MUMBAI: State ( ) will launch its m-wallet ‘SBI Buddy’ on Tuesday that will compete directly with ’s Pocket, HDFC Bank’s PayZapp and Paytm, a market-place-cum payments’ company. This move will help the country’s largest lender to enter the rapidly growing mobile wallet business. It will also restrict the abilities of several online market places which are looking to erect barriers through the ‘app only’ sale. M-wallets are similar to savings bank accounts that can be accessed through mobile phones. Anumber of banks, including and , are planning to launch their m-wallets as they sense that this model of business will gain acceptance among the youth and affluent who prefer online shopping with their smartphones. It is estimated that there are close to 10 crore m-wallet users although all of them may not be active. In most cases, an individual has to download the merchant’s app such as Flipkart or , and use their debit or credit cards while making payments, or their mobile wallets such as MobiWik or Citrus. “But in the case of SBI m-wallet, it would be seamless process. Once a customer opens the m-wallet Buddy, he/she will have access to thousands of merchants in the travel, hotel, entertainment and fashion space, and can even make remittances without downloading their app,” said a senior bank official who did not wish to be identified. SBI’s m-wallet will be available to existing as well as non-SBI customers, said people familiar with the matter. The bank has tied up with several merchants for end-to-end solution, and they will be connected with the Buddy. In effect, customers can directly access merchants’ app once they download the SBI Buddy on their handsets without downloading merchants’ app. SBI, with a 20% market share, has a customer base of 28.6 crore, of which 2.3 crore are net banking customers while 1.6 crore are mobile banking ones. Increasingly, banks are looking at launching their own m-wallets in order to offset the regulatory arbitrage between them and pre-paid issuers-cumecommerce companies. As of now, any online transaction done through net banking or debit/credit cards is subject to second factor authentication whereas a single factor authentication is applicable for pre-paid issuers who offer m-wallets. In June this year, the total value of transactions using m-wallets rose to Rs 1,268 crore, up 8% from a month ago, while mobile banking transactions in the same period rose 11% to Rs 22,117 crore.
The State Bank of India ( RBI ) will launch its m - wallet ' Pay ##box ' tomorrow . The wallet will integrate directly with ICICI Bank 's Pocket , HDFC Bank 's PayZapp and Paytm . The m - wallet will also be available to non - SBI customers .