Mobile Wallets—and Mobile Purchases—on the Rise in India

Mobile purchasing will also make up 70% of digital purchases by 2020

While nearly 60% of digital purchase payments in India were made via cash on delivery (COD) in 2015, a May 2016 report by Google and A.T. Kearney forecasts that this share will fall to 45% by 2020, primarily dude to buyers’ expected embrace of mobile wallets.

Digital Purchase Share in India, by Payment Method, 2015 & 2020
Image Credit: emarketer

According to Google and A.T. Kearney, while credit cards and debit cards will see slight increases in digital purchase share—2 percentage points for each—it’s mobile wallets that are set to grow the most, nearly doubling from 8% of purchases in 2015 to 15% by 2020.

That shift toward mobile wallets is related to another of the report’s projections: in 2015, 50% were estimated to primarily use mobile to make purchases, while by 2020 that figure will hit 70%. So it makes sense that as mobile purchasing continues to grow, mobile options like the wallet do, too.

And there’s good news regarding the future of gender equality in India, at least when it comes to business-to-consumer (B2C) ecommerce purchasing shares: 2015 saw such buying skew heavily towards males, as 80% of all B2C ecommerce purchases were made by them.

B2C Ecommerce Purchase Share in India, by Gender, 2015 & 2020
Image Credit: emarketer

But the future seems to suggest a more balanced buying demographic: By 2020, males will transact 58% of all such purchases, with females jumping more than 20% to 42% of all purchases.

A June 2016 report from theInternet & Mobile Association of India (IAMAI) and IMRB International claims that 36% of digital shoppers and buyers in December 2015 were females. While different companies have different ways of gathering information, of course, this might mean that while females do make digital purchases, males do so more often.

Source: emarketer