Mahindra Comviva, an arm of Tech Mahindra, is in talks with Bharti Airtel, Vodafone India and Cholamandalam Finance to help them start payment banking operations, as the mobility solutions firm is expecting India to contribute 30 per cent to its mobile financial business revenues in 3 years.
These three firms were among the 11 successful applicants for the Reserve Bank's approval to start payments banks. Mahindra Comviva's 'mobiquity' solution will provide technological support systems to deliver mobile financial services ranging from remittances and payments to savings and insurance.
"We expect to on-board the first customer (in payments banks) within the ongoing financial year. Services based on our solution would be available by the second half of next calendar year," Mahindra Comviva senior vice president and head of mobile financial solutions Srinivas Nidugondi said.
Apart from its own group company Tech Mahindra , Reliance Industries , Bharti Airtel, Vodafone, Aditya Birla Nuvo , Paytm, Cholamandalam Finance and India Post were among the 11 entities to get Reserve Bank of India (RBI) approval for starting payments banks.
Payment banks will cater for to individuals and small businesses and are being set up to accept demand deposits, remittance services, internet banking, and other specified services.
They will be allowed to issue ATM/debit cards and other prepaid payment instruments, but not credit cards.
They will not be allowed to undertake lending services and non-resident Indians will not be allowed to open accounts.
Mahindra Comviva is currently working with India's third largest telecom firm Idea Cellular in India for its M Money service. It also works with Bharti Airtel for Airtel Money service in many African countries.
"Out of overall MFS revenues, 10-15 percent comes from India. Based on the market opportunity and trends, the percentage is estimated to be doubled in three years time," Nidugondi said.
The company will compete with the likes of Tata Consultancy Services (TCS), Infosys, Amdocs and Ericsson in the space.
Mobiquity enables mobile financial services for over 65 banks and mobile operators in over 45 countries. It claims to have a 25 per cent share in the operator-led mobile money market, processing 200 million transactions every month amounting to $4 billion.