The country is on the cusp of revolution led by mobile technology. With more than 900 million mobile subscribers and growing sales smartphones and tablet devices, India is looking up for new age banking and financial services delivery system. The unprecedented growth of Indian mobile market has opened up avenue of growth for Indian financial services sector and mobile operators. The mobile based financial services such as m- Banking, m-Wallet, m-Payment – collectively called Mobile Money - is the newest concept in Indian financial services context.

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The Mobile Money Market in India (2009 – 2018):
Waiting in the Wings

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© Gyan Research and Analytics Pvt. Ltd., 2014
Synopsis
The country is on the cusp of revolution led by mobile technology. With more than 900 million
mobile subscribers and growing sales smartphones and tablet devices, India is looking up for new
age banking and financial services delivery system.
The unprecedented growth of Indian mobile market has opened up avenue of growth for Indian
financial services sector and mobile operators. The mobile based financial services such as m-
Banking, m-Wallet, m-Payment – collectively called Mobile Money - is the newest concept in Indian
financial services context.
Though the concept of mobile money is in its infancy in the country, it is going to transform the
future of Indian economy from cash economy to digital economy, may be partially if not fully. The
primary benefit of mobile money is that it empowers those segments where it is neither feasible nor
viable to build bank branches. The cost of establishing a bank branch or an ATM in many areas of the
country will be too high to be effective and this is where mobile money network can help in bridging
the gap.
The mobile payment market in India is at USD 269 million in 2013 and it is predicted to reach around
USD 6 billion by 2018 on account of low cost smartphones, strong mobile network penetration, low
mobile tariffs and lack of sufficient banking infrastructure in rural India.
The emergence of burgeoning e-commerce market, mobile banking systems, internet banking,
electronic payment gateways, and mobile applications industry are propelling the mobile money
industry to newer heights.
However, despite having huge mobile subscription base and largest remittance inflows, the mobile
money technology is yet to achieve its full potential in the country. Though, the technology has
caught up in domestic remittances, bill payments, ticket bookings and banking transactions,
especially in urban areas but it is seriously lagging in rural parts of the country. Also, cross border
remittance is currently not allowed by the government partly due to regulatory and operational
issues and largely due to concerns over money laundering and terrorist funding activities.
Furthermore, it is imperative to address the issues such as consumer awareness, security and
reliability which can be impediments in realizing the full potential of mobile money.

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Further, the role of the government has become a crucial one in dealing with the issues related to
mobile network proliferation and low internet penetration which are hindering the growth of the
industry. The government, on their part, should formulate guidelines and regulatory frameworks to
protect the consumer and other stakeholders of the industry. Public-private partnerships should be
encouraged to alleviate challenges in mobile money supply chain.
The youngest member of Indian financial system, mobile money, has a huge promise and it is clearly
appealing. The government is for long harping on financial inclusion and the need for everyone to
have a bank account, through mobile it can be made into reality. To make this as a sustainable
system, the government, mobile operators, technology providers, banks and non-banking players
need to collaborate to devise an effective business model.
With technological innovations coupled with government support, the stakeholders can create
customized mobile money solutions which are easy to use, secure and cost effective for all.

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Table of Contents
1. Overview
1.1 Global Mobile Industry
1.2 Global Mobile Broadband (MBB) Proliferation
2. Indian Mobile Industry
2.1 Mobile Money Market in India
2.2 Mobile Banking in India
2.3 Mobile Banking and Mobile Money in Collaboration
3. Issues and Challenges
3.1 Insufficient Awareness
3.2 Lack of Standardised Services
3.3 No Interoperability across Service Providers
3.4 Poor Trust on Digital Money
3.5 potential Money Laundering Tool
4. Growth Drivers & Opportunities
4.1 Booming E-Commerce Market
4.2 Growing E-Payment Market
4.3 Rise in Mobile Wallet Options
4.4 Mobile Remittances
4.5 Wider Reach
4.6 Mobile Penetration in Tier II and Tier III Cities
4.7 Growth of Mobile Application Market
4.8 Benefit for Unbanked Population
4.9 Government Initiatives
5. Outlook

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© Gyan Research and Analytics Pvt. Ltd., 2014
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