Tag: mobile wallets

Paytm has received investment funds from the commerce giant, solidifying its position in India.

Alibaba Group Holding Ltd. has recently announced that it has made an investment into the company behind the Paytm mobile wallet in India, a startup called One97 Communications.

The Chinese online shopping giant revealed this news in a press release issued at the close of September.

The company has chosen to invest in the mobile wallet and online shopping site, sending Alibaba even further into the world of mobile payments. In India, this will also help the company to enhance its competitive position when compared to its rival, Snapdeal. One of its affiliates, Ant Financial Services Group, also made an investment into Paytm, back in February. It will also be joining into this most recent round of investments, said the press release on the matter. The funds will be used by Paytm in order to be able to boost its business and to place a focus on its technology, marketing and talent.

The specific terms of the agreement with regards to the mobile wallet investment have not yet been released.

That said, it is known that Alibaba and Ant Financial have made an investment of $680 million in order to boost their stake in the company from having been 25 percent to become a much larger 40 percent. Back in June, Reuters released a report that indicated that this type of investment could be worth more than $600 million, so the figures do align with what experts had been predicting.

According to the Alibaba Group CEO, Daniel Zhang, “India is an important emerging market with strong e-commerce potential.” He also added that “This investment will further expand Alibaba Group’s global footprint to India’s thriving mobile commerce market.”

This is an important market for Alibaba, which has been watching a slowing in the growth that it has been experiencing in its home country of China. As India is the fastest growing large economy on the planet, it appears to be the next logical step for a company the size of Alibaba. It is a move that is being made by a number of companies in the smartphone sphere, as mobile wallets, payment, and commerce rise in India.

MobiKwik partners with WHSmith India to make mobile payments possible in physical stores

MobiKwik, a mobile payment firm, has partnered with WHSmith India in order to facilitate mobile transactions at physical stores. Mobile commerce has taken off in India, where many consumers are showing favor for shopping for and purchasing products with their smartphones and tablets. The majority of this shopping is happening online, but demand for in-store support of mobile payments has been on the rise in recent years. As such, mobile wallets are becoming more popular and retailers are feeling the pressure to accommodate consumer interests.

Firm envisions a future where all retailers embrace mobile commerce

MobiKwik is one of the more prominent mobile payments firms in India. The company has enabled some 17 million users to make mobile transactions with more than 50,000 retailers in India. MobiKwik is currently working to expand its offline presence, supporting retailers in embracing mobile consumers in their physical stores. Part of doing this involves enabling retailers to accept payments being made by a mobile device.

WHSmith India stores will function as MobiKwik Nodes

Through its partnership with MobiKwik, WHSmith will become a “MobiKwik Node.” This means that the retailer’s physical stores will accept mobile payments and they will also serve as a place where consumers can add funds to their mobile wallets. According to MobiKwik, approximately only 0.7% of the 40 million small-to-medium enterprises in India currently accept electronic payments. The firm hopes to change this in the future by enabling these organizations to engage mobile consumers more effectively.

Mobile commerce likely to accelerate in India as more consumers make use of services that facilitate payments

Mobile payments are expected to become increasingly common in India in the coming years. The country already represents one of the fastest growing mobile markets in the world and is home to a thriving mobile population. Firms like MobiKwik have promising opportunities ahead of them, especially as smartphone penetration continues to accelerate and more consumers become comfortable with the concept of mobile commerce and the convenience that it represents.