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.
Comments
Salute to such Gurus (teachers), who giving the youth real path and message of peace and harmony. JAI HIND.
\ SHAME ON THOSE PARENTS\" who support their chilnder on such kind of protest, for girls covering modesty. Evern those parents may support their childern/goons if they protest for girls NOT wearing mini skirt ?"
Manjunath
Before banning college. Remove hijab from sita matas, durgas idols.
Karan singh and mahesh. Sita mata used to cover her body, which is called hijab in arabic. We all respect her. I think ur going against sita mata.
Who the hell are these goons to tell us what to wear, what to eat.
One day they will tell to wear only saffaron chaddi.
Mother therasa used to wear hijab. Even sita mata used to wear hijab . . These people cannot be called as hindus. Worst than ravana.These people don't have problems with sunny leone dress. Sorry no dress.
Its good to see, that not everybody thinks the same way.. just wondering.. do these people come to college for education for better future or just to see who is wearing what.. who is talking to whom.. come-on guys dont spoil your future and become puppets of politicians.
Karan Singh, you ______.....
Mahesh and Karan singh .... If you disturb the peace in the society, both of you will face the same fate , as of Rama sena leader Jayant Naik who has been expelled ( Gadipar ) from the UK district .... try your luck ....
LET THE GOONS WEAR SAFFRON BIKINI.
will wear saffrom loongi and shawl,
its their wish to wear it, let them wear it, why u making small issue an big
ban this college!!!
All Praise is to Allah , The Lord Of The Worlds
Dear Mr. Well Wisher Riyadh, brother Totally shirk in islam clearly mentioned in Quran, Wearing a non Muslim traditional Dress in Islam.
student please Concentrate on your studies, because in bajrangdal all are jobless and uneducated.
this principle gone mad, he wants to fight with our any situation will not allow hijab inside the college.
principle will c u soon. big protest will take place
Dear Brother K K. Acharya,
You have said well. We need more people like you from your community to talk fairly and boldly.
May God bless you Sir.
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My dear Hindu brothers and sisters,
Try to learn at least few basics of few main religions around us.
First of religion means the way of our daily life from cradle to grave.
- Therefore the life to be lead as per the commandments of God but not as per our individual wish.
- Within the bounds and flexibility of the religion we can have our choices in dress, food and many other parts of life.
- As long as we don't transgress the bounds and norms of commandments of the God, everything is admissible.
The basic teaching of Islam
- Islam has come to this universe as Ultimate and the only Guide for humankind until the existence of this world. The God Almighty says this is the only acceptable religion.
- Therefore all the Muslims have been commanded to convey this religion to everyone, Unfortunately very few Muslims do this job and most of them don't do it. Therefore Muslims are held responsible for failing to do this job of conveying the truth. Muslims will face the consequences for their failure of non-compliance to the Creator's commandments.
- But it is not yet all allowed to IMPOSE BY FORCE.
If the people choose wrong faith, they are solely responsible with their CREATOR.
Very simple and straight command
Stand with the principle...
In hindu religion too its a respect to cover their head. the things is most of the hindus are not following their scriptures... U can see it is still maintained in rajasthan and other areas of northern india...
Dears,
Muslim girls are wearing hijab as a part of religious requirement. No need to make your face red. Simple solution. You wear Red shawl & Hindu girls can wear orange scarf. Muslims will never oppose. Islam is a religion of Tolerance.
Good decision.... allow the goons to wear chaddis, shawl, langotis as they wish ........
Effects of saffron poisoning.
Principal is rocking...well done....
Why the hell you want to ban scarf? Let them wear. What you are going to lose? If you want ask your sisters and mother not to wear. But stop poking nose everywhere. You people are a major threat to peaceful Hindu religion. Hindus are ashamed of these saffron goons.
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