My Mobile Payments Ltd (MMPL) is a mobile wallet service in India. It was launched in 2010 and is headed by Shashank Joshi who is a Managing Director and a serial entrepreneur. MMPL owns and operates a mobile money platform called Money on Mobile (MoM) in India
Back in 2011, RBI approved MoneyOnMobile’s request to set up semi closed payment system in India enabling users to buy products and services from a registered merchant. MoM claims to have over 151,300 retailer touch points including presence in over 300 cities in India. MoM also has tie ups with 15 telcos and 6 DTH providers.
MoM’s service caters to both B2B and B2C segments, even targeting the unbanked population in India. Money on Mobile resells prepaid phone and prepaid TV time to retailers which are resold to consumers. MoM also allows its users to send money over mobile (domestic remittance) or make payments which include utility payments, buy rail tickets, buy movie tickets, etc.
MoM is backed by a Dallas based publicly listed firm, Calpian, Inc. which deals in electronic payments processing. In April 2012, Calpian acquired significant ownership in MMPL through a sister firm called Digital Payments Processing Limited (DPPL). According to Calpian, DPPL is a customer face of MoM, provides customer support and back end processing functions to MMPL’s operations. Management team of MMPL also share responsibilities at DPPL. As of July, 2013 according to SEC, Calpian has invested $7.36 Mn and acquired a 62.5% stake in DPPL.
In one of the latest developments according to Medianama, MMPL is seeking approval from FIPB (Foreign Investment Protection Board) for directly raising funds from Calpian through a written application filed in August 2013. FIPB, is yet to pass a verdict on the filing. Shashank Joshi, spoke about this to Medianama and stated that they are planning to raise a total of $50 Mn in investment spread over two phases ($10 Mn in 2013 and $40 Mn in early 2014) for advancements to their existing mobile payments services.
In India, MMPL competes with Beam Money, Atom Technologies, Bharti Airtel, PayWorld, Paymate, ZipCash, etc. Beam Money and ZipCash are its direct competitors. As of 2011, Beam Money has tie ups with 50,000 retail distributors and processes over $80,000 in mobile top up transactions every day. ZipCash has partnered with Loop Mobile Phone Company. Loop has over 31 Mn mobile phone users and has tie ups with over 6,000 retail distribution outlets.
LTP View: MoM setting up a semi closed payment system in India has a huge potential. With this investment they show be able to grow it faster.