According to a report by CLSA, the surge in digital payments in India amid the Covid-19 crisis will accelerate mobile data or 4G penetration to build an ecosystem of services.
Further, the report added that acceleration in data penetration will especially be positive for Bharti Airtel and Vodafone Idea, as 50 per cent of their subscribers are yet to upgrade to 4G. While, in services, Reliance Jio will benefit the most resulting from its recent partnership with Facebook for JioMart rampup.
Within the digital space, mobile accounts for 50 per cent to 75 per cent of transactions in volume and value. However, India’s mobile data penetration stands at 57 per cent even as mobile penetration is 87 per cent. Growing digital payments will accelerate this penetration, the report said.
Digital payments had jumped three-fold over the last two years to three billion transactions a month.