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- Big Data Startup Qubole raises $25 Mn - November 10, 2017
- After Tata, Adani Wilmar enters into ecommerce space with Infibeam - November 10, 2017
- Finally Paypal hits India, rolls out domestic payment services after a year of Demonetisation - November 9, 2017
Just after a year of the Great Indian Demonetisation one of the global leaders in FinTech, Paypal announced its services in India. PayPal has been offering cross border payment options to both the ends viz customers and merchant but now it has decided to offer payments to both customers and merchants for domestic transaction.
Speaking on the development Rohan Mahadevan, CEO PayPal Private Limited added, “Today is a landmark day for us at PayPal as we launch our domestic service in a market which has all the ingredients to become a true digital economy. India’s digital payments journey is on a high growth trajectory and we are proud to be a part of it. We are excited about our prospects in a market that is highly inspirational and aspirational.”
The digital payments company has already onboarded some players on its platform however some of the leading Startups in India viz BookMyShow, Yatra, MakeMyTrip, Amazon and Flipkart are yet to be onboarded.
What would the Domestic Payment Services Include?
With the launch of its domestic payment services in India, the company is looking to bring the listed features in its services. These are
- Buyer and Seller protection
- 180 day dispute resolution window
- Customer support centre with multi-lingual support
- Focus on a secure payments ecosystem
- One Touch (helps skip login) enabling friction-less checkout
- A 350 member on-ground support team
The company is still to setup their customer services in India which shall be supporting major Indian Languages. The company has also enabled the feature “ One Touch Payment Option” on Facebook messenger.
Why Paypal is hesitant to launch Digital Wallets in India?
With almost every bank launching its Digital Wallets the total count of Digital Wallets in India has reached more than 30. Here are the major reasons why Paypal shall wait to observe the Digital Wallet segment a little more, before they jump into it.
- Mushroom Growth of Digital Wallet Companies in India: With such mushroom growth and leaders like Paytm who are ready with their deep investing pockets to further the next set of customer acquisition, it’s really tough for Paypal to compete against them.
- Operational challenges over Integration with Merchants and Banks: With a company as new as Paypal, it will take a lot of on ground implementation to integrate with the extensive demographically and geographically located merchant network ranging from shopkeepers to ecommerce giants.
- Innovation guarantees success: With some of the innovative ideas of paying digitally such as linking your wallet through UPI so that a user doesn’t have to enter the details each time S/he pays through the wallet OR cashback on paying for restaurant bill guarantees taxi bill payment etc. are able to onboard the users on the platform. Paypal has still to find their innovative product roadmap which will help it to gain initial millions in order to sustain.
Speaking on the development Anupam Pahuja, Managing Director for PayPal India stated, “We are still examining the prepaid instrument guidelines.” He further added that the firm will also be looking to offer its other products like working capital to micro, small and medium enterprises (MSMEs), consumer credit, peer-to-peer transactions and remittances among other services in future.
A brief peek into some of the leading digital wallets in India
|Paytm – Quick Statistics|
|Paytm has crossed 100 million downloads and currently has 230 million mobile wallet users.|
|It has also hit 5 billion GMV and is currently clocking INR 120 crores worth deal daily|
|Has launched the POS Service for all merchants across PAN India|
|Post Demonetisation, it has grown into three folds with 7 million + transactions daily|
|The company has also launched its Fintech Services in Cananda|
|Paytm has also launched recurring billing service for digital subscription cloud-based companies, such as content apps and websites, newsletters, utilities and media companies.|
|BHIM App – Quick Statistics|
|Transactions per day||5 Mn +|
|Mobikwik – Quick Statistics|
|Has recently tied up with 391 toll plazas in India to pay through their app|
|Allows merchants to transfer the amount in their account with 0% facilitation fee|
|Mobikwik with a user base of 40 million has seen a growth of 40% in daily app downloads.|
|Also has partnered with Mumbai Traffic Police|
|Freecharge Quick Statistics|
|Has recently partenered with IOCL, BPCL and HPCL across the country.Will be available on major petrol pumps in India|
|The list includes nearly 26,000 petrol pumps of IOCL, nearly 13,500 petrol pumps of HPCL and nearly 13,800 petrol pumps of BPCL.|
|Will also be available to pay with 17,000 LPG distributors across the Country.|
|Paypall Quick Statistics|
|Total Volume of Digital Payments Globally||$282 Billion|
|Total Volume of Mobile Payments Globally||$66 Billion (23% of Total Digital Payments)|
|Paypal has lesser volume of total payments through mobile which will always lure Paypal towards Mobile Wallets in India which is an emerging market for Fintech Companies worldwide|
|Lauunched their domestic payment services in India, yet to launh their digital wallets in India|
|Google Tez Statistics|
|They are testing their services in India. Have tied up with leading player like Book My Show for their beta stage|
|Chat turned digital wallet is looking to expand its horizon from peer to peer transaction through payment integration through an extensive network of merhants and banks|