RESEARCH REPORT JAN research

Transcription

1 RESEARCH REPORT JAN 2018 research The state of e-wallets and digital payments in india 2018

2 About the Survey The survey was conducted to assess the usage of e-wallets and their impact on digital payments in India. This survey was conducted in Q and had close to 1000 respondents from the top 12 Indian metros - Mumbai, Delhi-NCR, Kolkata, Bengaluru, Hyderabad, Chennai, Ahmedabad, Pune, Jaipur, Indore, Lucknow, & Ranchi. All respondents were smartphone users and mentioned that they use e-wallets at least once a month. The respondents were randomly selected by mobile in-app market research app Unomer (Android-only) based on age, gender and location; they received micro-credit from Unomer for participating in the survey. Executive Summary The e-wallet market had witnessed rapid growth over the last one year. e-wallet usage is addictive, about 4/5th of the monthly users, use them weekly. Usage is driven by ease of use, discounts, and sheer ubiquity of the e-wallets. Mobile bill payment and online shopping are the biggest spend categories for e-wallets. People spend INR 4,286 per month on an average through their e-wallets. Paytm corners 3/4th of the market by value and volume, leaving other players -- FreeCharge, PhonePe and MobiKwik -- far behind. Paytm has a chance of being category-defining (like Xerox in copiers), with 96% of all e-wallet users having installed the Paytm app. There is not much difference in usage or market share by metro, age or gender. Metros like Ahmedabad, Kolkata, Lucknow and Ranchi, which have been slower in adopting digital spending, are jumping on the e-wallet bandwagon faster, with a larger proportion of digital spending on e-wallets.

3 // The e-wallet market has witnessed rapid growth and expanded the digital payments usage by over 33%. Of the total e-wallet user base, 30% of the users didn t use any other digital transaction method. If not for the explosion of e-wallet usage (most likely brought about by the November 2016 demonetization), a majority of these 30% users wouldn t be using any form of digital payment at all. // While e-wallet itself has become a powerful new digital channel, e-wallet users preference of other payment channels is not very different from non e-wallet days. Amongst e-wallet users, debit card was the most used, followed by internet banking, credit cards and BHIM (the RBI s e-payment app). Keeping in mind that most bank users automatically get a debit card and net banking access, it is no surprise that these take the top two slots. Indians preference for using debit cards over credit cards continues among the e-wallet users. Net banking is also popular ahead of credit card. In a sense, India s traditionally low credit card penetration has been overcome with a generation of users jumping to e-wallets without using credit cards. BHIM is the least-used payment channel, highlighting the need to market it. 60% 45% 35% 09% Debit card Net Banking Credit Card BHIM User Preference: Digital Payment Channels

4 // e-wallet usage is frequent, with 80% of the total users using it more than once a week and 33% using it daily. 80% Once a week 33% Daily // e-wallet usage is driven by ease of use, discounts and ubiquitous payment. Interestingly, safety was the least prominent driver of e-wallet usage. 23% Ease of use 19% Ability to pay everywhere 19% Discount 13% Safety // Paytm is the most used e-wallet in terms of value as well as volume of transactions, by a wide margin. 77% of respondents rated Paytm as their most transacted e-wallet by value. The others were far behind. PhonePe was second at 13%, MobiKwik at 7% and FreeCharge at 2%. Citrus, Ola Money and Oxigen had negligible shares. The story is not too different by volume of usage. // 96% of all e-wallet users have installed the app, clearly indicating the success of Paytm s mass media outreach. 40% of the respondents had installed PhonePe; 30% MobiKwik. Tez by Google is fast catching up with 24% having installed it. FreeCharge was installed in 23% of the respondents phones and Jio Wallet in 15%. BHIM installations were quite low at 14% behind the 6 private plays - Paytm, PhonePe, MobiKwik, Tez, FreeCharge, Jio Wallet.

