Digital wallets have become the new go-to solution for third-party payment platforms. In an attempt to be a part of the growing cashless Indian economy, California and Bengaluru-based micro product and services sales platform, Instamojo has now incorporated a digital wallet in its payment gateway.
Under this feature, now its users can accept payments from their customers via wallets using Instamojo. To enable this option, users are to visit the “App Store” on the Instamojo dashboard. After finding and clicking on ‘Digital Wallets’, they can select the plan of their choice and subscribe to it for just 50 credits/month.
Instamojo was founded in 2012 by Akash Gehani, Harshad Sharma and Sampad Swain. In November 2014, it raised an undisclosed amount in Series A funding from Kalaari Capital. Its previous investors Blume Ventures, US-based 500 Startups and others also participated in the round.
It is backed and advised by prominent investors like Rajan Anandan, Sunil Kalra, 500 Startups, Blume Ventures, Dave McClure, Rob de Heus, Thijs Gitmans, Pankaj Jain, Shailesh Rao, Bharathram Thothadri and Avlesh Singh.
According to Instamojo’s official website, pricing for transactions via a digital wallet is set at 3% + INR 3 per successful transaction. It’s 5% + INR 3 for digital goods. The new option can be activated for a user’s payment links, products, and payment requests as well.
The option for digital wallet is available for transactions equal to or below $150 (INR 10,000). It will not be available for amounts higher than that.
Recently, mobile payments and ecommerce platform Paytm raised $60 Mn from MediaTek’s investment fund, Mountain Capital. In May 2016, Gurgaon-based mobile wallet company, MobiKwik raised an undisclosed amount of funding led by Japan’s GMO Payment Gateway and MediaTek. In August 2016, South Africa-based Net1 UEPS Technologies Inc. invested $40 Mn for a subscription agreement with MobiKwik in order to mark its foray in India.
Also today, National Payments Corporation of India (NPCI) launched the pilot project for the Bharat Bill Payment System (BBPS) across the country with 26 operating units. In the first phase, BBPS will cover repetitive payments for everyday utility services such as electricity, water, gas, telephone and direct-to-home (DTH).