Simanta Das

Finteching in india: Wilder than the wild. Responsible lending no one wants to practise... Fintechs must shed their Wild west label to become more reliant. Some fintechs are still gunslinging in the unsecured lending market Fintechs capture 52% market share in personal loans: Report #Fintechs #india #unsecuredlending

٤

Digital Payments in India: Insights from Worldline India Digital Payment Report (FY2024). The digital payment landscape in India continues to evolve rapidly, as highlighted in the Worldline India Digital Payment Report for the first semester of FY2024. Notably, ten banks account for an impressive 95% of Point of Sale (PoS) deployments across the country, underscoring their significant role in facilitating cashless transactions. Unified Payments Interface (UPI) has emerged as the most favored payment method among consumers, reflecting the changing dynamics of payment preferences. The average ticket sizes reveal distinct patterns across various payment instruments: UPI stands at ₹1,478, UPI P2M (Person to Merchant) at ₹643, UPI P2P (Person to Person) at ₹2,836, credit cards at ₹5,190, debit cards at ₹2,830, prepaid cards at ₹357, net banking at ₹239,140, and mobile app payments at ₹2,359. While UPI remains a popular choice for everyday transactions, credit cards continue to dominate both PoS and e-commerce transactions due to their higher average ticket size. Despite the surge in UPI transactions, the report notes a decline in debit card usage, suggesting a shift towards UPI payments among consumers and highlighting the growing confidence in digital payment platforms. The report identifies State Bank of India as the top remitter bank, demonstrating its pivotal role in facilitating digital transactions, while Yes Bank is recognized as the top beneficiary bank, reflecting its significant presence in the digital payment ecosystem. Moreover, mobile payment transactions have experienced a remarkable 46% increase, with a 36% increase in transaction value, illustrating the increasing adoption of mobile wallets and apps. Overall, the findings from the Worldline India Digital Payment Report underscore a transformative phase in India's payment ecosystem. With UPI leading the charge and a notable rise in mobile payments, the digital payment infrastructure is poised for further growth in the coming years, focusing on enhancing security and user experience in digital transactions.

٢٧

٢ تعليق

Beware the enticing headline. It can take you down a rabbit hole. I have heard on the grapevine that 'fraud is booming' since UPI was brought in to enable account-to-account and online payments in India. Now I read that 'Online Payment Frauds Jump Over 400% in India, RBI Data Shows'. Worrying news, for sure. But when you look at the quantum, online fraud is still very low per head of population in India compared to the UK. Here, total payments-related fraud (online and other, covering both scheme and bank rail payments) is about £1.2bn per year, of which online fraud is £250m for payments on card rails and £150m for payments on bank rails (APP) based on my understanding of the recent annual fraud report from UK Finance. This is an average of £5.60 per person. It looks like India is catching up, with $175m (£138m) of fraud from online payments alone, a 400% growth rate. But India has a population of 1.2bn or so. So this represents only 11.5p per head of population. So should India be worried about having online fraud levels at 2% of the levels in the UK? It hardly seems to be a damming indictment of UPI. Or maybe I am missing something, and have disappeared down another rabbit hole altogether. Comments welcome. Yash Khanna Sriram Chatty Jane Jee Jana Mackintosh Paul Horlock Akhil Rao Neil Harris Mitch (Munish) Trehan Tom Brewin Riccardo Tordera-Ricchi Bloomberg Robert Courtneidge https://lnkd.in/gzqGF7rZ

٣٤

٩ تعليق

Dear Mastercard & Visa, Have you ever considered teaming up with a fintech family that dreams big, thinks outside the box, and occasionally survives on coffee and Wi-Fi? We’ve got a BP technology, Protocol X to chase fraudsters, and even SSK that scan and pay faster than your average processing time. Basically, we’re like the Avengers of the payment world, and we’re inviting you to join the squad. Let’s collaborate and make payments so seamless that even a fingerprint feels like too much effort. We’re ready to roll—are you? P.S. We promise not to replace your cards… just make them cooler and sexy. #Teamwork #Innovation #FintechDreams #mastercard #visacard #partnership #payment

