Calpian-backed My Mobile Payments Limited (MMPL) which operates the mobile money service Money On Mobile, has acquired a significant stake in the Mumbai-based OSS India for an undisclosed amount.
While the terms of the deal were not disclosed, MMPL mentions that it will be offering financial support to OSS India to relaunch the service, although it hasn’t disclosed any specific details on this. We’ve contacted MMPL for more details on this acquisition and will update once we hear back.
That being said, it’s worth noting that Done Card and OSS Payment Solutions which operates the cash card service OSS Cards seem to have surrendered its prepaid wallet licenses in October 2013 and December 2013 respectively, while Money on Mobile had received a five year extension of its prepaid wallet license in October 2013.
MMPL says OSS India will continue to manage the day-to-day activities and will be looking to strengthen its business particularly in railway and bus ticketing segment. The company currently offers consumer-centric services like rail ticketing (RailTicketonline), air ticketing (FlightSafar), bus ticketing (BusTicketonline), hotel booking (HotelSafar), mobile & DTH recharge (Mobileseva) and money transfer service (MyMoneySeva).
OSS India claims to be the first company to have implemented the IRCTC ticketing model and Done Card had accounted for around 3.3 lakh transactions on IRCTC for the period January 2011 to July 2012. (IRCTC stopped providing monthly transactional data later).
Beam Money Surrender: Last July, mobile payments platform Beam Money had also surrendered its prepaid wallet license. Beam Money chairman Anand Shrivastav had told Medianama that this was because semi closed prepaid wallets did not make financial sense to them, since it did not allow users to withdraw money from the wallet, which is important for a consumer company. (More on that here).
Biometric cash-out pilot: However earlier this year, RBI has started piloting a cash out facility with biometric authentication for mobile wallet services and Money on Mobile was one of the services selected for this pilot. Money on Mobile was looking to roll out this pilot in Mumbai, Delhi, Kolkata and Surat through 52 existing retail partner locations.
Overall, Money on Mobile is currently supported in 1.84 lakh retail locations and it claims to have 88.6 million unique phone number customers for the month ended April 30, 2014.