wordpress blog stats
Connect with us

Hi, what are you looking for?

Airtel Money to apply for a payments bank licence

Airtel’s mobile commerce subsidiary Airtel M Commerce Services Limited (AMSL) is applying for a payments bank licence. AMSL, which operates Airtel Money,  already has a prepaid payments instrument licence from the Reserve Bank of India (RBI)and is looking to convert the same into a payments bank licence.

The company added that if it gets a payments bank licence from the RBI, Kotak Mahindra Bank will pick up 19.90% stake in AMSL. This is most likely a strategic partnership and they might get expertise and leverage from Kotak Mahindra Bank. AMSL is a wholly owned-subsidiary of Bharti Airtel and does not need its foreign shareholding to be brought down.

Airtel Money was launched in 2011 and allows customers to  to use their mobile phones as a secure way for making payments and transferring money. The company had reported an active base of 1.7 million users in India in Q4-FY14, up from 1.3 million in the previous quarter. The total number of transactions made in the country was at 38 million, up 25.8% quarter-on-quarter (QoQ) while the total amount transacted was at Rs 1,364.2 crore for the quarter, up 10.2% QoQ.

Digital payments companies, Paytm and MobiKwik have also said that they would apply for a payments bank licence. Paytm’s vice president for business Amit Lakhotia had said that the company, which has a user base of 20 million, is not looking to partner with any other scheduled commercial bank for the payments bank licence.

MobiKwik’s head of strategy, Mrinal Sinha, told Medianama that, should the company get a payments bank licence, it will be able to offer interest on the money which is stored on their wallets. He added that with the payments bank licence the company will be looking at ways where customers can withdraw cash from their wallets.

Other telcos who have mobile money services 

–  Vodafone India’s mobile money service M-Pesa had reported 0.3 million active users for the quarter ended June 30, 2014.

— Tata Teleservices subsidiary MMP Mobi Wallet Payment Systems, which offers a money transfer and payment service ‘mRupee’, has partnered RBL Bank to launch a new Visa powered Open Loop prepaid card.

– Idea Cellular had received a five-year prepaid mobile wallet license in December 2013 and has a partnership with Axis Bank for mobile money transfer services.

– Reliance Jio which has a pan-India unified license had also received a mobile wallet license for a prepaid payment instrument called ‘Jio Money’ in November 2013.

 

Also read

RBI releases final guidelines for setting up of Payments Banks

Payments bank guidelines finalized: What’s changed from the draft guidelines

Our Payments Banks coverage

Disclosure: Airtel is an advertiser with Medianama

 

You May Also Like

News

The National Payments Corporation of India is in the process of rolling out a completely open source platform for the Unified Payments Interface (UPI)...

News

MobiKwik’s net revenues grew by 134% to ₹379 crore at the end of FY20 from ₹162 crore on the back of higher revenue from...

News

Non-bank lender Bajaj Finance is planning to enter the competitive Unified Payments Interface (UPI) market with its own third-party app called Bajaj Pay. The...

News

Digital payment adoption has grown significantly in the last year, reflecting a secular trend among Indian consumers and businesses, TR Ramachandran VISA Inc’s group...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