The demonetisation drive has appeared as a boost for mobile wallet apps like Paytm and MobiKwik which are seeing an increase in traffic and bank transactions. MobiKwik claims it has registered a 7000 per cent increase in bank transfers after the move. Unlike Paytm which charges a 1 per cent for bank transfers, MobiKwik has completely removed the bank transfer fee.
With many citizens still hunting for cash, bank transfers via mobile wallet are a quick and easy solution for many people. Users can transfer up to Rs 1000 via bank transfers on the MobiKwik app. However, those who have an upgraded eKYC compliant wallet can transfer up to Rs 5000.
“The idea behind announcing 0% fee on bank transfers was to promote the adoption of mobile wallets among Indians. We have since observed growing confidence among masses, including users and unorganised merchants, who adopted to wallet payments without any hitch,” Mrinal Sinha, COO of MobiKwik said in a press statement. The company claims it has registered an 18-fold growth in transactions since the government announced demonetisation.
“We have super-accelerated our plans to reach small merchants and businesses simultaneously across top cities through multiple tie-ups, radio campaigns and SMS campaigns,” added Mobikwik CEO Bipin Preet Singh said.
MobiKwik claims to have 35 million customers and is accepted at over 1 million offline stores. The app has seen a 40 per cent increase in downloads since the government’s demonetisation initiative.
The boost in usage has resulted in MobiKwik revising its monthly annualised Gross Merchandise Value (GMV) sales target by 10 times to $10 billion by 2017. “User traffic and merchant queries have also gone up by 200 per cent since the announcement of currency notes ban on November 9,” Bipin pointed out.
As part of the demonetisation offering, MobiKwik has introduced a new feature where e-commerce players can ask for payment via “MobiKwik on delivery” since cash on delivery has become a non-option for many.