Net1 has announced that One MobiKwik Systems Private Ltd. (“MobiKwik”) has launched one of the largest global virtual card programs in partnership with IDFC Bank Ltd (“IDFC Bank”) and Visa using Net1’s proprietary virtual card technology in India. The virtual prepaid card is currently available by invitation only, and will be rolled out to all MobiKwik Android and iOS users in early December 2017.
MobiKwik users will gain access to a co-branded IDFC virtual card embedded within the MobiKwik app, allowing them to make digital purchases at all e-commerce merchants easier and faster. This partnership also marks IDFC Bank’s biggest foray into the prepaid card segment and enhances MobiKwik’s acceptance across Visa’s network. Consumer spending through electronic channels represent a small fraction of overall spend in India, and the proliferation of new payment instruments such as virtual cards is driving the adoption of digital payments.
“The successful roll-out of one of our flagship products at such scale in India further reinforces our focus and investments in India,” said Herman Kotze, CEO of Net1. “This combined initiative facilitates two key components of financial inclusion, namely accessibility and interoperability, and supports the Indian government’s coordinated effort to move to a less-cash world,” he concluded.
“On the first anniversary of demonetization, we are happy to note that Indians are fast developing a digital mindset, and paying with the MobiKwik wallet has become a habit for millions of Indians. The IDFC co-branded virtual card by Net1, will enable MobiKwik users to transact digitally across millions of merchants both on the MobiKwik and Visa networks,” said Upasana Taku, Co-Founder of MobiKwik.
“The prepaid card space is evolving fast, encouraged by technological disruption and growing preference for digital payments,” said Avtar Monga, Executive Director, IDFC Bank. “This marks the beginning of a long-term strategic alliance where each partner can leverage their respective strengths. We are delighted to partner with MobiKwik, Visa and Net1 for one of the largest ever issuances of prepaid cards,” he concluded. Over the past few months, MobiKwik has formed a string of strategic partnerships with leading blue-chip Indian brands such as BSNL, Bajaj Finserv and IndusInd Bank, thus starting to impact almost 260 million Indians.
