Mobile technology, coupled with increasing internet penetration, either through computers or mobile phones, has helped increase the percentage of electronic payments as compared to paper payments as per a recent report by the Reserve Bank Of India. Though in terms of volume Electronic payments still lag their paper counterparts with electronic payments only accounting for 35.3% in 2009-10, the country has definitely seen a rise in that percentage from 27.1% in 2007-08.
Volume
Value
From the above charts, we can clearly see a gradual increase in the volume of electronic payments on a yearly basis for the last three years. Though the volume is still low compared to paper transactions, the value of electronic transactions has gone up to 88.3%.
In the 3rd Financial Inclusion & Digital Payment Conference held earlier this month in Mumbai, speakers stressed on the fact that mobiles were an important device in making the transaction from a cash to a cashless society. This steady increase in the percentage of electronic payments can definitely be attributed to the mobile and internet penetration in India.
Mobile banking has been on the brink of a making a breakthrough since quite some time now. However, security issues have been a major concern for all involved, especially the consumers. Even e-banking has been plagued by security concerns. If these can be addressed and taken care of quickly, the increase in the volume of electronic payments will be much faster as compared to its steady growth now.
With smartphones set to dominate the mobile market, banking or other transactions can be much easier once security has been taken care of. Do you see electronic payments increasing rapidly in the country? Or you see more problems?
I think mobile banking, including mobile wallets has a great future. The smartphone banking apps will rule the urban setting and the various sms based mobile wallets will rule the rural setting.
Ya you are right mobile technology actually facilitate the use of
computer and phones for e-payments.