Bank e-wallets may die early death: Tie-ups with niche players more viable

Given the expertise, focus and core competency of mobile wallet players like Paytm and Mobikwik, it makes more sense for banks to partner such players than building or pushing own e-wallet apps

An accelerated digital adoption in India, especially after the Narendra Modi government’s November 2016 move to demonetise high-value currency notes, and the subsequent spike in electronic payments, are credited with scripting a success story for mobile wallet companies. And, with a loss of market share in the payments space that ensued, banks also jumped on the bandwagon and launched their own e-wallets. Now, however, with their wallet customer base, user interface and innovation not matching well enough with the numerous offers that niche wallets provide, banks are struggling to compete.

On the post-demonetisation digital drive, Ritesh Pai, chief of digital