“The last few months have seen a lot of action in the mobile payments space. With a lot of mainstream banks launching their apps (ICICI with pockets, HDFC with Chillr, SBI with Ezetap) to compete with existing players like PayTM & Freecharge, there has been some churn and a lot of fresh investments in this space. These platforms make sending small payments to suppliers, providers or even friends a breeze. No need of a credit card, no long credit card or bank account numbers to remember, no multi-factor authentication – this is just so easy. With the necessary security arrangements in place, there is no reason that this platform could actually become so big that even credit card giants like VISA and MasterCard may be threatened. Another great thing that this platform will do will be to expedite the financial inclusion objective of the Government of India by pushing the Jan Dhan agenda further. The cost of opening a branch in remote areas is prohibitively high for the banks and is one of the main reasons why a large number of people do not have access to the banking system. This is quite the opposite when it comes to mobile penetration – there are about 900 million mobile subscribers in India compared to barely 450 million bank accounts. The use of this platform along with using corner stores as places where money can be loaded, can drastically reduce these costs thus enabling banks to use this medium to increase penetration and financial inclusion. Yet another great example of a disruptive business!”





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