A Modest Proposal

According to Ericcson’s report on “Growth of mobile broadband in India”, it is estimated that mobile subscriber base will grow from 795 million in 2013 to 1145 million subscribers by 2020. Simultaneously, smartphone penetration will grow from 10% or 90 million devices in 2013 to 45% or 520 million devices in 2015. Ubiquitous mobile broadband experience for users is a challenge at present, with only a third being able to access internet over a mobile broadband network every time they attempt. With innovative Government steps to take internet connectivity to the last mile as a part of the “Digital India” initiative will increase the internet base in the Tier I, II and III cities. The Government has allocated a budget of Rs.500 Cr in the 2014-15 budget for developing a broadband connectivity in the villages.

Advent of smartphones leading to M-commerce in India

A Frost & Sullivan report indicates that India adds five million new internet users a month and all are on mobile." There are 230 million internet users out of which 130 million are mobile internet users [13]. Mobile is driving the market, especially in tier two and tier three cities in India. Half of the online shoppers in tier three cities are already on mobile, compared with just

Most of the payment aggregators address the B2B as well as the B2C segment and charge for set-up, annual maintenance and commission per transaction. A few companies like PayU are providing some cash-back offerings to gain market share in this segment. Given the competition amongst payment gateways, commissions have come down to 2-4% from 4-6% few years ago. Number of credit cards and debit cardst have reach 73.7 million and 350.4 mn in 2014.

Cash on Delivery Payment