A SUMMER TRAINING PROJECT REPORT

ON

“Growth of mobile commerce in india –

implications for marketers”

For the partial fulfillment of the requirement

For the award of

 MASTERS OF BUSINESS ADMINISTRATION

2019-21

UNDER GUIDANCE OF : Submitted By :

Dr. Sana Iftekhar Shubhendu shekhar pandey

Professor 1900940700113
 DECLARATION

I Shubhendu shekhar Pandey,

Enrollment No.

1900940700113, student of MBA of School of

Business, Galgotias Institute of Management

and Technology, Gr. Noida, hereby declared that the

project report on “Growth of mobile commerce in india - implications for marketers”

is an original and

authenticated work done by me.

I further declared that it has not been submitted

elsewhere by any other person in any of the institutes

for the award of any degree or diploma.

Shubhendu shekhar pandey

 Acknowledgements

First of all I would like to express my profound veneration and deep sense of gratitude to my

research supervisor Dr.Sana Iftekhar for instilling confidence in me through his inspirational

words and providing me with invaluable comments and criticism on many issues. I will always

be indebted to his for his constantly rendering timely advice and sparing valuable time. I will

always be indebted towards you ‘Ma’am’ for giving me moral support which I required the

most throughout my thesis work.

I would also like to thank Prof. Tariq Siddiqui, Head of the Department, and other faculty

members for their continuous support. I am also grateful to all the faculty members in the

Department. I am also thankful to the office staff for their cooperation. I am proud to be a

student of the department and grateful to be a student of Galgotia Institute of Management

Technology, Greater Noida.

My heartfelt appreciation goes to my interviewees who took time out of their busy schedules

for participating in this research.

I would also like to thank my parents for their moral support and blessings to carry out this

thesis work.

I have no word to thank my near and dear friends who have upholder the spirit in which the

project report was framed.

Above all I would like to thank the Almighty for His blessings and my family and friends for their

unending motivation.

Shubhendu shekhar pandey.

 Table of Contents

Topic Page no

1. Abstract 5

2. Introduction 9-10

3. Objective 11

4. Review of Literature 12-13

5. Research methodology 14-15

• An Analysis of M-commerce services In India. 16-17

• What is M-Commerce and what is its origin? 18

• M-COMMERCE IN INDIAN CONTEXT 19

• CHALLENGES IN IMPLEMENTING M-COMMERCE: 23

• What is the Scope of Mobile Commerce in India? 26

• What’s A Mobile Wallet? 38

7. Current status of Mobile Payment in India: 65

8. Mobile payment app transactions increase in India,

amidst the COVID-19 pandemic: 67

9. M-commerce and mPayment services in India. 60

10. Why does mobile commerce matter? 79

10. What are the barriers to proximity

mobile payment adoption? 87

11. Conclusion 93

12. recommendation 94

13.definition of keyword terms 95

14. Bibliography 100

 ABSTRACT

Purpose: Use of mobile phone has increased so much that it is not just a device to make calls,

but an important medium to fulfill all the financial needs for friends and family.

Now, mobile phone technology has made another leapfrog to pave its way for a new trend

called mobile commerce where the financial transactions are made using mobile devices.

This paper gives the overview of future of m-commerce services in India and discusses the

future growth segment in India’s m-commerce. Also find various factors that would essential

growth of Indian m-commerce services.

In this paper we will find m-commerce exponential growth of m-commerce services in coming

years in emerging market of India.

Design/ Methodology/ Approach: The Present paper is qualitative and based on

secondary data collected from various sources like books newspaper management journal and

internet.

Findings : Mobile commerce is going to play a major role in mpaymet conducting business in
future. Future of m-commerce services is very difficult to predict. With heated competition in
markets, different mpaymet strategies, and more customer awareness give a boost to mobile

commerce services growth.

Limitation : Present research paper is qualitative in nature and based on secondary data:
research could be more authenticated if it would have been based of primary data.

Practical application : This paper can inspire the consumer, retailer and experts of their
field bringing certain change in mpaymet services for better future.

Originality/ values : This paper includes practical mpayment services in India and future
upcoming trends of mpayment services. This will promote interesting contributions in

Mcommerce research.

Key words: M-commerce, mPayment, Mobile device, Banking & Financial Services.
 INTRODUCTION

What is Mobile-payment?

According to data pro research Gartner Mobile payment is any payment transaction involving the

purchase of goods or services that is completed with wireless device, such as a cellular phone,

personal computer (wireless), or personal digital assistant. Mobile payment is a new emerging

way of paying by using a mobile terminal to initiate transaction over a mobile network. Mobile

payment is exciting because it extends the reach of electronic-payment facilities beyond the

limitation of the PC or TV to the hundreds of millions of mobile phone users. Many network

vendors, mobile operators, and mobile services providers are enthusiastic about mobile payment,

believing mobile payment is to be one of the hot topics in today' service market, creating new

meaning for mobile phones.

Mobile Commerce refers to wireless electronic commerce used for conducting commerce or

business through a handy device like cellular phone or tablets. It is also said that it is the next

generation wireless ecommerce that needs no wire and plug-in devices.

Mobile commerce is usually called as “m-Commerce” in which user can do any sort of

transaction including buying and selling of the goods, asking any services, transferring the

ownership or rights, transacting and transferring the money by accessing wireless internet service

on the mobile handset itself. The next generation of e-commerce would most probably be mobile

commerce or m-commerce. Presuming its wide potential reach all major mobile handset
manufacturing companies are making WAP enabled smart phones and providing the maximum

wireless internet and web facilities covering personal, official and commerce requirement to

pave the way of mcommerce that would later be very fruitful for them.

M-commerce has several major advantages over its fixed counterparts because of its specific

inbuilt characteristics such as personalization, flexibility, and distribution. Mobile commerce

promises exceptional business, market potential and greater efficiency. M-commerce can be a

huge success for the Indian market but this requires a complete ecosystem, partners must be

synchronized so that the best benefits go to consumers and their confidence is assured. Although

m-commerce market in India is in nascent stage, m-payment and m-banking segments have

Scorching summer seems to be heating up things on the m-commerce front, for more than half

the shopping population has expressed their intent to buy products from their mobiles from the

comfort of their homes this season rather than venture out in the sun to a mall.

About 59 per cent of shoppers this summer have declared that they would consider shopping on

their mobile phones to avoid heat and crowded market areas. Among the hot products this season

for mobile shoppers are sunglasses, cotton apparel, tees, shorts and caps and among the favourite

colours being white, blue, green, black and cream.

 OBJECTIVE

The objective of this research is to study the various modes which can be used for mobile

payment and find out the current market situation of mobile payment services in our country,

and also find out the “future trend of mobile payment service and its implications over the

marketers in india”
 Literature Review

Currently, a number of mobile payment procedures, which is a typical application of ICTS, have

been used widely from developed countries to developing countries. Mobile payment is an

exciting domain, which will rapidly evolve in the years to come (Karnouskos S. & Vilmos A.,

2004). Today, mobile payments mainly pay for popular mobile content and services since there

79 Junying Zhong are few alternative payment solutions available. Other successful applications

include ticketing and vending (Mallat N., et al., 2004).

However, these are still niche, not mainstream applications. Mobile payment, also known as m-

payment, is a new and alternative payment method wherein a mobile device is involved in the

payment process in order to initiate, authorize and/or confirm an exchange of financial value in

return for a wide range of services and digital or hard goods, instead of paying with cash, check

or credit cards (Karnouskos S. & Vilmos A., 2004; Au Y.A. & Kauffman R. J., 2008; Dahlberg

T., et al., 2007; Karnouskos S. & Fokus F., 2004). This definition includes a wide palette of

approaches, and points out the fact that mobile payments do not restrict themselves to payments

via mobile phone but can be made with virtually any mobile device such as smart-phone, PDA,

tablet PC or even merchant-operated terminals (Karnouskos S. & Vilmos A., 2004).

The high growth rate of mobile handset diffusion in the 1990s is one of the tremendous success

stories of the telecommunications industry, but it has slowed in recent years. Despite a widely

reported economic slowdown in 2008, the global mobile handset market has been unaffected by
the present economic slowdown. If there was one highlight in 2008, it was that the smart-phone

segment grew 22.5 percent, according to IDC's Worldwide Mobile Phone Tracker report (IDC,

2009). Mobile payment transaction values for digital and physical goods to exceed $300bn

globally within five years, and forecasts total mobile payments to grow nearly tenfold by 2013,

according to Juniper Research (Juniper Research, 2008).

