Emergence and Growth of Mobile Money in Modern India: A Study on the Effect of Mobile Money

In contemporary India, mobile payments started with the onset of delivery services known as Immediate Payment Services (IMPS) started by the National Payment Corporation of India, setting the growth cycle in motion. Mobile Money has grown significantly, especially post demonetization, enabled by `smart devices' such as smartphones, smartwatches, smart cards, toll payment devices, and voice-enabled products deploying the Internet of Things (loT). The ease and simplicity of payments through IoT devices are set to change the shopping experience and consequently retail permanently. The government of India's Digital India program is further likely to transform the entire nation into a digitally enabled society as well as a knowledge economy. Mobile money is becoming an essential tool for financial inclusion to unite the unbanked communities of rural India. Internet was introduced in India in 1995, and the first wave of e-commerce began soon after that. Artificial Intelligence (AI) and smart solutions are noticeable in the growth of mobile payments in India in dual ways, firstly in reducing fraud in high-risk mobile payments and secondly in improved Peer to Peer (P2P) Payment Platforms. Mobile payments through AI solutions is just one illustration of technology that is broadly used today, and that has already started advancing the FinTech industry forward for the Fourth Industrial Revolution. This embarks on a sound period of digital inclusion leading to mobile and internet connectivity, with the overall growth of Information and Communication Technology (ICT) networks in India. A dynamic force for next-generation e-commerce is the fast-multiplication of mobile phones, handheld computers, mobile devices and PDAs. Mobile commerce demonstrates a sea change in consumer behavior in India. This study aims to examine the growth and effect of mobile payments in India, where mobile penetration is the second highest in the world, after China. The impact of COVID-19 pandemic on the digital payments segment in India are noteworthy.. Like other economies of the world, the adverse effects of the pandemic are pervading to significant sectors of the Indian economy including retail trade, aviation, hospitality, entertainment industry, restaurants, clubs and entertainment parks. All of these sectors are experiencing the burden of the slowdown. In contrast, the digital payments sector comprising of groceries, online money transfer, Over The Top - OTT streaming media services, online gaming, online education is experiencing a boost. The government and RBI have asked banks to encourage their clients to use digital payment methods as a preventive measure against the COVID-19 pandemic.