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RBI Doubles Cap On Mobile Banking.. 70% Growth In E-Payments Expected While 30% New Mobile Subs Are Rural
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RBI doubles Cap on mobile transactions
So we had blogged recently on the RBI guidelines for mobile payments and also mentioned that it wasn’t the final guidelines but was subject to review. So RBI has gone ahead and doubled the cap its had earlier put on the transactions via mobile. It has increased the daily transaction limit for cash transactions from Rs.2500 to Rs.5000 and the daily transaction limit for goods and services from Rs.5000 to Rs.10000.
Epayments to grow by 70%
Now this must come as a great news to all the mobile payment companies. But what will be even greater news is that E-payments i.e. payments through electronic modes is set for a 70% YOY growth in the next 2 years. As per this article which quotes a research done by Boston-based financial research and consulting firm Celent at present, only 17-20 per cent of bill payments occur electronically, and the majority of these transactions are in urban areas. Customers still prefer to pay standing “in line” rather than “online”. Which points out the huge opportunity both in mobile payments and mobile payments in rural areas.
30% of new mobile subscribers are from Rural Areas
Add to the above the fact that 30% of all new mobile subscribers are from rural areas. The rural market would become a huge opportunity for these mobile payment companies. Infact at the last Mobile monday which we attended we saw an interesting product by atom technologies IVR based payment system Paybuzz which was targetted at the rural folks. And from all that we heard it did sound like this payment method was much more need there than in the Urban areas where payment facilities are widely available both online and via drop boxes at every nook and corner.
What does all this mean? - The emerging rural opportunity for mobile payments
I see a tremendous opportunity for mobile payment companies in rural areas especially the ones using basic sms payments and IVR payments. Also as the RBI gets more and more liberal with its guidelines this would become the biggest for companies in this space. Even the current cap by RBI is best for rural folk whose payments are more likely to be the few thousands at max anyways.
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