digital-wallet-india

India Mobile Payment & Fintech Platforms Preparing for IPO

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With a huge population and its affinity towards the mobile / smartphones, India is one of the most attractive market for fintech disruption driven by increasing high speed internet penetration. Penetration of digital C2B [Consumer 2 Business] payments (cards, UPI, wallets) is expected to increase multi-fold to touch 1/3rd of the transactions by 2025. UPI payments are expected to grow at ~50% CAGR driven by UPI QR payments for merchants. Debit Cards & Credit cards are expected to grow at ~23% CAGR. Overall share of UPI is expected to increase 50-55% of digital payments by 2025, while cards would be 40-45%.

Sensing this opportunity a decade ago, Vijay Shekar Sharma ventured to found Paytm, the leading mobile payment platform with 150-200 Mn active users and 15+ Mn merchant having adopted the payments channel with 120,000 using its PoS terminals. Ambitions didn’t stop for Sharma backed by Venture capitalists such as Softbank, ANT Financials and

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Digital Payments & Lending Revolution in Indian FinTech Space

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The Digital Payments landscape in India has been revolutionized by the regulators and the banks’ proactive initiatives, e.g., IndiaStack and UPI. It is quite surprising that India has emerged as one of the most exciting markets for digital payments across the world. Last year, home-grown payment networks (RuPay and UPI) took a lion’s share of the total digital transactions, ~65%, showcasing how for once the Government efforts have been in the right direction for achieving targets.

Popular Payment methods are e-wallets, UPI, biometric payments, BharatQR code, and sound-wave-based payment technologies. One of the primary reasons can be attributed to the forward-thinking of central & state governments and Reserve Bank of India for successfully bringing a digital payment revolution in India. Buoyed by the success of Virtual Payment Address – UPI (it’s like your e-mail id), Google wrote to the US Federal Reserve, about UPI model adopted in India and recommended creating

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Micro Payments and Small Merchants – Next Big Story

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The Payment ecosystem in India comprised of (1) RTGS for high value payments – Corporate and Government, (2) NEFT/NACH for low value payments, that mainly supported Salary and SME Business. In recent years, the micro-value payments segment has seen the introduction of a number of products like digital wallets, UPI etc. This has driven the lower end of the pyramid to the payments ecosystem, fulfilling the
government’s financial inclusion objective.

Growth of UPI – The value of transactions through UPI surpassed that of cards last year at ~Rs120 tn. This was in part driven by incentivization in the form of cashbacks etc. and hence is expected to moderate slightly from these levels as

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