How fintech companies are connecting offline customers with eRetailers

Despite all these possibilities that mobile wallets open up, Indian still is far away from becoming a cashless economy.
Mobile Wallet

Regardless of the age, gender and location, today a large set of people are using mobile wallets in order to communicate with their favourite brands for sales, offers, coupons and loyalty programs etc. From shopping electronic items to groceries, mobile wallets have become an ultimate channel of making payments especially among millennial consumers. Despite all these possibilities that mobile wallets open up, Indian still is far away from becoming a cashless economy.  

Looking at the stats, India has over 200 million unbanked and under-banked people. They do not have access to banking services and thus, cannot use a payment wallet. Also, Indian eCommerce has observed that most of the customers in India use cash-on-delivery than other modes of payment. These customers do not prefer using net-banking, credit or debit cards online and thus face various issues while paying in cash, such as, they have to struggle at time to pay the exact amount, there is delay in return of cash when they return their purchases and sometime, they also lose out on the benefits of cashbacks etc.

Maximum number of Indian users does not wish to use net-banking, credit or debit cards, even though they have these. This is the reason why cash on delivery for eCommerce became a hit in the country.

Moving India towards being a cashless economy
In order to curb the above mentioned quandary, one of India’s leading mobile wallet companies, MobiKwik has recently launched cash loading service ‘Cash Pickup’ for its wallet with an objective to make mobile payments ubiquitous and include the under banked & unbanked in its user base. The cash loading service works in two ways, one, in cities of New Delhi, Mumbai, Bangalore, Surat and Jaipur, users can request for cash pick up. A MobiKwik representative picks cash from users’ location within 25-30 minutes and loads their wallet. Users can also walk into 1, 00,000 locations across 10,000 Indian cities to deposit cash for wallet loading.

The project was conceptualised by the founders and implemented within 53 days. The Uber like network was created to include maps of the cities we were offering the service at. A similar, hyper local network was created to inform people of cash deposit locations. Initially, the project was launched in New Delhi and soon, got scaled to Mumbai and Bangalore. On user demand, the service was launched in upcoming metros of Surat and Jaipur in 2016.

The feature contributes to 15 per cent volumes currently and over 1 million cash pickups have been done till date. Cash loading service is a path breaking industry initiative that will help the 95 per cent cash dependant Indians convert.

The after effects:
This cash loading service has been helping MobiKwik’s retail partners such as Grofers, Big Basket, Swiggy etc. in saving time while delivering their orders.

Cash loading users have increased at an average rate of 10 per cent month on month in the cities where we over this service. The service contributes to over 15 per cent of MobiKwik wallet loading 1 million cash pickups were completed in the month of July 2016.

Today mobile wallets are consistently experimenting new models and features in order to better engage with customers. Even the retail and eRetail landscapes are ties nods with mobile wallets firms to increase their potential across the country, deliver true and quick services to customers, reduce their operational costs and drive higher revenue. 

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