Ewallets usage keeps on growing in India as second tier cities turn into high growth markets

Ewallets usage keeps on growing in India as second tier cities turn into high growth markets

Ewallets have been steadily gaining market share in India and there are many valid reasons for growth in online payment systems and ewallets. Consumers prefer ewallets as they offer ease-of-use, security, instant transfers and many options for loading cash in the wallet. For many transactions including bill payments, online shopping, payments at retail stores, tech-savvy Indian consumers are shifting to ewallets instead of cash.

While the initial growth for ewallets was witnessed in metro cities, in the recent quarters, growth spurts are coming from tier-II and tier-III cities across India. Increase penetration of high-speed 4G internet across India has led to fast growth in number of subscribers in smaller cities across India. This has helped the ewallets and online money transfer segment as more and more people start feeling comfortable with security offered by online payment networks.

The popularity of ewallets in India grew manifolds after the Indian government announced demonetization in November 2016. As cash was scarce, many users shifted to ewallets to make payments for essentials. And, many of those users continued using their ewallets or online payment apps till date as these apps offer many features and perks. The ease of use of these apps is another reason many consumers prefer to make online payment using ewallets instead of using net banking.

While many Indian companies offer ewallets for Indian consumers, there are some of the apps that have managed to grab a big share of the market. Google Pay, PhonePe and PayTM are major players in India market but Neteller is fast gaining prominence among ewallet users. EwalletVIP is a great source for information about ewallets in general, and Neteller in particular where they help customers with VIP upgrades.

Google Pay is supported by technology major Google and currently owns over 35 percent market share. Major Indian banks including ICICI Bank, Axis Bank, HDFC Bank and State Bank of India have partnered with Google Pay. Axis Bank has its own payment app as well but it hasn’t managed to pick up sizable market share.

PhonePe has also managed to grab over 35 percent market share in payments in India. PhonePe has been backed by Flipkart and this is the reason behind its popularity. PayTM managed to grab a big slice in the market but its dominance has been challenged by PhonePe and Google Pay in the recent years. PayTM accounts for 16 percent market share as of year 2020. Softbank, Ant Financial, AGH Holdings, SAIF Partners, Berkshire Hathaway have backed PayTM.

NetTeller is gaining prominence in India as it is preferred option for payment transfers for online casinos and sports betting platforms. Neteller is supported by majority of online casino platforms and the ewallet offers fast and secure means to transfer money to online gambling accounts. Neteller accepts payments via Visa, MasterCard, BitCoin and PaySafeCard. The fees offered by Neteller for online transfers are reasonable. Neteller VIP is better option for users looking for frequent transfers as the fee will be lower compared to regular Neteller India account.

As the usage of ewallets continues to grow across India, the future for these apps looks bright. The security offered by these apps and the low fees charged for transfers will lead to future growth in usage of these apps for money transfers among Indians.