Tech Mahindra ventures into Mobile Wallet Market with MoboMoney

 The booming mobile wallet space is wooed Indian largest private technology player, which resulted in the launched its own contactless wallet 

Exploring the opportunity in the mobile wallet market, Tech Mahindra expanding its product portfolio by adding MoboMoney. This mobile wallet is India’s first contact-less wallet, which works both at online and offline stores.

Presently, Tech Mahindra has on-boarded over thousand merchants including online startups, corporate canteens, local grocery stores, chemists, and roadside tea shops. The company plans to rope in over six thousand online merchants by January.

The company plans to concentrate on top six metros in the nation to a create a dense network of merchants over next twelve months. Further, Tech Mahindra plans to aim to bring close to one million merchants in the next five years which would accept payments through MoboMoney.

Tech Mahindra approach is to target the 90 percent of the Indian people which do cash payments, not the remaining 10 percent which has access to the banking network.

MoboMoney is a prepaid tap-n-pay payment solution which is based on Near Field Communication technology. The customer can credit money in MoboMoney by using a debit card, credit card or net banking. The wallet can be used to make bill payments, over the counter payments, as well as to pay online stores. Customer which will be using this wallet can just tap its MoboMoney tag at the point of sale to process the payment. The company claims the wallet allows transactions as low as rupee one.

In August this year, Tech Mahindra got the mandate from the Reserve Bank of India to start a payment bank. The bank will be led by Tech Mahindra and Mahindra Finance, both equally contributing to the new entity. However, the payment bank operates as an independent unit under the Mahindra Group. The company’s payment bank is expected to start operations in second half of 2016.

According to the TechSci Research, the whooping mobile market in India is presently cluttered by start-ups however, the industry leaders from technology and telecom sector are also launching their wallets in the market. It is clear that the players such as PayTM will give competition to Tech Mahindra in the Indian market.

In the recent published report by TechSci Research “India Mobile Wallet Market Forecast and Opportunities, 2020” forecasted that the mobile wallet market will become more competitive in the coming five years driven by the opportunities in the market portrayed by high smartphone adoption, technology adoption by Indians and emerging segments such as radio taxi ride payments, bill payments, toll payments, institution fees payments, and so on.