The payment value of mobile transaction in India is anticipated to cross Rs 328 Trillion by the end of 2020 where it is anticipated to end at Rs 22.5 Trillion by the end of 2017, as per data shared to the media by Aircel this week.
“Telecom companies can play the role in reproducing digital transactions more efficiently than non-telecom companies in this segment,” claimed Head of Mobile Banking & Commerce at Aircel, LV Sastry, to the media. He further added, “And therefore the requirement for telecom companies to work together with technology firms turns out to be progressively relevant.”
He further included that when there is launch of 5G resulting in high bandwidth, we will witness mobile transactions turning out to be next game changer for telecom companies. “With development that we have witnessed in past 3–4 Years, we can claim that by the end of 2025, more transactions will be processed by non-conventional transaction service companies than conventional banking and payment,” claimed Sastry.
On the other hand, presently for telecom companies, the income share from mobile transactions is insignificant as at this moment, progressive investment is taking place in acquirement of transactions and customers. “For telecom companies, it is more about offering as many services to users to make them hang about with a specific telecom company than seeing at mobile transactions as a source of income,” claimed Sastry. Even though moving forward, income streams will unlock for telecom companies as soon as merchant adoption and mass addition of wallet services happens.
As conversed to the media, success of transaction solutions will need sturdy rationale of users since users do not need to give up present conventional regime. Furthermore, in spite of latest drive of demonetization, the adoption of merchant has stayed the trickiest and biggest challenge to be resolved for transactions service suppliers. While telecom companies have substituted a number of wallets, holding on to a user has been the largest dare, claimed Sastry to the media. In addition to this, rise in fake payments have resulted in anxiety amid users resulting in slow acceptance of mobile transactions.