The mobile wallet industry is expected to maintain the pace of its current expansion with transaction volume expected to touch 32 billion by 2022 and the value of the same will be Rs 32 trillion, said a report.
Value of the transactions is also expected to reach Rs 32 trillion by 2021, growing at a rate of 126 per cent, said the report by consultancy Deloitte.
The volume growth is likely to be at a compounded rate of 94 per cent, it added.
As the penetration of mobile Internet and smartphones aggregate, mobile wallets, with their ease of use and convenience, are expected to continue growing in popularity, the report said.
The report, however, noted that some challenges maybe posed along the way. There could be an inertia in adoption as cash transactions have been the norm for a long time. Also, credit cards form one of the biggest challenges in adoption of wallets, it said.
Further, the report said security breaches and frauds leading to financial losses are big factors in adoption of digital payment technologies. "Therefore, ensuring security of the technology systems is the key."
Introduction of UPI has created greater competition going forward. Also, industry players have begun moving beyond their core service and delivering collateral services.