MobiKwik introduced mobile wallet to embrace Short term consumer loans

India: MobiKwik recently opened mobile wallet service to provide short term consumer loans. Company claims to be the first wallet company to roll out this kind of service where user may register themselves for EMI’s. The service allows users to avail loan of 50k which can be approved within thirty minutes. 

MobiKwik will give short term credits to its users for one-time festive buying from its merchant partner as well as for other personal transactions. The company provides services to approx. 35 million users with 1 lakh retailers and partnered around 50000 business including PVR, Pizza hut, Jabong etc.

MobiKwik aims to become a full stack fin-tech company and is partnering with few NBFC’s to provide short term loan services. The company will be rolling out loans based on credit score developed in-house and the number of transaction a user made using MobiKwik platform.

TechSci Research depicts that with growing awareness of mobile wallet and majority of the transactions still done in cash is paving way to high usage of e-wallet services. The companies offering mobile wallet services are entering into 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 US$ 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.