The Indian mobile wallet industry has had a golden run ever since the government pulled off its demonetisation stunt last year. While Paytm is currently leading the pack, there are others who are trying to catch on to the leader of the market. One such player trying to make a mark for itself is Mobikwik. The company recently announced its plans to introduce country’s first debit-cum-credit wallet.
“Mobikwik is becoming India’s first debit plus credit wallet, where people could have exclusive credit lines, credit cards and EMI cards mapped through the app, increasing the purchasing power of users and enabling them to get lending products available at cheaper interest rates,” said MobiKwik Co-founder Upasana Taku in a statement to IANS.
The news comes on the heals of the mobile wallet company raising Rs 225 crore from Bajaj Finance. Under the agreement signed between the two parties, Bajaj will be picking up nearly 11 per cent stake in the company, which means acquiring 10 equity shares and 271,050 compulsory convertible preference shares (CCPS) of Mobikwik.
Last week, Mobikwik’s rival and Snapdeal-owned payment arm Freecharge was sold to Axis Bank for Rs 385 crore.
Starting its journey eight years ago in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik has grown to become a major mobile payment network having over 15 lakh direct merchants and 55 million plus users on its platform.
Upasana believes that being a debit-cum-credit wallet will give the company a ‘leapfrog effect’ as all wallets operating in the Indian subcontinent are mostly debit wallets.
In alignment with its deal with Bajaj Finance, MobiKwik will now also be providing its users with access to buy all types of insurance through its app. The MobiKwik users will also be provided with access to credit cards, EMI cards and personal loans right through the mobile application.
Seeing the high inflow of customer interest in digital payments, a lot of companies are coming up with innovative ways to capitalise on the opportunity. Recently, we reported how a Slovenian company named Margento has decided to bring its technology to India which will allow low-cost feature phones users in India to make mobile payments without internet (Read Here). It seems, the Indian digital payment market is going to see a lot of activity in the coming years.
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