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.
Zia-ul Haq, manager of MA Convent School in Baghara locality, was booked under the Prevention of Insults to National Honour Act and arrested, officials said.
Comments
The Law of ALLAH is should be first preference... Why ! cos he created all that exists and we are his properties... Some people may ignorantly blame as anti national.. But the manager doesnt want to bow to anything except ALLAH...
Why should he bow down to bharth... does it give anything? it doesnt mean i dont love my country.. ofcourse prophet Muhammad pbuh said love your Place.
But many cheddis alwz complain of others when they themselves doing everything against the LaW of the country as well as Law of the CREATOR ...
A time will come where judgment will be given with JUSTICE by the best JUDGE ... that day CRIMINALS will never escape of their dirty POLITICS and DECEPTION>
Worship your CREATOR not his CREATION.
What has been done by the Manger is very wrong not acceptable.
But Don't forget that even RSS don't sing National Anthem even they had not accepted Tri_Colour Indian Flag.
Authorities have to book the manger, Sealing the school is not the solution, let students attend the classes and Teachers do their duties...
All my dear Hindu commentators.
It is very appreciating you expressed your concerns. While commenting, please try to find out what is the reason which indeed prevents them not singing the Jana gana...
There is one main reason, all Muslims and Non-Muslims should understand about a Fundamental point of Islamic teaching.
If there is any teaching which has the most important that is only 1 point. This point has been preached in 1/3 rd of Hold Quran. And the same teaching is in Hadees the book of prophets message.
What is that main message. Perhaps even many Muslims don't know it well.
Please note it is called attributing any qualities or anything to God's quality. That is called against Oneness of God.
Again rewriting the above statement in other way, wholeheartedly accepting, proclaiming that
'There is only 1 God and no other God, nor anything has the quality of God. ' There is only 1 God, no other God, no any power that equates to that 1 and only God.
In contrary if anybody does worship other than that God, or think anything is there having the power OR quality of that God, then that person is committing a grave and UNFORGIVABLE SIN.
This is the biggest and unforgivable sin. This sin can ruin all good deeds of their life for this easy and grave mistake.
Therefore every Muslim should be careful of committing this mistake.
Now coming to our National anthem, the author has escalated the some portion of the anthem, Bharatha to the quality of God.
The intention of Thagorji might have written in good intention. However Muslims are definitely not against him, but the meaning does not allow them to proclaim that sentence.
The same type has been written in VANDE MATARAM SONG.
My dear all Non-Muslims brothers and sisters this is for your clarification and for your knowledge.
Your true well wisher and patriot Indian Muslim.
I don't think this guy had to take it so serious....at least national anthem ko gaane detha...the word vidhata can be kept silent....but don't take it so extreme and defame all together..
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