India mobile payments to reach $5 trillion

The transaction value of India’s mobile payments will jump from 22.5 trillion rupees ($344 billion) in 2017 to 328 trillion ($5 trillion) in 2020, according to telecom operator Aircel.

“Telcos can play the role in proliferating digital payments more effectively than non-telco players in this space,” said LV Sastry, Head - Mobile Banking & Commerce, Aircel. “Therefore, the need for telcos to collaborate with technology companies becomes more and more relevant.”

He said the roll-out of high-bandwidth 5G would accelerate growth in mobile payments, predicting non-conventional payment service players will process more payments than banks and other traditional providers by 2025.

Enabling payment services will be a way to achieve customer loyalty, said Sastry, in a market where multiple SIM use is common. Aircel has 90 million mobile subscribers, giving it an 8% market share.

Merchant adoption and acceptance are the biggest obstacles to growth in mobile payments, Sastry added, although processing costs and transaction fees are in decline.