Moneycontrol Bureau
A day after rival Paytm launched its app-based point of sale (POS) facility, for users with credit and debit cards, Mobikwik announced a virtual card technology which will allow users make payments across all online and offline shops which accept cards.
Mobikwik claims that it will be a safe way to make payments as users would not be required to share their bank or card details with the merchants and new cards will be generated within their e-wallet, each time for transactions.
With Paytm's app POS, a customer needs to insert his card details manually on the Paytm app of the merchant. However, Paytm says that the details will not be saved on the app and claims that the process is completely secure.
Nasdaq-listed firm Net1 that invested USD 40 million in MobikWik, will be helping the company with their proprietary card technology for the initiative, it said in a statement. It will start the same by January, 2017.
Users will be able to generate MobiKwik card from the app with one click and share details of the card with any online or offline retailer for payment. The card will work on all online platforms and POS machines.
"We have increased our on ground workforce twelve times and MobiKwik payments will soon be accepted by additional 1 million retailers directly. However, even then we can’t reach every retailer in this country in the next two months, thus, we are launching MobiKwik Card in partnership with our investor Net1. The card will help users pay through their e-wallet without having to worry about the merchant’s inclusion in our network. They can generate a new card every time to make payments and use MobiKwik wallet pan India, for any purchases," said Upasana Taku, co-founder of MobiKwik.
Users’ MobiKwik balance will also be the balance of the card, which can be used 100 percent for purchases.
“In India, only 9 million credit cards are active as people are not comfortable sharing their card details for purchases. MobiKwik Cards will help such users transact online and offline effortlessly.” Upasana added.
MobiKwik launched mobile wallets in India in 2009. Within November, it claims to have added 1,50,000 retailers to its network and has a network reach of over 2,50,000 retailers in India.
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