This Research Capsule report looks at the developing market for mobile money in India. Forecasts are provided to the year 2017 for the number of mobile accessible bank accounts both by total number and household penetration rates, total value of mobile payments, average transaction sizes, and total volume of transactions. The report also forecasts key technology enablers including the mobile subscribers and smartphone users including platform shares.
To a large degree, the market for mobile money in India is sparked by the government’s need to address the country’s high level of financial exclusion. Approximately half the households in the country are unbanked leading to a large cash-only economy. One reason for this is a cash culture, but there is also a significant financial infrastructure gap which makes banking extremely inconvenient for many, especially those in very rural areas that have no physical bank branches. India’s current financial infrastructure has not kept pace with recent economic advances.
The report discusses the Indian government’s eagerness to address this growing economic disparity by using the country’s mobile infrastructure and subscriber base. The Reserve Bank of India has mandated that every adult have access to a bank account by 2016. In fact, this goal of “100% financial inclusion” is so ambitious; officials realize that it can only be achieved via the use of mobile banking.
Research Capsule sees opportunities for mobile network operators, banks, and device vendors – among others as banking becomes less traditional in the India. There is significant room for innovation which could allow India to leapfrog much of the world in mobile money.