Indian mobile payments market entails not only opportunities (for banks, telcos and new players) but also threats (due to dis-intermediation, more to the traditional banks), according to a recent report issued by Bank of America Merrill Lynch, ndtv.com reports. Mobile banking valuation is expected to rise from the current USD 16 billion to more than USD 3 billion, the report highlights.
By 2022, mobile payments will form 10% of the total payments in India, which was just 0.1%t in the 2015 financial year. With the evolution of alternate payment methods, the report expects payment though paper to fall below 2%, but it expects gradual reduction of cash from the economy and said e-payments will help to soften lending rates and support growth over time. Banks are aggressively launching an integrated digital platform, have large customer base and market leadership, and are expected to be the biggest gainers.
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