Banking Empire Strikes Back: Battle for your Digital Dollar
Economic Times reports that shaken by the online shopping frenzy, a string of high-street banks like SBI, Axis and Yes will launch mobile wallets to take on pre-paid issuers like Paytm and MobiKwik who lure customers with easy payment option and attractive retail offerings.
M-wallets — electronic saving accounts that can be used for shopping using mobile handsets — would help banks overcome the edge that pre-paid users have. Till now, banks have been pushing products like Internet banking and credit or debit cards as more and more customers turn familiar with online transactions.
But even as card spends rose, banks were with competition from a new animal - m-wallets. These new breed of service providers had an advantage over banks: while a bank customer using debit or credit card for online payment has to key in details like the 11-digit card number, the card's expiry date and card verification value, a m-wallet user can close a transaction by keying in a single 4- or 5-digit password.
Banks and the finance industry are fighting back against the tech companies for your digital dollar.