Despite many players in the digital payment section, the ‘Rural India’ has been left untapped, or rather say untouched. Lack of banking facilities and financial literacy is often described as the reason behind this. If India is poised to ever become a digital nation with people opting payments digitally, rural India too should be a part of this.
Building this “need” as their core service, MoneyOnMobile is trying to make inroads into the nation. With World Bank data claiming that over 240 million Indians, despite having a bank account has never performed a transaction shows the state of “financial literacy” in the nation. MoneyOnMobile is rightly focusing on this very thing and is trying to build a network of “terminals”, which will be a part in traditional Kirana Stores (Mom and Pop Stores).
The company stated that it would use the local Kirana stores as its connectivity points, where MoneyOnMobile consumers can withdraw, deposit, and carry a transaction at these terminals, and receive an immediate confirmation (via SMS). The local stores act as the company’s face to the end customers facilitating the transactions, through MoneyOnMobile terminals. This brings the much-needed trust factor among the rural customers, as they feel comfortable dealing with the local store owner.
The US-headquartered company has announced plans to infuse $6.2 million in its Indian subsidiary for expansion. According to a statement, the company claimed that it is adding 1,000 terminals (outlets) to its network every month.