In order to complete an m-commerce transaction, a customer needs to exchange values, goods

and services with a wireless mobile device. This monetary transaction that is associated with m-

commerce is called a mobile payment. A mobile payment (m-payment) is defined as “a payment

where a mobile device is used to initiate, authorize and confirm an exchange of financial value in

return for goods and services” (Abu Bakar & S. Osman 2005) Mobile commerce (m-commerce)

refers to exchanging products and services via mobile telecommunications networks. M-

commerce has many applications, such as mobile shopping, mobile marketing, mobile banking,

mobile ticketing, mobile entertainment and others. (P., Tarasewich,R.C., Nickerson, andM.,

Warkentin 2001)
RESEARCH METHODOLOGY :

This part of study defines all the process of data collection. When it comes to data collection,

there are two methods in general used by researcher to collect data, primary and secondary

method. Primary method includes observation method, interview/questionnaire method.

Secondary method is the method in which already collected data.

: Secondary data is used

Research
for this study. The data
methodologies will obtained from

different research papers,

used in the
and Internet and mobile

study are: association of India

(IAMAI).

DATA TYPE
: Pie Charts
DATA

REPRESENTATIO
N

: The research is of
RESEARCH TYPE
qualitative in nature.

An Analysis of M-commerce services In India.

Mobile phones today play a major role in developing countries. Online shopping is today in the

palm of our hands. Thanks to these smartphones and the internet. Mobile commerce is not only

an option in the ecommerce industry but, it has become a fundamental prerequisite.

The majority of the customers are already looking forward to shopping on their mobile phones.

Mobile commerce or m-commerce, as it is popularly known, can be defined as the process of

fulfilling business operations using mobile phones that are connected throughout the world via

the internet.

The business operations may range from making online payments, playing online games, buying

and selling goods and services, utilizing various software applications, downloading audio or

video content, etc.

M-commerce is commonly operated using mobile devices such as smartphones, tablets, and

such handheld mobile devices. M-commerce is inclusive of both Businesses to Business (B2B)

transactions as well as Business to Consumer (B2C) transactions.

The modern ecommerce has reduced the gap between the developed and the developing nations.

Online trading plays a crucial role in the development of India along with many other developing

countries.

The inception of m-commerce has changed the face of ecommerce in India. The number of

mobile phone internet users in India was recorded to be the world’s largest population in 2018

with above 483 million users. The same stat is estimated to increase to 500.9 million users by
2023 according to Statista. India has replaced the U.S to become the second-largest market for

smartphones.

The Indian population has welcomed mobile commerce with both hands wide open. Did you

know that according to another report by Statista, about 696.07 million of the Indian population

owns a smartphone in 2020? And, it is further expected to increase up to 973.89 million by 2025.

These facts are quite justified for our topic for today. In this blog, we will be discussing the

scope of mobile commerce in India.

What is M-Commerce and what is its

origin?
M-Commerce is a subdivision of Ecommerce, which implies to online shopping on the go using

handheld mobile devices. The term m-commerce was first coined by Kevin Duffey in 1997 who

was the then CEO of the Global Mobile Commerce Forum. The circle of mobile commerce

began with two Coca-Cola selling machines in Finland. The major innovation in this machine

compared to the usual ones was that people could pay for the drink using SMS. This feature

turned so popular that it laid the foundation for the development of mobile banking in the

locality. The first digital products sold via m-commerce channels were mobile ringtones in 1998,

also in Finland. However, it took about 2 years for the spread of mobile commerce in the global

market. Since 2000, the mobile commerce trend had reached a global scale and it has never

slowed down.

 M-COMMERCE SERVICES:

M-Commerce is an emerging discipline involving applications, mobile device, middleware, and

wireless networks. While most of existing E-Commerce application can be modified to run a

wireless environment, MCommerce also involves many more new applications that become

possible only due to the wireless infrastructure. These applications include mobile financial

services, user and location specific mobile advertising, mobile inventory management, wireless

business re-engineering, and mobile interactive games. In addition to device and wireless

constraints, M-Commerce would also be impacted by the dependability of wireless

infrastructure.

M-Commerce existing and futures possible application include

 Mobile banking service (check account information, money transfer)

 Mobile trade service (stock quotes, selling/buying)

 Credit card information (account balance)

 Life insurance account information (account information, money transfer)

 Airline (online reservation, mileage account check)

 Travel (online reservation, timetables)

 Concert ticket reservation (online or telephone booking)

 Sales (online books, CDs)

 Entertainment (games)

 News/information (headline, sports, weather, horse racing information, business,

 technology, regional)

 Database, application (yellow pages, dictionary, restaurant guide)

 Location based application (area information and guides)

PROTOCOLS AND TECHNOLOGIES IN USE

No new special network standard is needed to carry out M-Payment transactions. MPayments are

therefore carried out through existing networks, which could be Cellular networks (GSM/2,5G/3G),

Wireless LAN (IEEE 802.11 protocol), Bluetooth and Infrared (irDa). The most important technologies for

M-Payment connectivity are: SIM Application Toolkit (SAT), WAP/WTLS/WIM, Voice and Manufacturer

specific applications. SAT is a technology that allows configuring and programming the SIM card [2]. The

SIM card contains simple application logic that is able to exchange data with the SMSC, to carry out M-

Payment transactions.

The specific mobile operator provides the application logic and is responsible of providing the SIM card.

Phones equipped with a WAP-browser are able to exchange data with a webserver. Data is transmitted

via wireless application protocol and the networks are GSM, 2.5G or 3G. WTLS is a layer in the WAP

stack and is the wireless edition of the SSL 3.0 in a reduced scale. WTLS can provide secure connections

for transferring confidential data [3]. WIM is a module for storing data in the mobile device and is

usually used in relation to WAP transactions. WIM is used with WTLS transaction to protect permanent,

typically certified, private keys. The WIM stores these keys and performs operation using these keys [4].

The end-user can via a normal phone call state his credit card number to the merchant that transfers the

funds via interface provided by a PSP. A voice response system at the payment service provider can also

call the enduser and guide him through a payment procedure. Voice recognition can also be used as an

authentication tool for payment settlement. The mobile phone manufacturers can chose to install native

applications, which in interaction with one of the above technologies enables M-Payment opportunities.
M-COMMERCE IN INDIAN CONTEXT:

Very few industries have witnessed the kind of growth telecom has seen in India. In the last five years

the mobile has literally been a part of the upward mobility of the average Indian. The tea vendor, the

taxi driver, the farmer, the housewife, just about everyone has a monthly budget to keep their mobile

phone alive. Early 2006 approximately 98 million (TRAI March 2006) people in India owned mobile

phones. Late last year in a single month 2.9 million new Indian mobile phone subscribers added: the

GSM subscriber base grew by 2.11 million users (for a total of 65 million) and the CDMA platform added

0.8 million (for a total 20 million). According to Internet and Mobile Association of India, the m-

commerce market size is reported to be moving from Rs 9500 cr. to Rs 15000 cr. by 2010. Telecom

Regulatory Authority of India (TRAI) states that 30% of the land area in India is covered by m-networks.

The subscribed include 300 million (13%) of the Indian population.[6] Many big names like Tata, Reliance

and Bharti are in the telecommunications arena. Also India is the second largest mobile handset market

in the world. Nokia, Qualcomm, Sony, Motorola have their establishments in India. Other big companies

are on their way to setting up base in India. Paymate is another mobile payment gateway that is offering

similar service to what Bharti plans to offer. Very recently, Magic bricks, one of the leading real estate

portals came up with their mobile real estate portal. There are also host of other M-Commerce

application providers in India. With the entry of Bharti in this arena, M-Commerce in India will take

much bigger proportions as they already have more than 50 million strong subscriber base who are

readymade customers for M-Commerce applications.

