The Tatas are betting big on mobile wallet services, a business that is poised to grow exponentially in India considering the convenience associated with the service, the large number of mobile phone users the country has as well as the government’s move to encourage cash less transactions in the economy.
Tata group company MMP Mobi Wallet Payment Systems Ltd (MMPL), the mobile wallet subsidiary of Tata Teleservices Ltd., which operates under the brand name mRupee, is gearing up to offer a bouquet of services to expand its business and stay ahead among the 38 players in this business. The firm started commercial operation in March, 2013. Since then, it has launched three services. MMPL started with domestic money remittance service for industrial workers. It gradually scaled up. The company has achieved over one million transactions, taken place across 2,500 outlets in 26 cities where it operates.
“Our domestic money remittances service has shown acceptance. Earlier this year, we launched a pre-paid payment instrument for the higher income group, which could top up their mobile wallet and use it at identified merchants or establishments to buy a gift or avail of recharge facility and pay bills. We have started booking railway tickets. The opportunity is huge,” Pradeep Kumar Sampat, COO, MMPL, said. “We have witnessed growth of 25-30 per cent on month-on-month basis. We believe our services will make a lot of difference to the rural segment where financial services are poorly established. We are investing in technology,” he added. The company is planning to launch an open-ended pre-paid card whereby a customer can load money into this card that can be used by a family member elsewhere. The other end can use this card to withdraw money from an ATM. The company is also negotiating with enterprises to help them manage their cash collections efficiently. MMPL believes that growth in e-commerce would also give a boost to mobile wallet services which can ensure payment on delivery.
Tata Teleservices intends to reach out to 900 million mobile users. Money transaction via mobile phones is gradually gaining success. Now with cash withdrawals to be allowed from pre-paid wallets, mobile payments can be a game changer for the financial sector and mobile operators.