FreeCharge partners with two banks for virtual card

Bengaluru: FreeCharge, the wallet company owned by online retailer Snapdeal, on Thursday said it had partnered with Yes Bank and MasterCard to launch FreeCharge Go, a virtual card that allows users to pay for goods and services at online shops and offline retailers.

So far, FreeCharge had a closed wallet that could be used to transact within its partner group.

The card would allow users to use money and cashbacks from their FreeCharge wallets.

FreeCharge is already a partner with Fino, which has a payment bank licence. Customers can log on to the FreeCharge account and generate their FreeCharge Go card.

They can top it up by adding money to the FreeCharge wallet and use it on-the-go for all their online transactions, with a maximum monthly transaction limit of Rs 10,000.

"We are entering the next phase in our journey… Transacting online will not only be swifter and safer with 'FreeCharge Go' but universal, too. The comparison is not with physical cards, but to the wallet," said chief operating officer Govind Rajan.

Currently, FreeCharge Go can be used to transact at certain offline stores such as McDonald's and Shoppers Stop. The company is in talks with more offline partners, Rajan said.

More than 80 per cent of the transactions on FreeCharge happens through mobile with a repeat rate of about 72 per cent. FreeCharge has over 30 million registered users. It was acquired by online retailer Snapdeal last year. FreeCharge Wallet, launched in September 2015, has about 15 million registered users.

"The potential of digital wallets is promising as it has simplified the online payment process... Our partnership with 'FreeCharge Go' will provide a full spectrum of merchant services on a safe and secure payment platform to consumers and we are certain such innovative solutions will be accepted enthusiastically by consumers," said Porush Singh, country corporate officer, India, and division president, South Asia, MasterCard.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.