Accordingly to our credible sources, it has come to light that some major influencers (digital stars) in the Indian market may be coming up with their own digital (and mobile) wallet systems. There are already some known players in the market who have established digital wallets for consumer usage, but now some e-commerce players and online/mobile ticketing players are also delving into the digital wallet arena. As an overall trend, it's great as the digitization (and mobility) of money can make things very convenient for the consumer to buy goods online and in the stores. Key stakeholders from the central bank (RBI) and entities such as NPCI have been highly focused on reducing dependency on cash, on digital money initiatives, and financial inclusion in the nation. RBI is currently also in the process of issuing the payments bank license in India, paving the way for payments innovation in the country.
This drive towards payments innovation in India has drawn the attention of the digital, eCommerce and app based product industry, specifically in digital wallets. The Indian market already has a number of active digital wallets like Paytm, Mobikwik, PayU, Oxigen, etc. Although these are dedicated digital wallet companies who established their systems from the ground up, many players who were outside of this domain also now wish to incubate such capabilities. Some of these players already have close collaborations with some of the existing mobile wallets in the market and wish to leverage the experience gained so far in developing their own systems.
There are a number of use cases springing up in the Indian market that highlight the path to the digital wallet revolution in the country:
Expected digital wallets that have not launched yet:
Snapdeal’s very own payment gateway Klickpay went live earlier this year. The gateway was launched in order to support online payments for Snapdeal’s web portal. Earlier this month, Snapdeal acquired FreeCharge, one of India’s fastest growing mobile transactions platform. Combining the power of Klickpay and FreeCharge, Snapdeal is now capable of coming up with an effective digital wallet solution. Between FreeCharge’s effective m-commerce capabilities and Klickpay’s payment rails capabilities, it seems Snapdeal may come up with a digital wallet solution very soon.
The online second hand marketplace recently updated its service to include buy (and pay) through Quikr as highlighted by the following illustration:
Considering that Quikr is beginning to provide options such as this (although just cash right now) to buyers in the marketplace, the next logical step would be to offer an effective digital wallet service to further assure a seamless collection of payments. Cash replacement would make a lot of sense.
BMS is the largest online ticketing platform in India. It lets you book tickets for movies, events and more. On both its online, as well as mobile platforms, BMS offers “QuikPay”, a solution that securely stores your payment card details and supports 2 factor authentication during payments. Now, BMS can itself take the “QuikPay” solution forward and convert it into a complete digital wallet solution. This new digital wallet could possibly be used to conveniently purchase snacks and other amenities after a ticket transaction at the movies, all using the same solution.
Digital wallet solutions that already exist:
QuikWallet is being portrayed as one of India’s first complete mobile wallet solutions by LivQuik Technology Pvt. Ltd., a payments startup in India. The mobile wallet solution lets you check-in at partner merchants, handle transactions related to billing, and avail loyalty offers. The mobile wallet securely stores the transaction details and claims that it can even initiate payments via QR code scan or NFC. The company already claims to have around 100 restaurants as merchant partners. Here is a video illustration highlighting what QuikWallet is all about:
Already known for its digital wallet initiatives, the company recently launched a dedicated mobile wallet app for the iOS platform. The Paytm Wallet app can be used to transfer money, request money, securely store money online and make payments online. The app also lets users redeem exclusive offers and discounts when making payments at select merchant partners. Paytm credits are a prime source of payments for Uber in India. With the new iOS app, Paytm is portraying itself as one of the leading digital wallet players in India.
The quest for the cashless society has begun in India. Watch out for more action!