IT major Tech Mahindra has launched a new service ‘MoboMoney’ to cash in on the burgeoning digital payments ecosystem in India. Tech Mahindra, which received a payment bank licence from RBI earlier this year, aims to get about 1 million merchants including kirana shop owners on board.

What is MoboMoney???

• MoboMoney is a prepaid wallet, issued in the form of an NFC (Near-Field Communication) contactless tag.
• It can be used to ‘Tap n Pay’ on a network of NFC-enabled merchant point-of-sale device.
• Consumers can load their wallet by paying cash at the merchants as well as using their credit/debit cards and Internet banking.
• The money loaded to make over the counter payments, recharges, bill payments, as well as online purchases.

Points to Note

• The total cost of storing, transporting and processing cash is about Rs 22,000 crore annually.
• The company has run a pilot in Delhi-NCR comprising over 500 merchants.
• Tech Mahindra has partnered with banks like Kotak and ICICI for the service.
• In the last few months, a number of companies have launched their mobile wallets including Alibaba-backed Paytm (that claims to have over 100 million users) and Mobikwik (25 million users).