TECHNOLOGY USED IN E-COMMERCE AND M-COMMERCE:

Technology E-Commerce M-Commerce

Device PC Smart phones, pagers, PDAs

Operating System Windows, Unix, Linux Symbian (EPOC), Palm OS, Pocket

PC, proprietary platforms

Presentation Standards HTML HTML, WML, HDML, i-Mode

Browser Microsoft Explorer, Netscape Phone.com UP Browser, Nokia

browser, MS Mobile Explorer and

other micro-browsers

Bearer Networks TCP/IP & Fixed Wireline Internet GSM, GSM/GPRS, TDMA, CDMA,

CDPD, paging networks

CHALLENGES IN IMPLEMENTING M-COMMERCE:

Security Issues:

Fundamental to the concept of e-commerce is a commercial transaction between two parties carried

out by electronic means. The applications of this concept are almost limitless but may involve any thing

from a few cents to thousands of rupees in the value. In the M-commerce domain the bounders will be

similarly wide ranging, although with a greater focus on location based information services. The

Distribution of transaction value may differ. Experience has shown that wherever something is of value

it will be targeted for attack, even small value transactions are worth attacking if the are enough of

them. A key element of ensuring security of MCommerce service must therefore, be of securing the

transaction itself. The exact nature of the security issues faced will depend on the operator’s level of

involvement in the transaction. Issues of responsibility and the liability will be fundamental in

establishing services and managing exposure to loss the question of who is responsible for a particular

aspect is party derived from the deferent levels of involvement that the net work operator may take in

an M-Commerce transaction. At simplest level the network operator provides a means of transaction

part and network inter connection for a transaction between two independent parties, the customers

and an M-commerce service provider. At a higher level of involvement, the net work operator may

provide a hosted M-commerce environment for service providers or may actually manage a branded

service on the part of a retailer and at the highest level the operator may act as an intermediately in the

transaction and take responsibility for mutual authentication of the parties and, potentially for

facilitating the settlement of financial exchange. Transaction: Protecting the transaction parties and their

data by providing at acceptable level of security consumers are all comfortable with conducting

Transaction face-to-face the is a physical exchange of goods and payment using a trusted mechanism be
it cash, cheque or card. To comfort derives in part from familiarity may people are also familiar with and

trust, mail order transaction by post or over the phone, even though there are many opportunities for

failure in an electronic world trust is a more abstract concept. Do you trust to site you are visiting; do

you feel it is what it claims to be? Can you trust to site with your credit card details? Do you trust to site

will be able to deliver the good ordered. The issue of trust also applies in to opposite direction; can the

“customer” be trusted? Are they or an element of their transaction, potentially fraudulent? When E-

commerce becomes mobile the issue of trust becomes even more serious as the customers is no longer

tied to a physically location. The issue of sub-scrumptious fraud that all mobile network operators have

faced now has implication for the M-commerce service provides, as well as the network operator.

Information: Protecting valuable and sensitive information about customers. Tele communications

companies already hold significant amounts of valuable and confident information about their

customers in an Mcommerce environment, valuable data such as credit card information encryption

keys and digital signature may also be stored. Inter connections of internal systems and network will

increase the potential for illicit external access, with the potential for internal fraud being even present.

Infrastructure: Protecting to network infrastructure from attack. These are considered capacity but it is

worth explaining at to outset that to exact nature of the service simple mended will influence the

involvement of the operator in the finance transaction. Various payment models have been processing

ranging from credit card transactions between customers and vendor, through to billing of service direct

to the customer’s Telephone bill for collection by the network operator. These have different impacts on

the liability of to operator. As operator becomes involves in Transactions, either by processing payment-

extending credit or by acting. As clearing Houses, their roles will increasingly evolve towards acting as

financial institutions and they will need to emulate many of the process and security controls of such

institutions. However M-commerce services are ultimately packaged, there will be a need to ensure the

security and integrity of the underlying infrastructure increased. Technical protection and isolation of
internal systems and of the net work itself will be necessary in view of the greater exposure through

public net works access. The issues of protecting customer’s data and financial transactions and of

ensuring the integrity of billing mechanisms and certification services must also be addressed and not

over looked in the rush to develop and launch new service. Managing Risks: Managing the risks in M-

commerce service will receive a combination of controls, both technical and procedural. One of the

biggest challenges falling operators will be that of ensuring the CoOrdination of these controls in a

strategic manners to ensure complete converge understanding the applying the controls effectively will

demand a combination of skills from different security back grounds, ranging from technical solutions

through secure process design to physical security. Ongoing operational management of the various

processes and systems will also be fundamental to success. Monitoring and Detection: Fraud monitoring

and detection have become part of the established telephone infrastructure. Most operators have same

from of monitoring, ranging from billing system based reports through to dedicated fraud detection

systems and monitory systems. And monitory teams these systems are largely rule or these should-

based and analysis switch-based signaling or call detail records. In the environments based on data

where packets and massages have replaced voice calls, and networks may carry many types of

communications including financial transactions where will the next generation of monitoring come

from there will be the requirements on operators to monitor the behavior of their customers of service

usage’s and access and of contents itself. This clearly requires a much broads understanding of security

risks and of the nature of the service being used by customers without this understanding it will be

impossible to distinguish between legitimate and non legitimate or unwanted traffic. Again this will

require Co-Operation between operator’s service and content provide to define responsibilities and the

requirements and to ensure appropriate coverage and protection.

What is the Scope of Mobile Commerce

in India?

In India, the majority of the people, irrespective of their ages, are using a smartphone. Especially

during the coronavirus pandemic, the few people who didn’t use a smartphone probably started

using one. From children in their nappies to grannies in their chairs are using a smartphone for

multiple reasons. On average, the age group between 25 and 34 are using these smartphones to

shop online.

1. Unified Payment Interface (UPI) :

Product instant real-time inter-

type bank payment system

Owner National Payments Corporation of

India

Introduced 11 April 2016; 4 years ago

Markets India

Website www.npci.org.in/what-we-

do/upi/product-overview

Unified Payments Interface (UPI) is an instant real-time payment

system developed by National Payments Corporation of India facilitating inter-

bank transactions. The interface is regulated by the Reserve Bank of India and

works by instantly transferring funds between two bank accounts on a mobile

platform.

As of March 2019, there are 142 banks live on UPI with a monthly volume of

799.54 million transactions and a value of ₹1.334 trillion (US$19 billion).

 UPI witnessed 1,029.44 crore transactions until August 2019. The mobile-only

payment system helped transact a total of ₹17.29 lakh crore (US$240 billion)

during the 37 months of operation starting from 2016.UPI transactions hit 2 billion

transactions per month in October 2020.

 Service:

Unified Payments Interface is a real time inter bank payment system that allows

sending or requesting money. Any UPI client app may be used and multiple bank

accounts may be linked to single app. Money can be sent or requested with the

following methods:

 Virtual Payment Address (VPA) or UPI ID: Send or request money

from/to bank account mapped using VPA.

 Mobile number: Send or request money from/to the bank account mapped

using mobile number.

 Account number & ifsc: Send money to the bank account.

 Aadhar: Send money to the bank account mapped using Aadhaar number.
  QR code: Send money by QR code which has enclosed VPA, Account number

and IFSC or Mobile number.

Supported banks:

The website of National Payments Corporation of India (NPCI) lists the banks that

facilitate UPI.Banks here are termed as Payment Service Providers (PSP) - listed with

their UPI application and handle - and issuers. PSP includes those banks which have

their own mobile application to facilitate transaction and issuers include banks which

don't have their payments interface and rely on third party software for transaction using

UPI.

Acceptance:

There are talks happening to operate UPI in United Arab Emirates and Singapore which

has sizeable Indian expatriates and for ease of payment for Indian tourists travelling

abroad. Committee on digital payments led by Nandan Nilekani had suggested that
NPCI should internationalise payment services like UPI, RuPay and BHIM. NPCI is

planning to link UPI with standalone mobile wallets so that users can transfer money

from one provider to another one which till now is restricted due to use of closed source

technology. There is also provision for off-line UPI payment through the use of near field

communication (NFC).

UPI or Unified Payments Interface is an immediate real-time payment system that helps

in instantly transferring the funds between the two bank accounts through a mobile

platform.

Hence, UPI is a concept that allows multiple bank accounts to get into a single mobile

application. This idea was developed by the National Payments Corporation of India

and is controlled by the RBI and IBA (Indian Bank Association).

Key Features of UPI:

Some of the features of UPI are listed below:

*Instant transfer of fund through Immediate Payment Service (IMPS) which is faster

than NEFT.
* Since it is completely digital, one can use UPI 24 hours and on all public holidays.

* Single mobile application for accessing various bank accounts.

* Uses Virtual Payment Address which is a unique ID as given by the bank

* Uses Account Number with IFS Code and Mobile Number with MMID or Mobile Money

Identifier.

* MPIN or Mobile Banking Personal Identification number is required to confirm each

payment.

* Also available on USSD service where users can use the service just by dialing *99#

and choose the services like fund transfer, send money, request money, non-financial

services, balance Enquiry, change MPIN etc. (Service charge of ?0.50 is applicable)

* Every bank provides its own UPI for different platforms of Android, Windows, and IOS.

The banks may or may not charge for the UPI service.

* Bill Sharing facility.

* Best for doing merchant payment, utility bill payments, in-app payments, OTC

payments, Barcode based payments.

*Best for doing merchant payment, utility bill payments, in-app payments, OTC

payments, Barcode based payments.

* One can file a complaint from Mobile App directly.

What makes UPI a secure platform?

This interface is based on the 2 Factor Authentication with a seamless single click

payment. This feature of UPI is aligned with the regulatory guidelines that make it the

safest. 2 Factor Authentication is quite similar to OTP. Here, MPIN will be used instead

of OTP.

Nandan Nilekani, NPCI advisor, assures that the security is fool-proof with UPI as the

transaction will happen in a highly encrypted format. NPCI's IMPS network already

manages more than Rs.8k Cr. transactions per day, which will now increase with the
use of more mobile phones.

