Idea Money’s user base increased to 5.012 million in Q2 FY17 showing a growth of 47.1% from the preceding quarter. The transaction count increased 21.6% to 3.32 million from 2.747 million in the previous quarter but the the average transaction value decreased 5.08% to Rs 317 from Rs 334 in the preceding quarter. The total transaction value increased 15.2% q-o-q to Rs 105.5 crore.
Idea had launched Idea Money in August 2014, after eight months of receiving a wallet service from the Reserve Bank of India (RBI) but has only recently started pushing for adoption. The number of Idea Money users increased from 2.05 million in the March quarter (Q4 FY16) to 3.407 million in the June quarter (Q1 FY17).
Idea was also one of the 11 applicants to get a payments bank licence from the Reserve Bank of India. It had applied for a Payments Banks license in a 49:51 joint venture with Aditya Birla Nuvo Limited. The company is likely to commercially launch its services by the first half of 2017. Although the company mentioned that it has applied to fold Idea Money to its payments bank.
Idea Money’s expansion is part of the telecom operator’s plan of offering a full suite digital services. Last quarter, Idea said that it would be launching its mobile games app in the third quarter of this fiscal year and chat, music and movie streaming apps in the fourth quarter of fiscal 2017
Reliance Jio has a bouquet of apps which includes video and music streaming, magazines, news, chat and TV streaming for Rs 1250.
Idea Money is currently available in 17 circles where the telecom operator is present. The company adds that it is aggressively acquiring merchants and users for its service. Idea is looking to sign up with e-commerce companies servicing in the field of Food, Travel, Taxi, Railways etc. Some of its online and merchants include BookMyshow, KFC, Dominos, Yep Me, MakeMyTrip and IRCTC.
Other wallet players
– It’s worth noting that Idea’s competitor, Airtel Money, hasn’t disclosed operational data for India for since March 2014. At that time, the company had reported an active base of 1.7 million users in India in Q4-FY14. The total number of transactions made in the country was at 38 million, while the total amount transacted was at Rs 1,364.2 crore for the quarter. Airtel Money also has an approval from the RBI to start payments bank operations.
– Vodafone M-Pesa active user base stood at 962,000. While the number of M-Pesa agents stood at 102,000.
– Paytm is the biggest player in the wallet space and says that it has more than 130 million wallet users. When Paytm crossed 100 million users in August 2015, it had claimed to carry out over 75 million transactions every month.