In order to encourage more people to go cashless, MobiKwik has introduced 6% annual profit on wallet balance for its users. This is the first time in India that users can get higher profits than institutional savings on their mobile wallet balance. MobiKwik’s exclusive 6% profit club will cater to over 30 million users, nationally.
The mobile wallet and payment platform aims to cater to financial needs of its wallet users with microloans, profit on wallet balance and cashless transactions.
Upasana Taku, Co-founder, MobiKwik said,
This announcement marks the revolutionary transformation of MobiKwik into a digital institution –to fulfil every Indian’s end to end financial needs by offering micro loans, profits on wallet balance and cashless transactions. Our mission is to enable users to pay, save, borrow and invest, all using their MobiKwik mobile wallet.
To avail 6% annual profit, users need to maintain an average of Rs. 5000 or more in their MobiKwik wallets per month. Profits will be credited to users’ MobiKwik account on a monthly basis only.
The announcement comes as a part of the company’s plan to expand its services by offering solutions such as instant microloans. Mobikwik is also working on reaching out to over 233 million unbanked Indians who do not have cards or bank accounts and digitizing their cash experience by initiatives such as cash pick-up and more.
Last year, the company had introduced the cash pickup facility which allows users without bank accounts to recharge their mobile wallets with the help of MobiKwik agents who collect cash personally from the users.
The service has received an encouraging response as the company recently announced that Cash Pickup service has been growing at a rate of 75% month-on-month since its launch.
With PayTm also targeting a similar demography of users, offering financial services and saving accounts through its payments bank, it is evident that new digital payment services are betting big on the majority of Indian population which still has no bank accounts or have little or negligible access or familiarity with banking facilities near them.