People & Startups

Would Tez Payments App disrupt the existing practices of Digital wallets in India?

Would Tez Payments App disrupt the existing practices of Digital wallets in India

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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
Merchants 20 lakhs
Consumers 200 million
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
Downloads 20 Mn+
Transactions per day  5 Mn +
Mobikwik – Quick Statistics
Merchants 2.5 Lakhs
Consumers 40 million
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
Merchants 3 lakh
Consumers 35 Million
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

 

1 Comment

1 Comment

  1. Nilesh Kamath They are making a house of cards which shall fall soon. They still unable to see the science of growing with sustenance is actually to be balanced with growth by qualitative means and not just growth, I am afraid!

      Reply31 Oct, 2017 6:57 PM

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