India’s trajectory in mobile wallet adoption showcases an impressive narrative of digital transformation, eclipsing traditional payment modes like cash and credit cards. According to GlobalData, mobile wallet transactions in India are set to hit a staggering INR531.8 trillion (around $6.4 trillion) by 2028, following a growth trend of 18.3% CAGR from 2024 to 2028. This growth mirrors the increasing preference for digital payment solutions, a trend solidified by the Indian government’s push for digitalization.
Between 2019 and 2023, the nation saw a rapid growth in mobile wallet payments, recording a CAGR of 72.1% to reach INR202.8 trillion ($2.5 trillion) in 2023. The government’s emphasis on digital payments, notably through the unified payments interface (UPI), played a significant role in this surge. UPI, a mobile wallet-based instant payment solution, has become central to the country’s financial ecosystem, facilitating transactions across various sectors, from local street vendors to online shopping platforms.
The adoption of UPI, introduced in April 2016, has seen remarkable growth, amassing a user base of 300 million by October 2023. February 2024 witnessed UPI transactions soaring to 12.1 billion, valued at INR18.3 trillion ($221.5 billion), indicating a clear shift towards digital payments. This upsurge is attributed to the integration of UPI in mobile wallets like Paytm, PhonePe, Amazon Pay, and Google Pay, which enables seamless QR code-based transactions.
Moreover, India’s digital payment landscape is expanding internationally, with UPI making its mark in countries like Sri Lanka, Mauritius, and the UAE as of February 2024. Plans are underway to extend this network to other nations, including Singapore and France, marking India’s ascent as a global payment powerhouse.
The mobile wallet phenomenon in India is more than a mere shift to digital transactions; it’s a comprehensive overhaul of the payment landscape. The convenience, security, and efficiency of UPI-based transactions have not only streamlined commerce in India but also set the stage for a global digital payment revolution. With the government’s continued support and technological advancements, the mobile wallet market in India is poised for further growth and international recognition.
