Snapdeal-owned FreeCharge has signed a deal with CCAvenue where customers of FreeCharge will have access to over one lakh merchants of the payment gateway. The association will allow FreeCharge as a payment option in CCAvenue’s merchant websites.
In recent times, FreeCharge has been stepping up an aggressive strategy to acquire both online and offline merchants. Earlier this month, FreeCharge started allowing users to transfer money from their digital wallet to other users, as well as registered merchants via a “chat and pay” feature. Merchants will be able to upgrade their payment limits of Rs 1,00,000 with necessary KYC verification. They can accept payments by registering their bank account number and geo-location with FreeCharge.
— Shiladitya M (@shiladitya) March 28, 2016
Last month, FreeCharge tied up with mobile POS solution provider Ezetap to enable Freecharge’s customers to make payments across Ezetap’s service points. In January, FreeCharge launched FreeCharge Go – a virtual card which can be used to make payments across all online merchants in India, in association with YES Bank and MasterCard.
FreeCharge says that it has 30 million registered users and that 90% of its transactions come from mobile.
Wallets vs Mobile banking
Payments via mobile banking have surged in recent times and wallet payments seem to have a long way to catch up to the volumes in them. Mobile banking transaction values surged to Rs 49,029 crore in the month of December 2015, latest Reserve Bank of India data showed. This represents a 46.48% increase in value of transactions from the previous month from Rs 33,471 crore.
In contrast, the number of transactions on prepaid payment instruments in 2014-15 were 314 million while the value of transactions on wallets was Rs 21,300 crore, according to to a study by PriceWaterhouseCoopers India, Internet and Mobile Association of India (IAMAI) and Payments Council of India (PCI).