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World

Mobile wallet apps cash in on India's money mess

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Opening sequence

World

Mobile wallet apps cash in on India's money mess

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COMING UP:Mobile wallet apps cash in on India's money mess

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00:00:01
>> India's move to yank 80% of its bank notes out of circulation. Maybe a massive headache for millions, but for digital payment providers, it could be the opportunity of a lifetime, as merchants and consumers look for a way around the cash crunch. Companies like PayTM and mobiquick now hiring thousands of new workers to fan out across the country, and sell people on the idea of a mobile wallet.
00:00:26
Reuters Devidutta Tripathy explains how it works.>> They are going to modules like this possibly signing them up. The company that actually are trying to make it very simple. You can just point your smartphone towards this these food, and at the click of the button you can make the payment.
00:00:41
The merchant also gets the money instantly. So it's very simple actually.>> Paytm has nearly doubled the number of small merchants signed up to it's services to one and a half million in the last few weeks alone. Smaller rival MobiKwik has also seen big success.>> People are now willing to adopt digital payments because the government has incentivized them.
00:01:01
In many ways this is the best marketing campaign any mobile company would ever want.>> But signing people up is the easy part. The question is our small shopkeepers are actually using the service.>> We're not educated enough to know how to use this apps. A lot of this don't even have smartphones.
00:01:18
>> Many merchants also still prefer cash because it's harder for the taxman to trace, and paper money are still the only option for millions who don't have bank accounts or access to the internet. So even while mobile wallet signs pop up across the country, some experts warn that as soon as the cash crunch eases it could be back to business as usual.