As per MRFR analysis, the India Mobile Payments Market Size was estimated at 151.2 (USD Million) in 2023.The India Mobile Payments Market is expected to grow from 172.2(USD Million) in 2024 to 1,035 (USD Million) by 2035. The India Mobile Payments Market CAGR (growth rate) is expected to be around 17.709% during the forecast period (2025 - 2035).
The India Mobile Payments Market has seen significant growth driven by several key factors. The increasing penetration of smartphones and affordable internet plans has empowered a broader demographic to engage in digital transactions. The government's push towards a cashless economy, highlighted by initiatives like Digital India, has further propelled the adoption of mobile payments. Increased awareness and trust in online financial transactions, along with the introduction of UPI (Unified Payments Interface), have simplified the payment process, making it accessible for millions.Â
Opportunities to be explored in this market include expanding services in rural areas, where mobile payment adoption is still nascent.Offering specific financial services and educational programs can get more people in these areas to use digital payments. Banks, fintechs, and retailers can also work together to make more complete solutions that are easier to use and give users a better experience.Â
Recent trends show a big move toward contactless payments, which the pandemic has sped up, as people look for safety and convenience. QR-based payments and peer-to-peer transactions through mobile apps are also becoming more common, which shows how people's buying habits are changing. Also, loyalty programs and rewards linked to mobile payment systems are becoming more popular. These programs encourage people to use digital payments instead of cash.
The evolving landscape of mobile payments in India is marked by innovation, accessibility, and a growing ecosystem that continues to adapt to consumer needs, indicating a promising future for the market.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The Indian government has been actively promoting digital transactions through various initiatives, significantly impacting the India Mobile Payments Market. The 'Digital India' programme aims to transform India into a digitally empowered society and knowledge economy. As per the Ministry of Electronics and Information Technology, the number of internet users in India increased from 125 million in 2011 to over 800 million in 2021.
This surge in internet connectivity boosts mobile payment adoption by providing greater access to digital platforms.Additionally, government-backed platforms like the Unified Payments Interface (UPI) have seen rapid growth, with UPI transactions reaching over 45 billion in 2022 alone, underscoring the shift towards mobile payments. Established organizations, such as the National Payments Corporation of India, play a crucial role in implementing and promoting these initiatives, facilitating smoother mobile payment processes for users across the country.
The increasing adoption of smartphones in India has played a critical role in driving the India Mobile Payments Market. According to the Trai (Telecom Regulatory Authority of India), the smartphone user base in India is projected to reach 900 million by 2025. This rise in smartphone penetration provides consumers with the tools needed to access mobile payment applications easily.Â
With more users having smartphones, the willingness to engage in mobile transactions will naturally increase, propelling the growth of the mobile payments industry.Major smartphone manufacturers like Xiaomi and Samsung have also made mobile payments more accessible by integrating payment options into their devices, further encouraging consumer participation.
The surge in e-commerce activities has been a significant factor positively influencing the India Mobile Payments Market. According to the India Brand Equity Foundation, the Indian e-commerce market is expected to reach a value of 1 trillion USD by 2025.Â
This exponential growth has led to more consumers opting for mobile payment options due to convenience and speed. Facilitative organizations such as Flipkart and Amazon India have integrated mobile payments as a primary payment method, driving users to adopt mobile payment applications.The increasing trend of shopping via mobile phones during major sales indicates a correlation between e-commerce growth and mobile payment adoption.
Security concerns have traditionally been a barrier to the widespread adoption of mobile payments. However, advancements in security technologies, such as biometric authentication and end-to-end encryption, are driving confidence among users in the India Mobile Payments Market.Â
The Reserve Bank of India highlighted a 40% reduction in fraud cases related to digital transactions over the past three years, due to improvements in security measures.Such enhancements foster user trust, encouraging more people to engage in mobile financial transactions. Organizations like Paytm have invested heavily in security infrastructure, ensuring their platforms remain safe for consumers, which consequently boosts the overall usage of mobile payments.
The India Mobile Payments Market is witnessing significant growth driven by various transaction types that cater to the diverse needs of consumers. Within this landscape, Remote Payments have emerged as a preferred choice, enabling users to transact from any location, thus increasing transaction convenience. This segment capitalizes on the rising smartphone penetration and internet accessibility in India, encouraging online shopping and digital services. Proximity Payments are also gaining traction, leveraging Near Field Communication technology, which allows users to make secure payments via mobile devices at physical stores.
