Jaideep Iyer, group president (financial management) at YES Bank, claims that this move is to be implemented gradually as consumers move towards shopping on the go, bussiness-standard.com reports. Smartphones allow consumers to make payment transactions and the penetration rate of smartphones is increasing on a monthly basis, including in tier-II cities. Iyer has also claimed that the schemes are to be offered both on YES Bank mobile app and on the website.
Moreover, ecommerce companies urge customers to shop on mobile-based applications, such as Flipkart and Myntra, and banks, consequently, are getting receptive to similarly tailoring their offers. Lenders are increasingly announcing offers on credit and debit cards which reward shoppers for transacting on smartphones.
The ‘Mobile Internet in India 2014’ report, issued by Internet & Mobile Association of India (IMAI) and IMRB International, reveals that the number of mobile internet users was 173 million at the end of December, 2014 and was likely to go up to 213 million by June, 2015. Private and public sector banks have accordingly begun customising their offers. This comes even as banking on mobile phones has been on an upward swing. Reserve Bank of India data showed the total value of such transactions across the banking system at the end of March, 2015 increased more than for times than in the same period of 2014.
Rajiv Anand, head of retail banking at Axis Bank, said it was a natural pull, with consumers shifting towards banking on mobile phones, mainly because of the app-based offers, such as rewards points/additional discount for shopping via Axis cards, for example.
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