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
Cheering PAK against india is wrong. But Anyone can celebrate any team. There is no law.
@milan u sound like, terrorism is wrong, but anyone can be terrorists. there is no law. :P
shame on jihadist muslims who back stab our motherland , shameless beggars .kick them out of india or hack them .
How cheering for Pakistan Cricket Team is wrong? Can we then support England team when the British had ruled and looted India for 200 years? There are numerous England supporters in India but no one is against them! Can we support France in football when French had looted and invaded India? Why do Indians support Brazil or France or Germany in FIFA when Indian team is not playing in it? Indians only need to support Kabbadi instead... Come on guys, just keep aside your enemity atleast in sports.. Support whichever team you like..
They should not have celebrated Pak win openly...if at their home does not matter but not openly....their soldiers are killing our innocent soldiers....
Cheering for a team of enemy country, Celebrating the victory of enemy country against our own country is not at all justified. We all Indians should be ONE against such country in any activity. There is hard feeling or soft feeling PERIOD.
Are we going to celebrate victory of Bangladesh against India??? No one does that. Then, why Pakistan???
Some fools are celebrating pakistan victory and saffron b.fools are exaggerating it for political mileage
Its proved many times who z bloody anti nationalists , when rama sena hoisted pakistan flag in Sindagi, Mutalik gang s bomb blast in hubballi court , ABVP s Pakistan zindabad @ JNU and now one more allegation, grow up sangis this style bcom old
Soon after the match many of Indian team players wholeheartedly congratulated Pakistani team and shook hands with them. Are Indian team players also anti-nationals? Do they also face sedition case?
Good point Rajan Shetty. Keep commenting. Silence of nationalists will encourage anti-nationals.
These gandutva guys have a very little heart
Whole cricket team of india should be in jail including gavaskar and gambhir . They congratulated Pakistan and praised them...
Actually the fact is ...this is the result of Media propaganda by RSS since many years ......................they were taunting Muslim youths telling Pakistan which they have no connection and bond is real friend......then simply youths started to anger the Saffronists by supporting pakistan verbally ....but some youth still using the same tactic to anger RSS ...but Rss a anti national organization uses the same to polarize ...unlike RAMA SENE which hoisted Pakistan Flag in Sindhagi ...is out of the talk now ????????????
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