Siddaramaiah convenes CLP meeting over flood havoc

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.

Bengaluru, May 21: Chief Minister B S Yediyurappa today slammed Law Minister JC Madhuswamy for yelling at a woman farmer in Kolar, an incident that attracted widespread criticism. 

The incident happened on Wednesday when Madhuswamy, who is also the minor irrigation minister, was inspecting the Koramangala-Challaghatta (KC) Valley project, under which Bengaluru’s sewage is treated and pumped into lakes in Kolar. 

During his visit, farmer Nalini Gowda questioned Madhuswamy on the encroachment of the 1,022-acre S Agrahara lake. At one point, Madhuswamy lost his cool and yelled, “Aye! Shut your mouth, rascal,” and asked the police to take her away. Before this, Madhuswamy told her, “Make a request. I’m a very bad man. You can only air your grievance. Don’t command us.” 

A video of this exchange was aired by news channels. 

“What (Madhuswamy) said is not right. I have warned him. None can forgive such an explicit manner of talking with a woman. That, too, behaving like that being a minister doesn’t bode well. I will talk to that woman also and I’ll ensure this doesn’t happen again,” Yediyurappa told reporters.

The incident has come as a shot in the arm to the Opposition Congress, which is already attacking the Yediyurappa administration on the COVID-19 crisis. Condemning Madhuswamy’s behaviour, Leader of the Opposition Siddaramaiah demanded an apology and asked Yediyurappa to sack him from the Cabinet. 

Karnataka Pradesh Congress Committee (KPCC) president D K Shivakumar said it was unbecoming of Madhuswamy to behave like that being a senior minister. “People will ask us questions and express their problems, naturally. What’s important is how we handle ourselves. Be it a woman or anyone, they come to us because we’re into public service. Calling them ‘rascal’ and things is not right. Maybe there was some irritation, but I agree with (Siddaramaiah) that he should be dropped from the Cabinet,” he said.

On his part, Madhuswamy said he felt intimidated. “If I have hurt the feelings of any woman, I will certainly apologise,” he said. “But citizens should realise, we go to their villages to ask about their problems. If they start abusing us publicly, how can we work? My secretary and I heard her for five minutes and then told her that we know our responsibility. We asked her to close the issue. She didn’t stop and I got tempted (sic),” the minister said.

Bengaluru/Ballari, Jan 7: Former minister BZ Zameer Ahmed Khan of the Congress set a one-week deadline for the BJP government on Monday to arrest Ballari City BJP legislator G Somashekhara Reddy for his recent speech warning Muslims of dire consequences if they continue to protest against the Citizenship (Amendment) Act.

Police have already booked Reddy, younger brother of tainted mining baron G Janardhan Reddy, under section 153-A (promoting enmity between different groups on grounds of religion) of the Indian Penal Code.

However, Khan took the fight to Reddy a step further. “If the government fails to arrest Reddy by January 13, I will stage a dharna outside his house in Ballari, come what may. Let them do whatever they want,” Khan told reporters in Bengaluru.

In his speech at a pro-CAA rally organized by BJP workers and ABVP activists in Ballari, the BJP legislator had said, “We [Hindus] are 83% and they [Muslims] are 17% and if we take law into hands, you know what will happen.”

Khan said on Monday, “I challenge Reddy, the coward, to unsheathe his sword and cut me down first. It is absolutely shameful for a legislator to speak such things against a particular community. Why is Prime Minister Narendra Modi, who often says Sabka Saath, Sabka Vikas, silent?”

On his part, Reddy on Monday said he stood by what he said. “What I meant was you Muslims should not get swayed by CAA protests and damage public property. We [Hindus] are sons of the same mother and live peacefully. However, they [Muslims] should not test our [Hindu] patience. I stick by my words 100%,” he said.

A delegation of the Ballari district Congress unit also submitted an appeal to the deputy commissioner, inspector general of police and superintendent of police on Monday to arrest Reddy for his provocative speech.