India’s smartphone market is expected to grow by over 5 percent annually by 2020, and the country’s ecommerce market is predicted to hit Rs. 1 trillion by 2025, according to a report by Ernst & Young.
The report says the smart e card market is set to hit a record $1.3 trillion by 2020.
India has already invested in more than $4 billion in smart card technology in the past three years, and is expected add another $1 billion to that in the next five years.
The Indian government, however, is not taking any chances, as it is eyeing smart card payments as a major step towards improving the digital payment experience in the country.
In addition, India is set for a “major milestone” when it comes to mobile payment in 2020, with the rollout of the Aadhaar-based biometric identity cards expected to be completed in the first half of 2021.
India’s government also plans to introduce the first payment-enabled smartcard in 2021.
The report, released by Ernst and Young India, is based on a study of 2,700 mobile payment transactions conducted across the country by mobile payment provider M-Pesa, which has already begun selling smart cards to consumers.
The study shows the adoption rate of smart card systems has grown by over 50 percent over the past year, with M-pesa adding over 7 million new credit card accounts over the course of the year.
The firm expects to add 2.6 million new payment accounts over 2020 alone.
The company’s chief executive officer said that by 2020 the number of transactions per day will be 2.5 billion, and will account for 40 percent of all mobile transactions in the world.
The company expects the adoption of smart cards in India to take off in the coming years, as the number is growing by 30 percent annually.
M-PESA also expects that the use of smart payment cards will become a key driver of growth in the e- commerce industry in India.
The number of payment cards in circulation is expected in India’s $2 trillion e-business by 2021.
The technology has already been implemented in the banking and payment systems in India, which could further boost the industry in the years to come.
The country is also planning to make payments in the near future, as there are plans to roll out digital debit cards in the Indian market by 2021, which will allow consumers to use their mobile phones to pay for their goods and services.
The plan is also expected to increase the number and speed of transactions by 20 million per day by 2021 in the digital payments segment.