More banks head for destination digital wallet


m-walletsHaving seen consumers’ preference for new-age banking tools, there is an increasing trend in the banking sector to go for digital payment systems, most common of them being m-wallets.

The latest to launch a digital wallet is IndusInd Bank. It has tied up with digital wallet player PayU that will help its customers to carry online transactions. “This partnership is aimed at bridging the gap between the conventional banking world and the new-age online payment systems,” the lender said in a press statement.

The two partners have signed an MoU covering this joint strategic vision, and announcements about the new products and services under this partnership will be made in the next four-six months.

“Indian consumers have accepted online payment systems and seamless modes of online payment, such as mobile wallets, with open arms. However, the trust they have shown in the Indian banking system over the past few decades remains unmatched,” said Shailaz Nag, COO and co-founder, PayU India.

Similarly, Oxigen Services, which also offers digital wallets, and had tied up with RBL bank (the erstwhile Ratnakar Bank), has now announced the launch of Virtual Visa Card that will convert the wallet into a visa card. The wallet will allow users to create a one-time 16 digit card number before making any transaction. This will create an added layer of security for transactions.

“Oxigen Virtual Visa Card works the same as a real visa credit card. Users can use it across all online stores and marketplaces, such as Flipkart, Amazon, Shopclues, Paytm and Freecharge,” Oxigen said in a press release.

Several digital wallet players, such as Paytm and Itz Cash have tied up with banks to support digital payments. Itz Cash, for example, has tied up with HDFC and IDBI banks.

“90 per cent transactions in the economy are still cash based. So, there is a huge opportunity for mobile wallet players to convert the physical transaction into a digital one,” Naveen Surya, MD, Itz Cash Card, said.

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