Is Mobile Wallet A Distant Dream In India?
"This industry is still ascent and there continues to be innovations and experiments. Our current offering has been created post extensive research, customer insights from our pilots. However, given the scale of mobile users in India, mobile banking has the potential to emerge as a game changer in terms of costs, convenience and speed of reach," Suresh Sethi, business head - M-Pesa, Vodafone India, told IANS.
"While getting a bank account can be intimidating for the uninitiated and finding a bank branch might be challenging in rural areas, registering for an 'airtel money' (Bharti Airtel's mobile wallet platform) account on the phone is easy," a Bharti Airtel spokesperson said.
Mobile wallet is a virtual wallet on the cellphone -- one where cash is stored digitally and can be used to pay by the phone for various needs. It can be used for sending and receiving money, to pay for utility bills, buy rail and movie tickets, recharge of telecom and direct-to-home TV, as also move advanced uses like instant e- payments at shops, physical or online.
"It is an interesting arena and high demand is expected in this field in the future because there are large numbers of people in the country who are unbanked. Given the fact that mobile companies have good penetration, it is expected that they will be able to leverage their network to bring more people to use mobile wallet," Mohammad Chowdhury, telecom leader, PwC India, told IANS.
He added that there are a few restrictions to it. "Firstly there is the consumer preference issue. People in India have alternative money transfer channels like hundi. Here the channels not only give them a service, they also establish human relationship. Secondly, there are regulatory issues as well."
"Still people are unaware and lack understanding of the concept and the companies are yet to win mass consumer confidence in mobile wallet. Though it is a very easy thing, yet I have not seen many people using it. It has a high potential but it will take time to gather momentum," Chowdhury said.
India with 1.2 billion population has an impressive mobile tele-density of around 70 percent. With the rapid growth in the number of mobile phone subscribers, banks in collaboration with telecom companies are seeking to develop an alternate channel of delivery of banking services and financial inclusion.
Bharti Airtel said it has been investing substantially in airtel money to build a product that would be intuitive and user-friendly and cater to the need of the customer. "We have thus spent a great deal on creating a state-of-the-art technology platform, user experience, and training and in generating awareness and educating the masses. We have also establish a dedicated call centre that educates customers about the different aspects of airtel money," the spokesperson said.
"Our (Vodafone India) tie-up with ICICI Bank makes it possible for us to make financial inclusion possible in remote areas. It also helps us offer a full portfolio of financial services, including cash withdrawal," Sethi said. Vodafone said the service is available across India with over 65,000 agents and more than 1.4 million registered.
