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Mobile recharging company Mobikwik has integrated its mobile wallet into e-commerce websites such as eBay and Nykaa, apart from adding cashback for transactions made via its wallet on these sites. We reached out to the company for more details but haven’t heard back from them yet.

Speaking to Medianama recently, Mobikwik co-founder Bipin Preet Singh said that people are currently using its wallet service mostly for recurring transactions like mobile recharge, bill payments, travel and bus tickets. He said that the company is seeing a growth in transactions made on e-commerce services using Mobikwik wallet. Singh added that recurring transactions are what attracts consumers to wallets. “Those who want to shop are not attracted to a wallet, he has to shop occasionally right, plus e-commerce companies also have wallets now. But when you look at recurring transactions, they go hand-in-hand because our users want that,” he said.

Singh claims that 500+ merchants including dominos, pizza hut, aircel use its wallet.

Not participating in RBI pilot

Update: Mobikwik co-founder Bipin Preet Singh has said that the company was not invited for the RBI pilot. In an email sent to Medianama Singh has said that he could have mistakenly told us that Mobikwik was invited to participate in the pilot. Please note, that the statement regarding the pilot was initially made to us on record.

Earlier (Jun 4): Singh said that RBI invited Mobikwik to be part of the offline cash-out trial using biometric authentication. RBI had launched this programme targeting wallet service providers after it put on hold Aadhaar-based authentication trial for banks.

Mobikwik decided not to participate in this new pilot for now since it is focusing more on getting people to add funds to its wallet. Singh said that there were some technical issues too with biometric authentication. “These are dedicated devices (for making payments with biometric authentication), we had also done some internal testing using these devices and it took a long time. We felt that the technology (biometric authentication) will take some time and is not completely ready yet. The network is one of the bigger problems. If you want to use it across the country, then it requires good network connectivity. The amount of data that is exchanged in biometric authentication is not small and the payload is very high,” he said.

Caspian-backed Money on Mobile had revealed recently that it was selected by the Unique Identification Authority of India (UIDAI) for a mobile cash-out pilot using biometric authentication. This pilot will be rolled out in Mumbai, Delhi, Kolkata and Surat through 52 existing retail partner locations.

Singh says that the cash-out could be done at ATMs and not just at Point-of-Sale (PoS) terminals. He also claims that wallet companies like Mobikwik can issue cards that can be used by consumers to cash-out funds in the wallet via ATMs. However, from what we understand, wallet service providers might have to tie-up with banks like the telcos have done to offer this service. He also says that Mobikwik does not need to tie-up with banks for ATM integration and can instead work with companies like Prizm that already have tie-up with banks.

To get more people to add funds to its wallet, it had started cash collection services recently. Singh however refused to reveal the number of people using this service or even the percentage of Mobikwik customers who have used this facility.

Competition: Mobikwik competes against other semi-closed wallets such as Airtel Money, Vodafone’s M-Pesa, Tata DOCOMO’s mRupee, Paytm, Beam Money, Paymate and Zipcash among others.