Demonetising will not affect telecoms mobile wallet transactions
Posted on: 12/Nov/2016 12:28:47 PM
Bharti Airtel, Vodafone and Idea Cellular will collectively see 40-to-50 per cent growth in mobile wallet transactions following the Modi government`s decision to ban high-denomination currency notes. Experts said,
The withdrawal of Rs 1,000 and Rs 500 notes announced on Tuesday is unlikely to immediately translate into a sizeable jump in revenue from wallet services, although it is expected to help retain customers.
According to an industry expert, The demonetisation exercise is a huge positive for Airtel, Vodafone and Idea`s wallets business and their combined m-wallet transaction volumes should see a minimum 40 to 50% sequential growth after the next two quarters.
Wallet services contribute 2 percent to a telco`s revenue and could help the biggest companies hold on to their mid and top-end customers amid rising competitive intensity, especially once users get hooked to the convenience of mobile payment channels for small purchases.
An official from Airtel said, Our wallet services are already available to customers and we are adding more merchants to boost usage levels and also plan to roll out our banking services very soon.
