JioMoney M-Wallet: A Cure for the Digital Economy?
(7 pages of text)
Case (Pub Mat)
Reliance Jio Infocomm Limited (Jio) launched JioMoney, a mobile wallet (m-wallet) service, in May 2016. Jio was a new entrant in a market populated by established services. Six months later, when the government of India announced demonetization of two high-value currency notes, India’s cash-driven economy was pushed toward digital payments, providing Jio and its competitors with an opportunity. Jio had advanced technology supporting its service. But to leverage the opportunity and its technology, Jio would have to access the 72.2 per cent of India’s population that lived in rural areas. Many of these people did not have bank accounts, and most of them had no experience with digital transactions. Further, despite the availability of the latest 4G cellular technology—which was necessary for successful digital money transfers—a great number of people in India still used phones that were two generations older and unable to take advantage of the m-wallet industry. How could JioMoney overcome the challenges to take advantage of the opportunities?
This case is primarily intended for use in a graduate program in courses dealing with business environments, management information systems, and e-business. The case provides a conceptual understanding of m-wallets and considers their role and the opportunity they present in an economic situation that was quickly unfolding in a competitive digital and emerging economy. The case will give students an opportunity to consider the following:
- Demonetization and its impact on the use of m-wallets in India
- The role of m-wallets in bringing a cash-driven, emerging economy to a digital platform
- The function of payments banks and m-wallets for a massive unbanked population
- Opportunities for JioMoney to leverage demonetization and its advanced cellular network for growth
Students can also develop strategies for JioMoney to target the semi-urban and rural markets, and devise a sustainable business model for JioMoney.
Finance and Insurance
India, Large, 2016
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