Paytm Payments Bank turns profitable in second year of operation

Paytm Payments Bank Limited (PPB)  has posted profit to the tune of Rs 19 crore within second year of its operation in fiscal 2019. The bank had reported  loss of Rs 20.7 crore for the fiscal ended March, 2018,

PPB, which was incorporated in August 2016, formally began its operations in 2017.

Satish Kumar Gupta, MD and CEO of Paytm Payments Bank, said the bank performed “exceptionally well” in the last year. He claimed that PPB was the first payments bank in the country to announce profit, that too within two years of its operations.

As of April 2019, the bank has more than Rs 500 crore deposits in its savings account.

PPB claims to lead mobile banking transactions with over 19 per cent market share as of March 2019. Nearly a third of the total mobile banking transactions in India are powered by PPB and it processes over Rs 3 lakh crore worth of digital transactions on an annualised basis, the company said in a statement.

The majority of PPB earnings accrues from investing in government treasuries and FDs, besides commissions on facilitating payments across its saving bank accounts and its e-wallet holders. The e-wallet, which had a deposit of Rs 1700 crore, was able to generate 6-6.5 per cent interest for the company.

Gupta said that the deposits are expected to rise three-fold by the next financial year end.

Earlier, RBI data on payment banks revealed that Paytm Payments Bank and Airtel Payments Bank together command over 88% of the deposits in payment banks in India in 2018.

In December last year, Paytm witnessed over 240% rise in deposit to Rs 371.4 crore (48% of total deposit) from Rs 107.3 crore in March, added the report. In total, payments banks hold around Rs 780 crore in deposits, including savings and current accounts till the end of last year.

PPB now aims to introduce more products and features on its platform to increase the monthly processing of savings account payments from Rs 24,000 crore to Rs 40,000 crore in FY’20.

Paytm Founder Vijay Shekhar Sharma holds 51 per cent share in Paytm Payments Bank, while the rest is held by One97 Communications.

Besides Paytm, Airtel, Fino and India Posts are the other fully operational payment banks. There has been doubts about the earnings of the payment banks as they cannot generate revenues by lending. Besides the transaction size is always going to be small.

They are hoping to bring more people from the unbanked segment, which stands at 233 million, within their fold to achieve the scale.

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Source: https://entrackr.com/2019/05/paytm-payments-bank-turns-profitable/

Facebook Stablecoin launch may bypass RBI regulations ban on crypto transactions

With Facebook’s reportedly planning to test its virtual currency codenamed Libra, it is likely that the move will lend legitimacy to use of digital currency in the country. But the fluid regulatory situation with regards to cryptocurrency has cast doubt about the efficacy of such a plan.

Last week Bloomberg reported that Facebook is building Stablecoin, a cryptocurrency pegged to the US dollar or a basket of currencies, making it less prone to swings in price. The product could eventually allow users to transfer money for remittances via WhatsApp through Stablecoin. India, given its expanse, has been chosen as the testing ground for the product.

The social media giant has, so far, chosen not to comment on the reports.

Anyway, given the size of the company, this was enough to cause a flutter in the relevant circles.

Facebook is expected to allow peer-to-peer transaction of its cryptocurrency and the proposed currency system would not require to use banks to transfer money to buy or sell digital currency, a report in ET said quoting leaders in cryptocurrency startups.

The foray shall not be aided by the regulatory policies in the country which continue to be ambiguous. In April 2018, the Reserve Bank of India had banned entities from providing services in virtual currencies to any individual or business.

Companies represented by the Internet and Mobile Association of India are fighting a case in the Supreme Court against the regulator’s ban. The next hearing on this case is scheduled in the second week of July. The court had also directed the government to come out with its own set of policies.

However, there is no law in the country which prevents users within a platform from exchanging digital tokens. Facebook is likely to initially operate within the ambit of this rule.

Nitin Sharma, founder of Incrypt Blockchain, has been quoted as saying that for the Facebook project to be deployed on a large scale in India, regulatory approval may eventually be a major impediment. Facebook will be faced with challenges of making the link between the crypto Stablecoin and rupee to be real to derive any value for its users.

Not everyone at the forefront of fighting for pro-cryptocurrency regulation in the country is, however, enthusiastic about Facebook’s plans. The fact that the company shall deploy a centralised approach by allowing transactions only within its various platforms, defeats the purpose altogether, said a bitcoin trader.

These are still the early days for Facebook. Moving beyond traditional payments to add blockchain-based Stablecoin transfers would represent a huge shift for the company. There is still no clarity about the wider rollout of the cryptocurrency by the company and hence it needs to be treated with caution.