How does it work?

1. For accessing the UPI service, the users need to create a Virtual Payment

Address or VPA of their choice. They need to link the VPA to their bank account.

This VPA becomes the users' financial address and they need not remember the

details like beneficiary account number, IFSC codes, or net banking user id and

password for sending or receiving money. This virtual address of the customer

for Pull & Push helps in creating an additional security. The customer need not

punch in these details over again and there is no credential sharing.

2. GST Implementation:

GST - Goods and Services Tax is an indirect tax levied in India on the sale of goods and services.

When GST passed by Parliament of India, many businesspersons and consumers had confusion,

and many of them still have. The motto of this blog is to help people get rid of this GST

confusion. Here, we are stating answers to few questions which can be helpful.

1.What is GST in India?

GST is an indirect tax which has replaced many existing indirect taxes in India. GST stands for

Goods and Service Tax, It passed in the parliament on 29th March 2017, and this act came into

effect from 1st July 2017. Along with its impact, it also became mandatory to implement in

invoice functionality for all e-commerce sites. Here I am going to state the understating of the

GST logic, and the logic will apply to all kind of stores either Magento, WooCommerce, Shopify,

Big commerce or any other store.

2. GST LOGIC:-

The Indian government has categorized items in five major slabs – 0%, 5%, 12%, 18% and 28%.

There are three taxes applicable under GST: CGST, SGST & IGST. These terms stand for CGST

(Central Goods and Services Tax), SGST (State Goods and Services Tax) and IGST (Integrated

Goods and Services Tax). Now let’s understand the GST working:

• CGST: 

Collected by the Central Government on an intra-state sale (E.g., Within Rajasthan)

• SGST:

 Collected by the State Government on an intra-state sale (E.g., Within Rajasthan)

When intra-state sale happen CGST, and SGST applies, it means if the seller and buyer both

belong to the same state that time total tax is divided into two parts evenly regarding CGST and

SGST.

For Example, Suresh is a seller from Rajasthan and Mukesh purchased a mobile of 18% GST, and

his shipping address is in Rajasthan. Now, GST will get divided in CGST with 9%, and SGST with

9%.

• IGST:

 Collected by the Central Government for inter-state sale (E.g., Rajasthan to Punjab) For

Example, Suresh is a seller from Rajasthan and Mukesh purchased a mobile of 18% GST, and his

shipping address is in Punjab. Now, GST will be 18% comprising of the only IGST.

GST classified according to different products. So if you sell various types of products, then

there must be an option with products to set the GST.

GST calculated on shipping charges. If the consumer has billing and shipping address different,

then GST will be accounted according to the shipping address.

GST is calculated and managed according to HSN (Harmonized System Nomenclature) code. So

now vendor has to show HSN code along with SKU code of the product.
 3. What Changes need to made in the invoice?

The invoice must be displaying the price in detail manner by describing GST (IGST or CGST &

SGST) of every product.

There must also be HSN code along with SKU code.

There must be GSTIN no of the vendor on the invoice and also State VAT code.

If the transaction is happening between B2B then there must be also GSTIN of buyer.

What does a developer need to do for GST implementation?

First of all set five classes GST slabs. It will help the vendor to select the GST slab class while

uploading the product.

Match the state of seller and buyer at the time of order. Check the applicable GST and reflect

on the invoice.

Include HSN code, GSTIN, and state VAT code in an invoice.

Calculate total price for every product and shipping also and display payable amount in the end

with GST.
If there is a multi-vendor for the site, then for customer satisfaction there must be one

summarized invoice.

Note*: If Vendor’s transactions are more than 20 Lakhs per annum then it’s compulsory to

apply GST in your invoice management.

The m-commerce niche is to be completely explored and utilized in its full potential and India is

actively working in that regard. Following are a few initiatives taken by the Government of India

in order to encourage m-commerce:

4. Mobile Wallets:

What’s A Mobile Wallet?

A mobile wallet is a type of virtual wallet service that can be used to pay and

receive money digitally via a mobile app. It is one of the most preferred modes of

digital payment in the retail sector, akin to the role of a payment gateway in the

e-commerce industry. The mobile wallet stores your bank account or debit/credit

card details in an encoded format to allow secure payments.

This e-wallet acts exactly like a physical one where you can add money to make

payments and purchase goods & services. This eliminates the use of the direct

bank to bank transactions. Many banks in the country are leading the e-wallet

services along with a few private players, some of the popular ones in India being

Paytm, Mobikwik, Freecharge, etc.

 The various services offered by mobile wallets include sending and receiving

money, making payments to merchants, online purchases, etc.

How This Works For The Wallet Users?

In the Master Direction that was issued last year, the RBI has laid the groundwork for

the interoperability between payment instruments, particularly prepaid ones. This

interoperability will allow users of one wallet to transfer money to a user who prefers a

different one.

The RBI has further enabled issuers of PPIs by allowing them to also issue physical

cards to their users.

Previously, restricted by acceptance, the average wallet user often found themselves

juggling money between various wallets. This helps with your local grocery store deals

too where it’s not mandatory for both of you to have the same app to make a digital

payment.

Interoperability allows multiple wallet apps to communicate with each other. This

reduces the reliance on cash for menial transactions. Cards have an established

reputation in being compatible and universally acceptable among all merchants. If wallet

companies start issuing cards to users, there would be a significant rise in the adoption

of digital transactions. This would largely benefit the service providers as it would mean

a greater variety of offerings.

What This Means For The Service Providers
This move (interoperability) by RBI has ensured that the big players do not eat up a

huge chunk of market share. Big players do have an advantage over the small ones in

terms of merchant onboarding since it requires pouring larger investments. As

interoperability opens up new avenues for smaller players, it provides an impetus for

them to cover up what they missed during the great demonetization wave that had

gripped the country a few months back.

Up until now, only banks were designated to issue cards to the users. After the master

directives, however, the wallet companies can partner with card-networks to issue chip

and PIN-enabled cards to their users. This means users can withdraw cash from their e-

wallets whenever required, thereby adding to their convenience.

To summarise, digital payments or cashless transactions can bring about a great deal of

change in the economic status of India and the way we deal in our day-to-day life. Being

cashless is easy, burden-free and ensures ‘white’ dealings with a digital record.

However, only 12% of transactions in India are made electronically currently. This step

of making digital transaction interoperable can provide the much-needed boost for e-

payments.

The NPCI has made commendable efforts in promoting cashless transactions via UPI,

QR, BillPay and other services. Interoperability will further ensure mobile wallet players

will join hands with banks in the quest to digitize transactions.

5.The Digital India Makeover
India's digital transformation and the role of Mobile Commerce in it

Digitalisation has slowly replaced other means of communication, with the advent of Facebook

and other social networking websites. You get to cover a large base in a lesser time.
 The 21st century is the time for digital commerce to flourish. With an ever transforming market

and demands for a more seamless experience, companies are finding new innovative ways to sell

their products. Digitalisation has slowly replaced other means of communication, with the advent

of Facebook and other social networking websites.  You get to cover a larger base in a shorter

time frame. For startups and young companies having limited capital to spend on marketing,

digital marketing is the only money saving method to get their message across a large consumer

base, in half the time.

Unlike traditional media, with the right setup, it is easy to venture into digital. You can achieve a

lot with nominal efforts here, which has levelled the un-even playing field between big and small

companies i.e., there is no “big fish” there as companies of every size have a fair chance in

minting gold.

In India, digital is going huge, due to the great rise in users.  Since, India is a 3rd world country,

one says, so how is that possible? According to statistic, India may be less on GDP but due to the

influx of low priced Chinese smartphones, the mobile market has drawn to an open ground.

Therefore, the rise of mobile users has been on a new high.

Every house may not have a machine but every household has atleast two smartphones on use. In

fact, in surveys, a staggering 900 million users are online through mobile. So what do these 900

million users look for?

GROWTH OF M-COMMERCE

India is the largest mobile market in the world after china. As 2016 begins, mobile commerce in

India is undergoing an exciting transition. The country has seen an impressive rise in everyday

commerce conducted via mobile devices.

A market report released last year by consulting firm Zinnov estimated that India’s market for

mobile commerce was worth $2 billion in 2014 and is estimated to grow up to $19 billion by

2019. In fact, India is now one of the top five regions for the Google Play store, as more of its

1.2 + billion people look to search, interact, and shop on the

go via their smart phones and other mobile devices. In 2016, Most of this investment has gone

into the development of marketing and manpower. But most of the marketing money is being

spent to manufacture the mobile devices. Smart phones and “Mobile Only” Internet users are

growing rapidly in India.

 Let’s take a visual look at how some of the top M-commerce applications of India grew in the

year 2016, which also points towards the overall growth of mobile commerce in India.

