NEW DELHI: In India, the transaction value of mobile payments is expected to reach Rs 328 trillion by 2020 where it is expected to close at Rs 22.5 trillion in 2017-end, according to data shared by Aircel in ET Telecom’s webinar. Telcos can play the role in proliferating digital payments more effectively than non-telco players in this space,” said LV Sastry , Head - Mobile Banking & Commerce, Aircel. “..therefore the need for telcos to collaborate with technology companies becomes more and more relevant.”He added that when there is roll-out of 5G leading to high bandwidth, we'll see mobile payments becoming next game changer for telcos.“With growth that we've seen in last 3-4 years we can say that by 2025, more payments will be processed by non-traditional payment service players than traditional payment and banking,” said Sastry.However, currently for telcos, the revenue share from mobile payments is negligible since at this moment, more and more investment is happening in acquisition of customers and transactions.“For telcos, it's more about providing as many services to customers to make them stay with a particular telco than looking at mobile payments as a source of revenue,” stated Sastry. Although going forward, revenue streams will open up for telcos once mass integration of wallet services, merchant adoption happens.As discussed in the webinar, success of payment solutions will require strong rationale of consumers as consumers don't want to give up current traditional regime. Also, despite recent drive of demonetisation, the merchant adoption has remained the biggest and trickiest challenge to be resolved for payments service providers.While telcos have replaced a dozen of wallets, holding on to a customer has been the biggest challenge, said Sastry.Furthermore, rise in fraudulent transactions have led to insecurity among consumers leading to slow adoption of mobile payments.But going forward, the industry will see processing costs or transaction fees coming down similar to the way industry has seen drastic reduction in costs of payment gateways, Sastry believes.On being asked about Google’s latest digital payments app ‘Tez’, Sastry said,”So far there are around 3000 downloads of Google Tez and the app has to still evolve to next level since there is no such innovative offering at present.”