Currency ban contributes to the growth of wallet services of Airtel, Vodafone India, and Idea Cellular: Report

The currency ban has benefited telecom operators in numerous ways, primarily via creating an increase in their mobile wallet transactions. Among the operators, three major telecom players – Airtel, Vodafone India, and Idea Cellular – are estimated to witness a 40-50% surge in mobile wallet transactions, reports Economic Times (ET).

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“The withdrawal of Rs. 500 and Rs. 1000 notes will create a sizeable increase in the revenue of the telecom operators,” experts said to ET.

Commenting on the massive opportunity created, Shashi Arora, MD & CEO – Airtel Payments Bank said, “The Government’s recent initiative to curb illicit cash transactions, by demonetizing hi-denomination currency notes, will provide a major boost to the growth of digital payments ecosystem in the country, and will accelerate India’s journey towards becoming a truly digitally integrated and cashless economy.”

According to Arora, Airtel Payments Bank, with its banking and mobile wallet services portfolio, is well positioned to leverage this growth opportunity. “We also plan to roll out our banking services shortly by leveraging Airtel’s vast customer base and pan-India distribution network,” he said.

Arora agreed to the fact that Airtel Money, the company’s mobile wallet, has seen a surge in transaction value (usage) and in the cash-loading post the Government’s recent currency-ban announcement. New users have started using Airtel Money services and the number of Airtel Money app downloads is also increasing.

Also Read – Demonetization: Bharti Airtel, Vodafone provide talktime and data loan to prepaid users, extend bill due date for postpaid base