Karur Vysya Bank (KVB) & Y-Cash Software Solutions Pvt. Ltd. have jointly unveiled a new Mobile Wallet Platform called ‘YPayCash’, this RBI approved platform will offer paying for multiple services via the mobile phone.
A lot of mobile wallets have been introduced in India since last year. For example, SBI, HDFC, Axis Bank, Vodafone and a few others, each have their own iteration on mobile wallets which offer very similar type of payment procedure. Presently, what separates the services from each other is the total number of participating vendors who choose to accept money transferred via this way.
So, isn’t YPayCash a little late to join?
Amidst such enterprises who have been widely advertising their solutions in mainstream media, YPayCash is indeed a little late to make an entry. However, the JV is apparently not trying to compete with the bigwigs. Launched primarily for the Tier II & III towns & villages, YPayCash seems geared to address the transactional needs of ‘Ultra-Small Vendors’. These micro-retailers have traditionally relied on pure cash transactions at both the ends of their business. In other words, they bought the merchandise in cash & sold it in similar manner. No electronics, no automation involved.
What gives the clear indication about the intentions of the JV is the fact YPayCash has been presently introduced only in the state of Tamil Nadu (TN) & that too in the Chennai and Coimbatore regions. Such a highly curtailed demographic is ample proof that the company intends to first test the system designed for the core audience which wants a cashless mechanism, but is unwilling to opt for the highly publicized products of large corporations.
KVB has enjoyed a long-standing relationship with such vendors & their customers indicated Ravi Jagannathan, director of Y-Cash Software Solutions. So far, the cashless, mobile-only service has been able to get the support of about 3000 vendors. Do you think such a narrowed approach would prove successful?