Market Guide For Mobile Wallets In India December, 2016

Overview Mobile wallets allow people to store their money on virtual platforms and use it for day-to-day transactions. Mobile wallets offer people a cashless form of transaction that is convenient and flexible. They are fairly easy to set up as well. All you need is a smart phone and internet connection to access your mobile wallet.

This industrial report provides insights on the key parameters for app qualities of some of the most popular mobile wallets in India. There are around 10-12 mobile wallets in India having considerable user base. In this report, we have included 4 key players. This Industry report is the culmination of Usability testing and App quality analysis by the R&D team of 99tests.

Market Direction For Mobile Wallets In India

India has witnessed a huge growth in the sale of smartphones in the last few years. 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 has enabled many people in the country to access mobile internet. With the availability of high speed 3G & 4G connectivity, there is a drastic rise in the number of people who use mobile phones for most of their activities including E-commerce and banking.

A relatively young concept in India, mobile wallets have come in the lime light after the government led move to ban currency notes of Rs500 and Rs1000. The growth of mobile wallet users in cash strapped India post the centre’s demonetisation move has been significant. In the absence of sufficient cash, people are using mobile wallets to complete their daily transactions.

Types Of Mobile Wallets

A relatively young concept in India, mobile wallets have come in the lime light after the government led move to ban currency notes of Rs500 and Rs1000. The growth of mobile wallet users in cash strapped India post the centre’s demonetisation move has been significant. In the absence of sufficient cash, people are using mobile wallets to complete their daily transactions.

Closed

These wallets are establishment based wallets that cannot be used in other establishments, e.g. Ola money. The drawback of these wallets is the lack of cash withdrawal or redemption facilities.

Semi - Closed

These wallets are redeemable in select establishments. Examples include Paytm and MobiKwik.

Open

These wallets are generally issued by Banks. They allow cash withdrawals apart from payments.

Benefits Of Mobile Wallets The key benefits of mobile wallets are the convenience and flexibility they offer in comparison to other alternatives:

Makes it easier to make in store purchases with a mobile device. Makes it easier to purchases on smartphones without entering card info. Additional benefits for regular patrons in form of rewards and discounts.

Limitations Of Mobile Wallets The major limitations of mobile wallets include the following:

While using the wallet, patrons have to check if the merchants accept their money through the mobile wawallet they own.

In new markets like India, where majority of transactions rely cash, there is an additional challenge in gegenerating awareness and gaining user confidence.

Understanding The App Quality

Mobile Wallets Analysed

Paytm is one of the fastest growing mobile wallets in India with over 20 million active users.

Freecharge is a popular mobile recharge tool with over 20 million active users.

PayUmoney is an emerging mobile wallet that caters to many Indian SMBs.

Mobikwik is a semi-closed mobile wallet with over 12 million users in India.

App Quality Analysis: Significance of Using ACC

The ACC Model

ACC is a framework invented at Google to test products, ensure maximum coverage and release high quality products to end customers. The ACC model basically helps you prioritize your testing efforts in line with app features that matter the most. ACC stands for Attributes, Components & Capabilities. We used part of the ACC framework to break down the problem into common grounds and ensure complete coverage.

The biggest benefit of using the ACC framework across a large group of users from the crowd, is that it makes testing and comparison a comprehensive affair. You get a wide coverage across various aspects of the product. ACC model when used with a crowd platform in particular, helps get a clear view of the product and hence the testing and comparison activity is extremely quick and efficient. The 99tests platform has testers with the ability to test an app functionally and technically with both, planned and exploratory testing. It also has users with the ability to rate parameters of the app from a Usability angle.

The ACC Table

Attributes

They describe the product’s purpose and goals.

Examples: Secure, Easy, Reliable, Configurable

Components

They identify the various parts of an application.

Examples: Signup, Login, Settings, Search, Cart, Payment

Capabilities

They indicate what the product actually does.

Examples: For the component “profile” & attribute “configurable”, the capabilities will be, “User should be able to configure their bank account with the wallet.”

How We Build The ACC Table We used two parts of the ACC framework, Attributes & Components for the analysis. Users use each product and rate across elements of components and attributes set in the framework for each of the mobile wallets chosen for the report.

Attributes

The report shows results for the top three attributes of the app class, forming the app quality analysis:

Top Three Attributes: Ease of use Speed Flexibility

Components

The following top four components were chosen

for which the performance results are shown.

Top Four Attributes: Add money Send money Receive money Transactions

Mobile Wallet App Quality Analysis

User Analysis Ratings Across Top 3 Attributes

Ease & simplicity of use

This represents the quality index for ease of use of the mobile wallets. The easier and simpler, a mobile wallet is, the more easily it will be adopted by the public.

Speed

This reflects the speed of operation of the wallets. When it comes to money, speed plays a critical role in ensuring a successful transaction.

Flexibility

This graph indicates the flexibility offered by different wallets in terms of the activities they can do with the wallet.

Attributes Analysis Rating Across Top 3 Attributes

Components Analysis Rating Across Top 4 Components

App Quality Index While the Attributes and Components of the products represent their respective interfaces, a different measure is needed to compare the technical robustness of each product. We use an index called "App Quality Index" for comparing the technical robustness of each product. The "App Quality Index" contains proprietary algorithms and over the years has been proven to be an appropriate benchmark of comparison.

About 99tests 99tests is a crowd testing platform to get your mobile & web apps tested by top notch testers. We provide companies with economical, and effective crowd-sourced testing and automation services.

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