Mobikwik files patent for power wallet platform

New-age payment companies seem to be taking the lead when it comes to filing for patents. Mobikwik has recently filed a patent for a platform called power wallet that seamlessly integrates the online payment platform of retailers with that of mobile wallet firm. This comes soon after Snapdeal-owned Free-Charge indigenously developed an authentication alternative to the SMS-based one-time-password and filed a patent for it, as reported by ET earlier in December.

Companies that are already using the power wallet include OYO Rooms, PVR Cinemas, Zomato, Meru Cabs, Big Bazaar and WHSmith India. Under the technology, users can make the payment through the wallet from within the retailer's platform and no re-direction to MobiKwik is required even for loading money into the wallet.

One-time user authentication makes it easier to transact since users do not have to enter their details for subsequent payments made on the retailer's platform. The company is claiming a close to 100% success rate in processing payments compared with the industry average of about 60%.

Bipin Preet Singh, founder and CEO of Mobikwik, said power wallet as a concept can be used on a website and can also be used offline. "The implementation of power wallet can also be done through tap payments or through the nearfield communications technology where retailers can accept contact-less payments," he added. While the underline technology will be deployed by Mobikwik, the entire transaction will happen under the retailer's portal. Merchants can also opt for co-branded wallets.

"It is a pretty unique proposition; worldwide there is no such thing since a person's identity, authentication and payment can all be done under the retailers interface by using the underline technology system off the shelf," said Singh. It can be used for varied purposes, such as when a merchant wants to build a loyalty or refunds programme or another choosing the image recognition as a means for authentication, he said.

Rohit Sharma, senior manager digital at PVR Cinemas, said the wallet was integrated with the online payment option of the multiplex chain a couple months ago. "For us, it means seamless integration, since you are not transferred to third party for the transaction and everything happens within the PVR portal," said Sharma.

ET had reported earlier that filing of patents in the nascent industry could become a trendsetter of sorts since the industry is dominated by the likes of Flipkart, Snapdeal and Paytm, which are heavily investing in R&D to develop breakthrough technologies in the online space. However, filing of patents is still rare.

The portfolio of patents — even if their registration is pending — becomes a highly valuable intangible asset for a company during fundraising. Patents serve as a business tool rather than a legal one, especially for firms that are global in nature as patents command a high premium in the US and UK. The technology developed by FreeCharge replaces the OTP received through the mobile airways with a pin that resides within the phone and keeps changing every few seconds.

FreeCharge has already struck a deal with Shopper's Stop, which will start transactions using the new technology.