Mobile commerce sets cash register ringing

Ngpay, the mobile commerce solutions brand of Bangalore-based JiGrahak, on Wednesday announced that it had crossed one lakh registered users in under three months, a clear indication that the nascent Indian mobile commerce market is taking surefooted steps to maturity. JiGrahak, founded in 2004, is venture funded by Helion Venture Partners.

Ngpay’s announcement was preceded by mobile payment company PayMate India saying that it had raised $9 million in series B funding from Mayfield Fund and the existing backers Kleiner Perkins Caufield & Buyers and Sherpalo Ventures.

Paymate has alliances with Tata Indicom and Kingfisher Airlines for mobile-linked payments. And its latest initiatives include utility bills and LIC insurance premium payments through one’s handset.

Just four months ago, Airtel had announced the launch of a range of mobile commerce solutions, including mobile money transfer (MMT), post-paid bill payment and pre-paid recharge on the handset. Airtel is partnering with ICICI Bank, HDFC Bank, SBI, Corporation Bank and VISA to enable these payments using a solution that has been developed Bangalore-based firm mChek.

The Internet and Mobile Association of India estimated that the m-commerce market in India was worth Rs 9,500 crore in 2007. India currently has some 270 million-mobile subscribers.

Ngpay is akin to a virtual mall on the user’s handset that helps book tickets, top up phones and pay bills, apart from standard bank account services. “Ngpay has proved that customers will be comfortable completing financial transactions over the mobile if they are given a convenient, secure and easy-to-use experience,” said JiGrahak CEO Sourabh Jain.

Ngpay, which inked a deal with HDFC Bank last month for mobile banking, is already the leading mobile sales channel for IRCTC and Fame Cinema. It already accounts for 4 per cent of sales in major markets for Fame.

The solution has certified financial-grade security and works on entry level mobile handsets, allaying two of the main fears among consumers: lack of security and complexity of use.

While Ngpay’s solutions are across sectors, vertical-specific mobile commerce services are cropping up too. Last February, makemytrip.com announced that it has launched a mobile travel product -- again developed by mChek -- that helps searching, booking and paying for flight tickets without needing a GPRS subscription.

Obopay Payment Services, the India arm of California-based Obopay, is planning to offer global remittances as another service, apart from the vanilla fund transfer. Unlike what Western Union, the most popular service provider for such transactions, typically does, Obopay is planning to remit money from overseas directly to the bank account linked to the phone.

Courtesy - Times Of India