This segment benefits from the growing acceptance of digital wallets by merchants and the rising consumer preference for contactless transactions. In-App Payments are particularly important in the context of the booming e-commerce and m-commerce sectors, facilitating seamless transactions within applications, thereby enhancing the user experience and driving sales conversion rates. Further, Person-to-Person Payments are vital, especially in a country like India, where informal transactions and remittances play a crucial role. This method allows users to easily transfer money among peers, supporting the local economy and improving financial inclusion.
Overall, the transaction type segmentation showcases a dynamic shift towards digital wallets and mobile applications, as Indian consumers increasingly choose secure and convenient payment solutions in their daily transactions. The sustained growth of the mobile payments landscape in India reflects broader trends in digital finance, driven by advancements in technology, changing consumer behaviors, and supportive government initiatives aimed at promoting a cashless economy.Â
As the mobile payments ecosystem becomes more robust, it presents ample opportunities for businesses and startups aiming to innovate in payment solutions that address the needs of a diverse and rapidly evolving market.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The Payment Method segment within the India Mobile Payments Market is a dynamic and rapidly evolving aspect of the broader industry, contributing significantly to the overall growth and adoption of mobile payment solutions in the country. As digital transactions gain traction, Credit Cards play a crucial role by facilitating easy access to credit for consumer spending, enhancing user convenience and security.Â
Similarly, Debit Cards remain integral for users preferring direct account-based transactions without the risk associated with credit. Mobile Wallets are becoming increasingly popular due to their user-friendly interfaces and ability to offer promotions, making them a favored choice among tech-savvy youth seeking convenience in daily transactions.Meanwhile, Bank Transfers continue to hold importance for professionals and businesses, allowing seamless fund transfers with minimal fees.Â
The steady increase in smartphone penetration and internet accessibility in India drives this evolution, presenting numerous opportunities for innovation while also facing challenges such as cybersecurity concerns and regulatory compliance. Overall, as consumers increasingly seek speed and efficiency, each payment method caters to different needs and preferences, further solidifying their roles in shaping the India Mobile Payments Market landscape.
The India Mobile Payments Market is experiencing significant growth, driven by evolving consumer behaviors and technological advancements. The End User segment of this market includes Retail Consumers, Businesses, and Government, each playing a pivotal role in shaping the landscape of mobile payments in the country. Retail Consumers have increasingly adopted mobile payment solutions due to the convenience and security they provide, leading to a marked preference for cashless transactions.Â
Businesses, ranging from small enterprises to large corporations, are leveraging mobile payments to enhance customer engagement and streamline operations, fostering a cashless economy.The Government has also embraced mobile payment systems to facilitate efficient cash flow and improve tax collection, as well as to promote financial inclusion through Digital India initiatives.Â
This focus on mobile payments is complemented by a robust digital infrastructure and growing smartphone penetration across urban and rural areas, enabling a diverse range of services. Overall, the increasing reliance on mobile payments in India is having a transformative impact on commerce and public services, reflecting broader trends in modernization and digital adoption across various sectors.
The India Mobile Payments Market has steadily evolved, particularly within the Platform segment, which includes key operating systems such as Android, iOS, and Web-Based applications. The Android platform is notable for its extensive user base in India, attributed to the availability of affordable smartphones and its user-friendly interface, making it a dominant player in this market space.Â
Conversely, iOS appeals to a niche but affluent demographic, providing premium experiences and heightened security features, which are increasingly valued by consumers.Web-Based platforms are also gaining traction as they allow seamless access to mobile payment services without the need for app downloads, making them convenient for users who may have limited storage on their devices. The rapid digitalization in India, accelerated by initiatives such as Digital India, has fueled the growth of mobile payments, thereby enhancing overall market dynamics.Â
Factors like increasing internet penetration, a rise in smartphone adoption, and growing consumer preference for cashless transactions are driving the industry forward.The India Mobile Payments Market segmentation reflects a vibrant landscape where innovation and technology convergence create significant opportunities, enabling businesses to cater to evolving consumer demands and preferences.
