Digital Wallets are everywhere…literally. 2015 will be remembered as an year where Digital or Mobile Wallets became a significant part of our payments ecosystem.
Tech Mahindra, the Tech & Software development arm of Mahindra Group, today announced launch of MoboMoney, a NFC based, contactless digital payment ecosystem. MoboMoney will be the first commercial roll-out of NFC (Near Field Communication) for an ecosystem.
MoboMoney is essentially a prepaid wallet issued in the form of an NFC (Near-Field Communication) Contactless Tag. It can be used to ‘Tap n Pay’ on NFC enabled Merchant POS (Point of Sale), thus allowing customers without an NFC-enabled phone to enjoy the simple tap and pay experience to purchase goods.
The company in it’s press release has said that MoboMoney Mobile Wallet application will soon be available to use the embedded NFC capability of mobile devices that would simplify and enhance the customers’ payment experience.
Mr. Vivek Chandok, Head – Consumer Businesses, Tech Mahindra Ltd. said, “In our endeavor towards a less-cash environment, we are taking the lead to setup an ecosystem, wherein digital payments can be accepted irrespective of form factors or service providers in an inter-operable and device-agnostic manner. The simplicity is in the Tap and Pay experience as against remembering complex syntax or having any knowledge of using the Internet or mobile application. It works irrespective whether it’s a smart phone or a feature phone.”
How will MoboMoney Function?
Consumers can load their MoboMoney digital wallets through Mahindra’s 1000+ retail network. They can convert cash into eCash (or balance in MoboMoney Wallet).
The money loaded into the customers’ digital wallets can then be used to Tap n pay for over the counter payments, recharges, make bill payments, as well as pay online – converting what were earlier payments done in cash, into digital payments.
Consumers has a option to link a bank account to the MoboMoney wallet and retrieve the unspent amount from the wallet into the linked bank account.
Rise of Digital/Mobile Wallets
We have already written in length on why Digital wallets are threatening Physical wallets and the growth in digital wallet numbers show that they are the future of Indian payment ecosystem. That’s precisely the reason why every Tech, telecom and mobile company are trying to get into this business.
Just earlier today, Micromax announced that their smartphones will come pre-loaded with mobile wallets in partnership with Transerv.
Indian mobile wallet market leader Paytm has been making giant strides with multiple launches and announcements since the start of the year. Now, Paytm wallet can be used for making payment for Insurance premium; Hotel bookings; Event ticketing platform; QR Code based payments; Financial services; IRCTC Payments; Delhi Metro Ride; Hyperlocal Business; Travel space; School fees and more.
Other incumbents like MobiKwik, FreeCharge, Mpesa, and others are also increasingly being used as payment method at variety of online and offline stores. Even large Banks like SBI and telecom companies like BSNL have launched their mobile wallets.
We would not be surprised that in next couple of years, cashless transactions through mobile wallets become a norm rather than an exception! What do you think?
Great! ….so, how will they get merchants to sign up??