The telecom venture
of Reliance Industries, Reliance Jio Infocomm has begun to test its mobile
wallet service, known as Jio Money Merchant. This will be useful to service
providers like shopkeepers, businessmen, tutors and traders.
Jio Money Merchant
Jio Money Merchant is
available on Reliance Jio’s store and can be downloaded on Android phones. The
service lets any businessman accept payments after creating an account. Reliance
Jio’s applications store also has an app, Jio Money, through which individuals
with a verified user ID can make payments.
The owner will have
to register his mobile number and name with Jio Money Merchant and upload
documents for ‘know your customer’ (KYC). After verification of the documents,
the company will provide merchant with a Merchant Identification Number (MID). The
merchant will then be able to receive payments from customers through debit
cards, credit cards, or the soon to be launched Jio Money card. Additionally,
merchants may also offer discount coupons to customers, through the app.
Merchants will be
provided with a mobile point of sale (mPOS) dongle, which is a wireless device
that needs to be connected with a computer, tablet, laptop or a smart phone. It
may then be used as a credit, debit, or pre-paid Jio Money card reader, or a
cash register. Customers may also get additional discounts and offers at stores
that use the devices.
Reliance Jio wants to
associate itself with several small merchants before the official launch. In
December, the company will roll out its 4G services along with its mobile
wallet application.
Views of Mukesh Ambani
At the annual general
meeting of Reliance Industries, in June 2015, Chairman Mukesh Ambani stated
that Reliance Jio will make digital payments accessible even to the smallest
merchants.
“Jio Money will play
a crucial role in digitization of payments in India by offering a platform for
ubiquitous, affordable and secure digital payments” he said. He further stated
that the application would prove to be the perfect solution for small merchants
like taxi drivers, restaurants, and grocery stores. Customers will also benefit
with 45 minutes faster settlement cycles, through the app.
Reliance Jio in the mobile wallet market
The mobile wallet
market in the country is worth INR 350 crores. A number of players have already
established their position in the mobile wallet market, with Reliance Jio being
one of the latest entrants into the growing market. The company had also
acquired a payments bank license with the largest bank of the country, State
Bank of India, in August. This will ensure it can also accept deposits.
Ambani said that the
payments bank will boost its digital payments business. The company will also
be able to provide financial services with a focus on Retail and other Jio businesses.
Analysts are hopeful
that Reliance Jio’s plans for the digital payment service and payments bank
will bring further progress for the company in the long-run. A September note
from international brokerage, Hongkong and Shanghai Banking Corporation (HSBC)
Limited said, “Jio can benefit by locking in customers by integrating banking
services with its communication infrastructure.”