India Mobile Payment & Fintech Platforms Preparing for IPO

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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UPI Mobile Payments Growing Exponentially

UPI mobile payments through mobile apps has been one of the biggest contributors to retail digital transactions in India. The pay mode now accounts for around half the retail digital transactions in volume terms, while its value share is around 10% (due to relatively small average per transaction value compared to NEFT/IMPS). UPI’s market share gains have mainly come at the expense of other traditional digital pay-modes such as NEFT, Credit cards and PPIs (pre-paid instruments like mobile wallets). Some contributing factors to the success of UPI have been Demonetization, mobile-first approach, instant bank-bank fund transfers, subsidy on transaction costs, growing penetration of mobile phones as well as Internet connectivity and early adoption by

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What are the Key Digital Payment Trends in India ?

In the Indian payment eco-system, consumer behavior is being shaped by government policies and regulatory changes, tech changes and changing business models, all of which are reshaping the competitive landscape. JAM – Jan Dhan, Aadhar, Mobile. For the first time a financial inclusion program is talking about credit and insurance compulsorily. Saving Account is merely a way to reach the customer. This is also a sign of convergence.

P2P payment draft guidelines show the regulator’s willingness to reduce uncertainty. Both government and regulator have realized that driving competition is the key to achieve mass inclusion and less cash. Limited number of players cannot deliver on such a huge untapped opportunity across the BFSI segment.

Changing business model and competitive landscape

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UPI Apps a Big Blow to Mobile Wallets like Paytm in India

The Narendra Modi led Government of India is serious on pushing forward Digital Money and Cashless society, albeit in their own way. They have launched the famous BHIM UPI Mobile Payment App which forced every other Mobile banking App to refresh with the UPI Interface for instant mobile money transfer.

Mobile Messaging Platform, WhatsApp has selectively leaked that it is also embracing the NPCI’s Unified Payment Interface to facilitate P2P Money Transfer connected to consumers bank accounts. Thus, the protocol chosen by a giant like WhatsApp could potentially tilt the balance towards a leader. As per this piece Whatsapp’s primary choice

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