Net1 UEPS Technologies, Inc. Announced to Invest USD40 Million in MobiKwik

India: One MobiKwik Systems announced subscription agreement with Net1 UEPS Technologies, Inc. Under the agreement, Net1 would invest USD40 Million in MobiKwik, and Net1’s virtual card technology would be integrated across MobiKwik wallets.

As of 2015, MobiKwik had over 32 million mobile wallet users and 100 thousand merchants. The company aims to reach 150 million users and 500 thousand merchants in coming 3-years India. The subscription agreement would allow Net1 to expand its business presence in India with one of the fastest-growing digital payment company in India.

TechSci Research depicts that with growing awareness of mobile wallet, the companies offering mobile wallet services are entering into the partnership with retail outlets and other companies to power e-cash payments. Mobile wallet market in India is surging on account of growing online transactions, rising trend towards mobile banking, and ease of usage of mobile wallet applications.

According to the recent report published by TechSci Research, “India Mobile Wallet Market Forecast and Opportunities, 2020”, the mobile wallet market in India is forecast to reach USD 6.6 billion by 2020. Growing awareness regarding the benefits of mobile wallets, rising smartphone and mobile internet penetration rates, and increasing security measures are expected to drive growth in India mobile wallet market. In 2014, Tier-I cities such as Delhi, Mumbai, Kolkata, Bangalore, Pune, etc., registered the highest number of mobile wallet users in the country, while Tier II cities such as Jaipur, Lucknow, Chandigarh, Indore, Patna, etc. are emerging cities in terms of mobile wallet usage. Banking accounted for the largest end user sector in the country’s mobile wallet market in 2014, followed by retail, telecom and transportation sectors. Few of the leading companies operating in India mobile wallet market include One97 Communication Pvt. Ltd., MobiKwik and ItzCash.