Rise In Use Of Mobile Banking And Digital Payments

The following post is a sponsored post.

In a latest survey conducted by the FISTM, a financial services technology leader, the results show a stupendous increase in the use of mobile devices and other digital banking by Indians as compared to the last year. One of the prime cause of the increase in the mobile banking and digital payment was demonetization as per the business news.

As per the FIS Performance Against Customer Expectations (PACE) report, where about 1000 banking consumers were surveyed, it was found that more than 60%of the respondents have used mobile devices in this year to check their account balances, view latest transactions, in the paymentof various bills, transferring the funds,and other banking transactions. Last year in 2016, the same report gave the figure of 39% and last to last year i.e. 2015, the figure was 34%.

Other findings of the report were,

• 18% respondents use their bank’s credit cards exclusively
• The significance of the primary bank providing digital payment options has increased for all age groups.
• More than 30% of the payments of the respondents are done with mobile apps
• Consumers wish to have better connectivity with their banks
• 64% use their banks mobile app to make payments
• 84% make bill payments from their bank accounts

NITI Aayog recently said that digital payments rose 55%in 2017 as compared to 28% increase in five-year period ending 2016.

The recent demonetization of high-value currency notes to phase out black money has added fuel to the fire, the market news says. This led to adoption of digital modes of payments. If we compare the figures pre and post demonetization, the numbers on digital solutions are eye popping with more than 100% increase in usage in terms of the number of transactions. Paytm alone recorded more than 435% increase in mobile payments. These include mobile wallets, pre-paid cards as well as paper vouchers like Sodexo. The average value on digital payment solutions also increased by 62%. Also, the value of transactions for mobile banking increased by 30% (from 780.8 lakh transactions with value of Rs. 1,13,578 Cr. pre-demonetization to 896.1 lakh transactions with value ofRs. 1,48,583 Cr post-demonetization.

Though demonetization is not the only contributor in the rise of mobile banking and digital payments. One of the reports clearly shows that the people are anyway moving towards digitalization. A study shows a rise of 22% in cashless payments in Oct’2016 (before demonetization) as compared to the last year’s figures of October 2015. This clearly shows the increased acceptance for digital payments in the country.

India is all set for a revolution in digital payment and mobile banking. The digital payments in India are expected to hit $500 billion by 2020 which will contribute about 15% to India’s GDP, as per the ‘Digital Payments 2020’ report by Google and BCG. This trend that has already gained ground and is expected to continue and become more expansive in future.

For more on Share Market & Business News, visit BloombergQuint.

Leave a Reply