money

Payment services company Oxigen has started an Indo-Nepal money remittance in partnership with the IME Nepal to help migrant Nepali workers.

Nepali citizens residing in India, for employment, can send money through Oxigen’s 30,000 banking touch points of the total 2,00,000 Oxigen retail network locations, across India. The receivers in Nepal can receive the amount through more than 5,400 agent locations of IME in Nepal. IME will provide account deposit facilities to these customers besides cash payment options.

Oxigen has tied up with RBL Bank in India and IME Nepal has partnered with Global IME Bank for fund settlements. Note that Oxigen has not mentioned charges for international money transfers and we will update once we hear from them.

Traditionally, Oxigen has had a strong offline presence – it mentioned that the average ticket size of a money transfer was Rs 3,500 and has more than 50 million transactions a month in its retail outlets. Following the demonetization of Rs 1000 and Rs 500 notes, the company updated that money transfer accounts for 40% of the transactions on the wallet with the average ticket size on money transfers being upwards of  Rs 1500.

Established in 2001 as a money transfer company, with license from Nepal Rastra Bank, IME has an international presence spanning 25 countries with a network of over 150,000 locations worldwide. In Nepal it has a domestic network of more than 5,400 agent locations and 149 IME Centers and a customer base of millions.

Move to other businesses

Many had commented that UPI would threaten online wallet’s business, deputy managing director Sunil Kulkarni said that wallets such as Oxigen will have to adapt from pure digital plays.

Last month, Oxigen partnered with ecommerce marketplace eBay India to give access to its netowrk of 200,000 retail outlets. The company wants to bring an Online-to-Offline (O2O) solution where it will help with bringing a customer on eBay India and provide a mobile wallet solution.

Future Group partnered with Oxigen to handle its loyalty programme through a wallet called Future Pay. All loyalty points from Future Group would be stored on Future Pay. If a customer does not have enough loyalty points to complete the purchase, they can load additional funds through its wallet. Every time a user signs up for Future Pay, they will also get an Oxigen Wallet.