Tag: one97

Mobile wallet startup gets a financial boost from Alibaba

Paytm has received investment funds from the commerce giant, solidifying its position in India.

Alibaba Group Holding Ltd. has recently announced that it has made an investment into the company behind the Paytm mobile wallet in India, a startup called One97 Communications.

The Chinese online shopping giant revealed this news in a press release issued at the close of September.

The company has chosen to invest in the mobile wallet and online shopping site, sending Alibaba even further into the world of mobile payments. In India, this will also help the company to enhance its competitive position when compared to its rival, Snapdeal. One of its affiliates, Ant Financial Services Group, also made an investment into Paytm, back in February. It will also be joining into this most recent round of investments, said the press release on the matter. The funds will be used by Paytm in order to be able to boost its business and to place a focus on its technology, marketing and talent.

The specific terms of the agreement with regards to the mobile wallet investment have not yet been released.

Mobile Wallet Receives Financial BoostThat said, it is known that Alibaba and Ant Financial have made an investment of $680 million in order to boost their stake in the company from having been 25 percent to become a much larger 40 percent. Back in June, Reuters released a report that indicated that this type of investment could be worth more than $600 million, so the figures do align with what experts had been predicting.

According to the Alibaba Group CEO, Daniel Zhang, “India is an important emerging market with strong e-commerce potential.” He also added that “This investment will further expand Alibaba Group’s global footprint to India’s thriving mobile commerce market.”

This is an important market for Alibaba, which has been watching a slowing in the growth that it has been experiencing in its home country of China. As India is the fastest growing large economy on the planet, it appears to be the next logical step for a company the size of Alibaba. It is a move that is being made by a number of companies in the smartphone sphere, as mobile wallets, payment, and commerce rise in India.

Leading mobile wallet app in India adds bank account support

This will give the users of the application the opportunity to use a new type of transaction through their smartphones.

A mobile wallet based in India, Paytm, has now announced the introduction of a new feature that will give 25 million users the ability to transfer funds to their bank accounts through the use of their smartphones.

This company is operated by One97, which is a business that is backed by Alibaba, the Chinese e-giant.

Mobile wallets have been rapidly rising in popularity in India. This country is one of the markets in the world where this type of smartphone based payments app has the best chances of success, due to the massive population and the low adoption of credit cards. Many merchants, including online retailers, have had to come up with ways to process transactions through cash. In fact, the current estimate is that even though there are more than a billion people in the country, there are only 450 million bank accounts, not all of which are considered to be actively used.

Mobile wallets provide users with greater reliability than cash without having to obtain a bank account.

Mobile Wallet app - India BankingThat said, for those individuals who do have bank accounts, Paytm has now announced that its mobile payments app – which is supported by many different retailers and services, including Uber – has boosted the versatility of its offerings for the management of small floats of cash.

The users of the Immediate Payment Service (IMPS) mobile apps are now able to transfer up to $80 (5,000 INR) per day, and they can make transfers of up to $400 (25,000 INR) per month. The minimum transfer amount is $16 (1,000 INR). The sender needs to have at least $32 (2,000 INR) in credit available to them in order to make the transfer.

This is not the first time that One97 has discussed this new feature, but considering the fact that Alibaba made an investment into the company in February, it is now starting to gain a great deal more attention. That agreement brought an estimated $200 million investment to One97, valuing it at $1 billion and bringing the Chinese e-commerce giant into India for the first time. That company is already wildly successful for its own mobile wallet and payments service, Alipay.