٦

٢ تعليق

Our article on innovative financing solutions for MSMEs is featured in CXOToday, many thanks! Customers (Retail and Wholesale) are increasingly discerning and platforms need to keep pace to ensure that they can provide top-notch credit solutions to their clients. #india #msme #msmeindia #loans #credit #innovation #interfaceventures #indirow

٣١

Why We Chose "Dodo" for Dodo Payments . . When Ayush Agarwal and I set out to name our venture, we knew we needed something that resonated globally and stood out in a crowded market of payment solutions. After all, we’re building a product designed to onboard merchants from across the globe so a name with high recall was non-negotiable. So why “Dodo”? The idea struck me during a New Year’s vacation on Reunion Island (near Mauritius). The island’s local beer, Bourbon, is affectionately called “Dodo” because its logo features the iconic bird. In my two weeks there, I noticed something fascinating, regardless of where people were from, they’d say, “Let’s grab a Dodo.” That’s when it hit me: Dodo is easy to pronounce, universally recognized, and culturally neutral qualities that perfectly align with our vision of building a global-first product. But there’s more. The Dodo bird has an ironic connection to global trade. It went extinct because it couldn’t adapt to the new predators and challenges that came with expanding trade routes. With Dodo Payments, our mission is to make sure you don’t face the same fate, whether it’s struggling with international payments, compliance, or taxes. Beyond the story, “Dodo” also opens up exciting opportunities for branding and design. Our designer, Varun T R, has already infused some playful creativity into the visuals, and there’s a lot more to come as we gear up for the public launch. So, here’s what the name stands for: 1️⃣ A universally recognized name that transcends cultures. 2️⃣ A cool backstory that reflects adaptability and resilience. 3️⃣ Endless potential for creative marketing, design, and branding. Below is a picture of the Dodo Bourbon, maybe one day we’ll inspire another brand for their name. :)

٣٣

٢ تعليق

Indian payments ecosystem is possibly a role model for global economies for reapplication! With daily volume of 450 million transactions, UPI is the best scalable platform, tested for the world in India. Few countries have already started using UPI! Do you know what is UPI in India ? How people are transacting now a days in India ? #payments #upi #instantmoneytransfer

١٦

٢ تعليق

I’m thrilled to share our Worldline India Digital Payments Report 1H 2024. Have you ever wondered how UPI has continued to soar in popularity over the past six months? With credit card usage rising for high-value payments, what does this mean for consumer behavior? What could be the next big trend in the digital payments landscape? Dive into the report to uncover the key insights driving India’s digital transformation! https://bit.ly/4dGegGX #WorldlineIndia #DigitalPayments #IndiaDigitalPaymentsReport #Fintech #UPI #CreditCard #POS #Worldline #DigitalFinance #Payments

١١٤

٢ تعليق

RBI Pushes for Transparency in Digital Lending RBI is proposing new guidelines for digital lending apps, focusing on transparency in loan aggregation. This means no more hidden details or loan sharks – you'll get a clear picture upfront. Here's the game-changer: 1. See All Your Options: Imagine seeing all loan offers from different lenders in one place. This empowers you to compare and choose the best deal. 2. Informed Decisions: No more deciphering cryptic terms. Loan apps will be required to display Annual Percentage Rates (APR) and other key details in a clear, digital format. 3. Farewell, Bias: Forget lenders influencing your choice. The RBI is cracking down on biased content, ensuring a fair lending environment. This move by the RBI fosters a more responsible and trustworthy digital lending ecosystem. Borrowers win with clear choices, and lenders benefit from a level playing field. What does this mean for you? Be loan-savvy! With all the information at your fingertips, you can negotiate better rates and avoid predatory practices. This transparency revolutionizes digital lending, putting you, the borrower, in control. #fintech #financialinclusion