E-Commerce

E-commerce is ruling the roost, of late. With the rise of hectic lifestyle and monetary capacity of

the urban mass, convenience of these e-commerce sites have been sought as a blessing in

disguise. One click-and the object you desire is at your doorstep. As most of the e-commerce
work on the 1-2-3 step model, it’s so simple that you don’t need great technological know-how

to avail it. Initially, e-commerce was restricted to the Tier 3 cities, catering to the urban crowd.

But slowly as the capita began to flow into the suburban and rural areas-more people of the

suburbs started demanding for a reach in their tier 2 and tier 1 city. Thus, bases were spread out

to the suburbs.  For these tier 2 and tier 1 cities, the access to such websites is through their

mobile phones. Also, the era of smartphones and the “app” business have given m-commerce an

entity of its own.

GROWTH FACTORS:

The following factors that are driving customers towards the mobile devices rather than the

desktop in these regions are:

Speed: M-commerce through mobile phones is becoming very fast and easier every day. It

gives instant satisfaction for customers and allows business to create urgency and drive sales

through the use of short term discounts.

Security: All the transaction made by Mcommerce technology are completely safe and
secure. E-payment allows a fully interactive experience that can encourage business in between

businesses and their customers.

Innovation: M-commerce gives new applications and creative

mobile payment solutions. In a rapidly-development market, it is

an important to innovate as it is to simply keep pace with

development elsewhere.

Affordability: With Android devices ruling the mobile

technology in India, many people even with low-income is able

to afford a smart phone, which is then used as an internet device.

According to IAMAI, 65 percent of internet users are

ecommerce customers (Manjoor Amir, 2010).

Accessibility: The retail outlets of big brands in Tier 2 and 3

cities are not much in existence. Hence, the online marketplace

had become the gateway for many youngsters who want to buy

their favorite brands of jeans and T-shirts.

 
Here are a few factors that work in favour of

m-commerce:

Instant connectivity : Due to the introduction of GPRS, constant connectivity is

ensured. Assistance is provided 24x7 and deliveries can be made at any time. The mass prefers

staying ONLINE in the fear of missing things out and this factor caters to that irrational fear,

providing the mass gratification for their needs.

Personalization Factor : With smartphones being present in every household,

information on individual purchases has been possible. The success of these e-commerce

companies are through the personalized services they provide by keeping CRM databases on

every transaction of the consumer.

Mobility factor: Unlike the hardware heavy personal machines, mobiles are easier

portable and occupy less space. So one does not need to rush to the nearest PCs for any monetary
transactions. E-banking and E-transfer are possible now through designated applications built

and hence accessibility is high.

 Immediacy: Here, the call-to-action and the process of going through a purchase can be

made on a more streamlined form. Certain products like readymade food and medical equipment

need immediate purchase and delivery. Here, immediate queries do have quick solutions

delivered across.

Localization: Again, with the help of GPRS, companies can target their audience on the

basis of their geographic location. This helps in providing customized services, keeping location

in mind. Certain products and ventures need a locally catered target audience. Also in a diverse

land like India, the language barrier has slowly been disseminated due to language based

campaigns according to the regions

Cheap cost of connections and handsets: The fair pricing of mobile connections and

the introduction of Chinese smartphones into Indian market, now every household owns a

smartphone or two. Also, the aggressive marketing of smartphones by the mobile manufacturing
companies has transformed the smartphone from a luxury to a necessity.

Reach factor: The widespread reach of the mobile phones makes it a profitable venture to

invest. The combination of the above factors ensures that even rural India stays connected to this

vast web of information. In fact, the spread of mobile phones is greater than that of televisions

and transistors have been replaced by radio in mobile and hence mobile has slowly grown into a

symbol of connection amongst people of this era.

M-commerce is a boon for the startups as with low capital and in need of fast growth, mobile is

the best platform for economical campaigns. Yet, m-commerce is not a fool proof plan as many

startups have gone through that path and ended up naught. Hence a certain amount of gumption

and luck, with an of how to capitalize into sms promotions and emailers, with time-to-time app

updates ensure the success of the m-commerce venture.

 

It is safe to say that certain risks are worth taking and the M-commerce gamble perfectly provide

rewards to Indian digital-sphere.

5. Startup India

6. Skill India

Apart from the above-mentioned initiatives, the Prime Minister of the country has quite

supported and encouraged digital transactions with the use of mobile banking and e-banking for

cashless transactions. One instance for this initiative is the launch of the BHIM app that

facilitates digital transactions directly through the banks using UPI.

When we say m-commerce, here we refer to the transaction of goods and services using mobile

devices. There have been evidently great impacts in the m-commerce market with the ever-

increasing sales of smartphones, not only in India but across the world. In the past few decades,

the development of mobile applications has turned out to become a boon for the m-commerce

industry.

If we compare the time spent by an individual on a web browser to the time spent on mobile

phones, there is a huge difference and that clearly signifies the dominance of mobile apps in the

mobile commerce industry. Researches state that mobile apps can boost sales by over 50% for a

regular ecommerce business. Moreover, nearly 49.2% are done via mobile devices. With such
whooping usage of mobile apps for e-commerce, India can be foreseen to compete with the

developing nations in terms of mobile commerce.

Mobile apps:

Any UPI app can use payment and transfer fund from and to UPI enabled banks.

Below is a list of some popular UPI mobile applications.

UPI App PSP

Airtel Thanks Airtel Payments Bank

Amazon Pay Axis Bank

BHIM NPCI[5]

CRED Axis Bank

Google Pay Axis Bank

HDFC Bank

ICICI Bank
 State Bank of India

Mi-Pay ICICI Bank

MobiKwik HDFC Bank

Jio Pay Jio Payments Bank

Yes Bank
PhonePe
ICICI Bank

Paytm Paytm Payments Bank

Samsung Pay Axis Bank

ICICI Bank

HDFC Bank

WhatsApp Pay[6] Axis Bank

State Bank of India

Jio Payments Bank

UPI 2.0:

On 16 August 2018, UPI 2.0 was launched which enabled users to link their Overdraft

accounts to a UPI handle. Users were also able to pre-authorise transactions by issuing

a mandate for specific merchant. 2.0 version included a feature to view and store the

invoice for the transactions. There's also an added feature of AutoPay facility for

recurring payments.
What are the benefits of M-Commerce in Business?

Now that you have known the scope of m-commerce in India, you should be well-aware of the

benefits of m-commerce for businesses. If you are an entrepreneur or are planning to become one

in the ecommerce industry, these benefits are highly beneficial for you to sell online:

Quick Access to Shopping

Answer to this, how many times do you prefer sitting over a desktop to shop online? We believe,

the answer would either be zero, or anything nearby. On the other hand, how many times do you

take out your mobile phones to do any given task, or even check the time? Well, we guess, you

are probably reading this blog, using your mobile phone! There are thousands of online shopping

apps on a smart phone, and it is much more convenient to shop from anywhere at any time using

a phone than sticking to a fixed spot in front of the computers. The modern life demands for

modern solutions. It may not be convenient for people to find the time and stroll along the

markets to find a physical shop that sells the products they wish to purchase.

Mobile-ready online shops, on the other hand, can provide priceless opportunities to the busy

bees to find everything they need at the comfort of their time and place. There is no need for

taking long walks or driving on busy roads. People can comfortably relax in their pajamas while

they browse through the products they wish to purchase. The closer the seller is to the customers,
the higher are the chances of the customers purchasing from them. Therefore, in order to earn

more revenue, the sellers need to be available in the places where their potential customers visit

the most.

Advanced Marketing Opportunities

Another significant advantage of m-commerce is that it offers various and unique marketing

channels to businesses. There are various technologies in the market today that help businesses

reach their prospective customers with ease. Mobile commerce can aid in boosting sales twofold

with multiple sales channels including social media platforms, and other mobile applications

which is otherwise not possible in traditional ecommerce marketing. Earlier, people had to get a

banner printed and put more effort into reaching their customers, which was again

geographically constrained. However, with m-commerce, businesses can schedule marketing

campaigns across various online selling channels within a few clicks. Thanks to modern

technologies and innovations. In fact, there are many ecommerce platforms that offer ready-to-

use solutions to reach customers from a single dashboard along using a mobile-friendly

approach. One of the best examples for such a platform is Builderfly. It is a complete ecommerce

solution that lets businesses establish a powerful online presence by giving the best of both the

worlds – ecommerce and m-commerce, in one place, with minimal investments.

Earlier, m-commerce was conceived as a risky idea due to the limitations of smartphones and

technologies back then. However, as time and the features of smartphones and technology
evolved, all the problems faced were gradually solved with the internet connections becoming

widespread and the smartphones becoming bigger and clearer. Today, the scope and benefits of

m-commerce offer endless benefits as well as opportunities to businesses of all kinds. Every

entrepreneur has to make sure that they do not overlook the potential held by mobile commerce

for their businesses. Advancing with the best m-commerce solutions is synonymous with

evolving with the current market requirements. If your business is not utilizing the power of

mobile commerce yet, it is time you bring the customers who chose your competitors instead of

you, back to your store.

