India’s 1.4 billion people are still using cash, which accounts for about 70 per cent of total transactions. Google and Wal-Mart have driven Indian billionaires out of the mobile payment market, and deep-pocketed rivals are dominating as the government tries to get more Indians into the financial system, the report said.
According to Credit Suisse’s research, India’s mobile payment market will reach $1 trillion, making it the second-largest mobile payment market after China.
Digital payments companies could take at least three years to turn a profit in India, according to KPMG.
According to the 2018 annual report, the total loss of PhonePe and Amazon Pay was 30.5 billion rupees ($430 million). Paytm Payments Bank, backed by China’s Ant Gold Ands and Japan’s SoftBank Group, turned a profit of 190 million rupees after losing Rs 207million the previous year.
In October, Paytm processed about 25 percent of transactions through Razorpay’s unified payment interface, with Paytm leading by nearly 6 percent, according to Razorpay.
Since 2014, the Indian government has been working on a project to open bank accounts for every Indian, with more than 80 per cent of Indians having bank accounts in 2017, according to the Global Financial Times.
But the report found that nearly half of accounts were idle, and only about a third of account owners said they had made or received digital payments in the previous year.