Snapdeal is reportedly looking to enter digital payments services to tap on the huge potential in this segment as well as to take on Paytm’s increasing popularity.
According Economic Times report on Tuesday, the company “signaled its ambition to build a services platform to stand out in a crowding online marketplace sector, with digital payments emerging as a crucial front.”
The report notes that the Delhi-based Snapdeal with its latest acquisition FreeCharge is eyeing that segment of electronic bill payments, where banks have dominated the market for a long time.
Paytm claims that it handles about 50 million mobile and DTH recharge transactions a month. On the other hand, FreeCharge which competes with PayTM claims that it has more than 20 million users and more than 85 percent of the FreeCharge’s transactions come through mobile phones. Reportedly, the payment market is around Rs 7.4-lakh crore in India.
“We’re focusing on the consumer story here,” said Kunal Shah, Founder and CEO FreeCharge. “Audacious goals have never scared us.”
FreeCharge, according to Shah, has at least 25 million customers for mobile and DTH recharge, notes the report.
“This is a huge opportunity to cross-pollinate customers. Get utilities on board, and provide a complete set of services,” Shah added.