MobiKwik’s payment gateway, Zaakpay, has partnered with IRCTC’s Rail connect app. Through this MobiKwik deal, users pay through channels like Debit card, Credit card, Net Banking, ATM Cards, and Wallets. It is interesting to note that the UPI is not a payment option in this deal. Zaakpay has allowed UPI payments through a separate partnership with ICICI Bank.
The IRCTC deal is significant as it processes a massive number of tickets online. So far, this financial year (FY17, up to June 2017), 17% of total tickets, both reserved and unreserved, were “booked through various cashless modes of payment”. The railways offer multiple modes of cashless payment, including Paytm, Mobikwik, mRupee, IRCTC wallet, Payu, Freecharge, JIO Money, Ola money etc. IRCTC handles around 650,000 online tickets a day while the IRCTC mobile app handles 100,000 tickets everyday.
MobiKwik says that its payment gateway processes more than 100 million transactions a month and currently powers payments for more than 3,000 e-commerce websites and apps.
In August, Mobikwik sold 10.83% stake for Rs 225 crores (approximately $35.34 million at current rates) to Bajaj Finance, as a part of a strategic deal between the companies, that would allow it to bring in credit facilities to a wallet business. In August 2016, Net1, a South African payment systems company, invested $40 million in the company. With this deal, the company integrated Net1’s virtual card technology across all its wallets and extend its wallet services to all merchants.