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Source : https://entrackr.com/2019/05/facebooks-stablecoin-may-not-have-a-smooth-run/

Government to make QR code-based payment option compulsory for shops

Digital Payment

To promote digital payment at a wide scale, the Indian government is planning to mandate a quick response (QR) code based payment method option using Unified Payments Interface (UPI) at all shops.

The GST council has already given a go-ahead to the proposal. The govt has for the project roped in NPCI to work on a necessary mechanism to launch it nationally.

The move will also provide GST benefit to both shops and consumers, according to govt official quoted by TOI report.

The prime idea behind the proposal of mandatory QR code-based payment is to make digital payment more popular and bring a behavioral change in the ecosystem. The advantages of QR code payment are, it allows a consumer to buy goods and services without the need to swipe plastic cards.

The process also records necessary information related to the transactions. Data loss and security breach are minimized. The QR code may also be introduced on invoices, added the sources.

In terms of mobile payment in the world, China has emerged as a leader. Chinese payment firms such as Wechat and Alipay widely use this mode payment. In China, it has beenreportedly used while tipping at restaurants, receive cash gifts at weddings and collecting alms by beggars.

This is largely driven by the large adoption of mobile payments. It has changed the social habits of the country. Many countries like Singapore and Myanmar in the world are fastly adopting this mode of digital payment.

The QR code payment is reported to have witnessed exponential growth in consumer adoption in ASEAN countries.

Developed by Denso Wave in Japan, QR code is said to store over 4000 alphanumeric characters. Initially, it was used for tracking components in the automotive industry.

It is cost effective in comparison to POS machine and mPOS machine costs. As per an estimate, it costs about $1 to put up a laminated QR code sign at a shop.

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Source : https://entrackr.com/2019/05/govt-qr-code-based-payment-must/

What makes merchants adopt digital payments?

Digital Payments structure the bedrock of more profound monetary incorporation for smaller scale ventures, which establishes 99% of India’s roughly 60 million-in number miniaturized scale, little and medium undertakings (MSMEs). More extensive money related administrations, for example, credit, protection and riches the executives, can be logically and cost-successfully gave in digitized and customized arranges over computerized exchange impressions. Such access to moderate account can mean monetary strength and development for entrepreneurs that are generally defenseless against income instability and experience the ill effects of obliged access to funding to develop. Also, this can profoundly affect work creation, monetary development and personal satisfaction for many millions.

Electronic Payments

There are eminent supply-side activities to promote electronic payments, for example, the setting up of open foundation stages like the India Stack. We currently have interoperable and effective payment frameworks, for example, Bhim-UPI (brought together payment interface), which are winding up progressively dependable as they develop. It is trusted that such exchanges will just end up more secure with the eagerly awaited client agree based components to administer business utilization of information.

In spite of these ambitious activities, be that as it may, last-mile hindrances are as yet writ extensive. Conduct factors, feeble financial matters and low item importance limit utilization on the ground. For business people and retailers who have imaginatively adapted to money for quite a long time, advanced cash represents a financial danger to their casual organizations and, eventually maybe, to their very survival. What’s more, advanced suggestions that give prompt, substantial esteem and satisfactory dimensions of trust to private ventures are basically tricky.

The fundamental divide lies between merchants with investments in fixed establishments versus the longer tail of home-based businesses, street and roving vendors, and individual service providers. The former tend to be formally registered, higher educated and operate at a larger scale. They are early adopters of digital payment solutions, with 42% having tried and 35% using popular solutions like wallets and internet banking. In contrast, the latter categories of merchants are largely informal, illiterate, and operate on a smaller scale, showing 2-7% adoption rates. They also have much lower access to banking, smart phones and the internet, and have little awareness and understanding of digital payment solutions, as well as lower overall business confidence. Interestingly though, these businesses have significant cash footprint and demonstrate pain points around customer collections, need for working capital and the inability to save in large amounts, all of which can be addressed through appropriate digital financial solutions.

Indeed, even inside these general classifications, there is variety in business and social setting. Organizations with higher exchange size and turnover show more noteworthy propensity to receive. A few organizations—for instance, discount, comfort or claim to fame retail shops—additionally will in general have diverse exchange settings and client profiles. Illustratively, in our example, just 13% of the dairy corner traders had received digital payments versus 53% of the attire and footwear vendors.

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Google Pay accounts for 54% of merchant transactions on Razorpay

Google Pay seems to have emerged as the most popular digital payments platform in India. Along with witnessing a constant rise in its user base, Google Pay has also become merchant favourite across platforms.

