Online ticketing platform BookMyShow has invested an undisclosed amount in Pune-based payments solution startup AtomX which is looking to increase NFC-based payments adoption in India.
AtomX is working in the field of NFC (Near-Field-Communication) payments and has built a technology platform for using NFC-equipped wearables and other accessories for cashless payments at events and points of sales.
With this partnership, BookMyShow is looking to make use of AtomX’s NFC payments solution through accessories such as NFC cards, , wristbands, key-chains and more. Consumers can potentially use this for digital payments at music festivals, sporting events, food festivals and concerts and other on-ground activities. .
NFC is a short-range wireless communication standard that enables compatible devices to exchange data over a distance of about 10 cm.
Related Article: Digital Payments In India: Current Challenges And Growth Prospects
AtomX’s NFC-equipped wrist-bands completely eliminate the need to carry cash for event goers and removes the pain of handling cash for organizers.The solution lets users store cash in the form of digital money on the chip, which they can use by simply tapping the NFC device on a compatible PoS machine, to pay for food, beverages and merchandise instantly.
Besides payments, the AtomX wristbands also captures other crucial data, such as location-related information, check-ins, spending, social media monitoring and more. “We strive to provide relevant data analytics, insights around events to vendors and organizers to better deliver the experience to our customers. Our partnership with AtomX will play an instrumental role in furthering this experience,” Ashish Hemrajani, founder and CEO, BookMyShow said.
In the NFC payments space, Paytm last year launched Paytm Tap Card which uses the technology to enable safe and convenient digital payments over the Paytm network, even offline at Paytm-issued NFC PoS terminals.
Forecasted to cross $2.4 Bn by 2020, as per a report by KPMG India and NASSCOM, India is currently home to more than 500 fintech startups working towards digital financial inclusion.
Despite the efforts of the government and startups, India continues to rely heavily on cash for most everyday spending. The total “currency in circulation” in India has jumped by 19.14%, from INR 17.97 lakh crore on November 4, 2016, four days before demonetisation, to INR 21.41 lakh crore as on March 15, 2019.
This continued dependence on cash persists due to certain challenges deeply rooted in the digital payments ecosystem in India. These ingrained issues can be largely attributed to a lack of adequate infrastructure. AtomX is addressing both the process and the infrastructure with its solution. , While digital payments are growing, they are still heavily reliant on smartphones and out of India’s 800 Mn mobile phone users, only 6Mn use smartphones with NFC support.