Look no cash! It’s ‘app’ening in a big way

Even as HDFC Bank has released its one-click payment platform called PayZapp, which is expected to be positioned as an all encompassing mobile payments platform and is part of HDFC’s ‘GoDigital’ strategy, cashless transactions are on the upswing, with companies launching devices that enable merchants to accept payments, through consumers’ mobile phones.

Though various banks like ICICI Bank, which launched M-Pesa, and Axis Bank, with its PingPay social media based payment, have launched innovative mobile payment services for their customers, mobile payments company iKaaz is the latest to offer a device to make payments.

Its stand alone terminal, called the Mowa Tap and Pay terminal, enables merchants, currently only in Bangalore, to accept payments without the need to install any additional hardware or software. Consumers who have the Mowa app can start paying using their phone by simply tapping at these Mowa terminals.

The Mowa app competes with several home grown mobile payment solution apps like PayMate, PayZippy, Paytm and Bijlipay, among others. Another online player MobiKwik, has partnered with WHSmith India to become the first mobile wallet to enable shopping at offline retail stores.

MobiKwik has partnered with TNSI Retail, the franchise holder for WHSmith India, UK’s stationer, bookseller and newsagent, to accelerate access of the MobiKwik wallet in the offline space. Over 17 million MobiKwik users can now shop for stationery, snacks and more at over 55 WHSmith India outlets, across Mumbai and Delhi.

Even as MobiKwik targets to create India’s largest independent payments network with 100 million digitally paying users and 200,000 retailers, several other start-ups as well as banks have launched mobile applications to enable peer-to-peer transactions, micro payments as well as merchant payments.As Soma Sundaram, Founder and CEO, iKaaz, pointed out, there are several players who have succeeded in mobile recharge and direct to home (DTH) recharge, as well as players who have succeeded in e-commerce and taxi services. “When it comes to mobile payments, however, there is no market leader yet,” he said.

iKaaz is primarily focused on mobile payments. Sundaram said his firm was the only player offering both remote payments and retail proximity payments. “Consumers can pay using their mobile phones at any retailer, or can pay to a remote merchant or can even transfer money to friends and family members,” he said.

HDFC Bank’s PayZapp, on the other hand, grants the consumer the power to pay in just one click. The new digital banking initiative has already registered an encouraging trend in download and usage in the first week of launch, noted Aditya Puri, Managing Director, HDFC Bank, in a note to shareholders.

PayZapp offers an easy checkout using a single pin. There is no need to enter credit or debit card details or a one time password, for the second factor authentication. The app allows users to transfer money instantly to anybody using a mobile phone or an e-mail ID.

The wallet in the app is linked to the customer's credit or debit card and acts as a virtual card. The app also integrates SmartBuy, a virtual marketplace from HDFC Bank. There are no additional charges levied by the bank either for purchases, fund transfers or bill payments using the app.

PayZapp is expected to have a beneficial collateral effect on all the other mobile apps, particularly by other banks, and is expected to lead to a surge in mobile payment transactions as a whole.

HDFC Bank’s PayZapp is available for download from Google Play store, and currently only for HDFC Bank customers. Over the next three months, the service would incorporate other cardholders.

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