Sanjeev Kumar

💳 Understanding Payment Gateways in India: A Technical Overview 🔗 What Is a Payment Gateway? A payment gateway connects an online store (merchant) with the bank that processes the customer’s payment. It ensures secure transmission of payment details, authorizes transactions, and communicates the result to both merchant and customer. 🛠️ Components of Payment Gateway Process: 1️⃣ Transaction Authentication: Verifies payment details. 2️⃣ Authorization: Checks available funds or credit. 3️⃣ Settlement: Transfers money from customer to merchant. 4️⃣ Security & Encryption: Encrypts sensitive data to prevent fraud. 💰 The Fee Structure: Why Do Payment Gateways Charge? Payment gateway fees in India depend on the method: 1️⃣ Card Payments: Fees range from 1.5% to 3% of the total value, covering costs for the bank issuing the card, payment networks (Visa, Mastercard), and the gateway provider. 2️⃣ Net Banking: Typically 1% to 2%. Banks charge for providing the net banking infrastructure. 3️⃣ UPI Transactions: Often seen as free for users, but businesses may incur fees of 0.3% to 1%. This covers operational costs, fraud prevention, and maintaining APIs. 🏛️ Why Doesn't the Government Provide a Payment Gateway? The Indian government promotes digital payments (e.g., UPI, BHIM) but doesn't directly provide a payment gateway. Reasons include: 1️⃣ Complexity & Specialization: Payment gateways require advanced infrastructure (encryption, fraud detection, settlement). Private companies handle these better. 2️⃣ Incentivizing Innovation: The government fosters private competition to push innovation, improve experiences, and reduce costs. While not a direct provider, NPCI's efforts help lower payment costs for businesses. 🖥️ API Integration in Payment Gateways APIs are key in enabling seamless integration between businesses and financial systems. They facilitate: 1️⃣ Request/Response: APIs send payment requests and verify details. 2️⃣ Security: Use encryption and tokenization to secure data. 3️⃣ Customization: Allow businesses to offer multiple payment methods. 4️⃣ Real-Time Updates: Provide live transaction statuses. #DigitalPayments #FintechIndia #PaymentGateway #ECommerceSolutions #DigitalTransformation #BusinessGrowth #SeamlessPayments #APIsInFinance #SecurePayments #TechForBusiness #PaymentTech #TransactionTech #FutureOfPayments #MadeInIndia #DigitalEconomy #FintechRevolution #CashlessIndia #PaymentInnovation #SecureTransactions #FinancialInclusion #TechInnovation #OnlineBusiness #FutureOfCommerce #BusinessTech

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Hi All Need to raise a point here with the RBI for clarification .Recently it's seen that many customers have raised chargeback complaints via the online portal RBI BO for transactions which are more than 360 days in case of MICRO ATM(AEPS) withdrawal they have done. Now the BO rule says they can raise till one year but the condition is after getting the revert from RE or if they did not get revert within 30 days from the date of complaint . They can't raise it on BO directly without raising it with RE first . But these complaints are raised by the BO to the Acquirer banks and the Acquirer banks forwards it saying they need customer declaration to reject the same or else it will be debited to the Corporate BC. How fair is this the compliance team just does a postman job to forward and put pressure as they are anyway at the upper hand to debit the amount , do they even understand how much days it will take to earn that amount the poor BC succumbs to the pressure and pays from his pocket denting his revenue which is already the lowest . There are clear guidelines from NPCI saying first 90 days for raising chargeback and then 60 days post 90 for good faith . So what this guideline means if this is what the BO RBI team escalates . This is a common issue to all the FI BC's can we have a clear guideline or the present one is misinterpreted due clarity issues and the pressure is on . Would like the authorities of NPCI /RBI followed with other fintech leaders to explain and guide on such practices .Specially from the Acquirer banks who just don't want to understand the guidelines . These impact the revenue and there is a leakage in the system which over time can erode revenues with the very low margins the Corporate BC's earn in this business. National Payments Corporation Of India (NPCI) Reserve Bank of India (RBI)

