Digital cash transfers

Digitization of low value cash transactions has begun with a bang in 2015. Latest initiatives announced include a deal between Kotak Bank and Airtel Mcommerce for a payments bank, Yes Bank partnering Citrus Pay for a payment gateway and HDFC Bank introducing Chillr — an application that will allow customers to send to their contacts’ smartphones amounts as low as Rs.1 instantly. The person-to-person transfer is a precursor to the next phase when the bank will market this app to merchants.
Kotak Bank has agreed to pick up a 19.9% stake in Airtel Mcommerce Services, which is seeking a payments bank licence. Airtel will be part of a 50-plus list seeking such a licence. Others on the list include large players in the payments space such as Paytm, Citrus Pay, ItzCash, Oxigen and Mobikwik, besides a host of microfinance, gold loan and other technology companies. The last date for submission of applications is February 2.
HDFC Bank’s Chillr seeks to overcome hurdles people face in mobile transfers, which include multiple security levels and the need to have the recipient’s bank details. In Chillr, once an account holder sends money to his contact, the recipient is prompted to download the app and enter his bank details (any bank). From then on, he can automatically receive funds from the HDFC Bank accountholder in one step.
Chillr comes after other digital transfer offerings by ICICI Bank and Kotak Mahindra Bank. All these solutions simplify transfers of funds by putting the onus of entering recipient bank details on the beneficiary . Chillr seeks to entrench this digital payment behaviour by ensuring that everyone has an app.

No comments: