eMudhra to facilitate mobile commerce growth in India
Mobile commerce solutions company, eMudhra, sees a huge potential in the mobile payment space in India. Ravi Jagannathan, Vice Chairman eMudhra told CXOtoday that the company is rolling out a range of new solutions for the Indian consumers and believes that mobile has the potential to change the transaction landscape in the country over the next two years.
The company will launch a digital signature based authentication solution to strengthen and secure mobile and Internet banking channels this month. For this initiative, it has tied up with a number of banks in India. According to Jagannathan, banks can now have Digital Signature Certificate (DSC), to authenticate and digitally sign online transactions, following recent directives from RBI.
“Even though the mobile commerce market is relatively nascent in India, with over 65 per cent of all retail transactions being conducted in cash, with the ubiquitous mobile becoming the most promising channel, certain pockets such as mobile payment and mobile banking will continue to grow in the next 2-3 years,” he said.
eMudhra is introducing a mobile platform known as Xygle for the Indian market, which enables consumers to shop and pay for products by scanning a QR code (Quick Response Code) tagged to a product using their mobile phones. The solution was running as a pilot for customers in Bangalore and the application works on Android, Blackberry and J2ME enabled mobile phones. In the next quarters, the company is introducing it in the other Indian cities. “We also have a number of customized mobile solutions in the pipeline for different industry verticals such as insurance and automobile which we intend to roll out in the coming months,” he informed.
Recent initiatives taken by the government and financial organizations to reach India’s un-banked population can ensure tremendous growth for mobile commerce, believes Jagannathan. However, he believes that there are certain challenges in this space that needs to be addressed.
“Apparently lack of awareness among customers and security are considered key issues haunting the growth of mobile payment, but those issues can be addressed. However, unless an ecosystem is created to revolutionize mobile payment system in India, the takeoff will take some more time,” says Jagannathan. He explains that adequate steps need to be taken to tap this vast opportunity. This wave of mobile money momentum, if facilitated by regulation and right business model, has the potential to transform the payment system.
Stakeholders involved in the development of the mobile payments ecosystem include the regulatory authorities, network operators, financial institutions, and technology providers. It is therefore important for stakeholders to bring to market innovative mobile payment solutions, which are customized and have a mass appeal.
The global market for mobile payments is also slated for a phenomenal growth as Gartner estimates the number of mobile payment users to reach $340 Mn and a total transaction value at $245 Bn by 2014, and the growth will come predominately from the emerging markets. Jagannathan said that eMudhra will not only bring innovative m-payment and solutions to the Indian market, but will also expand its horizons to other emerging markets such as Dubai, Mauritius and Africa, where it sees a lot of growth potential as well. With the further proliferation of mobile devices, such as smartphones and tablets, mobile payment in India will grow manifold in the coming years, summed up Jagannathan.
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