M-commerce and mPayment services in India.

Bill Payments – With the mPayment services, paying all types of utility bills such as water,

electricity and gas bills has become much more convenient via mobile phone. People can pay

their bill from anywhere and anytime via their mobile phone, thereby they do not need to stand in

a queue therefore they can save their lots of time.

xpWallet announced its launch of mWallet Bill Pay offering, enabling users to receive and view

bills instantly through the Internet, USSD and SMS

Money Transfer – Funds transfer is one of the unique features of mobile commerce services.

Previously, people would require going online on a computer to transfer the funds between one
to another bank account. Now, one can easily send money to anyone, anywhere; or transfer

money between bank accounts through mobile devices within a few seconds.

Retail Transactions – With the rise in shopping malls and retail stores in India,

mCommerce & mPayments services are extremely valuable for customers for making payments

at the checkouts. Additionally, these services also make online shopping much easier and

lucrative for both the customers and merchants through various discounts and loyalty coupons.

Movie Ticketing – Mobile commerce services also enable users to book movie tickets via a

mobile phone. Now, people can enjoy watching movies by planning for that anytime in an easier

and hassle free manner.

Travel Ticketing – Now, scheduling any trip to anywhere and anytime has become

convenient with the mCommerce services available in India. People are now able to book train or

flight tickets via their mobile phone and have the pleasure of the journey. Mobile commerce

adoption has increased significantly in the country due to multiple factors such as enhanced 3G

penetration and availability of affordable smartphones. India is expected to have close to 503

million mobile Internet users by March 2017, The overall internet user base (wireline and

wireless) in the country stood at approximately 350 million as on June 2015 and is estimated to

touch 503 million by 2017, the report titled 'India on the gomobile Internet Vision' by IAMAI

and KPMG said.

"The number of mobile internet users in India was approximately 159 million in 2014. This

number is expected to continue to grow rapidly and reach 314 million by end of year 2017

registering a CAGR of 27.8% for the period 2013-2017," the report said It further said, 2G user

base in the country is projected to decline in the coming years as more and more customers are

expected to migrate to 3G.

The report said that 3G user base in India is rapidly gaining market and is projected to grow at a

CAGR of 61.3% between 2013-17. Up from 87.1 million in December 2012 as more people are

accessing the web through mobile devices and tablets. It is being said that, in the next three years

mobile commerce will constitute more than 25 percent of the total traffic in e-retailing. Mobile

Commerce market in India to grow at pace of 71.06 percent over the period 2012-2018.
There were 616 million unique mobile users in India, by the end of June 2016 with at

least 1 billion mobile connections (SIM cards) at the same time, according The Mobile

Economy Report 2016 compiled by Global System Mobile Association (GSMA).

 This makes India the second largest mobile market in the world, while GSMA

estimates that the number of unique users will touch 951 million with around 1.4 billion

mobile connections by 2020.

In addition, only 15% of the 616 million mobile users are on mobile broadband as of

2015.This is expected to touch 48% by 2020 in the country, signalling that close to half
of mobile users will be connected to the internet via cellular networks. India is also the

second largest smartphone market with 238 million smartphone users; this is expected

to touch 688 million by 2020, according to GSMA.

Note that India accounts for more than a quarter of mobile connections in Asia Pacific,

with over 1 billion connections, while the 616 million users translates to a mobile

network penetration of 47% as of 2015. Improving affordability, falling  device prices

and better network coverage aided by operator investments, together with positive

policy support and healthy macro-economic conditions, will help deliver over 330 million

new unique subscribers by 2020, added the report.

Network-type growth

 4G LTE networks in India have seen a “sluggish growth” since its deployment in 2012

due to the lack of affordable spectrum in the sub-GHz spectrum bands, the report said.

Note that in this year’s spectrum auction. Saw no takers for the premium 700 MHz band

which has been considered crucial for 4G LTE adoption. By the end of 2015, India had

just 3 million 4G connections which is expected to increase to 280 million by 2020, the

report said.
Current status of Mobile Payment in India:
India considered as the second largest market in the world, who has 1 billion mobile phone

users as discussed earlier. Near about 45% mobile subscribers link from rural areas. However,

there is the enormous scope of mobile payment in India. There are millions of people who are

still unbanked, out of which vast population is from rural places. From sources, it surveys that

40% of people are unbanked. Most of the locations are so disconnected from the towns and

cities where banking facility can't be within reach of people.

But the good thing is these people use mobile phones that will be the excellent source to link

them directly with the bank services. It reflects how mobile payment is secure and accessible

that's playing a significant role. Our Honorable Prime Minister Narendra Modi, promoting Digital

India to make India cashless country – and appealing to connect with a nearby bank. Now

almost every bank welcomes people to open an account in their branch at zero balance that

comes under Jan Dhan Yojana introduced by PM Modi.

The famous and most trending telecom company Reliance Jio are also supporting Digital India

who has millions of subscribers all over India. People from all our country now connected to the

internet world and buying the smartphone to take benefits of internet service offered by Jio. It's

anticipated that the internet users will set to double in coming five years – at present the internet

users recorded to be 300 million which projected to 600 million in 2020.

That shows half of the internet users from 600 million will expect to make payment through

digital or mobile payment method. Internet User By 2020 undefined From sources, it's expected

the net payment using mobile payment system will hike up to US$ 500 billion by 2020.

That tremendously 10x the present status in India. Mobile Payment Key Development Last year

on November 8, 2016, PM Narendra Modi announced that 500 and 1000 rupee notes would no

longer be the legal currency. Only at airports, hospitals, petrol pumps and railways stations,
these respective banknotes would accept for a limited interval of time. The step was taken to

combat black money, to make nation corruptionfree. The banknotes would exchange until

December 30 with new legal notes. The limited availability of fresh currency notes – INR 2000

and INR 500 being arises as the big issue for the people during that time.

Mobile payment app transactions increase in India, amidst the

COVID-19 pandemic:

Before the spread of COVID-19, the trend of making a transaction via mobile payment apps was already

gaining momentum in India. After the coronavirus outbreak, this activity further accelerated as

consumers started switching to digital payment methods. According to the report, mobile payment apps

such as Amazon pay, Google pay and PhonePe in India saw a significant increase in the number of

transactions made via their platforms during the COVID-19 crisis

During the COVID-19 pandemic, top mobile payment service providers

in India adopt new features to their platform:

Other interesting facts highlighted in the report include the various strategies

implemented by the top mobile payment apps in India during the on-going health crisis.

The publication also tells of insurance services launched by these payment platforms,

including a COVID-19 health insurance package provided by PhonePe. Additionally, the

top mobile payment service providers also introduced more contactless payment

services to support their users as they follow social distancing rules during the

pandemic.
 Report Coverage:

 This report covers India's payment market with a focus on the reaction of the top

mobile payment service providers to the COVID-19 outbreak. It includes

information related to payment methods used, transaction volumes, payment

trends and recent COVID-19 related news of the top Mobile PSPs in India.

 The report focuses on the strategies adopted by Indian Mobile PSP's during the

COVID-19 pandemic. Information related to both remote and in-store payments.

 The data in our reports is mostly published from the previous 12 months. The

exact date of publication of the source is stated on each chart. The time period

which the data refers to differs by source.

Report Structure:

 The overview chapter opens the report, featuring a summary of payments market

in India. The latest trends and developments are summarized on the text charts

and data highlights are provided on quantitative charts.

 The rest of the report is divided by the top four mobile PSP's presented in the

descending order of their market share of payment apps. Within each chapter,

there is a company profile, text charts with relevant news and quantitative charts.
 Depending on data availability, the following types of market information are

included: value and/or volume of transactions, number of users, payment

methods used in-store and online, COVID-19's impact on the the PSPs.

 Not all the mentioned types of information are provided for each of the covered

Payment Service Providers due to varying data availability.

