India has solidified its position as the global leader in mobile payments, with a staggering 90.8% of its population using mobile wallets for transactions in 2023, according to a survey by GlobalData. This milestone underscores the country’s rapid advancement in digital payments.
The success of India’s Unified Payments Interface (UPI) is evident in the massive daily transaction volumes it processes. In April 2024 alone, daily transactions reached Rs 19.64 lakh crore, and the first half of May 2024 has already seen Rs 10.70 lakh crore worth of transactions.
The surge in mobile wallet usage is not unique to India, as the Asia-Pacific region (APAC) is also experiencing a similar trend. The COVID-19 pandemic has played a significant role in driving people towards contactless payments, further boosting the growth of mobile payments.
Experts predict that mobile wallets will continue to impact other countries as well. Ravi Sharma, an analyst at GlobalData, anticipates a decline in cash transactions in Hong Kong due to the rising popularity of mobile wallets, fueled by factors such as the widespread use of QR codes and instant mobile payment systems.
The high smartphone penetration rate and the significant number of adults with bank accounts in these regions provide a solid foundation for the adoption of mobile wallets. The presence of various domestic and international mobile wallet brands, such as Apple Pay, Google Pay, and PhonePe, gives consumers a wide range of options. Moreover, the increasing acceptance of mobile wallets by merchants further encourages their usage.
The data from GlobalData’s 2023 Financial Services Consumer Survey, which included over 50,000 participants aged 18 and above from 40 countries, highlights the growing dominance of mobile payments in the global financial landscape.
