Mobile wallets like Paytm and Mobikwik are tying up with kirana stores in rural India
Wednesday, September 2, 2015
HYDERABAD: Mobile wallet and payment services such as Paytm and Mobikwik are tying up with kirana stores in semi-urban and rural areas as they seek to grow in regions underserved by banks.
With rewards-linked loyalty programmes, they are incentivising cash users in these areas to convert their money into wallet money at the kirana stores.
"Rural clients are important to digital wallet suppliers for the market size and need for convenience. Enabling these rural clients also increases the appeal of the digital wallet to merchants and increases the number of payment transactions that are processed by gateways and PSPs, which is how gateways and processors make their revenue," said Penny Gillespie, research director for electronic and mobile commerce at Gartner, USA.