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
Who the hell this bastard is to talk about Madrasas. It is sure that this donkey is current day Dajjal and giving this illogic statement on the advice of sangh parivar and bjp leaders. He is definately been paid of a huge amount of money to give this statement on behalf of bjp. He is a shoe licker + pee drinker of bjp leaders. He might be not knowing who are his parents. May Allah give him a taste of Jahannum during his life and let him be given hardest death. Let him beg for death. May Allah's curse be on him and his Masters.
Shia should be deported to Isarel. There is no difference between these two. They are back-stabbers. They cant be frends to anybody. Cheap people who create tension between different communities.
Allahu Subhanahuthala defenitly punshid to you in this duniya and Akira. Please wait and watch. Allah is great. He will show right path to you.
These Hypocrite goons are doing to get protection, favor from the BJP.
He is compromising their holy faith for worldly benefit.
If he has a little branin left in his head, he should study what is Islam.
Non-Muslims they know about Islamic real values than these Hyprocrites.
Such statements only makes their days to be numbered.
Beeing a Shia, Saddam Hussain of Iraq against for shias, because shias are out of Muslim community they are not considered as Muslims, and they have no right to talk about Madarasa and Masjid or Muslims. they are killed in Pakistan every day. insha Allah one day in this world there will not be any shia... Ameen..
Now Rizvibwill be inducted in any reputable company as Director for his comments by Modi/Yogi like Shazia Ilmi.
This retard must be najaayaz aulaad of SSwamy's baap
Modi's Pet
How many Crores this Stupid took from Dongi Modi and his terrorist group for barking this....
Irresponsible statement from a novice.He without any hesitaion plunged headlong in to a non issue,just to appease his BJP masters. His "chamchagiri" will get him some petty benifits. A whole generation is benifited from the Madrasa eductaion! I am a product of a part time madrasa,and done my MBA. All peace loving Indians should stand aganist this kind of nuisance mongers.
Fuck the barking dog
No one in the Muslim community considers Shia as Muslims. Their religion is nothing but a mixture of Shirk, Innovation, superstitious beliefs, & Kufr. So they do not have the right to comment on our Madrasa systems. It is clearly known to every one in the world that Shias promote crime, terrorism especially, Iran. We request our government to kick them out of the country
you are not a muslim u are shia and this type of words is expected from you people
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