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Regulation drives innovation and change is imminent in fintech. But adaptation requires strategy. Here's my take on The RBI's new draft on Payment Aggregators: It is more than just paperwork; it's a catalyst. By mandating KYC norms and requiring authorization for both physical and online non-banking PAs, the RBI is setting a higher standard. What does this mean? 📌 𝗙𝗼𝗿 𝗣𝗔𝘀: Increased operational costs and a steeper path to merchant onboarding might seem daunting. Yes, it may limit the immediate pool of merchants. The new standards necessitate a solid compliance structure. It's a tough pill to swallow, but it ensures a safer transaction environment. 📌 𝗙𝗼𝗿 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁𝘀: Sweet pot of getting regulatory framework protection plus structured grievance redressal mechanism 📌 𝗙𝗼𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀: This is where the true benefit lies. Enhanced data security, better fraud prevention, and a streamlined grievance mechanism directly contribute to customer confidence and trust in digital transactions. The road ahead will have its challenges. However, the long-term benefits of these regulations will fortify the foundations of our digital economy, making it more robust against the risks that come with rapid growth and innovation. As leaders in fintech, how should we prepare for these changes? 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗥𝗕𝗜 𝗱𝗿𝗮𝗳𝘁 𝗵𝗲𝗿𝗲. https://lnkd.in/g3dHXCxr https://lnkd.in/gFwF-mGH 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝘁𝗵𝗲𝘀𝗲 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗳𝗶𝗻𝘁𝗲𝗰𝗵? #dhanasekaran #fintech #belstar #mfitech #paymentaggregators

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UPI coming full circle with “UPI Circle “ delegated payment mechanism for the family and Household expenses it’s time each Indian has UPI account to meet their daily needs .. huge opportunity for fintechs to build products on this ! UPI will hit 500 users with 2-3 times of that as circle ⭕️ users , ONDC, UPI circle would make India proving that they can build Amazon with best payment method covering lowest economic and small expenses needs for Indians ! UPI best tool for financial inclusion creating financial translations behaviour digital footprints for possible credit inclusion at next level ! Way to go UPI - India 🇮🇳

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FinTech Funding September 2024: Total $230 mln raised by Indian FinTechs India's fintech sector saw a significant decline in investments in September 2024, with total funding dropping to USD 230 million from 10 rounds. This downward trend mirrors the global landscape, where fintech funding has been experiencing a slowdown. Story by Anushka Sengupta #ETBFSI #BFSI #FinTech #FinTechFunding #IndianFinTech #StartupFunding #InvestmentTrends #FinancialTech #GlobalFinTech #FundingDecline https://lnkd.in/g7XtaRYM

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IIFL Fintech Fund Portfolio Delivers 9.5x Revenue Growth in Average Holding Span of 1.5 ...: India's only early-stage fintech-focused fund backed by a financial services conglomerate – the IIFL Group, has delivered a stellar performance ...

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Govt business is the best business , govt is 40-50% partner in each enterprise even if you make loss as start up and Private business ! NCPI, CSC, are most profitable organisations , while they are tasked to do financial inclusion, imagine VC funded and listed companies payment companesies are not allowed to make money out of UPI and UPI brings profits to govt ! Debatable .. which is public and which is private for profit business ?

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PayPal - Transforming #Digital #Payments with #Innovative #Solutions Authors: Manoj Joshi and Tushar Agrawal(Scholar Indian Institute of Information Technology Lucknow) The #BigQuestion: PayPal's dedication to #pioneering #digital #payments has set it apart with #innovative solutions and steadfast commitment to #userprivacy. How does the company intend to maintain its competitive edge in an industry characterized by swift #innovation and evolving consumer preferences? PayPal was created in 1998 by #ElonMusk, Max Levchin, and #PeterThiel in response to the demand for safe internet transactions. Thiel, who has a background in both law and technology, Levchin, a computer scientist, and Musk, a #visionary businessman, saw how #digitalpayments would transform the #worldeconomy. Their platform made online shopping more accessible to millions of people by giving them a convenient and safe means to conduct business in the digital age. The #founders formed the business to develop a new #digitalcurrency that would improve the efficiency and security of Internet transactions. It was born out of a confluence of circumstances, chiefly the founders' awareness of the flaws in the current payment methods and their desire to solve these problems with creative solutions. The original creators of what would become PayPal started as Confinity, which tried to create security software for mobile devices, but the business didn't take off. #VUCA challenges: #Volatility: Adapting to fluctuations in consumer behaviour and technological advancements, especially in the face of economic uncertainty. #Uncertainty: Navigating complex regulatory environments worldwide while maintaining a user-centric approach to data privacy and security. #Complexity: Tailoring digital payment solutions to diverse market needs, from individual consumers to multinational businesses, requires continuous innovation and agility. #Ambiguity: Anticipating and meeting the evolving expectations of users and stakeholders amidst rapid industry evolution poses ambiguous challenges. Lessons: PayPal's #strategicinnovation, #resilience, and #customer-centric focus have #positioned it as a #trailblazer in the #digitalpayments sphere. Embracing change and harnessing challenges as opportunities for growth and innovation have been #pivotal in PayPal's journey. Their success underscores the importance of #resilience, #adaptability, seizing #marketopportunities, and prioritizing user needs as core principles for sustained #entrepreneurial excellence. Singapore Management University Katyayni Joshi Ram Sharma, PhD Gil Mandelzis Ram Nidumolu, PhD Fernando G. Alberti, PhD Harvard Business School Stanford University Graduate School of Business MIT Sloan Executive Education Indian Institute of Management Ahmedabad Indian Institute of Technology, Kanpur iAccelerator CIIE, IIM Ahmedabad Indian Institute of Technology, Roorkee IIT Kharagpur - Vinod Gupta School of Management

