Oxigen, a leading payment solutions provider based in India, is going into expansion mode and hiring more talent as it stays busy setting up payment networks in semi urban and rural areas. The company is also open to the idea of remittance services as an opportunity and is looking to enter the payments bank space. In order to reach its expansion goals, the company is apparently in talks with investors to pump in around $200 million of fresh funds.
For its payments bank initiative, Oxigen has already approached the Reserve Bank for a payments bank license. The company wishes to be part of the the Indian government’s financial inclusion program, and aims to tap the remittance market as well. The objective behind a payments bank is to drive financial inclusion in the country by setting up small saving accounts. These banks will be set up primarily for payments and remittances to the migrant labor workforce, low income households, small businesses and entities in other unorganized sectors.
Oxigen has transformed its technology division into a separate company called Softcom. Softcom is known for providing payment technology solutions not only to Oxigen but other players in India and Africa as well. Oxigen is ramping up its operations and workforce with the hope of getting the payments banking license. Oxigen is also working with a company based in the Gulf region, and with a North American company to allow money transfers to India. Oxigen offers a mobile wallet service called Oxigen Wallet.
It is high time that we witness a payments revolution in a country with a population of more than one billion. There is a high penetration of smartphones in India, so we can certainly expect the adoption of mobile wallets and mobile payment services to continue to rise. Companies like Oxigen are helping in setting up the next generation of payments infrastructure in India.
Narendra Modi, the prime minister of India, believes that cashless banking transactions can be the best solution to address the problem of black money, which has been a major political issue in India in the recent past. The PM wants banks to look into ways of discouraging huge amounts of money being kept in gold and other untraceable assets.
With leaders of the nation favoring next generation payment systems, companies like Oxigen indeed have a massive opportunity ahead.