New Delhi: E-wallets such as ItzCash and Oxigen are being used by people to buy groceries, pay utility bills and book tickets because of a cash crunch following the government’s demonetization drive.
The maximum amount of transactions is attributed to the 25-35 age group, data compiled by these entities show.
“Since demonetisation, there has been a 40-50% growth in our business, mainly driven by groceries, travel bookings, e-tailing (selling of retail goods on the Internet) and bill payments,” Naveen Surya, managing director of digital payments company ItzCash, said.
Oxigen wallet has also claimed that majority of their transactions are in terms of people topping up their wallet with funds from their own bank accounts, followed by mobile recharges, bill payments and travel bookings.
The average ticket size on money transfers is upwards of Rs1,500, recharges is Rs80 and the bill payments is in the range of Rs450. However, three fourth of the transactions are still in urban areas.
“Cost of smaller valued transactions like these through the mobile wallets operating outside the banking infrastructure is a fraction of the overall cost of the bank. Hence, if payments are processed like this, it will reduce the cost both for the bank and the wallet,” said Pramod Saxena, chairman, Oxigen Services said.
The focus of these e-wallets are now on capturing the offline space, especially targeting the unorganised sector such as kirana stores, vegetable vendors and stand alone shops.