Small Town India Leads Way in Mobile Payments
Small Town India is going cashless faster than metro city India.
Times of India reports that with the proliferation of mobile payment apps, the Indian smartphone user has increasingly begun to go cashless and, surprisingly, many using these apps are from small towns. Even though the penetration of mobile payment apps among smartphone users is nearly similar across towns of all sizes (57% in large towns and 52% in small towns), usage on these apps is higher among small town consumers, who spend 82 minutes a month. Mobile wallet transactions mirror the trend, having gone up 35% (in volume terms) from 40 million in May to 54 million in July this year, with around 40-50% transactions coming from Tier-II and Tier-III towns now as against barely anything a year ago.
Not only that, the popularity of such apps has risen to one in every two users this year, from one in five active users last year, data culled from Nielsen Informate Mobile Insights says. Even as e-commerce companies debate whether to go app-only, data reveals that mobile payment apps are rapidly overshadowing their website presence when it comes to usage on smartphones. Paytm has three in every 10 users using their app, while just one in every 10 uses the company's website, it adds. For other players like Mobikwik, Bookmyshow and FreeCharge, their mobile sites are considerably less popular than the app.