‘Fintech firms providing data protection must be given sops’

From providing training to people in rural India on digital transactions to launching an app that runs on low data, MobiKwik, a leading mobile wallet provider, is playing a major role in the country’s transformation from cash to a less-cash economy. In an interview with BusinessLine , MobiKwik’s founder Bipin Preet Singh talks about the company’s growth and what measures the government should take in order to boost and ease the nature of transactions online. Excerpts:

What is your view on the government’s push for a less-cash economy?

It is a monumental step taken by Prime Minister Narendra Modi to curb black money and corruption. We are gradually transforming from a cash-dominant to a less-cash economy. Demonetisation has already led to historic growth in the adoption of digital payments in India despite a few challenges like low adoption of smartphones and uncertain data connectivity in rural India. But we are taking steps to promote adoption of digital payments through feature-phones.

Cashless economy will not only help keep track of transactions when money is exchanged online but will also help curb tax evasion. Post-demonetisation, the government is taking numerous steps to simplify the lives of the common people. It has been encouraging cashless payment options in places, such as markets, petrol pumps, etc. We are sure, five years down the line India will become a less-cash economy.

How has MobiKwik benefited post-demonetisation? What is your projection for the next two years?

Post-demonetisation, MobiKwik has seen a 150 per cent jump in its merchant base. From a one-lakh strong merchant base in the pre-currency-ban days, we have seen an addition of 1.5 lakh merchants, including Big Bazaar, Croma, eZone and local shopkeepers, among others. The total number is over 2.5 lakh. Demonetisation has resulted in an 18-fold growth in (mobile) transactions. We have revised our monthly annualised gross merchandising value (GMV) sales target to $10 billion by 2017.

We have also tied up with NASVI, an organisation representing 30 lakh street vendors, to help them overcome the challenges of cash crunch and adopt digital payments. MobiKwik will be training over 15 lakh vendors within the next two months to transact digitally. We also recently tied up with Amul to make cashless payments possible at 7,000 Amul outlets and three lakh Amul MBOs (multi-brand outlets) and retailers across India.

What are you doing to improve the security measures of your wallet, and ensure it works even without Internet, especially in rural India?

We have recently launched MobiKwik ‘Lite’, India’s lightest mobile wallet that is easy to understand and helps unorganised retailers and shopkeepers across India receive payments seamlessly. Being an under-1-MB app that works smoothly on EDGE connections, MobiKwik ‘Lite’ addresses the under-served smartphone users in India, who face the challenge of slow data connectivity, and thus, are unable to access digital payments easily. Users can download this app with just one missed call on 80971-80971 and sign up with their mobile numbers. Of the 1.3 billion population, there are only 353 million Internet users, and of this, about 12.81 per cent users are from rural India. MobiKwik ‘Lite’ is available in regional languages. In India, 127 million people use local languages, and this will dominate the future growth of the Internet user base.

We are PCI-DSS and ISO 27001 certified that takes care of the various information security measures to ensure the security of the application and protect businesses from emerging threats and frauds. MobiKwik is an RBI-approved wallet. With great power, comes great responsibility. We take that responsibility very seriously. Users can set up a PIN on Android apps. This will be sought for approval of all their transactions. Fingerprint approval is required in the iOS app. We are also launching a PIN with which users can access their accounts through an alternate number in case of a lost phone.

RBI has waived the transaction charges for merchants and for money transfer from the wallet to the banks. Will this not impact your revenues? What are the other ways in which you can monetise your wallet?

Right now, our primary goal is to assist the masses in transacting digitally and overcome the challenges of demonetisation and cash crunch. For this, we also have to promote adoption among retailers and shopkeepers. We are leaving no stone unturned to serve the people of our country — from partnering with IRCTC to book online tickets, to tying up with supermarkets and medical stores and partnering with BSNL and MTNL to pay telephone bills. MobiKwik is also offering customers a feature which helps identify food and shopping outlets around them that accept MobiKwik payments.

How, in your view, will wallets evolve over the next few months? Do you think UPI-enabled mobile banking apps will have an advantage over wallets in the coming months after all banks complete the integration of UPI on their apps ?

The growth of wallets has surpassed the growth of netbanking and other digital payment offerings from banks. The reason for this is the ease of usage offered by wallets. UPI is very simple and can be operated by anyone. Therefore, we are confident that the growth of wallets will not be affected by UPI. And collectively, we shall work towards achieving a cashless economy in India.

Currently, there are too many wallets fighting over the same set of users, mostly the ones with good Internet connectivity. Do we except any consolidation in this space?

We have many banks in the country and all cater to the needs of masses in various ways. Similarly, there is enough room for all the players in the wallet space to serve the society with digital payments and grow adequately.

Any specific expectations from the upcoming Budget that will boost the less-cash transformation?

The Budget must announce measures to upgrade digital infrastructure across the country, including digital literacy and connecting cities, towns and villages with high-speed Internet networks. The Budget must reduce corporate tax for start-ups and companies promoting the digital payments ecosystem. At the moment, it is flat at 35 per cent.

There should be reduction in income tax for individuals and companies promoting secure digital payments. There should be sops for fintech companies providing data protection.

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