2. Overview

 COVID-19's Impact on Mobile Payment Services, September 2020

 E-Commerce Payments Value, in USD billion, 2019 & 2023f

 Volume of UPI Transactions of Retail Online Payments, in billion, April 2020 -

June 2020

 Share of Consumers Who Plan to Increase Their Usage of Digital Payments In

the Next 6-9 Months Due To COVID-19 Outbreak, in %, Compared to Global

Average, April 2020

 Change in Usage of Selected Payment Methods Amid the COVID-19 Outbreak,

by Usage in the Past Month and in the Next 6 Months, in % of Consumers, April

2020

 Mobile Wallet Apps Used, in % of Internet Users, July 2019

 Market Share of Payment Apps, in %, May 2020

 Preferred Online Payment Platform, in % of Consumers, February 2020

 Share of World's Digital Payments Market by 2023, in %, July 2020

1. Google Pay:
 Profile of Google Pay in India, September 2020

 COVID-19's Impact on Google Pay's activity, September 2020

 UPI Transactions Facilitated by Google Pay, in millions, April 2020 & May 2020

 Online Payment Platform Used by Indian Consumers, in %, February 2020

2. PhonePE:

 Profile of PhonePe in India, September 2020

 COVID-19's Impact on PhonePe's activity, September 2020

 Transactions Facilitated by PhonePe, in millions, April 2020 & May 2020

 Online Payment Platform Used by Indian Consumers, in %, February 2020

3. Amazon Pay:
 Profile of Amazon Pay in India, September 2020

 COVID-19's Impact on Amazon Pay's activity, September 2020

 Transactions Facilitated by Amazon Pay, in millions, March 2020 & May 2020

 Online Payment Platform Used by Indian Consumers, in %, February 2020

4. Paytm

 Profile of Paytm in India, September 2020

  COVID-19's Impact on Paytm's activity, September 2020

 Paytm's Market Share of Payment Apps, in %, May 2020

 UPI Transactions Facilitated by Paytm, in millions, March 2020, April 2020 & May

2020

Companies Mentioned:

 Amazon Payments Inc

 Freecharge Payment Technologies Pvt Ltd

 Google Payment Corp

 ICICI Bank Ltd

 PayPal Inc

 Paytm Mobile Solutions Pvt Ltd

 PhonePe Internet Pvt Ltd

 WhatsApp Inc
 According to Analysys Mason's research (published in our recent report more than USD20

billion was transferred over m-payment services in eight countries in EMAP in 2012, and this is

set to grow significantly in the next 5 years to more than USD90 billion.
Executive Summary

The global payment market will hit a major milestone in 2020: 1.06 billion people are

expected to make a proximity mobile payment. But even as countries like China and

Sweden take steps toward a cashless society, most of the world will still rely on cash

and cards.

How many people worldwide use proximity

mobile payments?

In 2019, we expect 36.3% of smartphone users to make an in-store mobile payment at

least once every six months. Nearly all users will be in Asia-Pacific and mainly China,

which will account for a majority of worldwide proximity mobile payment users this year.

Proximity mobile payments are also popular among smartphone users in India,

Denmark, Sweden and South Korea.

Why does mobile commerce matter?

Mobile ecommerce sales account for 34.5% of total ecommerce sales in 2017, and that number

is growing.

By 2021, mobile ecommerce sales are expected to account for 54% of total ecommerce sales.

By now your website – and online store – should already be accessible on mobile devices, but that

doesn’t automatically mean your business is ready for mobile commerce.

And as eMarketers numbers suggest, you could be missing out on a lot of sales.

Per DynamicYield, “Only 12% of consumers find shopping on the mobile web

convenient“. That’s a lot of room for improvement.

More importantly, our use of mobile is influencing our buying decisions even when we

are in a physical brick-and-mortar store.

One-third of our decision to purchase is influenced by looking up additional information

on a product via our mobile device.

But before we get ahead of ourselves, let’s start from the beginning.

Are there different types of mobile commerce?

While m-commerce covers a wide variety of transactions, they can all

be categorized as one of three types:

1. Mobile shopping.

Mostly similar to ecommerce, but accessible via a mobile device. Mobile shopping is

now possible through mobile optimized websites, dedicated apps, and even social

media platforms.

2. Mobile banking.

Not too different to online banking, though you may find some transaction types are

limited or restricted on mobile devices. Mobile banking usually involves a dedicated app,

though some banks have started experimenting with the use of chatbots and messaging

apps.
3. Mobile payments.

There are so many diverse mobile payment options that we have chosen to cover them

in detail further in this article.

As a business owner, and user of BigCommerce, your exposure and interest in mobile

commerce would mostly relate to shopping and payments, which is what the rest

of this article will focus on.

Advantages (and Disadvantages) of Mobile Commerce

There are disadvantages to many forms of doing business, but this should never be

viewed as a significant hindrance.

The advantages usually outnumber the disadvantages, and there are ways to overcome

many of the pitfalls, especially when you know what some of them are.

Let’s start with the good, first.

Common Benefits of Mobile Commerce

1. Better overall experience for customers.

Ecommerce already made shopping more convenient.

Consumers were given access to:

 A wider variety of products .

 More competitive pricing.

 All without ever having to step away from their computer.

With mobile commerce, they still have these benefits, but now they don’t even need a

desktop computer.

As long as they have a mobile device, they can shop whenever they want, wherever they are.

New mobile commerce applications that enhance the customer experience even further

include:

 Augmented reality, with Ikea and Sephora among top retailers using augmented

reality apps to complement their mobile commerce business

  Chatbots and messenger apps which making it easier for businesses to interact

with their customers using apps and services their customers already use and

love.

2. Phenomenal growth potential.

eMarketer expects global ecommerce sales to reach $4.058 trillion by 2020,

representing 15% of total retail sales.

And the percentage of that belonging to m-commerce will also continue to grow, as

more online retailers see more than 50% of traffic coming from mobile devices.

This suggests that retailers investing more in mobile commerce can ultimately expect a higher

conversion rate and ROI.

3. A true omni-channel experience.

An omni-channel experience is when stores sell both online and offline — likely also

selling through multiple online channels (i.e. on Amazon, eBay, Facebook, B2B).

We’ve also been referencing the importance of listing your product wherever consumers

are already spending their time. This is increasingly known as contextual commerce, a

more strategic take on the overarching omni-channel term.

Omni-channel is about being where your customers are, and making it possible for them

to buy what they want.

And mobile commerce makes this easier than any other form of multi-channel marketing and

selling.
4.Variety of payment options.

With new mobile payment solutions emerging, it is now possible to offer customers a

truly diverse range of payment options.

This doesn’t mean we’ve moved beyond “cash or card,” but mobile commerce has given

up mobile wallets, which make one-click checkouts possible in more than one store.

No more having to manually enter your credit card details and shipping details the first time you

shop at a new online store.

Popular mobile payment solutions include:

1. Apple Pay

2. PayPal One-Touch

3. Visa Checkout

4. Amazon Pay

5. Google pay

6. Mobikwik
 7. paytm

Common Pitfalls of Mobile Commerce

1.Constant need for optimization.

This isn’t so much of a pitfall as it is a need to change your way of thinking when it

comes to developing and managing your online store.

As we will discuss later, the speed at which the pages of your website load play a critical role in

conversions and repeat business.

You will need to be aware of advancements in technology, and changes in optimization

best practices to ensure your website – at least on mobile – offers a superior experience

that is fast and simple to use.

2. Variety of payment options.

The diversity of payment options is both a benefit and pitfall when it comes to mobile

commerce.

Many mobile wallets are not available in all geographical locations, while consumers in

some locations prefer one payment option over another.

And offering more choices for payment isn’t always a good thing.

A regularly cited study from 2000 found that a higher number of choices often leads to a

decrease in sales and customer satisfaction.

It will be difficult to get the right mix of payment options when your online store first

launches, but in time you will gather reams of data about your customers that will allow

you to adjust them to what your customers use and want.

One-click solutions will always be preferable because they make checkout less

cumbersome, but don’t ignore some payment options because they only work in certain

locations.

3. Easier for customers to compare prices.

The traditional way to do a bit of comparative shopping was to know your prices in

advance, by scanning a number of catalogues and advertisements before you went to

any physical stores.

Alternatively you could have moved from one shop to another, and get a great workout

in the process.

But mobile commerce has – again- simplified this.

Armed with little more than a mobile phone, customers are able to rapidly compare the prices –

and shipping costs – for dozens of stores until they find the one offering the most value.

And most of the time this happens without you even knowing it.

You can overcome this by – like your customers – constantly being aware of what your

competitors are charging for the same products, not just those close to you, but also

those miles away, and even across borders.

4. Need to know and comply with a wider range of regulations.

This is a pitfall for both traditional ecommerce and mobile commerce: knowing and

complying with a large number of tax laws and other regulations for all the countries you

ship to.

Some online stores avoid this by only selling and shipping to residents of one country,

or only a small handful of countries.

But this severely limits the size of your market, which is meant to be a benefit of ecommerce.

It is true that some products can only be shipped to a few international markets, but for

everything else you should – as your business grows – investigate the feasibility

of expanding across borders.

A smart alternative is to make some of your products also available via Amazon, so

while your own online store only ships to certain locations, through Amazon you are

able to ship far more widely. With Amazon taking care of many of the regulations

involved.
Which companies are the leading proximity

mobile payment providers worldwide?

