Recharges, utility bills keep ewallets going

New Delhi, Nov 8: A majority of transactions on e- wallets in the country are used for mobile recharges and paying utility bills, a study by market research firm Velocity MR has said.

The study — which was based on a sample size of 2,455 respondents from cities like Delhi, Kolkata, Bengaluru and Pune — said approximately nine out of every 10 e- wallet transactions are used to do mobile recharges, followed by paying the utility bills ( 8 out of 10).

It added that apart from e- wallets, consumers also prefer using debit/ credit cards, internet banking, etc as a mode of payment for digital transactions.

“The usage of credit cards, 3 out of every 4 is observed to be the highest among the people who have monthly personal income between ` 1.5 to ` 2 lakh, whereas people having a monthly personal income around ` 75,000 mostly prefer to use debit cards...” said the study, which coincides with the second anniversary of demonetisation.

According to Velocity MR MD and CEO Jasal Shah, smartphone growth wave and the favourable regulatory environment from RBI has pushed up online payments significantly, moving the economy into a “less- cash and transparent state.

“Significant investments in the form of cash back and innovations, like oneclick payments, pay anytime anywhere have helped merchants and customers to adopt mobile wallets to save costs as compared to other digital payment methods. With the push from government and innovations, mobile wallets are expected to grow further in near to mid- term,” he said.

He pointed out that mobile digital payments have increased rapidly post demonetisation and mobile wallets have contributed immensely in this direction.

The government had on November 8, 2016, announced a ban on old 500 and 1,000 rupee notes, to curb black money in the system.