India Mobile Payments Market Size (2024 - 2029)

The India Mobile Payments Market is experiencing significant growth, driven by the expansion of e-commerce and the widespread adoption of smartphones. The increasing use of the internet for online shopping and the shift towards mobile-friendly payment methods are key factors contributing to the market's expansion. The adoption of Unified Payments Interface (UPI) for person-to-merchant transactions is rising, reflecting a shift in transaction dynamics. Regulatory support from the Reserve Bank of India and advancements in technology, such as Web 3.0, are further enhancing the payment experience. Despite challenges in cross-border transactions, the demand for digital and mobile payment systems continues to grow, supported by the increasing complexity and costs associated with traditional banking methods.

Market Size of India Mobile Payments Industry

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India Mobile Payments Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.81 Trillion
Market Size (2029) USD 2.61 Trillion
CAGR (2024 - 2029) 26.52 %
Market Concentration Medium

Major Players

India Mobile Payments Market Major Players

*Disclaimer: Major Players sorted in no particular order

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India Mobile Payments Market Analysis

The India Mobile Payments Market size is estimated at USD 0.81 trillion in 2024, and is expected to reach USD 2.61 trillion by 2029, growing at a CAGR of 26.52% during the forecast period (2024-2029).

  • The expanding e-commerce business and the increased prevalence of smartphones nationwide can be linked to market growth. The growing internet use for online shopping will likely drive market expansion throughout the forecast period. Businesses nationwide are making their payment methods mobile-friendly, resulting in market growth potential.
  • According to Worldline, with merchant adoption of UPI rising rapidly in India, the average ticket size of UPI P2M (person to merchant) transactions is steadily increasing, while ATS for P2P (person to person) transactions is decreasing. However, this is due to the volume of transactions as well as a shift to P2M transactions. P2M transactions UPI transactions have risen to 57.5 percent in June 2023 from 40.3 percent in January 2022 and are expected to keep growing, of complete UPI transactions.
  • Further, through its policy statement "Regulation and Supervision of PFMIS Regulated by RBI," the RBI has approved the PFMIS published jointly by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions. As a result, all RBI-authorized payment systems designated as systemically important payment systems/system comprehensive vital payment systems, as well as Securities Settlement Systems, ccps, Central Securities Depositories, and Trade Repositories, are required to adhere to the PFMI standards. The RBI-owned and operated RTGS and NEFT systems must be evaluated and published regularly in accordance with the PFMI criteria.
  • Web 3.0 is the third generation of web technology, focusing on integrating structured data and intelligent services for the web to comprehend and fulfill user goals. In the area of payments, Web 3.0 can be leveraged to provide users with more intelligent and tailored payment experiences. Web 3.0 technology, for example, can be leveraged to enable users to make payments using natural language processing (NLP) and voice commands, allowing them to tell their devices what and how much they intend to pay.
  • The adoption of digital payments was increasing before the commencement of the COVID pandemic. Still, Reserve Bank actions and the additional thrust supplied by the pandemic have hastened the change, resulting in a substantial increase in contactless and online payments. Effective digital payments strategy and operations are critical for all organizations that rely on or participate in the payments ecosystem. Because of the contactless nature of digital modes offered by modern technologies and legislative flexibility, crores of Indians can practice social distancing when making payments. Another noteworthy trend is the adoption of digital payments by small firms. Data reveals a more than 500% growth in retailers taking digital payments over the last two years.
  • Additionally, cross-border trade increases in India as companies across industries adopt global trade. However, the complexities of cross-border commerce have hampered the market's growth. As most cross-border transactions are handled through correspondent banking relationships, increasing operational costs and trade volumes further accelerate the adoption of other payment methods, such as digital and mobile payment systems. The increase in international trade, internationalization of production, and cross-border e-commerce suggest that demand for digital cross-border payments will continue to grow in the region. However, digital payments from one country to another are costlier, slower, and less transparent than domestic payments due to the complexity involved in the procedure.

India Mobile Payments Industry Segmentation

A mobile payment is the transfer or payment of monies for bills, goods, or services to a person, merchant, or business using a mobile device to execute and confirm the payment. A digital (virtual or e-) wallet, mobile browser, or SIM toolkit / mobile menu can be used as a payment instrument.

India Mobile Payments Market is segmented by Type (Proximity Payment, Remote Payment).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments

BY TYPE (Market share in percentage based on relative adoption)
Proximity
Remote
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India Mobile Payments Market Size Summary

The India mobile payments market is experiencing significant growth, driven by the expanding e-commerce sector and the widespread adoption of smartphones. The increasing use of the internet for online shopping is a major factor propelling market expansion. Businesses across the country are enhancing their payment systems to be more mobile-friendly, which contributes to the market's growth potential. The rapid adoption of the Unified Payments Interface (UPI) by merchants is a notable trend, with a shift towards person-to-merchant transactions. Regulatory support from the Reserve Bank of India, including the implementation of the Principles for Financial Market Infrastructures (PFMIs), is also playing a crucial role in ensuring the stability and security of payment systems. The integration of Web 3.0 technologies is expected to further enhance user experiences in mobile payments, offering more intelligent and personalized payment solutions.

The market is characterized by a competitive landscape with multiple players adopting strategies such as product innovation and partnerships to expand their reach and offerings. The COVID-19 pandemic has accelerated the shift towards contactless and online payments, with a significant increase in digital payment adoption among small businesses. The government's initiatives to promote e-commerce and digital payments, such as the Government e-Marketplace (GeM), have further bolstered market growth. The rise in cross-border trade and the demand for digital cross-border payments are also contributing to the market's expansion. Proximity payment technologies, like Near Field Communication (NFC), are gaining traction, supported by the growing base of NFC-enabled smartphones. Overall, the Indian mobile payments market is poised for substantial growth, driven by technological advancements, regulatory support, and changing consumer preferences.

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India Mobile Payments Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Booming E-Commerce Sector Propelling the India Mobile Wallet Market Growth

      2. 1.1.2 An Increase in Smartphone Owners and Internet Users Will Drive Market Growth.

      3. 1.1.3 Favorable Government Initiatives

    2. 1.2 Market Challenges

      1. 1.2.1 Poor Internet Connectivity and Security Issues

    3. 1.3 Market Opportunities

      1. 1.3.1 Move towards Cashless Society

    4. 1.4 Key Regulations and Standards in the Mobile Payments Industry

    5. 1.5 Analysis of Business Models in the Industry

    6. 1.6 Analysis of the Increasing Market Penetration of Mobile Wallets

    7. 1.7 Analysis on Enabling Technologies (Coverage to include NFC, QR, etc.)

    8. 1.8 Commentary on the growth of Mobile Commerce and its influence on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 BY TYPE (Market share in percentage based on relative adoption)

      1. 2.1.1 Proximity

      2. 2.1.2 Remote

India Mobile Payments Market Size FAQs

The India Mobile Payments Market size is expected to reach USD 0.81 trillion in 2024 and grow at a CAGR of 26.52% to reach USD 2.61 trillion by 2029.

In 2024, the India Mobile Payments Market size is expected to reach USD 0.81 trillion.

India Mobile Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)