Digital wallets were considered impractical throughout the 7 years they have been in existence. It does however, look like their time has now come and for good. Mobile wallets usage trends haves been inclining upwards consistently due to their ease of use, huge variety of services and convenience the sheer amount of convenience they offer. The adoption rate of these wallets is being seen growing at an unreal pace with all top 5 wallet services clocking in millions of users.
Cashback appears to be key in this race as every player in the game is riding the cashback wave for further growth. Paytm frequently runs promotions where every tenth user who uses a coupon gets 100 percent rebate, while others like Mobikwik are known to offer cashback just to add money to the mobikwik wallet even without a transaction.
Surprisingly enough, users seem to now be looking for digital wallet payment options even in the offline space. This might be the biggest opportunity digital wallet companies in India have to acquire offline customers by leveraging the advantages in by paying through e-wallets. One wallet for all online and offline expenses might have sounded unrealistic in the past, but it is big business and is up for grabs for the likes of Freecharge, Paytm and Mobikwik to capitalize on.
Evolving in a big way
In this smartphone dependent lives, won’t you be really happy if you see an offer like “Get flat 10 percent cashback, paying through X wallet?” Yes, we are talking about those limitless offers provided by the biggest players in India – Paytm, Freecharge where hundreds of million users redeem such coupon codes every day. The same is followed by rivals like Mobikwik, PayUMoney, Citrus, Oxigen Wallet and more.
Mobile wallet adoption
A survey revealed that the year 2014 has seen an increase of 20 percent in the usage of e-wallets. And with companies providing a comprehensive guidance on using them and cashbacks on every purchase, there was a surge in the usage of wallets. And shoppers are adopting to this trend at an incredible pace. Hence leading to a growth between 25 and 35 percent at the start of 2015, and surprising everyone with an unprecedented growth of 60 percent by the end of the year.
Weaning customers away from cash payments
As more and more players come to the mobile wallet scene, it is becoming more of a mainstream concept for consumers, with a 20 percent increase in usage since 2014. However, 44 percent are unaware of the digital wallet services, which means that developers need to promote these platforms and provide a comprehensive guide on how to use it. Surprisingly, 45 percent of online shoppers today still lack knowledge about how to use digital wallets and tools. So there’s an opportunity for big players as well as newly launched wallets to tap into a treasure troves of consumers expectations and what you can best do to enable them to use your wallet service.
Cashbacks & Rewards
These digital payment wallet companies are expanding more than just paying recharge bills and shopping. In fact, in digital wallet segment you see a lot of consumer internet companies and service companies are either developing a closet wallet for themselves like Uber launching its all-new closed digital wallet, or partnering with mobile wallet companies, like Snapdeal partnered with Freecharge, Meru partnered with Paytm, Citrus and Mobikwik. This partnership trend for sure is advantageous to consumers enjoy wallet features like cashback, additional discounts, exclusive offers and more.
It changes the way how users spend money
So if you are a fan of online shopping and cashbacks as well, then you should soon be ready to ditch all your paper-stuffed and hefty wallets because wallets companies are here to help you pay everything with a swipe or a tap on your phone. There comes a day where most shoppers (almost 50 percent of online shoppers who prefer credit/debit or net banking) use digital wallets as a convenient payment option to buy everyday items.