6wresearch logo

How wallet companies like Paytm, MobiKwik, Oxigen Wallet are trying to prevent fraudulent mobile transactions

January 16, 2016

Paytm is experimenting with facial recognition technology to secure mobile transactions. MobiKwik has introduced card checks and device ID checks. Oxigen Wallet has launched mobile virtual cards powered by Visa for users without debit or credit cards to transact securely on ecommerce sites.

These companies are all in the fastgrowing digital wallet space and are trying to ward off what could emerge as the biggest threat to their business in 2016 - fraud.

Within the realm of digital wallets, mobile recharges, bill payments and ticketing and recharge applications are the most vulnerable due to the benefits and cashbacks that go back into customers' accounts, say experts. Mobile recharges, bill payments and ticketing and recharge applications account for about 95% of digital wallet frauds.

"India offers a very unique challenge because consumers are gullible," said Vijay Shekhar Sharma, cofounder of Paytm, which claims to be the digital wallets leader with over 120 million registered users and more than 2.5 million transactions daily, on average. "So, we have to find out ways to run the system even more than differently than the rest of the world."

Paytm itself blocked about 5.5 million users in 2015 after they were hit by fraud. The company even barred about 17,000 of its 1 lakh merchants over the past eight months.

"Fraud is fast becoming an area of concern for retailers as they gear up for further growth in online commerce" with the number of users making online transactions growing exponentially, the Associated Chambers of Commerce & Industry of India said in a recent report. With the surge in the number of companies in the online wallet space, the risk of fraud has been rising in recent months, Mumbai-based digital payments company TranServ said. During September-October, mobile wallet fraud peaked to 3-3.5% of value, 15-20 times the levels in ecommerce, it said.

The problem areas are the same for all wallet companies, which are mostly focussing on controlling and preventing fraud while adding customers to widen market share.

India has about 135 million wallet users, according to market research firm and consultancy 6Wresearch. PayU Money, Paytm, MobiKwik, Oxigen and My Mobile Payments have captured around 70% of the market revenue, in no particular order, senior consultant Rajat Kharbanda said.

Fraudulent transactions through mobile wallets are estimated at about 1% of the market at present and experts expect them to rise to more than 2% in a couple of years, when the customer base would have widened.

Media Source: India Times

      Browse More Report

India LED Lighting Market (2017-2023)

Market Forecast by Types (LED Lamps (Self-Ballasted, Down Lighters and Street Lights) and LED Luminaires (Indoor and Outdoor Luminaires)), By Wattage (Upto 5W, 6W-10W, 11W-15W, 16W-20W and Above 20W), Applications (Outdoor Lighting, Indoor Lighting ...

Read More

Saudi Arabia Diesel Genset Rental Market (2017-2022)

Market Forecast by KVA Rating (Below 100 KVA, 100.1 KVA- 350 KVA, 350.1 KVA-750 KVA, 750.1 KVA-1000 KVA and Above 1000 KVA), Applications (Power Utilities, Oil & Gas, Construction, Manufacturing, Quarrying and Mining and Others)

Read More

Latin America Asphalt Paver Market (2017-2022)

Market Forecast by Types (Wheeled and Tracked Asphalt Pavers), Technologies (Hydrostatic and Mechanical), Paving Width (<2.5m, 2.5-5m and >5m) and Countries (Mexico, Brazil, Argentina, Colombia, Chile and Others)

Read More

GCC Medium Voltage Switchgear Market (2017-2023)

Market Forecast by Insulation (AIS, GIS and Others), Applications (Oil & Gas, Industrial, Infrastructure & Transportation, Commercial and Power Utilities) and Countries (Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain)

Read More

GCC Air Conditioner Market (2017-2023)

Market Forecast by Air Conditioners Types (Window AC, Split AC, Ceiling Concealed/ Ducted Split, Packaged AC, Suspended AC, Floor Standing AC, Cassette AC and Centralized AC (Chiller, VRF, Condensing Unit and AHU/FCU)), Applications

Read More

Japan Video Surveillance Systems Market (2017-2023)

Market Forecast by Types (Analog, IP and Video Surveillance Software), Verticals (Banking & Financial Institutions, Government & Transportation, Retail, Commercial Offices, Industrial & Manufacturing, Residential, Hospitality & Healthcare and Educational Institutions)

Read More

India Power & Distribution Transformer Market (2017-2022)

Market Forecast by Types (Power Transformer and Distribution Transformer), Power Rating (Power Transformer (5.1 MVA – 50 MVA, 50.1 MVA – 160 MVA, 160.1 MVA – 350 MVA and Above 350 MVA) and Distribution Transformer (Up to 100 kVA, 100.1 – 315 kVA and 315.1 – 5 MVA)

Read More

India Output Management Software Market for SME Segment (2016-2022)

Market Forecast by Segments (On-Premise Output Management Software and Cloud Output Management Software), Regions (Northern, Southern, Eastern and Western) and Competitive Landscape)

Read More


Our Key Clients
6wreserach client list