Bangalore: Mumbai-based Pay Mate India Pvt. Ltd, the company that facilitates payments through mobile phones is looking to launch services in Sri Lanka and Nepal, both fledging markets for so-called mobile commerce.
Betting big: PayMate managing director Ajay Adiseshann.
The company has around 300,000 customers in India.
“We will launch our services in Sri Lanka and Nepal in November. Middle East would be our next destination, where we would like to be present in the next three to six months,” said Ajay Adiseshann, managing director and founder, PayMate. In Sri Lanka, the firm has an alliance with the Bank of Ceylon, which has six million customers. PayMate plans to convert 10% of these customers into users of its service in the first year. “It will be a 50:50 partnership with the bank and the revenue would be generated from remittances. We have not tied up with a telecom operator as we want an open channel for anyone who wants to join us,” Adiseshann said.
The company plans to charge between 1% and 5% of the cost of transaction as its fee. In Nepal, it has alliances with Everest Bank Ltd and Nepal Telecom (Nepal Doorsanchar Co. Ltd). It expects the overseas market to contribute around 12-15% of its revenues by March. PayMate, a privately held company, declined to reveal its current revenue.
In India, as part of an effort to get more people to use its service, PayMate has formed an alliance with a company that runs a retail chain. Adiseshann declined to reveal the retailer’s name and said an announcement would be made by the end of this month.
Other mobile-payment firms, too, are looking to offer services outside India. Bangalore-based JiGrahak Mobility Solutions (P) Ltd is considering launching its services in West Asia and South-East Asia.
One expert said expanding services to neighbouring countries was a logical move for these firms. “Expanding to mature markets will not happen in the short term, so their aim would be to first grow and consolidate in the Indian subcontinent,” said Deepak Kumar, general manager, communications research, IDC (India) Ltd.