'Mobile payment services to generate Rs 20,250cr revenue'
Thursday, 14 July 2011, 23:01 IST
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MUMBAI: Mobile payment services, which is estimated to be $350 billion of payments and banking transactions by 2015, could generate about Rs 20,250 crore as fee income for banks and telecoms, according to a report by the Boston Consulting Group (BCG). "It is far less costly to offer banking and payments services using mobile technology than to build new branches," BCG India Partner and Director, Neeraj Aggarwal, told reporters here after releasing the study 'The Rush to Mobile Money: Madness or Master Stroke?'. "Mobile-enabled business correspondents, who are authorised to conduct business on behalf of banks, can service a customer for less than 50 paise far below than Rs 40-60 at a branch," he added. The mobile payment services users were 1.1 crore in May, 2011 as compared to 400 users in August last year and the value of transaction is estimated to be Rs 1.6 crore. The favourable regulation, unique identification initiative, consumer readiness to accept technology, electronification of payments would augur well for the mobile money payment, Aggarwal said. BCG expects 70 per cent of the Rs 20,250 crore to come from urban areas and envisages $40 billion payments by the government to the rural area, including the disbursements under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The person to person transaction is expected to be $70 billion for domestic and international remittances, it said.
Source: PTI
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