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
You can do nothing. Because your countdown has already started.
Any harsh step towards Hindus living in UAE may impose long-term hazard on Indian muslims... therefore think twice before taking any foolish action. Don't think RSS is just a group of robe wearing sadhus. Their reach is beyond your imagination. Jai Hind.
Terror attacks of RSS:-
1- 1999 killing of Graham Staines
2- 2002 Gujarat riots
3- 2007 Samjhauta Express bombings
4- 2007 Ajmer Dargah attack
5- 2008 Malegaon blasts
6- 2007 Mecca Masjid bombing
Saffron terror is a neologism used to describe acts of violence motivated by Hindu nationalism. The acts are allegedly perpetrated by members, or alleged members, of Hindu nationalist organizations close to Rashtriya Swayamsevak Sangh (RSS) and Abhinav Bharat.
RSS is an anti national, saffaron terrorist organisation. Many are convicted for bombings and killings in various part of India. They even do hate speech in public. As the majority of north indians are illiterate, they will fall for rss ideology. They will make believe these illiterate people. As the south indian people are literate, rss lacks ground support in southern states of india, where the economy is far better than rest of india.
RSS never do fund collections from any comapnies or sympathizers. Do you anything about RSS?
RSS has strong base in UAE. I know many people who are working for RSS. Govt. is aware of this fact but a little bit tolerant because RSS respects local laws, rules & traditions. No harm to UAE integrity, law & order.
RSS Businessmen already in key position in gulf countries and hindus forms a substantial poulationin gulf countries will soon take over gulf countries and arab sheiks will ride camels..Jai hind
Mr. Kamath, remember one thing that each drop of water will make big ocean....we as muslims, small percentage in India, will do our level best to see these RSS supporters to perish....
UAE Indian expatriates take initiate and teach lesson for this companies. They hire only RSS trained persons and funding who against Muslims. So, every person should take initiate and there is many alternatives. \hani hani goodidare halla\".
Spread even around Emirati who understand."
People have power if they wish by not supporting RSS and boycotting those who fund them.
NO WORRY, Truth will prevail ,and evil will perish soon.
always do good to all
Sorry NMC me going to GMC or thumbay hospital in sha Allah if needed and UAE exchange me n my relatives are opting al ansari or al razouki exchange.They also give best draft rates. Sorry by funding or approaching rss thugs u r putting axe on ur own knees in shaAllah. May Allah perish you.
my dear rss friends dont come here you will have to eat beef with other your friends because all of your friends eat beef in cafeteriai in uae
Now y do u need rich gulf countries Muslims Money!!! No objection now?
There is no POWER nor MIGHT except with ALLAH....
Whatever ways ISLAM haters try to plan... Muslims know very well they will never succeed playing with the followers of Divine religion (ISLAM).
They did lot of deceptions & FOOLED many. But their Evil deeds were caught & exposed, but Most of the people are still sleeping to their deception.
Dear RSS Cadres...
LEARN ISLAM independently not from cheddis.. Dont fall trap to RSS defined islam which is deception to make you follow your leaders to HELL if U dont recognize the REAL TRUE GOD who created U, ME and all those existed.
Good luck for you new plans, which U will be able to deceive many of your Unthinking followers. and WE Muslims know, ALLAH is most merciful... and he can spare U & allow YOU to play this GAME. But YOU will never succeed to overcome or wipe ISLAM. Its a Challenge many ISLAM haters tried and LOST. RSS your fate will be the SAME. Dont play with the Divine religion ISLAM.
Dream only, RSS cannot do anything Dubai. Dubai is Islamic country.
RSS men and Sadwi's were involved in many bomb blast in India.
RSS was the main organization behind demolition of Babri Masjid
RSS was the main organization behind every riots in India
RSS was the main organization who organized Gujrat carnage and killed around 2000 innocent Indians.
RSS was the main organization which is organized riots in Muzafferabad and killed many muslims.
RSS was the main organization is funding it's goonda outfits like Bhajrang Dal , ABVP etc.
there are many many incidents we can make here about RSS which is dead against of Minorities in India.
So UAE Indians should ban it's funding hand from this gulf countries by banning their business places.
I swear I never ever go to RSS backed banks any more. I promise.
Can you all Promise??????
RSS and ISIS are same, they both got same idea of dividing people...dangerous for human kind....both are being taken care of by Zionists.....tooooooo dangerous.....
Earned name,fame and richness from Muslim countries and funding for the anti Muslim organisations. What a ungratefulness.
All knew about these tycoons.
ZEE aflan tv channel was the first step to enter Middle east to sympathize RSS through bollywood movies, Bhajan and RSS imposed hindu culture. Now they openly enter by strong hold business and money. They will ruin some if UAE not act immediately.
Mr.Nishan,RSS member cannot do the mosad work becouse RSS member's are waring chaddi.
but one thing they are using money from gulf country to killing innocent musslims also a bank giving all commison to RSS i came to know from one of hindu friend working here in kuwait.
So it means they need Funds from Muslims countries, how pathetic, How can you take money from Tycoon's who are beneficiaries of Muslims in Gulf countries and earned their money from this community, Please try some other source!!
All middle East countries should ban those companies which funding terror organisation RSS have link with it. In Saudi Arabia, also some companies funding RSS
Islamic state may take help from RSS since IS is creation of Israel.
Alarm for UAE authority and other Middle eastern countries.
Hope Indian expatriate and Human rights will take this issue up to UAE authority before too late.
R.S.S Outfit engaged several Terrorist activities against Muslims, hence Indian Muslims considered R.S.S is Terrorist Organization. The Muslim organizations around Gulf regions should come forward and chal out plant to finish /pull out R.S.S functionaries from Gulf region. Also Organizations must take necessary steps to educate Rulers, Government authorities and Gulf countries citizens about the hidden agenda of R.S.S and its ally with ISRAEL.
Israel using RSS cadres to spy Gulf countries since Mossad cannot enter GCC. It's decision by Israel and RSS acting accordingly.
RSS go at any level to disturb Middle East peace and killing Muslims.
Middle east authorities must act before too late.
Most of RSS cadres trained by Mossad and frequently visiting Israel through other passport.
BR Shetty is a great patriot and philanthropist.
CD is unleashing a series of articles to create :awareness\ against RSS. but no publicity is bad publicity. U cnnot do any harm to mighty RSS"
Would like to see if they can do a \path sanchalan\" in cheddies and swords on Dubai streets."
Whatever you do, you cannot move an inch without the almighty's permission. HE is the best planner.
In Dubai, everything is possible.
Preaching man made religion - what does benefit.
Compare how many people accepted Hinduism V/s how many Hindus accepted Islam and Christianity.
Analyze the truth.
Exert whatever your efforts, truth will not fail, God's religion has to reign.
I heard that the commissions paid to UAE exchange goes directly RSS account. please use Alrajhi bank to send your money...
Add new comment