 "We are working to create a meaningful m-wallet ecosystem: Pradeep Sampath")
The idea is to have a customer who transacts on a regular basis and not someone who has downloaded a wallet because there was some free money available on download, Pradeep Sampath tells Sangeeta Tanwar
What are the key growth drivers for the mobile wallet (m-wallet) market in India?
As policies get less fluid and m-wallet players scramble for a share in the great Indian marketplace, technology is emerging as the key driver. We see increasing use of technology in the mobile commerce space in India addressing newer market segments. The growing adoption of smartphones too is encouraging people to explore payment options such as the m-wallet for carrying out cashless transactions.
The service we provide is similar to the other m-wallets that are available in the market with a subtle difference - we are focused on a customer using his cash and bank account to load money into the m-wallet for convenience and security. So we are not playing the role of a payment gateway for debit and credit cards. Furthermore, our services are open to anybody and everybody. mRUPEE is an operator agnostic product, which means that if the customer owns a mobile phone and avails of the service of an operator, we should be in a position to service her.
We aim to further differentiate our services by catering to the needs of not just the customer segment that is the B2C (business to consumer) space but also to the business to business (B2B) segment including traders, shop owners, enterprises and businesses. We are also looking to cater to the needs of the rural market. Our customer target consists the youth, the young working class and home makers who find mRUPEE very useful in their day to day life while making payments to the merchants that we have acquired. We are also going to add specific use cases and customer centric offers, which will make the mRUPEE proposition very compelling to our target segments.
What is the company's plan to enhance coverage of its m-wallet service?
Our growth strategy revolves around creating a meaningful ecosystem that works, and what I mean by this is to have a customer who transacts on a regular basis and not someone who has downloaded a wallet (because there was some free money available on download).
For this to work effectively, MMP Mobi Wallet Payment Systems Limited (MMPL) positions itself as an enabler of transactions and we are on the lookout for partners who would want to enable their customers with a simple prepaid proposition. For example, it could be a simple NBFC or an MFI who wants to enable their customers to save money on the wallet to pay for their EMI. If this were to happen, we would help create an ecosystem where each partner benefits. The customer will eventually figure that this is a convenient tool, which helps him save on his expenses. The enterprise in return will know how much money is available on the wallet and what percentage of his collections is assured and, hence, he can plan his cash flows. Our services are gaining traction but scaling up is going to take some time as these benefits need to percolate downstream and we need to create multiple such reasons for a customer to keep using our wallet.
What are the key challenges impacting the uptick of m-wallet services in India?
A key limitation for an m-wallet at this point is the availability of merchants. Instead of leveraging the merchant ecosystem that is already present m-wallet service providers have to look for multiple merchant relationships that take time for integration. That is turn delays the process of adoption. Also, some amount of liquidity needs to be given to the wallet which would help customer pull out money if they need it.
What is the next big trend that is likely to define the m-wallet space?
India is experiencing tremendous growth in the use of internet as well as the mobile. There are just under a billion cell phone connections in India and the country adds around six million new cell phones every month. Although the number of internet users is still low in comparison - around 200 million users - the conversion of cell phone users to mobile users is growing fast. As per telecom industry estimates, 65 per cent of all new internet users in India experience their first internet surfing activity through the mobile.
I anticipate that many players will develop integrated m-wallet apps, along with the usage of heavy online and offline marketing. In markets with a more advanced payments system in place, mobile wallets will have to do more than just execute a payment; they will have to add a value proposition beyond payments.
What are the key growth drivers for the mobile wallet (m-wallet) market in India?
As policies get less fluid and m-wallet players scramble for a share in the great Indian marketplace, technology is emerging as the key driver. We see increasing use of technology in the mobile commerce space in India addressing newer market segments. The growing adoption of smartphones too is encouraging people to explore payment options such as the m-wallet for carrying out cashless transactions.
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What are the service differentiators for the company's m-wallet brand (mRupee) in an industry where all the players have more or less similar offerings?
The service we provide is similar to the other m-wallets that are available in the market with a subtle difference - we are focused on a customer using his cash and bank account to load money into the m-wallet for convenience and security. So we are not playing the role of a payment gateway for debit and credit cards. Furthermore, our services are open to anybody and everybody. mRUPEE is an operator agnostic product, which means that if the customer owns a mobile phone and avails of the service of an operator, we should be in a position to service her.
We aim to further differentiate our services by catering to the needs of not just the customer segment that is the B2C (business to consumer) space but also to the business to business (B2B) segment including traders, shop owners, enterprises and businesses. We are also looking to cater to the needs of the rural market. Our customer target consists the youth, the young working class and home makers who find mRUPEE very useful in their day to day life while making payments to the merchants that we have acquired. We are also going to add specific use cases and customer centric offers, which will make the mRUPEE proposition very compelling to our target segments.
What is the company's plan to enhance coverage of its m-wallet service?
Our growth strategy revolves around creating a meaningful ecosystem that works, and what I mean by this is to have a customer who transacts on a regular basis and not someone who has downloaded a wallet (because there was some free money available on download).
For this to work effectively, MMP Mobi Wallet Payment Systems Limited (MMPL) positions itself as an enabler of transactions and we are on the lookout for partners who would want to enable their customers with a simple prepaid proposition. For example, it could be a simple NBFC or an MFI who wants to enable their customers to save money on the wallet to pay for their EMI. If this were to happen, we would help create an ecosystem where each partner benefits. The customer will eventually figure that this is a convenient tool, which helps him save on his expenses. The enterprise in return will know how much money is available on the wallet and what percentage of his collections is assured and, hence, he can plan his cash flows. Our services are gaining traction but scaling up is going to take some time as these benefits need to percolate downstream and we need to create multiple such reasons for a customer to keep using our wallet.
What are the key challenges impacting the uptick of m-wallet services in India?
A key limitation for an m-wallet at this point is the availability of merchants. Instead of leveraging the merchant ecosystem that is already present m-wallet service providers have to look for multiple merchant relationships that take time for integration. That is turn delays the process of adoption. Also, some amount of liquidity needs to be given to the wallet which would help customer pull out money if they need it.
What is the next big trend that is likely to define the m-wallet space?
India is experiencing tremendous growth in the use of internet as well as the mobile. There are just under a billion cell phone connections in India and the country adds around six million new cell phones every month. Although the number of internet users is still low in comparison - around 200 million users - the conversion of cell phone users to mobile users is growing fast. As per telecom industry estimates, 65 per cent of all new internet users in India experience their first internet surfing activity through the mobile.
I anticipate that many players will develop integrated m-wallet apps, along with the usage of heavy online and offline marketing. In markets with a more advanced payments system in place, mobile wallets will have to do more than just execute a payment; they will have to add a value proposition beyond payments.