On converged payments solution firm Razorpay, Google Pay accounted for 54 per cent of merchant transactions. Razorpay in its report ‘Era of Rising Fintech’ said Paytm and PhonePe were way behind with 9.7 per cent and 11.9 per cent respectively merchant transactions on the platform. BHIM merely managed 4 per cent of those transactions, ETquoted the report.

In the past six months, Google UPI app has grabbed more market share than any of its competitors in the country. In this period, it saw its monthly active users reaching 45 million alongside Paytm and PhonePe.

In February, PhonePe and Google Pay were reportedly doing around 220 million transactions each while Paytm was leading the pack with 225 million transactions.

Last month, UPI recorded around 800 million transactions worth Rs 1,33,460.72 crore. Out of this, Google Pay recorded UPI transactions worth Rs 43,000-Rs 45,000 crore in March.

Whereas its rivals PhonePe and Paytm did 10K-15K crore less transaction in compare to Google pay.

Annually, Google claimed to hit $81 billion (or Rs 5.7 lakh crore) transaction run-rate in March. The tech behemoth is reportedly spending over $10-$15 million every month to draw more users on its platform.

Last month, Google Pay also partnered with Pine Labs to accelerate its offline transactions. The collaboration will give Google Pay access to over 3,30,000 point-of-sale terminals in over 3000 towns in India.

Meanwhile, the report hailed cards payment as a most preferred mode of transactions with 57 per cent of digital transactions. UPI accounted for 17 per cent while mobile wallets were at less than 2 per cent.

Among the multiple sectors where Razorpay is used, 42 per cent alone belonged to travel. Within three years of its operations, Razorpay claimed to have hit a run rate of $1 billion worth of transactions.

The report further outlined merchant demand for digital payments has seen a 70 per cent Year-on-Year (YoY) growth. Non-cash transactions are likely to overtake cash transactions in the country by 2023, it added.

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Source : https://entrackr.com/2019/04/google-pay-transactions-razorpay/

Google Pay is ahead of Paytm and PhonePe in UPI transaction value

Grabbing the lion’s share of UPI transaction has become imperative and priority for Paytm, PhonePe, Google Pay, BHIM and other UPI-enabled payments apps.

While government-promoted BHIM has not been able to take off, private players have grabbed the opportunity with freebies, discounts, and other luring features to gather more UPI transactions on their platform.

Early adopters like PhonePe and Paytm have been maintaining their mojo until tech giant’s Google UPI app – Google Pay silently started to eat up their market share with a new avatar (previously, it was known as Tez).

Up from 25 million monthly active users in September 2018 to 45 million monthly active users in March 2019, Google Pay is now neck to neck with Paytm and PhonePe’s volume with around 225 million UPI transaction.

In February, media reports suggested that PhonePe and Google Pay were doing around 220 million transactions each while Paytm was leading the pack with 225 million transactions.

Interestingly, Google Pay recorded UPI transactions worth Rs 43,000-Rs 45,000 crore in March. On the contrary, PhonePe and Paytm are said to have done transactions worth Rs 31,000-32,000 crore each.

An ET report also added that PhonePe is marginally ahead of Paytm in terms of the value of transactions.

This essentially means Google Pay is quite close to Paytm in terms of volume and way ahead of the Alibaba-backed company in terms of value.

Google in its official statement also said that it hit $81 billion (or Rs 5.7 lakh crore) annualised transaction run-rate in March.

In terms of average transaction value, Google Pay’s ATV is higher by 50 per cent compared to PhonePe and Paytm. According to recent data revealed by BharatPe, Google’s Pay ATV hovers around $4.6 while PhonePe and Paytm recorded their ATV as $2.6 and $2.4 respectively.

Till date, Google Pay is accepted at over 2,000 online merchants such as foodtech, travel, movie/event tickets, and even trading and investments. To gather more users, the tech giant is reportedly spending $12-15 million on a monthly basis.

Apart from P2P transfer and retail payments, Google Pay is also targeting its arch rivals through wealth management products like digital gold buying. It may enter into a full stack wealth management business and integrate other payments use cases to drive more transactions and build loyalty amongst customers.

Of late, Google has partnered with Pine Labs to boost its offline transaction where PhonePe is the market leader. The collaboration with Pine Labs will give access to over 3,30,000 point-of-sale terminals in over 3000 towns.