٢٦

The DoJ alleges Visa monopolizes debit payments. The DoJ says that Visa, with a 60% market share, uses bulk discounts and incentives to ensure merchants route debit payments via its network in the United States. The complaint also says Visa offers incentives for potential competitors to collaborate. 🧠 What has Visa actually done wrong here? There's no question Visa has a dominant market share in the US. But $0.03 on a $0.25 fee is not "abusing" the market unfairly. 🧠 The complaint concerns Visa's commercial incentives for partners. You get bulk discounts if you do more with Visa. That's not anti-competitive, it's capitalism. You get an upside if you partner with Visa. Again, capitalism. 🧠 Visa and Mastercard are increasingly vulnerable to new rails. Pay by Bank, RTP, and international competitors like Pix, Alipay, and UPI have competing numbers of consumer users. The opening of NFC on the iPhone means every wallet could have every rail available to everyone. 🧠 Hurting Visa hurts the US payment's global competitiveness. Card networks are not the dominant form of payment in APAC, and Visa is not dominant in Europe 🧠 This move by the DoJ is myopic and US-centric. India is intentionally bringing UPI to the world, and the BRICS are trying to build a SWIFT alternative. #payments #cards

٣٦٩

٢٢ تعليق

🌐 Understanding ‘Netting Off’ in Lending: A Double-Edged Sword? In the microfinance industry, there’s a common practice that often goes unnoticed yet has significant implications—netting off. Here’s how it works: Instead of waiting for a borrower to fully repay an existing loan, lenders may issue a new loan to cover outstanding dues. This “nets off” the previous loan, creating an impression of a clean repayment. It keeps accounts in good standing and avoids classifying loans in high-risk categories, like SMA-2 (overdue by 61–90 days). 📊 ✅ Pro: Borrowers receive quick refinancing without immediate pressure to clear past dues. ⚠️ Con: This practice can mask the true financial strain on borrowers and delay acknowledgment of potential defaults. The RBI has flagged concerns, emphasizing that constant rollovers may distort the actual state of borrower health, especially as defaults might remain hidden under this practice. Is it time for more transparency in loan classifications? How can we better balance lending flexibility with financial clarity? #Microfinance #Lending #NettingOff #FinancialTransparency #RiskManagement #BankingInnovation #RBI

١٣

What is India's superpower in embedded lending? And why is the US still the best market for it? I spoke with Ankit Singh, the cofounder of Vaya Technologies, for the latest edition of the Embedded Finance Review podcast. Ankit was instrumental in setting up #OCEN in India as part of the volunteering organisation ProductNation/iSPIRT. OCEN is part of #IndiaStack. It is a framework that enables marketplaces, platforms, and digital brands to offer lending products. With one integration, these players can embed lending products from various banks and alternative lenders. After that, Ankit decided to use his knowledge to build an embedded lending infrastructure provider. But he decided to leave India and founded Vaya in the US. Why? And what kind of companies does he believe are best positioned to launch an embedded finance product? You can find the episode on your preferred podcast app. The links for Spotify and Apple Podcasts are in the comments. Whom should interview next?

٣٦

٦ تعليق

The Middle East is quietly leading the way on instant payments. The region has seen some of the fastest transformations to instant real-time transfer systems in the world. Witnessing the success of community driven instant payments, like UPI in India, and infrastructural instant schemes, like Faster Payments in the UK, has allowed most of the markets in MENA to skip a few generations. 🇦🇪 The UAE 👉🏻 The Funds Transfer System has been “near instant” for years now - with 75% of all transactions processing in under 30 seconds. Some banks are still manually processing payments with the Central Bank and so can take longer to settle. 👉🏻 In 2023, Al Etihad Payments announced Aani - a payment scheme modelled off of UPI in India - to settle payments of up to 50,000 AED (c. $13.6k USD) instantly 24/7 peer to peer using QR codes, request-to-pay payment links, and split payments. 🇸🇦 Kingdom of Saudi Arabia 👉🏻 In 2021, Saudi implemented Sarie which, amongst many other things, introduced instant 24/7 payments to the Kingdom. The service operates on both IBANs and NationalID, Phone Numbers, and Email Addresses. It’s a cool hybrid of UPI and Faster Payments. 🇪🇬 Egypt 👉🏻 The Instant Payment Network launched in 2022 to enable instant transfers on weekdays between all regulated banks. Interestingly, IPN also links mobile money and wallets to the national payment systems - massively reducing reliance on cash. 🇧🇭 Bahrain 👉🏻 Last year Bahrain was ranked 2nd globally for its real time payment systems. This year, Bahrani citizens are expected to each make over 83 instant payments per month. 🇴🇲 Oman 👉🏻 Last year Oman launched a new Real-time-gross-settlement system that operates 24/7 - allowing all national banks to settle to eachother instantly. Even in the UK, the RTGS system (CHAPS) doesn’t run 24/7. 🌍 Another really exciting payment rail is AFAQ, an instant payment scheme for cross border payments around the gulf region - allowing funds to move between each country in the GCC instantly even when not transacting in the same currency. These are just a few examples of MENA driving payment innovation! 🚀 #instantpayments #mena #crossborder

