As fintech startups look for avenues to expand their offerings, HR functions have come into their radar and large and even medium sized corporations and businesses employing huge workforce can benefit through outsourcing. Digital payments platform, MobiKwik is the latest to enter the fray and has developed an app Magic. This SaaS-based solutions provider app can simplify employee reimbursements and other benefits.
According to MobiKwik’s Bipin Preet Singh (Co-founder cum CEO), Magic will make disbursal of employee benefit fast, simple and more efficient than ever. Singh claims their technology and service can end up effecting a saving of around Rs 60 million for their corporates, in terms of the costs they incur in managing these employee benefits. He also indicates that around 5 million users could sign up on the app by 2020.
The startup has already entered into agreements with a few companies for this purpose and had started digitizing their processes.
The MobiKwik Magic app will operate as a full function suite and can cover all entitlements like reimbursements for food, fuel, medical, phone, Leave Travel Allowance (LTA) and other company benefits. The app will be accessible to both the employers and the employees.
MobiKwik currently has a 3-million strong network of merchants who accept payments for goods and services made through its digital payment platform.
The company will aim to integrate Magic with the main payments app and employees may even be able to use the credits transferred through the benefits to make payments for their regular needs, directly.
For the record, the estimated annual benefits employers release to their employees in India is around Rs 51,600 crore ($8 billion) and much of it is still done through the traditional paper work route. It is this pie that apps like Magic are chasing and there are already similar solutions available in the market. Zeta and PeopleStrong are, for example, 2 such competitors Magic will have to contend with, going ahead.