Mobikwik to increase focus on its payments gateway business

Mobikwik, one of the largest digital mobile wallet startups in the domestic market, is improving its technology and presence in the payment gateway business as it faces threats from Unified Payment Interface and BHIM initiatives of the Government of India. To achieve the same, it is hiving off Zaakpay, the Mobikwik-promoted payment gateway aggregator, is being hived off as a wholly owned subsidiary of One Mobikwik Systems which owns Mobikwik wallet but with a separate business head and a dedicated engineering team.

Bipin Preet Singh, the Chief Executive Officer of Mobikwik, explained the move and said that “We had launched Zaakpay way back but then there was too much of pricing pressure in the market, now with the consolidation happening in this space, we are going full throttle on expanding the Zaakpay business. It has been a profitable business for us as well”. Adding on, he commented on the success rate of Zaakpay, and mentioned that “We have a more than 90% success rate on card payments through our gateway, which has been one of the biggest positive points of our business and we have been able to achieve it through deep level integration with card network Visa. We are specifically looking for large and mid-sized corporates who are looking for a smooth card payment experience for their customers”.

The payments gateway industry has seen several consolidations in the recent past. Zaakpay already counts major service providers such as Uber, Zomato, Domino’s, Instamojo and IRCTC among around 10,000 merchants for their card payments as its clients. It also plans to double the number of merchant in 2017.