The big three—Apple Pay, Google Pay and Samsung Pay—are the top providers on a

global level, as well as in the US. Local players Alipay and WeChat Pay dominate in

China, while Paytm leads in India. Mobile Pay, Vipps and Swish are notable for their

strong adoption rates in the Nordic countries, while Mercado Pago has made inroads in

less-developed markets in Latin America.

What’s driving proximity mobile payment

adoption?

Early adopters of proximity mobile payments have several things in common, including

one to two dominant players in their country and high levels of mobile shopping and
buying. Other main drivers are government initiatives, widespread smartphone usage

and cultural factors.

What are the barriers to proximity mobile

payment adoption?

A lack of infrastructure and large unbanked populations have held back proximity mobile

payment adoption in some emerging markets. In developed countries, including the UK,

Finland and Australia, the widespread use of contactless payment cards has been a

barrier to adoption. Privacy and security are also concerns for many consumers across

the globe.

WHAT’S IN THIS REPORT? 

This report provides an overview of the global proximity mobile payment landscape,

including adoption trends in major markets and key players. It also includes our forecast

for proximity mobile payment users in 23 countries and worldwide.

 Analysis Mason identified 61 m-payment deployments in 17 countries in EMAP, and China and

India accounted for more than a third of them. Operators are not the only ones providing m-

payment services – only 29% of surveyed services are solely run by operators.

The forecast shows the number of smart phone user in India from 2013 to 2019. For 2016, the

number of smartphone user in India is estimated to reach 204.1 million. India second largest

country in the world projected to pass the united states in the numbers of smartphone user in

2017. Years Smartphone user in Million in India (Millions) 2013 76 2014 123.3 2015 167.9 2016

204.1 2017 243.8 2018 279.2 2019 317.1 Source:- Statistica 2016 The new concept has already

gained much popularity in the US, Europe, and Africa.

In India, though, basic banking transactions and mobile payments are available, but with the

increasing use of Smartphone, tablets, latest-applications enabled mobile devices and increasing

3G penetrations in Indian digital market, the mCommerce service is creating its space in the

market that can comply with country regulatory guidelines. However, there are future challenges

that the industry needs to face

.
 Following the path of major player Kenya’s M-PESA which has facilitated people mobile

banking using mobile devices, in India, RBI and TRAI, financial institutions, operators and

service providers have partnered with each other to take mCommerce to rural India. For

example, SBI and ICICI bank have partnered with a mobile banking technology partner “EKO”

for their mobile banking solutions. Likewise, other banks are also following them. According to

a report by Boston Consulting Group, there is an ample scope for mCommerce in India.

At present, India has over 800 million mobile subscribers, including 240 million with bank

accounts, and 20 million with credit cards; there are 88,000 bank branches and 70,000 cash

points. The additional fact is that the half of Indian households is still unbanked, including 42%

holding at least one mobile phone. This opens a great opportunity for mobile phone industry and

financial institutions to galvanize mobile commerce services in India.

It is evident that mCommerce and mPayments services have significantly been building its

market in India; and in the near future it will grow rapidly. There are some obstacles such as

security of financial transactions and speed of user interfaces.

 Another major obstacle to mcommerce in India is meeting the Know Your Customers

(KYC)norms. Though, following Kenya‟s National ID system which propelled its m-commerce

to a huge success, if India gets its Unique Identity Development Authority of India (UIDAI) or

Aadhar project successfully implemented, mobile commerce will rise in India to become the next

generation mCommerce for its mass adoption.

 CONCLUSION

Mobile commerce is going to play a major role in mpaymet conducting business in future.

Future of m-commerce services is very difficult to predict. With heated competition in markets,

different mpaymet strategies, and more customer awareness give a boost to mobile commerce

services growth. That will be change the mpaymet pattern.

There are some important factors that will significantly contribute the boom of M-commerce

industries in India. Retailer takes the advantage of various mpayment and in the same time they

can make the electronic order and should be in touch with customers all the time. People are

getting in touched with m-commerce.

They can make the electronic order anytime and anywhere. Mobile commerce services will

certainly be successful in India, but telecom companies and banks do need to spend more to

provide safety and security from intrusions and hacking. Further, they also need to build

awareness among the consumers by embracing the technology and promoting it ingenuously.
 RECOMMENDATIONS

The particular survey conducted is been conducted at a very small scale, so the further

recommendations for this is that, it can be performed at larger scale and ratio between females

and males; and between different age groups need to be calculated, as different gender and

people of different age groups can have different thought processes for the same.
 Definition of key terms

What is Mobile-payment?

According to data pro research Gartner Mobile payment is any payment transaction involving the

purchase of goods or services that is completed with wireless device, such as a cellular phone,

personal computer (wireless), or personal digital assistant. Mobile payment is a new emerging

way of paying by using a mobile terminal to initiate transaction over a mobile network. Mobile

payment is exciting because it extends the reach of electronic-payment facilities beyond the

limitation of the PC or TV to the hundreds of millions of mobile phone users. Many network

vendors, mobile operators, and mobile services providers are enthusiastic about mobile payment,

believing mobile payment is to be one of the hot topics in today' service market, creating new

meaning for mobile phones.

What is Mobile commerce?

Mobile Commerce refers to wireless electronic commerce used for conducting commerce or

business through a handy device like cellular phone or tablets. It is also said that it is the next

generation wireless ecommerce that needs no wire and plug-in devices.

Mobile commerce is usually called as “m-Commerce” in which user can do any sort of transaction

including buying and selling of the goods, asking any services, transferring the ownership or rights,

transacting and transferring the money by accessing wireless internet service on the mobile handset

itself. The next generation of e-commerce would most probably be mobile commerce or m-commerce.

Electronic shopping / Internet shopping/ online shopping:

Online shopping is a form of electronic commerce which allows consumers to directly buy goods

or services from a seller over the Internet using a web browser or a mobile app. Consumers find a

product of interest by visiting the website of the retailer directly or by searching among alternative

vendors using a shopping search engine, which displays the same product's availability and pricing

at different e-retailers.

As of 2020, customers can shop online using a range of different computers and devices,

including desktop computers, laptops, tablet computers and smartphones.

An online shop evokes the physical analogy of buying products or services at a regular "bricks-and-

mortar” retailer or shopping center; the process is called business-to-consumer (B2C) online

shopping. When an online store is set up to enable businesses to buy from another businesses, the

process is called business-to-business (B2B) online shopping.

A typical online store enables the customer to browse the firm's range of products and services,

view photos or images of the products, along with information about the product specifications,

features and prices.

What is mobile wallet?

Mobile Wallet is also known as mWallet, digital wallet, or eWallet. It is

basically referred to a mobile technology that is used the same as a real

wallet. 

Mobile Wallet is a type of payment service through which individuals can

receive and send money by mobile devices. It is a form of an e-commerce

model designed for the mobile devices for the convenience and ease of

access. Mobile Wallet is also known as Mobile Money or Mobile Money

Transfer.
What is GST in India?

GST is an indirect tax which has replaced many existing indirect taxes in India. GST stands for

Goods and Service Tax, It passed in the parliament on 29th March 2017, and this act came into

effect from 1st July 2017.

Along with its impact, it also became mandatory to implement in invoice functionality for all e-

commerce sites.

Here I am going to state the understating of the GST logic, and the logic will apply to all kind of

stores either Magento, WooCommerce, Shopify, Big commerce or any other store.
E-Commerce

E-commerce is ruling the roost, of late. With the rise of hectic lifestyle and monetary capacity of

the urban mass, convenience of these e-commerce sites have been sought as a blessing in

disguise. One click-and the object you desire is at your doorstep. As most of the e-commerce

work on the 1-2-3 step model, it’s so simple that you don’t need great technological know-how

to avail it. Initially, e-commerce was restricted to the Tier 3 cities, catering to the urban crowd.

But slowly as the capita began to flow into the suburban and rural areas-more people of the

suburbs started demanding for a reach in their tier 2 and tier 1 city. Thus, bases were spread out

to the suburbs.  For these tier 2 and tier 1 cities, the access to such websites is through their

mobile phones. Also, the era of smartphones and the “app” business have given m-commerce an

entity of its own.

 BIBLIOGRAPHY

https://www.bigcommerce.com/blog/mobile-commerce/#common-pitfalls-of-mobile-commerce

https://yourstory.com/mystory/8098f4c7e8-how-big-is-mobile-paym?utm_pageloadtype=scroll

https://www.academia.edu/

https://www.researchgate.net/

https://www.emarketer.com/content/global-mobile-payment-users-2019

timesofindia.indiatimes.com

https://en.wikipedia.org/wiki/Unified_Payments_Interface

https://www.statista.com/statistics/748053/worldwide-top-countries-smartphone-users/

www.dazeinfo.com
“Thankyou”