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.
Responding to queries of media persons regarding the anti-hijab agitation in some colleges in the state by Sangah Parivar backed students, the minister said thathijab' should not be identified with any religion.
Comments
Sreenivasa for you if u say all muslims goto GCC country to follow the rukes of islam thn were you will send the to the rajsthani women everyone cover there head even we cant see there face until they show there face and even many hindus also use to cover there head with there saree and were you will send thm can you tell me whn you people do pooja u also cover your head with ur saree or duppata wht abt tht were you will send GCC or the other country do u have dont blame other religons they do wht they blive india is not made only for RSS and hindus india is of maltiple religon and maltiple caste and multiple festivle dont blame others b like a brother if u cant let others live like brothers dont try to do brain wash of good hindus ok
@shrinivas.
That means Sita mata is Muslim. we can see that Sita Mata is wearing hijab in all her pictures and idols.
Dear Srinivas, the comments from your side shows how much childish you are. If eductaed, they will utter these type of words. India Is the country for all religon and practicing their faith is given to every one by constitution. If you think that you are not happy with this , you can search for the place of your choice , where you can practice your faith. So don't try to misguide the people. Simply relcoate yourself to the place where you can practice your religion. India is not suitable for people like you. Because in india every one want to live togtehr. If we united we can develop. If we devided we will perish. That what otehr countries want with india.
@ Srinivasa, why you people are wearing threads around wrist and Panganama on foreheads.... Any one is opposing... that is your culture and ideology .....Dear Sini, have you checked the reality... have you seen girls covering their faces in the CLASS ROOM
@srinivaasa. If Hindus want hindutwa and blah blah blah let them go to Nepal. India is the country of Muslims, Hindus, christian, and many more .. in short it's the country of Indians. And coming back to sharia.. it's the constitution rights what Muslims
whether you take it as positive or negative, my comments upon the subject is: Dear non hijab ladies, Kindly don't start to wear hijab. you want to expose your figures to public and public simply enjoys it. i too feeling lot of things in my mind. it just because of you only force me to think such manner. specially young ladies (College Students) whoever not wearing hijab please don't wear. if you start wear it is very boring to come out from the home.
Good move from the education minister, thank you sir. India is a secular nation and anyone can follow their own tradition and custom.
@Sreenivas, dont provoke the matter, instead of wasting your time in getting yourself provoked please understand with any good muslim person about Sharia Law by that you will come to know what Islam is and what it teaches, you said to follow sharia we should go to muslim countries (LOL). Everywhere you find Islam you will find sharia law. My brother please dont provoke any matter and dont come to conclusion soon.
Such issues began only after communal force came into power,
If sita mata can wear hijab. Then all hindu womens should wear hijab.
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