5 Ways That Innovative Companies Use Digital Wallets

Digital wallets are sweeping different industries from retail to technology and banking, and are seeing a rapid rise in consumer adoption. But what are wallet based payment systems?

A digital wallet or an e-payment service is either an online or mobile solution that lets individuals and companies conduct transactions electronically. 

It, first and foremost, offers convenience in transactions because there is no need for physical money to change hands. That is why eMarketer forecasts in a report that the number of mobile payment users will increase to 74.9 million in 2022. By that time, the transaction value of proximity mobile payments will also go up to $160.79 with a difference of $98.5 billion from the 2018 figure. 

But e-wallets are more than just convenient payment methods. There are other digital wallets advantages and disadvantages, too. In this post, we will discuss some of the pros of using this technology below, especially how innovative companies are using it in their operations. 

  1. To hasten on-site payment processing

Processing cash payments can be cumbersome. You have to wait for customers to fish money out of their wallets or purses and to count their change before they leave the counter. It can also be a bit of a problem when a purchaser hands you a large bill to pay for a small amount, leaving you with fewer bills in your cash drawer so you have to hunt for change when you face the next person in the queue. Either way, it takes up a lot of time, both yours and your consumers’. 

Fortunately, there is a resolution to your cash processing woes: digital wallets. According to The Pew Consumer Project, usage of mobile payments is growing steadily despite the fact that cash and plastic cards still rule. You can take advantage of this trend by making sure your business is ready to accept emerging technologies for payments. 

To that end, you can look at popular digital wallets examples and integrate them with your POS or ePOS. And since all people need to do is present their mobile wallet at the check-out register, you can receive their payments instantly and in less than a minute.  

  2. To provide customers with tough security

A digital payment does not require customers to provide their card details to merchants, which gives them the peace of mind that their financial information is secure. This is possible because, for every transaction, the digital wallet produces a unique and random string of numbers to provide to the business in lieu of the actual debit or credit card number. 

Moreover, a mobile payment gateway also would not store the actual account number on the user’s smartphone. This is on top of strong encryption and stringent security measures such as two-factor authentication and fingerprint lock. Not all products offer the same level of security, hence, browsing through various solutions in a B2B directory can help you pick which one fits your features and security requirements.

  3. To pay bills automatically

Settling utility bills and the like is time-consuming because you need to go to the biller’s office or payment center. And if you are busy with your operations, it is possible that you are unable to pay them on time. Or worse, forget to settle your dues and have a penalty charge heaped over your previous bill. 

You can avoid those dilemmas by configuring automatic payments to merchants, which you can do using your digital wallet. Since your credit cards are linked with the app, you can charge the transactions to your selected card easily. Not only is this convenient, but this also gives you a good amount of time before you have to pay for everything. 

As such, you do not have to bustle to find the cash that you need to pay your balances. 

  4. To avoid bad debt

When clients are incapable of paying for your products or services on time, it is possible that you run into some bad debt. You can avert this situation by configuring an e wallet payment system for your business. This means that your customers can pay on the spot and no longer make forgotten checks a reason to make you wait. What’s more, by letting your partners pay you using their smartphones, you can reduce the occurrences of chargebacks. 

Other than that, you can resolve your cash flow problems and pay your vendors on time. 

  5. To bundle with loyalty programs

Digital wallets are not just for accepting and making payments, however. You can also leverage them for your loyalty programs. Take a cue from Starbucks. Despite being limited for use in their stores, their digital payment solution trumps those of Google, Apple, and Samsung by linking it with their loyalty program. Other businesses are also experiencing a high rate of success in doing so, as eMarketer points out in an article about mobile and proximity payments. 

By using mobile wallets for this reason, you can make it easy for your customers to receive points even when they have lost, misplaced, or forgotten their actual loyalty cards. You can also leverage this technology by offering perks and discounts to patrons who use a certain payment method to facilitate adoption.

Making the move towards digital payments

Mobile payment adoption is increasing in the US alone and it is likely that it will rise globally in the coming years. Before then, you can set up your business for success by configuring your POS and ePOS to accept payments from different virtual wallets to provide customers with a faster and secure option. There are different ways to measure success in this regard but you can reach your objectives (or even go beyond them) with the help of the right tools. 

wallet

UPI merchant payments witness 15% rise in June

As more digital payment firms are working to provide a more easy way to accept merchant payment, it seems to have been contributing to rise in the share of merchant payments on Unified Payments Interface (UPI).

As per the latest report, merchant payments on UPI has grown 15% from April to 31% in June. Close to 240 million merchant payments were reported last month, said an ET report.

For payment firms, the rise of merchant transactions is a significant development as a number of instances for merchant payments is higher than p2p transactions.

As per Industry observers, this is at the initial stage and merchant payment has huge potential to get it developed into a large scale.

Of late, a couple of players in the space moved to merchant payments through offline acceptance point.

Last month, Paytm announced to invest money in offline merchant expansion, for which it claims to have high-frequency usage. It said to partner over 20 million kirana stores enabling them to accept the digital mode of payments including UPI, wallets and cards.

Whereas Flipkart-owned PhonePe, has also claimed to made headways towards offline merchant payments. It claims to have 5 million offline merchants.

Google Pay also partnered with Paypal to help a merchant accept payments online.

According to the last month report, Google-owned payments app had recorded 240 million UPI transactions amounting to Rs 55,000 crore in May whereas PhonePe and Paytm registered 230 million and 200 million transactions worth Rs 44,000 crore and Rs 38,200 crore respectively. Whereas in merchants payments, it contributes between 10- 20% of the overall numbers.

