Muthoot Fincorp, a financial services company under the Muthoot Pappachan Group, has partnered with Singapore-based MatchMove to launch a wallet called Blue InnerCircle. This wallet’s license will be provided by YES Bank and will offer customers a virtual card, physical card, an online dashboard and a mobile app.
MatchMove adds that its wallet can be used for P2P fund transfer, money remittance and expense disbursement, as well as direct links to offers and loyalty facilities. Something that all wallets can do at the moment and could be developed in house by Muthoot. The only advantage here seems the virtual card and the physical cards. Wallets such as Paytm and FreeCharge issue virtual cards too with tieups with ICICI Bank and YES Bank respectively.
Virtual cards bypasses the limitations of wallet integration with merchants and allows wallet users to perform transactions at all online merchants. The physical cards issued can be used to pay offline and will be linked to the funds stored in the wallet.
Note that MatchMove also partnered with another non-banking finance institution CentrumDirect to launch a similar wallet earlier this month.
Note that that Muthoot Vehicle and Asset Finance (a subsidiary of a different Muthoot Group) already has a wallet licence from the Reserve Bank of India and uses it for its money transfer service called Muthoot Money and has an m-wallet called Muthoot Wallet.
Number of virtual cards: YES Bank issued 1.7 million virtual prepaid cards and claims it is the largest issuer of such cards in the world on the MasterCard platform, as of May 2016. YES Bank said that was currently issuing 15,000 virtual cards every day. The cards saw over 5,000 transactions daily with the average transaction size of Rs 350.
PayMate and Muthoot Finance: Earlier in 2012, Muthoot Finance and PayMate had partnered to launch a domestic remittance service. PayMate provided the backend technical expertise for the same.
* Correction: An earlier version of this story had said that Muthoot Fincorp was a subsidiary of the Muthoot Group. Error is regretted.