My Wallet's Bigger Than
Yours, Freecharge Logs in
Snapdeal gets in-principle approval from Reserve Bank for wallet licence
Snapdeal-owned online recharge and utility payments platform Freecharge
has launched a digital wallet, taking on rivals Paytm and Flipkart in the
mobile payments battle. “The combination of Freecharge wallet and
Snapdeal will create one of the largest mobile commerce ecosystems,“
Freecharge Cofounder Kunal Shah said on Tuesday .
The company is planning to pro Rs 1,000 crore of cashvide for nearly ` backs
through the wallet as festive shopping picks up during OctoberDecember.
The new wallet, which will allow consumers to make payments for
transactions on both Freecharge and Snapdeal, is expected to strengthen the
ecommerce company's position as it battles two of India's largest
ecommerce companies, Paytm and Flipkart.
New Delhi-based Snapdeal said it got an in-principle approval from the
central bank for a wallet licence a fewdays ago, an executive told ET.
Freecharge, which has tied up with YES Bank to launch the wallet, said it will
become the country's largest mobile wallet in the next six months.
That would mean covering a long distance to dislodge Paytm, which already
has a strong payments business and entrenched partnerships.
During the launch, new Freecharge Chief Operating Officer Govind Rajan
took a jab at Paytm, comparing the two apps on features such as app size
and transfer charges to the bank. Freecharge has also partnered with the
payment bank licensee FINO to build scale and to reach out the underserved
population, it said in a statement.
Alibaba-backed Paytm recently received a payment bank licence from the
Reserve Bank of India.Paytm, which owns a prepaid wallet licence already ,
claims to have more than 100 million wallet users in the country .
Flipkart recently acquired payments startup FX Mart, thus acquiring a
prepaid wallet licence held by the company .
“With 87 million combined registered users, we will ensure a seamless
transition by offering easy integration and access to the platform,“ said
Anand Chandrasekaran, chief product officer at Snapdeal.
In mature ecommerce markets like the US and China, the combination of a
physical goods retailer and payments provider has paid rich dividends to
companies. “eBay and Paypal in the United States and Alibaba and Alipay in
China have proven that the combination can really work,“ said Shah of
Snapdeal said it currently has a gross merchandise value run rate of $4
billion on a monthly basis.
While companies can launch their own “closed wallets“, India's central
bank issues licence for “semiclosed“, digital wallets.
Closed wallets can only be used to enable transactions with the
company which owns the wallet. A semi-closed wallet can be used for
transactions with multiple merchants.
Flipkart had launched a closed wallet in 2011. However, after becoming
a marketplace in April 2013, it could only use the wallet for products
through WS Retail, a company hived off by Flipkart to comply with
India's foreign investment regulations on retail.
For details and bookings contact:-
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Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015