wordpress blog stats
Connect with us

Hi, what are you looking for?

MobiKwik will start offering loans to its wallet users

cmn mobikwik

Digital wallet MobiKwik is looking to enter the lending space by Diwali and the company is in the process of tying up with a number of non-banking financial companies (NBFCs) for the same. This was first reported by the Economic Times and a spokesperson confirmed the development.

The lending business will have two options: An EMI model and a loan model. The EMI model can be used for purchases such as laptops and mobile phones on online websites which support MobiKwik while the loan model can be used for any purpose. Initially, MobiKwik is planning to give out loans worth Rs 50,000.

The company will be giving out these loans using a credit score developed in-house. The spokesperson added that MobiKwik will consider the number of transactions a user has made on the platform OR how long a user has been on the platform, among other similar facotors to assess the credit score

The company added that it is in talks with CashCare for the loans facility and added that it will also be talking with other NBFC players. It added that it is also ironing out other details about loan repayment time and collection etc before launching the product.

Its main rival in the wallet space, Paytm, has payments bank licence. Though payments banks cannot undertake any lending operations, they can however partner with other companies to distribute loan products.

Advertisement. Scroll to continue reading.

Underwriting transactions

Note that MobiKwik has another tie up with CashCare where it underwrites purchases for users who are short on balance. Typically MobiKwik underwrites amounts worth Rs 500-2,500 and at the time of the launch of the product, it said it would be adding 10-12 other similar banks and non-banking finance companies for the service.

Note that Citrus Pay has a similar service called Lazy Pay where it collects payments on a fortnightly basis.

Funding

In August, Net1, a South African payment systems company, invested $40 million in MobiKiwk. With this deal, the company will be integrating Net1’s virtual card technology across all its wallets and extend its wallet services to all merchants. The company said that it will be using the funding to scale up in India and grow to a user base above 150 million and sign on 500,000 merchants. MobiKwik has a user base of 32 million and 100 retailers.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

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

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