According to a Bank of America Merrill Lynch, the value of mobile payments market in India is expected to grow by 200 times in the next seven years to over $3,000 billion. Moreover, mobile payments will form 10 per cent of the total payments during the same period.

Bank of America has further stated that with the evolution of alternate payment methods, payment though paper to fall below 2 per cent. Meanwhile there will be a gradual reduction of cash from the economy and e-payments will help to soften lending rates and support growth over time. Some of the key drivers for this growth will be improving smartphone penetration, the young population, and shift to digital commerce.

Presently, the banks that are aggressively launching an integrated ‘digital platform’ and have a large customer base and market leadership are expected to be the biggest gainers. Meanwhile, the telecom operators are expected to witness a reduction in churn and marketing expenses due to uptake in wallets.