The Indian market for mobile wallet is predicted to see significant growth, reaching a value of around $7bn by 2023, a ResearchandMarkets report has found.
The report noted that the country's digital payment industry grew at a CAGR of more than 67% between 2013–17.
India has one of the fastest growing economies in the world, as the country recorded strong GDP growth of more than 6.5% in 2017. With a population of 1.3 billion people and growing, the potential customer base is also vast, making it an ideal location for payments services to flourish ResearchandMarkets noted.
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Additionally, the report found that rising digital awareness, increasing smartphone ownership, growing internet penetration and convenience of payments service will drive the growth.
ResearchandMarkets noted: "As far as the competitive landscape is concerned, Paytm continues to dominate the market by significant margin followed by tens of players. The India mobile wallet market has also seen growing investment from companies like Google and WhatsApp, who have announced significant investments in the country.
"Digital payment awareness is anticipated to continue through 2023 and onwards and mobile wallet penetration is likely to go up even in Tier II and Tier III cities through 2023," ResearchandMarkets added.
In response to the growth, WhatsApp has chosen India as the location to launch their new WhatsApp Payments features but has faced legal pushback from the government.