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
Cheddi mind washed bekaris who doesnt think, will alwz praise and rise to please their EVIL masters .... come YAAR forget the leaders... They cannot help U when YOUR life is taken back by the one who Gave this LIFE.
Our Heart felt condolences, but what Master Blasterr Ravi what was he? how many Criminal cases against him???? looks like sadooo!!!!! Gangasara Anna Naren you really a Bull of the Gate!!!! might have Drink your Gangasara and did this Crime. Coastal digest writing the real news not like you chealas says whats what??, if you can not digest ignore Gangasara Anna, You Bajji, Ranjji, RSS now Chaddi gone Trouser came will not change their habits.
coastal digest can only write news which jihadists can digest ...look at the frustration level of muslim commentors ... love it ... i do remember one verse in kautilya neethi ... \ raja shakthi shaali aadashtu , rashtradrohi galige frustration suru agattanthe \"' , i dont see any good articles in cd nowadays .. highlights owaisi statements , who asked for the slaughter of hindus .papa editor ge mostly antha news hudko kelsa .. anyways swalpa saabi galanna urisona jai sangh parivar ... jai bajrangdal ... jai ho babu bajrangi ... intifada maadthini anthiro jihadist galanna shivana paada seristiro israel ge jai .... hara hara modi .... thalaiva shri shri narendra modiji ki jai ... namak haram owaisi ge dikkara...."
Killing own people and blaming others to destroy peace...god will punish one day and no one will save them and that day will come soon
What more proof need for our honorable Home minister to declare RSS as Terrorist Organisation?? He is just waiting more bloodshed and property loss in our State?? who is going to pay compensation for those who lost their property ?? is there is any rule and law applicable for RSS goons in our country??
This report is more violent than the BJP's protest. Why the hell coastaldigest always depicts saffron groups as anti-social elements?
Common, follow some ethics of journalism!
well these days we see lynching, honour killing, individual rivalry etc., In this case we dont have full details, wonder why so many guys are over reacting just because BJP worker is attached to a person!
What you have said is true, you start a ill activity, it chases you back and the parties mentioned you are known to create Hatred in the soceity.
So only BJP workers should go on killing whomever they want? Cops should arrest the culprit irrespective who is killed.
When MM Kulburgi was murdered by these saffron terrorists, the BJP leaders mocked the ‘award wapsi’ protest and called it ‘anti-nationalism’. For them, this kind of violence is nationalism. It is sad that my India has become a breeding ground for terrorists these years.
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