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One of the leading segments which has brought back the glory of Indian Startup and founded some of the great warriors like Paytm, Fintech Industry is moving towards its acme. The Startups in FinTech are moving towards an ecosystem of more and better integration with the traditional banking systems over UPI, IFMS and NEFT based transactions. These Startups are also cross leveraging users as a community to send and receive money through digital wallet based app.
Tez is the new disruptor?
Aiming and achieving high on cash back and reward offers, Google’s Tez which is a UPI-based digital payment app had around 7.5 Mn downloads in just a short span of 40 days, informed the company CEO Sundar Pichai at the quarterly investors’ meet.
He further stated He stated, “We see a way to look at these markets with a lot more thought and address them for the opportunity that they have, not just apply our global products there. So I think that’s what led us to do Google Tez in India. And we’ll thoughtfully look at the opportunities in that region and invest a lot in the years ahead.”
With less innovation and almost all the technologies been exhausted, the only way forward to encapsulate larger market share is through better integration using payment technologies like UPI, IMPS as well giving offers and discounts at range of variety and bulk. Tez seems to be bringing in such forces initially to take a strong ground in much exploited and over discounted FinTech segment.
While Google has already entered, another leading Internet behemoth Facebook is trying inroads to digital wallet payments ecosystem through its mobile arm WhatsApp and has already pilot the project with some leading events and shows ticket booking Startups in India like Book My Show. Read the full story “How WhatsApp is going to replace traditional Digital Wallets with WhatsApp Payments”
Pre and Post Demonetisation Era for Digital Wallets.
One of the leading revolution that fuelled around 300% growth in the segment was Demonetisation. With more of a need to have shift from the existing good to have usage, has really worked for Fintechs. The Digital money ecosystem was also fuelled by POS terminals all across the nation and thus technologies incorporating POS transactions through mobile app based digital wallet also surfaced. Read SBI hack to put breaks on digital wallet pace. Now pay from your mobile on POS terminals.
At the time of Demonetisation India had 750 Mn Debit/Credit cards and against that there were only 1.4 Mn POS Terminals. Hence there is a huge opportunity for the Fintech to plunge in into this market gap which is widened due to the Demonetisation of INR 500 and 1000 notes.
A sneak peek into some of the vital statistics of leading Digital Wallets in India
|Paytm – Quick Statistics|
|Paytm has crossed 60 million downloads and currently has 192 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|