Banks are tying up with mobile wallets to strengthen their digital offerings
Hike messenger has tied up with Airtel Payments Bank to power its wallet. The tie-up will mean that 100 million users of hike can access Airtel Payments Bank services which include merchant and utility payments and also tap into its KYC infrastructure. This will help Hike users have uninterrupted services when RBI’s new KYC guidelines kick by 31st December. The new guidelines will allow interoperability (allowing customers to move money between different wallets of companies and banks through UPI) and also introduce stricter KYC norms.
As the payment space in India is set to grow very fast, banks are tying up with mobile wallets to strengthen their digital offerings. While banks are getting access to a digital wallet’s customer base, it makes sense for the wallets to have partnerships with the banks too.
Earlier this month IDFC Bank partnered with payment wallet MobiKwik to launch a virtual co-branded credit card on the VISA platform for customers of MobiKwik. 65 million virtual cards will be issued in the first phase and 260 million users of MobiKwik will have access to the prepaid card in phases.
About a week ago Paytm had tied up with ICICI Bank to launch ‘Paytm-ICICI Bank Postpaid’ which would allow customers to access short term credit after assessing the credit-worthiness of customers real time through big data algorithm. This will work like a virtual credit card and allow customers to shop on ATM using a credit line and then pay within a period of 45 days.
The thrust on digital payments and technology is rapidly changing the digital money scenario in India and making digital transactions more convenient for customers. The flurry of activity in this space can only mean that the customers stand to benefit.