Demonetization – Catalyzing the Mobile Wallet Ecosystem
12 Jan 2017
According to popular consensus, the recent demonetization drive has crippled the Indian economy. Or has it? Think the digital payments sector — especially the mobile wallets domain. Post demonetization, mobile wallet apps have recorded a massive rise in downloads. And understandably so. People no longer need to wait in queue for hours to get cash; all they need to do now is click a button and download the app.
Undoubtedly, mobile wallets have emerged as the preferred mode of payment in Bharat and India, alike. Akodara — India’s first ‘digital and cashless village’ — is a first-of-its- kind initiative. What’s more, according to Technavio, the mobile wallet market in India is set to grow at a Compound Annual Growth Rate (CAGR) of 140% by 2018.
Simply put, the mobile wallet growth footprint is set to create new benchmarks. A Google and Boston Consulting Group report suggests that the digital payment industry will contribute 15% to the GDP in the coming years.
However, this brings us to the question that’s on everyone’s mind. How can mobile wallets help ease the repercussions of demonetization on customers, merchants, and the community at large? Let’s look at its various advantages:
Ease of payments due to advanced technology
Mobile wallets such as Wibmo incorporate innovative features. For instance, its robust device fingerprinting with 2FA technology enables secure, one-step payment at partner merchants sites
Instant, hassle-free transactions
With hordes of people queuing outside ATMs and banks to deposit or convert their money, embracing digital payments can come in handy. All users need to do is download an app on their smartphones or swipe their card
Combating financial issues
Black money hoarding, terror financing, counterfeit currency, etc. can be restricted. This is possible as mobile wallet users have to engage in digital transactions — ones that can be easily tracked
Enhancing customer experience
By leveraging mobile wallets, merchants can directly connect with their customer’s preferences, resulting in a more personalized shopping experience. Undoubtedly, mobile wallets can play a vital role in improving customer experience, thereby enhancing brand value
Faster turnarounds for sales
By using mobile wallets, consumers and merchants can help reduce point-of- sale time, resulting in effective services and lowered costs. In fact, research suggests that the offline point-of- sales for mobile wallets is expected to contribute 60% of the digital economy in India
Needless to say, mobile wallets are enabling a rich interactive experience and catering to the ever-increasing ‘anywhere, anytime’ customer base. To further promote adoption of mobile wallets, enterprises should include advanced security, convenience, and user-friendly features. A great example of this is Wibmo’s seamless services. We’re certain that mobile wallets are poised to change the way we transact; by creating greater transparency and paving the way to a cashless, productiveeconomy.