٤٥

Visa has launched a "flexible credential" feature in the U.S. and UAE to give consumers more choice and convenience in how they manage their payments. Users can now make payments from multiple funding sources using a single Visa card, meeting the growing demand for flexibility in financial transactions. Already live in several Asian markets, including Hong Kong, Japan, the Philippines, Singapore, Thailand and Vietnam, the Flexible Credentials feature allows Visa to support consumers' evolving needs as e-commerce and digital payments grow globally. A recent Visa study found that 51% of users prioritize the ability to access multiple accounts and funding sources with a single card, underscoring the importance of this innovation in today's marketplace. For the U.S. launch, Visa has partnered with fintech company Affirm, which brings its own base of 1.4 million active cardholders to the mix. In the UAE, Visa is partnering with Liv Digital Bank, extending its reach to provide an even more seamless cross-border payment experience. Looking ahead, Visa plans to bring this capability to Europe, with additional launches expected in the coming months. #Fintech #DigitalPayments #Innovation #FinancialInclusion #Ecommerce #UAE

٣٨

٢ تعليق

In house solution or outsource? what would be your choice for developing a digital solution? Surprisingly enough, post covid, there is a trend of many #nbfc companies trying to build in house capability in the Digital ecosystem and Loan Origination solutions. Some have hired a full fledge IT team right from CTO to developers to architects and have either inhouse or out sourced the testing capabilities. During my discussion with some of these teams, the following are the reasons: 💡 Compete with FinTechs: Since the evolution of FinTech, the space has been innovating at lightening speed. This banking space has been disrupted again & again. Right from Digital evolution to API banking to LSP to colending etc. Thus FinTechs have been touch bearers of innovation & they had tech integrated as part of their business rather than outsourcing it. 💡 Agile Developments or ODC: Most of the IT vendors would be charging on the basis of manday for the change requests raise. Now this needs Approvals, negotiations, Scope finalization, development to production movement cycle etc. Its a very time taking process. Thus this becomes a waterfall method but in reality most of the NBFCs would need to be agile to keep innovating. This comes again at a cost of offsite Development center where vendors provide their employees to a client for getting their development done. 💡 Innovations & Product features: Generally, The vendor tries to cover 80-90% of the market requirement. Thereby innovations are very subjective and the risk is too high in the market like banking. However, once the vendor develops something cool, its generally since that then it is provided as out of feature after some point thereby allowing other competitors to benefit. 💡 Cost effectiveness: During covid when there was a big race for everyone to get Digital and be able to run the business, many customer who had not taken highest level of AMC contracts suffered alot. The CRs were taken much later and the time taken for delivery was exceptionally high. The customers who had deep pockets had to pay extra premium to get their Change request delivered or resources allocated. This, then triggered the question of high dependency on the vendors for things which need iteration and development again & again. Thus, the answer to all these questions was, like FinTech, lets onboard a team of developers & IT teams so as to be able to have control on Digital & LOS modules at least. The LMS is mostly a stable out of product which hardly requires Changes and hence an shelf product approach will help. Thus, keeping this shift in mind, we at Advaya Platform have developed a LCNC platform which reduces vendor dependency and also allows the nbfc or bank to be Agile for their product development & customizations with quicker GTM. #informationtechnology #mobileappilcations #mobileapps #enterprisesoftware #software #development #fintech #india #startup #startupindia #finance #bankingindustry #banks #lcnc #AI #ML

