The India mobile wallet market is forecast to reach $4.4 billion in transactions by 2022, with a CAGR of over 148 percent during 2017-22, according to a new report from Research and Markets.

India has already become the world's second biggest smartphone market after overtaking the U.S., according to a press release about the report. Apart from growing economy and population growth, India is also witnessing other trends, like surging internet penetration, rising smartphone ownership, modernization of lifestyle due to urbanization coupled with improvement in education level.

India's mobile wallet market registered whopping growth, with a CAGR of 48.85 percent during the review period of 2012-2016, according to the report. The market advanced on the back of rising smartphone ownership, surging internet penetration, increasing disposable income and convenience associated with such services.

The market is forecast to gain immensely during the forecast period of 2017-2022, due to the government's decision to demonetize INR 500 and INR 1000 currency notes and focus on making India a cashless and digital economy. This will help the industry and directly benefit companies like Paytm, FreeCharge, Oxigen and others, according to the report.