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 isa 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."