Even more than three years after demonetisation and all-out efforts to make most transactions through electronic, cash is still king, as it thrives in a digital India, said fintech start-up Paytm founder Vijay Sekhar Sharma.
"While cashless economy is not possible in India, less cash economy will be in the future. Less cash is the only solution, not the elimination of cash," Sharma told IANS in an interview after unveiling an all-in-one payment gateway on Tuesday.
Asserting that it would take 5-10 years for India to make the transition to digital payments from the traditional mode of cash, Sharma, 41, said the e-payment industry benefitted more from the November 8, 2016 note ban and withdrawal of old Rs 1,000 and Rs 500 denominations.
"I think it (demonetisation) helped the industry despite lack of specific help. But the world has changed since then. It is about the scale of distribution of merchants that is what is propelling digital payments," said Sharma.
Most of the cash not only came back into circulation, but also remains as the mode of payment for the majority due to its convenience for the people used to such transactions.
Expounding Paytm's zero service charge, Sharma said the strategy is sustainable as it leads to acquiring more customers and merchants, enabling newer business opportunities.
Paytm also does not levy a service charge to small merchants for its payments services, unlike organised players like Uber.
"Though there is a monetisation model, the merchants who are small shopkeepers, become our financial services customers as they open a bank account, which is profitable."
Paytm secured a Payments Bank license from the Reserve Bank of India to offer a savings bank account, Rupay debit card and money transfer services.
"We are banking on payment services acquiring customers and merchants who avail banking, lending, insurance, wealth and software services like billing software and business ledger software services eventually," Sharma noted.
The mobile first bank services include zero balance and zero digital transaction charge accounts.
"Basically, payments, cloud, commerce and financial services are a cohort we follow. So, payments is our customer as well as merchant acquisition. If it breaks even, we are happy because other line items make more money, he affirmed.
Noting that in a market like India, one cannot price services at a premium unlike in a developed country like the US, the billionaire businessman said a consumer in a developing country would not be able to afford such a hefty charge.
Forbes ranked Sharma as India's youngest billionaire in 2017, with a net worth of $2.1 billion.
While several countries operate on the model of higher service charges, Sharma said newer business models have to be discovered in India, as customer lifecycle value is accounted for more stages than in other nations.
Asked about an upscale retailer like Zara not giving a wallet payment option during its recent end of season sale in Bengaluru, Sharma said Paytm was addressing such hiccups with its all-in-one payment solutions.
"It's an opportunity, because if the retailer has our all-in-one point of sale machine, where in they enter the amount, it shows both the Quick Response code (QR) and card payment options," he observed.
Sharma compared older swiping payment machine to feature phones and modern ones to feature-rich smartphones.
"If you notice, they look like feature phones and the modern day card machine is more a smartphone like. You can add the smatphone components, which can add the features," reiterated Sharma.
Though Paytm's all-in-one QR point of sale machine integrates the billing system, its chief executive said it was not ideal to have an independent QR feature.
Paytm has 16 million strong merchant user base, which Sharma aims to raise to 26 million base in the next one year.
Sharma has launched in this tech city an all-in-one payment gateway and Paytm Business Payments solution, which enable digital payments through multiple methods for small and medium enterprises (SMEs) and an Android point of sale machine.
With the new gateway solution, collecting digital payments through multiple methods can be achieved seamlessly while Paytm Business Payments solution enables automated vendor payments, including employee salaries and customer refunds among others.
The One97 Communications-owned Paytm aims to help SMEs streamline and digitise their business activities using its new solutions, which enhance the overall efficiency of both accepting and making payments.
Paytm has a data bank of over 200 million saved cards and bank accounts, a feature which enables partner apps to shorten transaction times and propel faster conversions while using the all-in-one payment gateway.
Complementing the two solutions, Sharma also launched an all-in-one Android point of sale machine, which can accept payments through all forms such as cards, wallets, UPI apps and even cash.
The device has a QR code that supports all contact and contactless payments, coming with integrated billing software customized solutions for different sectors such as catering, ticketing, parking and others.
The handheld Android device is equipped with an in-built printer, scanner and can also generate bills.
Valued at $16 billion, Paytm is not alone in the fiercely competitive Indian fintech space where a dozen players like PhonePe, MobiKwik, Kotak 811 and deep pocketed international giants Google Pay and Amazon Pay are in the fray.
“Why should you snatch away the poor's meal?” asked Bhimrao Dhonde, who represents Beed's Ashti, during a discussion on the state's agrarian crisis.
Comments
It is better for government to impose ban on beef as it is not at all good for health.....Moton is a good meat and healthy...
Without distributing the Ambani wealth to poor you cant impose ban on anything. Poor people are suffering because of rich Fadnavi who has easy access to all sort of food. I'm used to mutton now. Even if you allow me to eat beef i wont.
There intention is not to snatch snatch away the meat of export from their leaders.
Beef ban increased beef export. Hence, my guess, the farmers must be selling cows to the exporters. It is very clear that the present administration is anti poor. Election in the corner will woke him up now.
dear avish, the loan burden and no food make the people to sucide. Do you say that the life of cow is more important than the human being? he can sell the cow if he want he can save his parents and family. If not all them should be opt for sucide. So parents sake and family sake he is ready to sell the other things which is not necessary at that moment. But people like you who think that more educated ( not being a human) think another way. It will be understandable only when your are in same situation
Dear Kumel are you educated? how the cow becomes your mother. Please check your DNA. We have never seen even in any holy books that the human being is born by Cow.
Another prime example for dirty politics from BJP since Assembly electioons are on the corner, please do not react or comment
Mr kumel,Who you are to feed 17 cr people. Who is parasitic?.mind your language.
Any action in this regard to be implemented immediately before beef eater communities are used to alternative diet, most of them now used to mutton and chicken, After that if we want sell we will never find anyone to buy it.
I think we have to ask all farmers to bring all their spent cattles to Mr. Kumel Chang house. He will look after these mother cows.
I guess he'd be willing to let go of his parents and family as and when they become nonproductive. What a loser!
So parents are cattle? People like you will use any analogy to stick to your stand. Don't impose your ideas on the rural folks. They know exactly what they are doing and what to do with their life, diet, animals, crops etc. India is a non vegetarian country. Get used to it
If we can feed 17 crore parasitic population of jihadis, surely we can feed the holy mother cow
Very well said, I came from an agricultural family too and they have similar practice. I remember Bangalore in the 80's and the menace of cows roaming on the road. Then the IT boom happened and \ban\" we dont see them anymore and they are now sold as beef."
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