India's three-way payment paytm: How mobile internet is changing India's economy? Mobile payments are the key

A quiet revolution is transforming the Indian economy: the mobile internet. This medium is connecting more consumers to the web in meaningful ways. More than 801 TP3T of new broadband access is driven by mobile devices. Mobile Internet adds value to the shift from offline to online supply chains, improves efficiency, and provides consumers with more choices. Digital commerce will soon play a new role. Today, commerce drives payments. Tomorrow, payments will drive commerce.

While digital payments are currently dominated by POS terminals, these devices are costly and inefficient. More than 60% of India's retail spend comes from small businesses, which could have a game-changing impact on them if they are able to accept digital payments in a simple manner. The success of mobile payments depends on creating a network effect, which can only be achieved by leveraging existing infrastructure and retail players. Participants in the mobile payments ecosystem need to proactively address specific issues to prepare for the mass market.

Digital ecosystems can bring benefits to consumers, merchants and service providers. The strategy of building a complete value chain including banks, wallets and terminals is fundamentally flawed. For example, if you plan to build cars, you don't plan to build petrol stations and roads. Strategic partnerships with key service providers can provide the convenience and reliability needed for mobile commerce and encourage greater adoption of online transactions.

As more and more Indian consumers use mobile wallets, the dominance of cash will gradually decline. In the competition between cash and mobile payments, the key factor is not the discounts offered by mobile payments, but the enhanced consumer experience. An experience that encourages repeated use of a product without the need for incentives is what people prefer. They appreciate a natural transition more than being sold to.