HDFC Bank has marked its entry into the mobile payments and shopping space with PayZapp, a smartphone app through which users can manage their cards, pay bills, transfer money and shop.
The app aggregates online merchants – 15 so far, with plans to add another 10,000 within the next 45 days – to allow customers to browse and shop for products ranging from groceries to movie tickets.
Integrated payments will mean customers won’t have to enter their payment detail every time they purchase a product, and since everything is routed internally, security is still maintained.
The digital wallet is another great feature which reflects the current balance in a customer’s card, rather than the prepaid recharge format that every other digital wallet in India follows.
Aditya Puri, MD and CEO of HDFC Bank, said that the motivation to build the app came from the fact that banking is fast becoming obsolete.
The launch of the PayZapp comes close to the heels of the RBI’s announcement that it would start issuing payment bank licences by August 2015, which would let other firms compete with banks on the third party transactions front.
Taking things forward, HDFC bank plans to introduce loyalty points, QR code based payments, and contactless payment instruments to fully realize the potential of PayZapp.
The bank realized the potential of the mobile platform as 63% of its total transactions are done through Internet banking or mobile banking. In March 2015 alone, HDFC Bank registered close to Rs 6,000 crore in transactions done through mobile phones.