Micromax is giving all its users a brand new e-wallet

After subsidiary YU’s launch of Around YU services, parent company Micromax launches new digital payments solution for its users.

You’ll soon be able to send cash to other people or make payments right from your phone using Micromax’s brand new e-wallet service. (Micromax)

If you own a Micromax phone, you'll be able to make payments or send cash to other people via your phone directly by the end of January next year without having to install an app.

The domestic handset-maker on Tuesday launched a new digital wallet across its existing 45 smartphones in partnership with a financial technology partner named TranServ who in turn has partnered with RBL Bank to process the payments. The update will see at least 3.5 million devices getting the new service every month.

"We are targeting to extend the platform to at least 130 million users," Vikas Jain, co-founder of Micromax, said adding that Micromax was heavily relying on its strong distribution network and sale of smartphones.

"The growth in mobile payments has a lot to do with the ease of payment and tight integration with popular services. And our partnership with TranServ will bring Indian consumers, the most convenient and easy way to mirror their life on the fast evolving internet and mobile ecosystem," he added.

Under the new digital wallet plans, Micromax will sell a prepaid card with all its new devices and is currently evaluating a way to send new prepaid cards to all its existing customers to adopt the new service that will be integrated into the device. The firm also said older phones will get the wallet service via an over-the-air software update.

Micromax justified the announcement, saying the wallet will offer a seamless experience to users when compared to regular payment methods like credit cards, debit cards, net banking and rival wallets.

How does the TranServ wallet work?

The TranServ wallet is just like any other digital or e-wallet and the company is giving a card so as to enhance offline customer experience. The user can top up the card using any modes of transaction or account and later use it for making payments. Users can only pay at outlets or counters where VISA is accepted, which it is at most places. The biggest handicap of the wallet is that users cannot choose to withdraw money from the wallet.

What can you do with the e-wallet?

Users can pay online, pay utility bills like mobile recharges, TV bills and send each other cash. If a user chooses to send cash, then the receiver will need the TranServ standalone app to receive or be able to use the money. This however will also help TranServ increase their user base.

Also, if the user chooses to use another phone later, the TranServ service will still be active and can be used as any other regular wallet service like a Paytm or a MobiKwik.

How does that help Micromax?

Micromax is targetting first-time phone users and hence it wants to push ahead with the Digital India initiative to get more consumers. The company is also planning to help consumers by aiding them to recharge the prepaid cards in their 135,000 retail outlets.