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.
Making a suo motu statement in Rajya Sabha, External Affairs Minister Sushma Swaraj said Saudi Arabia has also agreed to provide free medical facility and food to the Indian workers stranded in camps and also allow those eligible to seek re-employment with other companies.
Comments
ASH Mangalore rightly said ...............HUNGRY IN KSA ? Impossible
Food is very very cheap in KSA
and No one allow you to be hungry if he is aware ....
Madam Sushma Swaraj done great job by sending delegates to Saudi Arabia. Thank you Sushmaji for your great work. We need woman like you to improve our great country India. Please ask other goondas and sanga parivars to stop attacking poor people of the country in the name of Cow.
Cow is an animal and no one will pray for that. It is created by God and it should not be god or Gomatha. Please try to understand the reality of the religion.
Madam you have done lot of good work in your tenure. This is my humble request please stop the attacker and bring the new judiciary of punishment for this attacker in name of Cow.
Hope take the initiative step soon madam.
There is misconception that Indians hunger in KSA. None here without food, those who created this mess only because company issue and pay issue. Wheat have subsidy in KSA and very cheapest in the world so none can hunger.
Appreciate Sushma's initiate but those who going back India will be trouble because no job secure and none will take care those who return to India. They have better life here than India.
People take credit through social media and no one will aware there after life who returned to India.
Thank you Sushmaji for your effort. Great work. India need more candidate like you.
Media is spreading lies about Saudi Arabia....In Saudi Arabia, you don't need to spend much money for food...within few riyals you get nice lunch with good pieces of beef...what a country....these stranded employees will find good jobs around....King gave them full freedom to choose companies and transfer their sponsorship....
A sign that cheddi govt and cheddi members never appreciate. and never do themselves big help which saudi govt did and I remember they do here many times to the stranded jobless expats.
Cheddi and their news liars should stop spreading lies and start praising the Good works which may not be in seen the parliament or in the news channels in the future days.
Alhamdullillah...
That's the decision of the king... the most generous king in the world. Can Indian govt expects such a generosity form any other govt in the world? Saudi has provided jobs to over three million Indians, who are sending home billions of dollar to India every year. Am truly inspired by this divinely inspired generosity.
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