“India’s Mobile Wallet Payments Projected to Exceed US$ 6.38 Trillion (Rs. 531 Trillion) by 2028, Forecasts GlobalData”

Mobile wallet adoption in India is experiencing a meteoric rise, surpassing traditional payment methods such as cash and cards. According to GlobalData’s projections, mobile wallet transactions are set to soar beyond US$ 6.39 trillion (Rs. 531.8 trillion) by 2028, exhibiting a robust compound annual growth rate (CAGR) of 18.3% between 2024 and 2028.

This surge in mobile wallet usage is primarily attributed to government initiatives aimed at promoting digital payments, notably through the unified payments interface (UPI). In 2023 alone, UPI transactions totaled US$ 2.5 trillion (Rs. 202.8 trillion), demonstrating an astonishing CAGR of 72.1% from 2019 to 2023.

The Reserve Bank of India (RBI) has recently unveiled plans to enable cash deposits via UPI, expanding the platform’s utility beyond its predominant usage for peer-to-peer (P2P) and digital payments. With a substantial user base of 300 million as of October 2023, the extended reach of UPI will allow prepaid payment instruments (PPIs) to conduct transactions through third-party UPI apps. This innovation will facilitate cash deposits at Cash Deposit Machines (CDMs) without necessitating an ATM or debit card.

Ms. Shivani Gupta, an analyst at GlobalData, underscores the growing prominence of mobile wallet payments, propelled by government initiatives and the increasing acceptance among merchants. Gupta anticipates mobile wallets to continue disrupting India’s payment landscape by offering rapid, secure, convenient, and cost-effective transactions.

The shift towards mobile wallet payments signifies a broader societal transformation towards a cashless economy. As consumers increasingly embrace digital transactions, mobile wallets emerge as a preferred choice due to their convenience and accessibility. Furthermore, the ongoing advancements in technology and infrastructure are poised to further accelerate the adoption of mobile wallets across various demographic segments.

Moreover, the COVID-19 pandemic has accelerated the adoption of contactless payment methods, further bolstering the growth trajectory of mobile wallet transactions. With safety concerns driving consumers away from physical currency, mobile wallets have emerged as a safer and more hygienic alternative.

In conclusion, India’s mobile wallet ecosystem is witnessing unprecedented growth, fueled by government support, technological innovations, and shifting consumer preferences. As mobile wallets continue to evolve, they are poised to redefine the country’s payment landscape, offering a seamless and efficient alternative to traditional payment methods.