5 // High frequency users of e-wallets (those who use e-wallets daily): Use Paytm (81%) vis-a-vis 75% of all user Spend INR 5,937 per month on e-wallet (about 28% more than the average user) // Age, gender and location had little impact on e-wallet market share. The only exception was Kolkata. Everywhere else Paytm is 6x its nearest competition, whereas in Kolkata, it is 3x. // In terms of average spend, PhonePe and OLA Money had the highest average monthly spends of INR at 6,500 each. MobiKwik had INR 5,623 and Paytm had the lowest of the four at INR 4,264. A huge majority of the new users, who tend to spend less than average, would be beginning their epayment journey with Paytm, pushing down the average spends. // e-wallet usage is driven by offers. 57% of the Paytm users attribute offers as the driving force behind them using e-wallets. However other companies are even more dependent on offers- MobiKwik at 80% and PhonePe at 85%.

6 // Mobile bill payment is the most frequent activity on e-wallet apps. Online shopping and bill payment are next at about 66% each. Buying movie tickets, ordering food and transferring money (nearly 50% each) are also big usage categories for e-wallets. Cab payment, flight/rail bookings are also made by a large proportion of users (nearly 40% each). // When it comes to spending by value, mobile payment (28%), online shopping (21%) and utility payment (16%) are the biggest spend areas. Private money transfer (8%), movie ticket purchase (7%) and food payment (6%) are a few other usages. bc h Online Shopping - was #1 in Bangalore, Chennai, Hyderabad Mobile bill payment was #1 across most other Indian cities - Ahmedabad, Indore, Jaipur, Kolkata, Lucknow, Ranchi, NCR ai jk lrn

7 // e-wallets account for 48% of total digital spends. The average user spends INR 4,286 per month through e-wallets and INR 9,583 through e-wallets and other digital payment methods. Average spend of men at INR 5,286 per month was nearly 1.7 times of women at INR 3,200 per month. Average Monthly Spends - Digital Payment Methods 4,286 e-wallets Only 9,583 e-wallets + Other Digital Methods Gender Wise Monthly Digital Spends 5,286 3,200 Men Women

8 // Towns like Kolkata, Ahmedabad, Lucknow and Ranchi, which have traditionally been low digital spenders, have increased their digital spends after the introduction of e-wallets. Chennai, Pune, NCR and Jaipur spend the most digitally, on e-wallets as well as other traditional digital payment methods. Ahmedabad, Kolkata, Lucknow and Ranchi relatively spend less digitally.however these towns are allocating a bigger chunk of their digital spend to e-wallets, leapfrogging older digital payment methods. Proportion of spend on ewallets of total Digital spend Average Digital Payment per person per month in the city a h k n 66% 52% 46% 41% 66% 52% 45% b i L p 63% 47% 35% c Ahmedabad Bengaluru Chennai 5,262 8,900 14,208 j Hyderabad Indore Jaipur 11,686 7,739 11,731 m Kolkata Lucknow Mumbai 6,185 6,416 8,490 r NCR Pune Ranchi 13,226 16,513 5,288 49% 68%

9 About the Researchers Nimish Vohra SVP, Principal Analyst Nimish s research focuses on customer success management, predictive analytics, mobile enablement and other emerging trends that help customers leverage technology as an enabler of marketing and business outcomes. Kingshuk Hazra Adivisor Kingshuk Hazra heads LeadStrategus a Go To Market consulting firm. Kingshuk calls himself the original pipeline builder using any & all tools & techniques old & new - to build high ROI powerful sales pipeline. His past stints have been with AWS, SAP, Gartner, Oracle, Pluralsight and naukri.com.

10 About Regalix Research Regalix Research focuses on helping organizations across the globe to augment their marketing, customer satisfaction and retention initiatives. Headquartered in Mountain View, California, the organization boasts an extensive network of top business executives. It employs practitioners for in-depth analysis of industry data for meaningful insights that answer the whens and whys of disruptive trends. The research methodology employed by Regalix filters scores of data sets, making them insightful and enables industry leaders to arrive at impactful business decisions. About Unomer Unomer provides a mobile platform and in-app survey technology to power market research. Unomer partners with brands, market research agencies and app publishers to gamify targeting, sampling and incentivization for collecting data and gathering insights through mobile apps. About Leadstrategus LeadStrategus is a Go To Market consulting firm. We work with SMBs & Startups in improving their Sales & Marketing effectiveness with a focus on creating powerful Demand Generation engine that cuts across Social, Digital, Tele, & F2F channels. For more information To find out how we can help you, please contact us, or visit us at , Leghorn Street, Mountain View, CA (US): (India): research@regalix-inc.com / info@regalix-inc.com