The Snapdeal owned FreeCharge digital platform is now launching a digital wallet in partnership with Yes bank. The major benefit of digital wallets is that while shopping online you do not have to go through the credit card payment process and hence the friction of paying and the time taken to process the payment, both are significantly lower.FreeCharge expects that with this wallet (which will be used by Snapdeal) the consumers will be able to complete the transaction within 12 seconds. As noted by the Chief Product Officer at Snapdeal, this partnership of a payment solution and an e-commerce marketplace has proven to be highly successful in international markets. The most famous example is eBay/ PayPal in US and TaoBao/ Alipay in China.
Of course even without the partnership between FreeCharge and Snapdeal, the digital wallet concept is interesting for e-commerce players in many other ways like keeping the customer on the same platform even while refunding, allowing customers special discounts and offers by using the digital wallet, integrating loyalty programs and other marketing initiatives – which are often not possible if your payments are completely outsourced to a third party.