٢١

The $420 Billion Opportunity for #Fintech in #India   The latest projection by National Payments Corporation of India (#NPCI) is a testament to India's incredible potential not just to innovate but make fruits of innovations available till the last denominator. It underscores the rapid adoption of digital #financialservices and the #entrepreneurial spirit driving this transformation.   As we navigate this growth trajectory, it is essential to ensure that our fintech advancements get more inclusive through the new mantra of “ease of accessibility” for all segments of society.    In the coming days financial literacy and digital inclusion pursued in a mission mode can expand the depth and width of #womenempowerment and benefits to the underserved communities.    By prioritising customer-centric solutions and robust regulatory frameworks, we can build a resilient and thriving #fintech ecosystem. At #Religare also we are committed to leveraging cutting-edge #technology and building a culture of #innovation to contribute to this dynamic industry.   Here's to a future where technology not only drives economic growth but demolishes inequities thus creating opportunities for everyone. https://lnkd.in/dc6__F_C #Fintech #DigitalIndia #Innovation #ReligareEnterprises #FinancialInclusion  National Payments Corporation Of India (NPCI) Religare 

٢٤

We are just a few days away from #GlobalFintechFest! If you're keen on delving into the regulatory landscape concerning the registration of NBFCs, AA, PA, I'll be thrilled to meet you in person at #GFF or even before. Let's connect and explore together! Kindly DM. #Fintech #RegulatoryCompliance #Networking #Founders #Lending #BFSI #CoFounders #FamilyOffice #PE #VC #Startups #DigitalLending #Banking #Payments #Funding #InsureTech

٢١

٢ تعليق

#Payments News: Nium and Partior Unite to Revolutionize Cross-Border Payments. 🚀 🌐 Cross-border B2B payments operator Nium has partnered with Partior, the blockchain-based fintech specializing in clearing and settlement solutions. This collaboration makes Nium the first fintech payment service provider to join the Partior network, enabling financial institutions to access 24x7 real-time payouts, clearing, and settlement in over 100 markets—without the need for additional API integration. 💱 Partior’s blockchain-powered platform aims to address persistent challenges in cross-border payments, including settlement delays, high costs, and transaction transparency issues. 🔸 Alexandra Johnson, Chief Payments Officer at Nium, stated: “By integrating with advanced networks like Partior, we are ensuring financial institutions can access our real-time payments infrastructure without complex technical hurdles.” 🔹 Humphrey Valenbreder, CEO of Partior, echoed this sentiment, noting, “This partnership with Nium is a key milestone in advancing global payments. By merging Partior’s blockchain-driven settlement capabilities with Nium’s expansive reach, we’re breaking down long-standing barriers for financial institutions.” 🤝 Partior’s DLT platform is already trusted by industry heavyweights like JP Morgan, Standard Chartered, and founding investor DBS for seamless payment facilitation. Recent adopters such as Siemens and iFAST Financial have leveraged Partior for better control of working capital and faster payment flows. The platform also welcomed Emirates NBD as its first regional settlement bank for multiple currencies last month after raising $60 million in Series B funding in July. 💭 This partnership signals a new era in cross-border payments, combining blockchain technology and fintech innovation to streamline global transactions. What impact do you think this could have on the future of cross-border payments? #Fintech #GlobalPayments #CrossBorderPayments #DLT #FinancialInnovation

١

Development and Regulatory Policies announced after the MPC meet today have some interesting initiatives which will give further fillip to digital payments. 1. To aid the customers in verifying the claim of Digital Lending Apps (DLAs) about their association with RBI regulated entities(REs), Reserve Bank is creating a public repository of DLAs deployed by the REs, which will be available on RBI’s website. The repository will be based on data submitted by the banks and NBFCs (without any intervention by RBI) directly to the repository and will get updated as and when they report the details. Much needed clean up! Visit the RBI site to check whether the DLA app you use is kosher or not! 2. The tax payment limit through UPI has been enhanced. It goes up from ₹1 lakh to ₹5 lakh per transaction. Matter of time before a few more areas get opened up. 3. RBI has introduced "Delegated Payments" in UPI. “Delegated Payments” would allow an individual (primary user) to set a UPI transaction limit for another individual (secondary user) on the primary user’s bank account. Parent friendly and safer way to track and limit pocket money :) https://lnkd.in/gC2N8qQQ

٣٦