The growth of mobile wallet users in cash strapped India, post the Centre’s demonetisation move has been significant. Mobile wallets have come to the rescue of many users and sellers to transact without cash. As the number of smartphone users grow, the use of mobile wallets is also expected to rise. In this blog, we have included our industry report on app quality of mobile apps in India.
99tests Report: Market Guide For Mobile Wallets In India
Read complete report here:
Mobile Wallets In India
By 2017, the number of smartphone users in India is estimated to hit 340.2 million. World wide, the figures are projected at 2 billion. The adoption of low-cost smartphones coupled with the availability of high speed internet has enabled many people to access E-commerce and banking on their mobile phones. There are around 10-12 mobile wallets in India.
They can be broadly classified under closed, semi-closed and open system of wallets:
a) Closed wallets are establishment based wallets that cannot be used in other establishments just like Ola money.
b) Open wallets are generally issued by banks. They allow cash withdrawals apart from payments. Eg: State Bank Buddy.
c) Semi-Closed wallets are redeemable in select establishments.Eg: Paytm.
How Mobile Wallets Work
A Mobile wallet essentially allows you to carry money in a digital form on your mobile device. A recent and widely available technology, it is as easy to install a mobile wallet app as it is to use it. All you need to do is download the app and add your credit or debit card details. And you are good to go.
Points To Note While Using Mobile Wallets
Before choosing a mobile wallet, in addition to features do check the mobile device/ OS required for the app and also the merchants where it is accepted. Always download the app from authentic source and keep track of your wallet statement regularly to monitor any suspicious transactions. Additionally, use a strong password to make it more secure.
Benefits Of Using Mobile Wallets:
- You can use it to make payments and transact without the hassles of carrying cash physically.
- Payments happen instantaneously and are more secure with mobile wallets. You can make purchases on your phone in a swipe without entering your card details again and gain.
- The growing number of rewards, cash backs and offers provided by mobile wallets makes it even more lucrative to go cashless. While users enjoy lower processing fees and rewards, businesses can use the wallets to build better customer loyalty.
- Loose change is never an issue with mobile wallets that helps users pay accurately to the last penny.
App Quality & FeaturesOf Mobile Wallets
The key parameters for quality for mobile wallets include ease of use, speed and flexibility of the app. App quality of mobile wallets can be analysed with an ACC framework. It comprises breaking down the product into Attributes, Components and Capability. For example, the attributes for a mobile wallet app can be – Secure, Easy, Reliable, Configurable etc. The components would include Signup, Login, Settings, Search, Cart, Payment etc. In case of a mobile wallet with the component as “profile” and attribute as “configurable”, the capabilities will be, “User should be able to configure their bank account with the wallet”.
The biggest benefit of using the ACC framework across a large group of crowd users is that it helps make the testing and comparison comprehensive, i.e. wide coverage across multitudes of aspects of the product is ensured. And since every member participating for testing and comparison would have a clear view of the product, the ACC framework also makes the activity extremely quick.
The performance of the wallet apps can be measured based on app capabilities like adding money, receiving money, splitting bills and transactions. The following are the key app features of mobile wallets that affect its quality:
1) Profile Features
The profile features enable users to signup or log in to the wallet and configure their user profile and settings.
2) Transaction Features
When it comes to transaction features for mobile wallets, security, ease of use and flexibility play a major role. These features allow a user to login to the wallet and transact. These activities include adding money, receiving money, recharging their mobiles, paying bills and shopping. Apart from being secure and easy to transact, the app must include features that enable users to view transaction history and check account balance easily. The easier and more secure the application, the more likely it is to be adopted by the masses.
While it’s fairly easier for the banked sectors to adopt cashless technology like M-wallets, it’s harder to reach the unbanked sectors of the population where cash is predominantly used in transactions. Another challenge in India is the lack of awareness about digital transactions and mobile wallets. Thus apps who have invested in promotional campaigns to generate awareness are more likely to gain the trust of first time users. Paytm’s successful marketing campaigns combined with quality features have made it one of the fastest growing mobile wallets in India with over 20 million active users. In terms of app quality, Paytm also has the highest score among the wallet apps in terms of ease of use and speed as per the 99tests industry report, “Market Guide For Mobile Wallets In India.”
Hence, app quality plays a significant role in the success of mobile wallets. With the drastic rise in the number of people who use smartphones, the era of mobile wallets in India is likely to continue.