Over 50% consumers will be in mobile banking ambit by 2015
Mumbai: With the Reserve Bank hiking the mobile banking transaction limit to Rs 50,000, more than 50 percent of bank account holders are expected to come under this platform by 2015, a leading service provider said.
"The recent hike in the limit of mobile banking transactions by the Reserve bank will be a boost for the industry and will bring more than 50 percent of Indian bank account holders under the ambit of this platform by 2015," PayMate`s Managing Director, Ajay Adiseshann told reporters.
Banking regulator, Reserve Bank of India, had recently, hiked the limit of mobile banking transactions from Rs 5,000 to Rs 50,000.
The opportunity in mobile banking has become enormous and more than 50 percent of India`s 20-crore bank account holders would become beneficiaries of mobile banking, he said.
"This would be because of the high mobile penetration in the Indian market and the ease and comfort provided by mobile banking," Adiseshann said.
PayMate has now emerged as a leader in its segment with nearly nearly 40-45 percent of mobile banking clients using the company`s gateway for their trnsactions, a survey conducted by AC Nielson said.
The company has already tied-up with 25 major banks in India including SBI, HDFC Bank, Corporation Bank, ABN Amro and Standard Chartered, among others.
"Apart from these 25 banks in India, we have tie-ups with banks outside India as well which take the number to 32. We are (also) in advanced stages of discussion with other banking majors like ICICI and Axis Bank," he said.
The company presently has 15-lakh clients out of the nearly 35-lakh M-Commerce clients in the country.
"Convenience of the medium and speed in transacting will attract more people to mobile banking," he said.
"India`s mobile connections are expected to reach 50-crore by 2010. And it is 4-5 times higher than PC penetration. For internet banking, you need a PC with internet connection. But for mobile banking, you just need a basic mobile connection with any phone service provider," Adiseshann said.
Unlike a credit card, mobile banking is more financially viable for merchants too. Normally credit card players charge up to 2.5 percent commission per transaction from merchants whereas they will be charged only 1 percent commission in mobile banking.
PayMate has a 50:50 revenue sharing model with banks, he said.
Account holders can register with PayMate for the free service using the bank`s website or ATM or physically submitting a form in the branch, he said. After registering the mobile number, the account holder will get a 4-digit PIN number which can be used in all transactions.
"When a customer wishes to pay via mobile at a PayMate merchant (online or offline) all he has to do is share the mobile number. He will instantly receive an automatic IVR call-back from PayMate confirming the transaction amount and asking for authorisation with his PIN," Adiseshann said, adding that "Once he enters the PIN, within a few seconds he will get a response confirming the transaction status."
The company is following PCI-DSS (payment card industry data security standard) for enhanced security of the transaction process, he said.
In the last two years, the company has recorded a growth of more than 150 percent and Adiseshann said that the company expects to maintain or exceed this growth in the next five years.
More from India
More from World
More from Sports
More from Entertaiment
- PM Narendra Modi's speech at Heart of Asia conference
- Is population control next on central govt's agenda after demonetization?
- Gujarat: Goods train engine catches fire in Surat
- India-Afghanistan thrash Pakistan over terrorism issue in Heart of Asia conference
- Watch: Tracing the journey of late Tamil Nadu CM Jayalalithaa from films to politics
- RIP Amma: Jayalalithaa dies after 75 days in hospital; Tamil Nadu mourns
- Fake or Real? 'Alien animal' caught on Karnataka-Kerala border
- People want to know whether Jayalalithaa is alive or not; PM Narendra Modi must intervene, says expelled AIADMK MP Sasikala Pushpa
- Tamil Nadu CM Jayalalithaa's condition continues to remain critical after suffering cardiac arrest
- I-T department rejects declaration of Rs 2,00,000 crore made under IDS by Mumbai family