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Offline payments set to contribute 20-30% of Razorpay's revenue: Harshil Mathur Razorpay's Harshil Mathur discusses their omnichannel payment evolution, future growth in offline payments, international expansion towards south east asia, and the potential of India's FinTech ecosystem. Story by Amol Dethe | Shrishti Sharma #OfflinePayments #RazorpayGrowth #OmnichannelPayments #FintechIndia #BFSTech #BFSI #ETBFSI #FintechExpansion https://lnkd.in/g6FWNH3e

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One of the largest DLT/ blockchain based implementations in India . 1.5-1.7 billion commercial messages sent every day in India. All the major telco providers and Telecom Regulatory Authority of India(TRAI) implemented blockchain(hyperledger fabric) based solutions for white listing of messages using smart contracts templates. TRAI has been taking several initiatives to curb misuse of headers and content templates for ensuring a more secure , transparent and efficient telecom ecosystem. Why this important to share here because main stream print media cover in India. The Economic Times #blockchain #dlt #telecom #india Rajesh Dhuddu LF Decentralized Trust LF Decentralized Trust India Chapter Tech Mahindra

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FINTECH SCOOP: FlexiLoans Raises INR 75 Cr Debt To Expand Its Fintech Play 🔎 FlexiLoans has secured a debt funding of INR 75 Cr (around $9 Mn) from JM Financials Limited through issuance of non-convertible debentures (NCDs). 🔎 Flexiloans is an online lending platform that targets small and medium enterprises (SMEs) and other underserved segments to provide quick and flexible loans. Follow the India FinTech Forum for news, events, and job updates. Abhishek Kothari | Deepak Jain | Manish Lunia | Ritesh Jain #Fintech #funding #loans #lending

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Digital payments app Bharat Interface for Money (BHIM) will soon be available on the government-backed Open Network For Digital Commerce (ONDC) in a bid to increase its shares in the Unified Payment Interface (UPI) transactions 👇 The app will foray into the ecommerce space on ONDC via a separate division. With this, the users of the payments app would be able to shop for food and beverages, groceries, fashion, and apparel on the platform. The users of the app would be able to shop for food and beverages, groceries, and fashion on the platform, which is expected to boost BHIM’s UPI transactions. Launched in 2016 by the National Payments Corporation Of India (NPCI), BHIM is far behind in terms of UPI transactions compared to rivals like Google Pay, PhonePe and Paytm. To read more in detail, click here: https://lnkd.in/gZCitHtz #NCPI #BHIM #digitalpayments

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FinTech Funding July 2024: Total $139 mln raised by Indian FinTechs While there has been a funding winter in fintechs and tech startups over the past year, funding has seen an uprise in early stage deal funding and decline in late stage deals funding. FinTech funding has witnessed a significant decline in the amount raised in the month of July, contrary to the substantial increase in the previous month. Story by Anushka Sengupta #FinTechFunding #July2024 #IndianFinTech #StartupFunding #TechInvestments #EarlyStageFunding #LateStageFunding https://lnkd.in/ggjWPHHz

