Prepaid Wallet Card in India (PDF)

India has seen rapid growth in Digital commerce business over last couple of years. Key growth drivers for the same is increasing internet users in India primary through mobile. India has already crossed 200 Mn+ internet users (>60% accessing internet through Mobile) however the internet penetration is still very low (~13%) as compared to China (~40%) and US(~80-90%). This has resultant into rapid rise of Digital commerce mainly in online travel, etail segments etc.

But Indian digital commerce growth story is different from that of developed nations. Cash on delivery, which is major contributor of growth in Online retail, encompass more than 60% of total transactions in India. India is having more than 200 Mn smart card holders but usage is still very low.

This document is to brief prepaid wallet card system in India. Wallet card is expected to reduce the quantum of cash on delivery orders and hence will increase the profitability of etailers in India which is already seeing high customer acquisition cost due to multiple players in relatively small industry as of now. The document explains the various kinds of wallet available in India, regulations around wallet card, requirement of wallet card in marketplace model etc.