No Marketplace for New Startups
There are a lot of startups setting up payment wallets but it looks like the big digital marketplaces may not provide a market for their services. Will consumers suffer in the long run without the competition being available?
Times of India reports that some payment wallet firms say they are getting locked out of the booming e-commerce sector as the companies that run marketplaces prefer their own subsidiaries or are intent on making sure that customers spend any cash-back money on their own sites.
Oxigen said it's no longer available on one of India's biggest shopping sites. "We were present on Snapdeal before it acquired Freecharge and decided to take us down," said Ankur Saxena, CEO, Oxigen.
"At one point in time they did accept wallets but now all of them want to come up with their own wallets." Freecharge is the only wallet option on Snapdeal, which has also launched cash-back offers that direct customers to the unit's offerings. Snapdeal acquired Freecharge for nearly 2,400 crore in April this year.