Digital payments company MobiKwik has said that it will invest Rs 300 crore for expansion this year, including to acquire over 100 million users. This moves comes within a week of Paytm saying that it would invest Rs 600 crore this year to acquire 10 million merchants in over 650 districts.

MobiKwik will use the money to set up offices in 13 different cities by the end of Q1 2017, and grow its merchant base from 1.4 million to 5 million by the end of the year. It will also introduce SUPERCASH, a loyalty initiative for users which will also provide reward points for purchases made at mom and pop shops.

The announcement comes shortly after card networks Visa, MasterCard, RuPay and American Express which launched the BharatQR which will offer an inter-operable QR code system. Wallets and the UPI are not a part of the payment system yet.  Wallets’ QR code systems, such as MobiKwik’s or Paytm’s, are a closed systems and work only between the wallet users.

Last week, the Reserve Bank of India (RBI) proposed new slabs for debit card merchant discount rate (MDR) banks will be allowed to charge merchants. It proposed differentiated MDR between acquiring infrastructure involving physical terminals (POS machines, mPOS etc) and digital acceptance infrastructure models (such as QR codes). QR codes payment through cards would attract a fee of 0.3% to 0.85% for merchants. MDR is an inter-bank exchange fee that banks charge for enabling digital transactions.