With RBI increasing the cap on mobile banking to Rs. 50,000 a day, more than 50 per cent of account holders are expected to come under this platform in the next five years, a leading service provider said.
“The recent hike in the limit of mobile banking transactions by the Reserve bank will be a boost for the industry and will bring more than 50 per cent of Indian bank account holders under the ambit of this platform by 2015,” mobile payment service provider PayMate Managing Director Ajay Adiseshann told PTI here.
The RBI recently hiked the limit for mobile banking transactions to Rs. 50,000 from Rs. 5,000 in a day.
“The opportunity in mobile banking has become enormous and over 50 per cent of India’s 20 crore bank account holders would become its beneficiaries,” he said.
This would be possible due to high mobile penetration in India and the ease provided by mobile banking, Adiseshann said.
“India’s mobile connections are expected to reach the 50-crore mark by 2010. It is 4-5 times higher than PC penetration. For Internet banking, you need a PC with Internet connection. But for mobile banking, you just need a basic mobile connection with any phone service provider,” Adiseshann said.
The company has tied-up with 25 major Indian banks, including SBI, HDFC Bank, Corporation Bank, ABN Amro and Standard Chartered among others.
“We have tie-ups with banks outside India as well, which will take the number to 32. We are (also) in advanced stages of discussion with other banking majors like ICICI and Axis Bank. PayMate has a 50:50 revenue sharing model with banks,” he said.
The company has 15 lakh clients out of nearly 35 lakh m-commerce clients in the country.
In the last two years, the company has recorded growth of more than 150 per cent and Adiseshann said the company expects to maintain or exceed it in the next five years.
Mobile banking is also financially more viable for merchants because credit card players charge up to 2.5 per cent commission per transaction whereas, only a per cent will be charged through mobile banking.
Account holders can register mobile numbers with PayMate for the free service using their bank’s website or ATMs or submitting a form in the branch, he said. After registration the account holder will get a 4-digit PIN number, which can be used in all transactions.
The company is following PCI-DSS (payment card industry data security standard) for enhanced security of the transaction process, he said.
