In a brand new development in the digital payment sector, Tech Mahindra Ltd has launched a new wallet aimed to revolutionize the payments industry. Already an established name in the sector, the company is looking to take its digital journey to a whole new chapter with MoboMoney. Plying its trade on (NFC) Near-field Communication, the wallet is sort of firsts in the country.
How does it work?
MoboMoney works on a network of NFC enabled Merchant POS via a ‘Tap n Pay’ structure. With the penetration of mobile devices on an all-time rise, the move by Tech Mahindra seems to be bang on time. The digital wallet can be defined as a perfect amalgamation of online and offline transactions. Tech Mahindra was one of the eleven companies to get a payments bank license few months back. The whole transaction process revolves around the NFC tag. The merchants need a POS device and the customers just need the NFC tag for purchasing. For the completion of a successful transaction, the tags must be tapped once. Post entering the amount, the transaction takes place automatically. So, what makes MoboMoney different? It eradicates the pin entering process and the two-way authentication hassles. The process is much quicker than the other wallets in the market along with utmost security, thus making it a perfect contact-less payment wallet. The main advantage of the wallet is that it eradicates the normal currency with the digital currency. On the other hand, it also reduces the costs associated with the cash management and the logistics that go behind it. The overall process is not very different than the other wallets. The merchants can go ahead with the transactions as per the normal wallet process and the customers need to enter an (OTP) one-time password before the transaction. Tech Mahindra has plans in the pipeline to converge to 1 million merchants over the span of next five years. They will also be expanding their operations across six major cities including Mumbai and Bengaluru by the end of 2016. With over 1000 merchants already on the platform, the future seems bright for MoboMoney. Tech Mahindra has also made sure that they will be having a mix bucket of merchants in place. The existing merchants on the platform include roadside tea shops, local grocery stores, chemists, corporate canteens, and restaurants. The platform will have 6,000+ online merchants by early next year.
Speaking about the launch, Jagdish Mitra, Chief Strategy & Marketing Officer, Head of Growth Factories, Tech Mahindra Ltd., said, “Enabling Digital Payments in a country largely driven by cash presents a huge socio–economic opportunity to bring a positive change in the country’s financial system. To this end, Tech Mahindra leverages its strong technology background and global experience in executing Digital Payment solutions. We have embarked on a journey to enable 1 million points of acceptance for MoboMoney over the next five years.” Shedding further light on the product, Vivek Chandok, Head – Consumer Businesses, Tech Mahindra Ltd. said, “In our endeavor towards a less-cash environment, we are taking the lead to setup an ecosystem, wherein digital payments can be accepted irrespective of form factors or service providers in an inter-operable and device-agnostic manner. The simplicity is in the Tap and Pay experience as against remembering complex syntax or having any knowledge of using the Internet or mobile application. It works irrespective whether it’s a smart phone or a feature phone.”