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# Revolutionizing Banking as a Service 4 FinTechs & NBFCs: How Generative AI is Reshaping India's Financial Landscape In the rapidly evolving world of fintech, Banking as a Service (BaaS) has emerged as a game-changer. But what if we could take it a step further? What if we could transform BaaS from a mere API provider into an Intelligent Financial Interaction Platform? This is not a distant future - it's happening now, thanks to Generative AI. <The Power of Generative AI in BaaS> Generative AI is revolutionizing how we approach BaaS. Here's how this transformation looks in practice: 1. Contextual Understanding: Instead of processing each customer query in isolation, the AI considers the entire conversation history, leading to more accurate and personalized responses. 2. Intent Analysis: The system doesn't just answer questions; it understands the underlying intent behind customer interactions, opening up opportunities for proactive service and product recommendations. 3. Predictive Insights: By analyzing patterns across multiple interactions, the AI can anticipate customer needs and potential issues before they arise. 4. Scalable Intelligence: NBFCs can leverage sophisticated AI capabilities without significant upfront investment, democratizing access to cutting-edge technology. ~ The Indian BFSI Landscape: A Perfect Storm for Innovation~ India's financial sector is at a pivotal moment. With initiatives like the Account Aggregator framework and the widespread adoption of UPI, the foundation for open banking is stronger than ever. Now, Generative AI-powered BaaS can take this to the next level. Imagine a scenario where a small NBFC in Tier 2 city can offer the same level of intelligent, personalized service as a large bank in Mumbai, all through a BaaS platform. This is not just about leveling the playing field; it's about elevating the entire financial ecosystem. For banks, this means: - A new revenue stream through advanced BaaS offerings - Increased partnership opportunities with innovative NBFCs and fintechs - Better insights into market trends and customer needs For NBFCs and fintechs, the benefits include: - Access to sophisticated AI capabilities without heavy investment - Ability to offer personalized services at scale - Faster time-to-market for new products and features <<The Future is Here: Join Us at IBM THINK>> Are you ready to be part of this revolution? IBM is at the forefront of this transformative journey, and we invite you to join us at the flagship IBM THINK Event on September 24, 2024, at the Jio World Convention Center, BKC, Mumbai. Whether you're a bank looking to offer next-generation BaaS or an NBFC aiming to leverage these advanced capabilities, THINK is the place to be. Together, let's reshape the future of finance in India. #ThinkMumbai #hybridcloud #GenerativeAI #BankingAsAService #FinTech #FinancialInnovation #IBM

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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

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#fintech | #payments | #startups : How Reserve Bank of India (RBI)'s BBPS mandate would impact #fintechs and #banks ? The mandate could disrupt the operations of fintech companies like PhonePe and Cred , which facilitates credit card payments through their platforms , while banks fear substantial investments and loss of control over extensive customer data ecosystems. Read more at: https://lnkd.in/gX6F8iWy

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#Fintech funding hovers around $400 mln in 2024, #wealthtech top funded segment: Report According to a report by The Digital Fifth in July 2024, the fintech industry experienced an influx of USD 61 million, marking the third consecutive month this year to exceed last year's funding benchmarks. Additionally, it revealed that wealthtech and payments were the top funded segments. Story by Anushka Sengupta #FintechFunding #FintechTrends #DigitalFinance #Fintech2024 #WealthManagement #PaymentsIndustry #TechFunding #FintechInnovation #FinanceReport https://lnkd.in/gEv_mU7i

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BharatPe was an underdog in the crowded offline payments space in 2019 but thanks to Karan Khanna, we managed to onboard lakhs of merchants rapidly. Merchants had many options for UPI accepting payments, so we kept merchants engaged by offering cashbacks on an ad hoc basis. These bumped up our transactions but their effect was short-lived and transactions dropped when the cashback stopped. It became clear that we needed an organised loyalty program to drive sustainable engagement. Enter BharatPe Runs, which quickly became a hit among our merchants. Our own currency to reward their loyalty was a success because of: 1. Inclusivity: We rewarded everyone, from paan-waalas and sabzi-waalas to big retail stores. 2. Gamification: The currency had a gamified nature, rewarding all merchant activities in the BharatPe app—from taking loans to buying insurance, and of course, accepting payments. The chase for milestones was the ultimate hook. 3. Recall & Gratitude: This 'earn and burn' model fostered a deep sense of gratitude as well as brand recall. Merchants appreciated us when they earned Runs and loved us even more when they redeemed Runs for goodies. BharatPe Runs laid the foundation for my journey in the world of Loyalty and Rewards. Pawan Pathak, Gagandeep Arora, Abhishek Sharma, Subhasis Beura, Abhishek Shah, Arjun Juneja #Loyalty #BharatPe #Rewards #UPI #Cashback

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