HYDERABAD: Mobile Wallet (M-Wallet) transactions may see a fourfold increase in the near term and set to grow at a CAGR of over 160 percent, to rise from just over half a billion in the financial year 2016 to 260 billion by FY 2022, pointed out a report released by Assocham in Hyderabad on Tuesday.
Even after 50 days of demonetisaton, cash crunch is continuing, making hitherto reluctant people to adopt cashless transactions and use mobile wallets like Paytm.
This was evident in the report as it stressed that the not just number of mobile wallet users will rise but the average retail spend from m-wallet users is set to increase from Rs500-700 prior to demonetisation to Rs2,000-10,000 in the near term. The study also highlighted that over the past three years m-wallet transactions have grown by 20 times to reach Rs206 billion in FY16 from Rs10 billion in FY13.
However, this rosy picture is also fraught with various problems, with concern about safety being the major one. “Government should set a common regulatory body for all m-wallets and devise a clear policy,” summed up Babu Lal Jain, chairman of Assocham’s national council on cyber and network security.