Ecommerce biggies Amazon and Flipkart too have launched their own wallet. Amazon Pay Balance was launched a week back and Flipkart’s PhonePe wallet made an appearance in August 2016. Many banks have their own wallets such as State Bank of India’s SBI Buddy, Yes Bank’s YES Pay, ICICI’s Pockets, HDFC Bank’s PayZapp and Axis’ Lime. Telecom service providers offer Tata mRupee, Airtel Money and Vodafone M-pesa. Then there are of course wallets by payment gateway companies like PayU Wallet, and Citrus Wallet.
Standalone wallet firms like Paytm, Mobikwik are fairly popular these days. But they do have their own flaws. Many believe that new customers and merchants (especially offline vendors due to demonetization) would prefer to sign-up for Paytm and the likes, because it is easy, require less documentation and economical.
Hrishikesh Datar, CEO, Vakilsearch.com shares with IOS,
“We have been using both Paytm and Mobikwik for a few months now and around 15% to 20% of our users pay using one of these wallets. The biggest incentive for them to do so is the cashback, particularly as ticket sizes on our platform tend to be large.”
But those with years of online selling experience believe that it’s hard to beat payment gateway biggies like Citrus and PayU.
“The experience, overall, is good; however, our customers occasionally complain that the cashback has not been processed. Also, the merchant dashboard is basic and is nowhere near what a payment gateway offers,” Datar adds.
Almost every Indian online marketplace and banks of all sizes have launched their own wallets. But would they be able to compete with the digital infrastructure of seasoned players.
Another seller Sugam Jain wrote a valid point below this IOS article,
“I don’t think anybody is going out of business, even if every major player makes their own wallet, there are millions of SMEs which would still need others like Citrus and PayU.”
It is also clear that the move taken by standalone wallet firms to waive off their charges is only temporary. The charges would be back as soon as the hoopla around demonetization settles down and the currency crunch normalizes. In addition, several reports have also raised concerns over the safety and security standards followed by Mobikwik, Freecharge, Paytm and others.
So Indian Online Sellers, do you find digital wallets to be useful? Do you think it helps to combat the COD issue? Which one do you use – standalone wallets, banks’s wallets, telecom firms’ or payment gateways’ wallet?