“Buy this through XYZ digital wallet and get Rs. 50 (US$0.75) cashback on every ticket booked,” read a recent email I received from PVR Cinema.
I usually receive this a few times a week and it keeps me informed about the latest movies. The bottom of the emails, as seen, are peppered with advertisements for mobile wallets. All of them vying for your attention and begging to pay part of the ticket price on your behalf. All I have to do is make the transaction through them.
Just like this email I received, the mobile wallet space has seen the density of brands in the market soar. We now have a never ending list of applications offering consumers discounts, cash-backs, vouchers and coupon codes.
Digital wallets or mobile wallets started with mobile recharges, but have now moved up the value chain to provide a whole host of other services like shopping, paying for food and cabs and even booking a new home.
Currently, the RBI regulation stipulates a fund transfer limit of Rs. 10,000 (US$149) for a non-verified user and Rs. 100,000 (US$1,494) for a verified user. Payments Bank licenses are only granted if the companies meet certain conditions stipulated by RBI such as a minimum paid up capital of Rs. 100 Crores (US$14,948,800).
In all, 11 mobile payment licenses were granted in August 2015. We now have unlimited options when it comes to who to choose and why. Let’s talk about a few of them.
Photo credit: TheBusyBrain
Overview of mobile wallets in India
Telecom-operated mobile wallets
Basically every major telecom service provider in India has a mobile wallet as part of its product portfolio. This comes as no surprise since one of the initial services offered by mobile wallets were mobile recharges.
Airtel was one of the first movers in the market and had a joint venture with State Bank of India back in 2011. They got the Payments Bank license from RBI in August 2015 and started Airtel Money in a joint venture with Kotak Mahindra Bank. Right along with them was Reliance Jio which was also granted a Payments Bank license with State Bank of India. Idea also got their license for Idea Money with their partner, Axis Bank. Vodafone has m-Pesa, another major player in the market along with TATA Docomo with mRupee.
It makes sense for Telecom companies to be involved in mobile wallet and payment solutions. This value adds to their services, and can differentiate them from their competitors. This would definitely help in improving customer loyalty, potentially increase the average revenue per user, and move toward creating a self sufficient ecosystem.
Mobile wallets offered by banks
The distribution of the mobile wallet ecosystem in India
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