The India Mobile Payments Market has experienced substantial growth and transformation in recent years, driven by increased smartphone penetration, internet accessibility, and a burgeoning digital-savvy population. The competitive landscape is characterized by a diverse array of players, including traditional banks, fintech startups, and technology firms, all vying to capture market share while enhancing customer experience through innovative solutions. Amidst this competition, regulatory frameworks and consumer trust play crucial roles, as they shape the evolution of mobile payment systems and influence adoption rates.Â
The market dynamics reflect a vibrant ecosystem where players focus on establishing strategic partnerships, enhancing security protocols, and accelerating technological advancements to remain relevant in this rapidly changing environment.Tech Mahindra has established a strong presence in the India Mobile Payments Market through its extensive experience in information technology and business process outsourcing. The company leverages its technological expertise to provide seamless mobile payment solutions, catering to various sectors such as retail, e-commerce, and financial services.Â
Tech Mahindra focuses on developing innovative platforms that integrate artificial intelligence and machine learning, enabling businesses to enhance their payment processing efficiency and security. With a focus on customer-centric solutions and an ability to adapt to changing market demands, Tech Mahindra continues to strengthen its position within the mobile payments space in India, capitalizing on emerging trends and addressing the needs of a digitally evolving consumer base.ICICI Bank plays a pivotal role in the India Mobile Payments Market, offering an extensive array of digital banking solutions tailored to meet the diverse needs of its customer base. The bank provides key products, including mobile wallets, UPI services, and instant payment solutions, which facilitate convenient transactions for individuals and businesses alike.Â
ICICI Bank’s robust technological infrastructure supports a high volume of transactions while ensuring security and compliance with regulatory standards. The bank has strategically invested in partnerships and collaborations to enhance its offerings and reach a wider audience. Through various mergers and acquisitions, ICICI Bank has strengthened its capabilities, thereby reinforcing its market presence and enhancing its competitiveness in the evolving mobile payments landscape in India. Its commitment to innovation and exceptional customer service further solidifies its position as a leader in the mobile payments sector.
The India Mobile Payments Market continues to witness significant growth and developments as of late 2023. Companies like Tech Mahindra and ICICI Bank are focusing on enhancing their digital payment capabilities in response to increasing consumer demand. MobiKwik announced a strategic collaboration with Visa to increase its payment offerings, while Google Pay and Paytm are investing in advanced security measures amidst rising cybersecurity concerns.Â
Recently, Bharti Airtel made headlines with its partnership with PhonePe to allow users seamless transactions through their platform. In terms of market valuation, the overall mobile payments market in India was projected to grow exponentially, driven by high smartphone penetration and favorable regulatory measures. In September 2023, HDFC Bank revealed plans to expand its payment gateway services to small and medium enterprises, further boosting the sector's growth.Â
Notably, in October 2022, Amazon Pay and Axis Bank merged their digital wallet services to streamline payment experiences for users, marking a significant shift in competitive dynamics within the sector. The continuous evolution and the sturdy demand for mobile payment solutions are reshaping the landscape of financial transactions across India.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 151.2(USD Million) |
| MARKET SIZE 2024 | 172.2(USD Million) |
| MARKET SIZE 2035 | 1035.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 17.709% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Tech Mahindra, ICICI Bank, MobiKwik, Google Pay, State Bank of India, Paytm, Freecharge, Visa, PayPal, Mastercard, Bharti Airtel, PhonePe, Axis Bank, HDFC Bank, Amazon Pay |
| SEGMENTS COVERED | Transaction Type, Payment Method, End User, Platform |
| KEY MARKET OPPORTUNITIES | Growing digital literacy rates, Expanding smartphone penetration, Government support for digital payments, Increasing demand for contactless transactions, E-commerce integration in mobile payments |
| KEY MARKET DYNAMICS | increased smartphone penetration, government initiatives, growing e-commerce trends, digital literacy improvement, changing consumer preferences |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Mobile Payments Market is expected to be valued at 172.2 million USD in 2024.
By 2035, the India Mobile Payments Market is projected to reach a value of 1,035.0 million USD.
The expected CAGR for the India Mobile Payments Market from 2025 to 2035 is 17.709%.
The Remote Payments segment is expected to hold the largest market share in 2035 with a value of 306.0 million USD.
Key players include Tech Mahindra, ICICI Bank, MobiKwik, Google Pay, and Paytm among others.
In-App Payments are projected to reach a value of 270.0 million USD by 2035.
Person-to-Person Payments are valued at 45.7 million USD in 2024.
Proximity Payments are expected to achieve a market size of 180.0 million USD by 2035.
The market faces challenges such as regulatory hurdles and increasing competition from emerging players.
The Remote Payments segment is valued at 51.5 million USD in 2024.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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