Mobile Apps

HDFC, ICICI, SBI,  Banks launch m-pay apps

Following developments and innovations in digital technologies in India, financial services companies are also taking increased interest in nurturing their relationship with technology. To serve the new-age tech-savvy consumer in India, Axis Bank launched its Ping Pay app via an ad campaign featuring film actress Deepika Padukone.

 AXIS BANK

Axis Bank has been very active in the television commercial space and launched various campaigns with its brand ambassador Deepika Padukone but its Ping Pay app is Axis Bank's first venture into the app market. Targeting the social networking youth of India, the app allows the user to transfer money via social networking platforms such as Facebook, Twitter, WhatsApp, emails and SMS.

The commercial articulates this insight as “Jab bhi Pay karo, kuch na kuch say karo”.

The ad campaign has not introduced the feature as a purely digital feature of a financial services company but it also seeks to add the attributes of social media communication to the app.

NEW INFORMATION ON BANK PAYMENTS : 

Commercial banks are entering the mobile payments space, a market that was incubated by Airtel Money, but which since then has seen a host of players including Vodafone m-pesa, Paytm, MobiKwik and Oxigen.

HDFC Bank

HDFC Bank has just launched Chillr, a third party app platform that allows users to transfer money to anybody in their phone book contacts. The user only needs to know the phone number of the person to whom he/she is transferring. But the transfer happens directly from and to bank accounts. For now, only an HDFC Bank account holder can send money, but can do so to any bank account holder. Till date Chillr users can transact up to Rs 50,000 per month.

ICICI BANK

ICICI Bank launched the Pockets app. Pockets is a wallet model like Paytm and MobiKwik.  It is not necessary to be an ICICI Bank account holder to use it, but account holders can use it with their internet banking credentials. The app uses a virtual Visa card and users can choose to add a zero balance savings account to it. Pockets allows users to transact upto Rs 10,000.

SBI BANK

On 18th August,2015 Union Finance minister Arun Jaitley launched State Bank of India's mobile wallet- State Bank 'Buddy' in collaboration with Accenture and MasterCard. The 'Buddy' application will be available for all customers irrespective of the bank the customer is banking with or card customer is using. The application will be available on the Google Play Store and Apple App Store.

The Mobile Wallet comes with features like send money to registered and new users, recharge and pay bills instantly also book for movie tickets and flights.

 Competitors

• Paytm ( Payment Through Mobile)

Paytm founder Vijay Shekhar Sharma is the consumer brand of India’s leading mobile internet company owned by One97 Communications. One97 investors include Ant Financial (AliPay), SAIF Partners, Sapphire Venture and Silicon Valley Bank.Paytm is India’s largest mobile commerce platform. Paytm started by offering mobile recharge and utility bill payments and today it offers a full marketplace to consumers on its mobile apps. Paytm received a big boost when cab aggregator Uber chose to use it as their wallet.  In the year 2014, Paytm entered India's e-commerce market providing facilities and products similar to businesses such as Flipkart, Amazon.com, Snapdeal. In 2015, it has also added booking bus travel.

The world is becoming increasingly mobile. People want access from wherever they are, whenever they need it. Paytm has an option of recharging and shopping from whenever, anywhere and are equipped with a secure online wallet called Paytm Cash.

• MOBIKWIK

MobiKwik was founded by Bipin Preet Singh and Upasana Taku in 2009. MobiKwik is a mobile/online wallet from where we can pay our bills, make phone and DTH recharges, transfer money to friends and family.They started MobiKwik to ease the payment problems faced by online users in India. Soon they entered their service on mobile apps.

Strategy : 

The digital eco-system is growing fast in the India with most brands pumping in funds to reach out to their target audience and create conversations. Be it a product or a service brand, they all want their audience to connect with them via smartphones. And it's not just a phenomenon spoken in conferences or platforms, but it is advertised.

The bank says that it sees its new service as part of a step towards a cashless economy in India, which already has a large prepaid mobile market. The Indian consumer is looking for new and innovative ways to interact with payments and this is evident from the growth in the number of mobile wallet services being made available in India. The focus is really on simplifying the entire digital banking and payment experience.

Challenges : 

•  Low customer awareness : One of the most immediate problems for mobile wallets is their low popularity. There are still many people who do not know about mobile wallet and still stick to the traditional way of payment.

• Low Merchant Adoption There is low merchant adotion because of the following reasons:

1. Additional cost of new technology
2. Integration challenges with existing Customer Relationship Management

• Low customer adoption

1.  Perceived Security Threat
2. Information Privacy
3. Dispute Resolutions
4. Mobile Device Adoption Capability