Driven by the much-talked about Demonetization by the Government, the Digital and Mobile payments will overshadow cash or card payment practices as the predominant cashless payment mode in India by 2017, according to Deloitte India in its recent report – Technology, Media and Telecommunications (TMT) Predictions 2017.
Mobile payment, unlike card swiping process using magnetic card readers kept at the Point Of Sale counters of retail stores, uses one’s own smartphone through which a customer pays his bills using either a mobile wallet application or through electronic money transfer, which is safe and secure.
“Demonetisation has made a behavioural change with regard to making payments among Indian consumers. While FinTechs adopted the `carrot’ approach to lure people to adopt digital payments, demonetization has seen the more draconian `stick’ approach as a workable solution,” the report noted.
While the report noted that 43 percent of smartphone users in developed markets utilize their device to check bank account details, “In India, the demonetization move will act as a catalyst in rural and semi-urban regions to make people skip the `card’ era to adopt directly the `mobile payment era.”
The report further said that the mobile-based digital identity and authentication, which is now gaining momentum across India as ‘GSMA Mobile Connect’, can address multiple login IDs and passwords related issues. “Mobile Connect aims to support various levels of authentication methods, which includes biometric. When used with Aadhaar, it can provide a high degree of authentication at all levels,” it said.
The report further said software professionals connected to digital technology will design programmes to improve customer experience through advanced digital interaction points with a focus on customer relationship acquisition and value management.
The Deloitte TMT report said that telecom operators would unfold new IoT strategies or stretches the existing one to have a better level of participation in the end-to-end IoT ecosystem.
“Though SIMs for IoT devices and solutions will primarily be the initial focus, the initiation is expected to start in 2017 with a target of one billion additional SIM sales by 2020,” the study said.
The study has also highlighted that India would be a rapidly growing country for Internet of Things (IoT) solutions as the market share is expected to be USD $9 billion, with the installed unit base reaching 1.9 billion by 2020. India’s IoT opportunity will grow almost seven-fold to move from USD $1.3 billion in 2016 to USD $9 billion by 2020. IoT is an important catalyst for the growth of Point of Sale technology in India in the years to come.