We are living in the world of digitalization. From shopping for groceries to ordering food, every activity happens online. For payments, there lies no exception as the Fintech fraternity has foreseen the digital exposure. As the Fintech domain has replaced the traditional methods (Old-fashioned) banking, Mobile Wallet is one such digital payment technology that has created a major revolution in the payment industry. The ecosystem of mobile wallets is to allow payment processing, accessing account information, and paying for goods and services digitally by replacing the physical wallet.
The future of payments is moving towards the contactless and seamless transaction. No more carrying cash as everything happens digitally. The evolution of digital wallet solution has made a huge positive impact on the fintech fraternity. To the civilians, it came like a boon to capitalize the resource in a fine manner. According to IndustryARC, the demand for the digital wallet platform is forecasted to approx $255 billion at a CAGR of 15.2% during 2020-2025.
“Chennai-based fintech startup IppoPay is a payments aggregator that enables small businesses, SMEs, freelancers, and homepreneurs in Tier II, III, and rural areas to collect payments with its POS software.”
“Ippo in Tamil means NOW. So IppoPay means Pay Now,” says Mohan K, Co-Founder and CEO of Chennai-based IppoPay.
Mohan explains that the fintech platform lets businesses accept payments via its POS software.
Retailers are increasingly turning Mobile Point of Sale (mPOS) devices to secure payment because of the convenience, cost effectiveness and flexibility they offer. In fact, the mPOS market is reportedly growing faster than the traditional POS industry and, according to some estimates, could comprise some 25% of the overall market within the next three years.
The recent surge in digital wallet transactions is also a result of tailwinds in digital payments as customers opted for online methods to pay instead of cash
Digital payment firms such as PhonePe, Paytm, Amazon Pay and others have seen a nearly 50% spike in transactions through their digital wallets since the start of the covid-19 crisis. This has led them to focus on the payment instrument, which was disrupted by challenges due to know-your-customer (KYC) norms and the growth of Unified Payments Interface (UPI) in the country.