As per data shared by India Mobile Payments Market Report, 2022 has seen mobile payments in the country grow faster than credit card payments. Here are the details:

Why have mobile payments crossed credit card payments?

Since more consumers and enterprises are starting to adopt digital payments as a result of the pandemic, the payments been made through apps have crossed credit card payments by 67%. 

Reasons for slowing cash demand 

The demand for cash in the country is slowing due to the surge in mobile payment adoption. In 2020 alone, Indian consumers made 3.7 transactions through mobile phones 2020 per 1 ATM withdrawal. Forecasts suggest that will be rapid growth in digital payments across India in the coming few years.

Top benefits of mobile payments over credit cards

  1. Security - Mobile payments allow users to use their cell phones for making in-store purchases. Many of the apps use technologies like Near-Field Communication (NFC) which allows users to simply tap or wave their phone for paying at a POS terminal.
  2. Faster payments – With mobile payments, you simply tap, pay, and go. With this, you approve the transactions. It allows a contactless but secure transaction as the card number is not revealed. This process is much faster than inserting or swiping credit cards. 
  3. Wider acceptance – More retailers across the country are starting to accept mobile payments. Researchers of this technology believe that the number of stores to accept such payments will likely grow significantly in the near future.

All of the above-mentioned benefits explain why mobile payments are the in thing of payments and credit cards may be entirely replaced in the future.