware wallet that's designed for security and privacy. It's also easy to use, making it a good option for beginners.
Which digital currency is used in India? ›The Digital Rupee (e₹) or eINR or E-Rupee is a tokenised digital version of the Indian Rupee, issued by the Reserve Bank of India (RBI) as a central bank digital currency (CBDC). The Digital Rupee was proposed in January 2017 and launched on 1 December 2022.
