The Modular Future

February 8, 2016

Digital platforms are radically altering the industry’s value chain

The Growing Pains of Business Ownership

February 4, 2016
/   Insights

This article by Stefanie O’Connell first appeared on stefanieoconnell.com in November 2015. Confession – I’ve made a major mistake in growing my business. Though my earnings have climbed exponentially over the past two years, I found...

The benefits and challenges of the Internet of Things

February 3, 2016
/   Insights

The convergence of operations technology and information technology presents new and expanding market opportunities. The “Internet of Things” is a center point of this convergence. IoT can bring remarkable benefits to today’s ever-changing business...

Mobile Banking Surprises Yet to Come

It had to happen, and apparently it has: In the year just passed, according to the new report “2015 Mobile Banking, Smartphone, and Tablet Forecast” from Javelin Strategy & Research, 30% of customers used...

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the Banking.com team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom. Mobile Thursday? Plans for Thanksgiving...

As the second-biggest country in the world in terms of population and with a rapidly growing economy, India offers huge opportunities for the payments industry. With over a billion consumers, providers who understand the unique challenges of the nation and present the right offerings stand well-placed for success.

One of the biggest areas of interest is mobile payments. India has a burgeoning mobile sector that is set to enjoy considerable growth over the coming years. And while many developed countries are heading towards stagnation as the market becomes saturated, this is not the case in India, where the arrival of more affordable devices and a growing middle class are contributing to the continued rise.

A booming market

Figures published earlier this year by Strategy Analytics suggest that by 2017, the country will have overtaken the US to become the world’s second-largest smartphone market. It forecast the number of smartphone sales in India is set to increase from just 82 million last year to 174 million by 2017.

Director at the firm Linda Sui commented: “India’s growth is being driven by low smartphone penetration, expanding retail availability of devices, wealthier middle-class consumers, and aggressive promotions from local smartphone brands like Micromax.”

While Korean brand Samsung is currently the biggest player in the market, Micromax is in a strong second place, according to research from app maker MoboMarket. It also found that vendors are increasingly turning to e-commerce to penetrate the market, while gaming, social and video tools are among the most popular uses for devices.

A key opportunity for the payments sector

Given this environment, it’s no surprise that the payments sector is taking a greater interest in the country. Indeed, it was announced in September that Chinese firm Alibaba – the world’s largest ecommerce company – is looking to move into the Indian market by buying a 25 per cent stake in Paytm, which is the country’s biggest mobile payment and commerce platform.

The deal will help Paytm develop its mobile commerce and payment ecosystem in India and boost its investment in marketing, technology and talent. Meanwhile, Alibaba and its financial services arm Ant Financial will be better able to tap into opportunities in India’s fast-growing mobile e-commerce marketplace and digital finance industry.

Daniel Zhang, chief executive officer of Alibaba Group said, “India is an important emerging market with strong e-commerce potential, and we look forward to partnering with Paytm to deliver innovative products and services to consumers.”

What the future holds

Meanwhile, recent figures from 6Wresearch reveal that mobile payments in India are set to reach $11.5 billion by 2022, driven by the entry of many new players into the sector. The study noted that the main areas for mobile payments are set to be money transfer, recharge, bills payments and ticketing.

Figures from the World Bank show just 35 per cent of Indians have access to formal bank accounts. Of those, 43 per cent have made no deposits or withdrawals in the past 12 months. In a country where access to branches is patchy, and financial inclusion a real concern, mobile payments and banking could prove vital.

However, for the market to reach its full potential, efforts will have to be made to spread awareness to potential customers. Reserve Bank of India (RBI) regulations, the shift toward mobile transactions in Tier 2 cities and the government’s ‘Digital India’ project will also be factors that contribute to the growth of mobile payments in the coming years.

Recently, the RBI relaxed rules requiring a PIN for card transactions up to Rs. 2000, which helps enable low-value proximity-based mobile payments. But a lot more needs to be done.

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Voices

Compelling voices and contributed content from around the web

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.