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Source : https://entrackr.com/2019/04/google-pay-upi-transaction-march/

UPI recorded close to 800 Mn transaction in March

UPI Interface

NPCI-owned payments railroad UPI has achieved a new milestone in March. The unified payments interface recorded almost 800 million (799.54 Mn) transaction amounting to Rs 1,33,460.72 in last month. It was an 18 per cent hike in transaction volume and over 25 per cent rise in transaction value.

In February (28 days), UPI registered 674.19 million transactions worth Rs 1,06,737.12 crore. In terms of transaction value, it was one of the highest leaps for UPI where it crossed Rs 1.3 trillion figure.

BHIM

@NPCI_BHIM

Cashless transactions have now become simpler and convenient thanks to BHIM UPI. @dilipasbe

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Meanwhile, NPCI-regulated inter-bank electronic funds transfer system (IMPS) has once again become the hottest option chosen for fund transfer. The instant payment feature recorded 190.18 million transactions worth Rs 1,76,288.88 crore.

In February, IMPS registered  166.37 million transactions amounting to 1,49,342.60 crore.

The growth in UPI transactions has come on the back of faster adoption in UPI-based payments apps such as government promoted BHIM and private players like Paytm, Google Pay, Phonepe and others.

While BHIM continued to struggle for the past 3-4 months, Google Pay and PhonePe have grabbed the opportunity to compete against the market leader – Paytm.

For instance, Paytm reportedly clocked 221 million transaction volume in January followed by PhonePe and Google Pay that recorded about 220 million UPI transaction each.

Recently, Google Pay has also revealed that it achieved 45 million monthly active userslandmark and hit $81 billion annualised transaction run rate in March.

Apart from the aforementioned entities, there are 139 banks live on UPI platform.

Over the past year, domestic and global players have been throwing their hat in the fray to taste the success of UPI in India. Of late, Xiaomi and Amazon have launched their UPI-powered payment feature in India, on the other hand, Reliance Jio and Tencent-owned WeChat are also in the pipeline to launch it soon.

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Source : https://entrackr.com/2019/04/upi-800-mn-transaction-march/

Role of RPay platform in developing Pop pay

Overview of Pop pay

Pop Pay is structured and developed to bring Caribbean Island closer to being a cashless society.

Pop Pay is a secure and smart way to carry electronic money in smart phone, giving the convenience of paying for anything, anywhere on-the-go.

Pop Pay brings easy to use options that are designed to be accessible, convenient and simple backed by reputed partners to provide security and a credible and reliable customer experience.

Pop Pay provides a convenient way for a user to make in – store payments and can be used at merchants listed with the Pop Pay service provider

RPay- Overview

RPay is a customizable Digital payment script system with wallet & QR code features. It is feature-packed wallet Script software seamlessly manages business with payments, promotions. Our script is packed with different UI designs, user-friendly interface, eye-catching color combinations etc.

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Building up a digital wallet that would be cherished by all individuals

Transactions dependably give you the following dimension of rivalry for flawlessness. Purchasers are getting increasingly more depended on the savvy gadgets. Driving the race of savvy gadgets, advanced cells have made a flawless space in the lives of individuals.

The excitement fragment, as well as individuals is overwhelmingly utilizing the innovation to purchase and offer everything extending from basic need to booking tickets for their weekend.

What exactly a mobile wallet?

A portable wallet is a monetary instrument that enables organizations and people to get and send cash by means of smart phones.

mobile-wallet

It is a kind of web based business model that is created with cell phones inferable from their accommodation and simple access. A mobile wallet is additionally called portable cash or a versatile cash exchange.

Continue reading Building up a digital wallet that would be cherished by all individuals

Why digital payments?

In excess of 2 billion individuals on the planet are as yet unfit to take an interest in the formal money related framework. The larger parts are women. This makes it incredibly troublesome for needy individuals to put something aside for the future, accommodate their family’s wellbeing and kids’ training, or put resources into a business. The cruel the truth is that the best way to make or get payments for some needy individuals over the world is by utilizing paper cash in the casual part – which is a hindrance to the utilization of formal money related services. Money based exchanges are likewise normally dangerous, costly, awkward, wasteful, and need straightforwardness for governments, organizations, and natives alike.

At the point when digital payments—regardless of whether on cell phones, cards, or on the web — wind up accessible to everybody, everybody in the economy can profit by the results! These include:

Precision and Security

Straightforwardness and responsibility are more earnestly to accomplish with money payments since they are unknown and hard to follow. Digital Payments increment responsibility and following, diminishing the danger of debasement and robbery.

Continue reading Why digital payments?