In May, Paytm claimed to clocked over 70 million of the estimated 120 million UPI-based merchant transactions. With about a 10% MoM growth in this segment, it has claimed to have 60% of UPI-based merchant payments market share.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Digital Payment systems Market in India

Indian payments industry is to a great extent commanded with money based exchanges. The financial business in the nation was significantly branch-based till 2014. Afterward, there was an impressive development in the branch-less channels of banking, which has additionally investigated into digital payments in both rustic and urban areas. Indian digital payments industry is required to reach $700 billion by 2022 as far as estimation of exchanges.

It is normal that over 80% of the urban populace in India will receive digital payments as a piece of their everyday practice by 2022 and 70% of the retail chains will embrace the equivalent. The diminished transaction charges and the level of simplicity of money moves related with the electronic store moves and portable financial will further drive the development of digital payments frameworks in India. Additionally, the Indian Government is bringing positive strategy structure, for example, Goods and Services Tax (GST), budgetary incorporation, improving digital foundation, propelling payment frameworks, for example, aadhar empowered payments, UPI, and others which are supporting the digital payments industry. In 2016, Indian Government made a huge move, for example demonetization, to check dark cash course inside the nation and to increment digital payment infiltration. It is a sensational advance made by India towards improving cashless economy, bringing about sharp increment of a few digital payments diverts in the nation.

Analysis:

The “Digital Payment Systems Market in India” market will observe a CAGR of 58.90% during the estimate time frame FY2017–FY2023. The market is fragmented by digital payment framework types and areas. The digital payment framework types incorporate portable wallets, web banking, versatile banking, PoS, and others. The areas shrouded in the report are urban and provincial locales; right now, urban district fragment holds the significant piece of the overall industry pursued by country section.

Digital Payment System

Mobile Wallets; India’s portable wallet biological system is yet to be competitive, anyway real web based business and telecom organizations are fuelling this industry through business development. Likewise, a solid administrative help is yet to come into power for the exponential development of digital payments biological system in India.

The changing client conduct, expanding web entrance rate, and government strategies are energizing the business which is by implication bolstered by the developing interest for P2P payments, E- commerce platforms, service charge payments, and others. The improvement of advanced foundation in India emerges by giving a solid mechanical biological system to the digital payments industry.

Key players:

Some of the leading companies covered in the ‘Digital Payment Systems Market in India’ report are Paytm, MobiKwik, PayUmoney, Airtel Money, Vodafone Mpesa, Idea Money, Stank Bank Buddy, HDFC Bank PayZapp, ICICI Bank Pockets, Axis Bank LIME, Freecharge, PhonePe, Samsung Pay, and others

The report gives bits of knowledge about different methods of electronic reserve move – Mobile Banking, Digital Payment Methods, Mobile Wallets, Payment Banks, and others.

What India can expect further?

With 2019 effectively proceeding, we can predict advanced transactions in India quickening at 70% CAGR through to 2020, adding to the GDP by 15%. Usage of Artificial Intelligence (AI) in the Indian computerized exchange scene will result in more comfort and security, guaranteeing continuous misrepresentation anticipation.

With increasingly more fintech firms breaking new ground through their ground-breaking, front line innovation, India has problematic potential in the fund area, bringing about a record-breaking number of digital transactions as vendors and purchasers both grasp the simplicity of digital payments.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

The epoch of growing Fintech – How Makes & Accepts Payments?

Have you as of late halted and paused for a minute to acknowledge how you’re ready to pay for the chai you drink by basically examining a QR code? Have you pondered that it is so easy to make a payment at your local market utilizing Google Pay? No? Perhaps you should.

For quite a while, Indian residents have stayed doubtful about advancing alongside the pace that innovation has set. Is it true that it was the dread of investigating what’s going on? The dread of escaping the safe place;

Perhaps; Be that as it may, as of late, the nation has grasped change, and it has brought such a great amount of progression as far as how payments are disentangled. Gone are those days where you generally need to convey money in your wallet. Gone are those days where you have to squabble with sellers for not rendering change to you.

India has seen a gigantic ascent in fintech reception over the most recent couple of years with a developing interest for non-money exchanges. Remembering the interest, NASSCOM predicts the Indian fintech programming market alone to twofold itself and reach USD 2.4 billion by 2020.

Requirement is the mother of discovery

India being a developing country, encourages innovation. The country sees growing customer demand for digital payments, but regulatory and operational complexities persist. Digital transactions are expected to surpass cash transactions by 2023. This demand has created the need for a new ecosystem for digital payments, banks, and fintech firms to join forces and innovate.

India being a creating nation empowers advancement. The nation sees developing client interest for digital payments, yet administrative and operational complexities endure. Digital transactions are required to outperform money exchanges by 2023. This interest has made the requirement for another environment for advanced payments, banks, and fintech firms to unite and improve.

UPI transactions

We as a whole use Google Pay, PhonePe, BHIM, and different applications consistently. Be that as it may, do we truly know what an effect these applications have made on the Indian payments scene?

In every one of these years, if we somehow happened to pick one fintech advancement that has totally changed how payments work, it must be UPI – a moment, ongoing paylment framework created by the National Payments Corporation of India (NPCI) that encourages between bank exchanges.

Everyone heartily invited UPI on the grounds that it gave a look at how simple and momentary payments can be. It saw a 7x development in 2018, while Google Pay turned into the ruler of UPI applications and ruled, deposing all other UPI applications.

From being a wallet executioner, UPI has likewise advanced toward take the piece of the pie from net banking. It has changed into a shipper first payment (P2M) stage, from being a P2Ppayment mode in 2017.

What India can expect further?

With 2019 effectively proceeding, we can predict advanced transactions in India quickening at 70% CAGR through to 2020, adding to the GDP by 15%. Usage of Artificial Intelligence (AI) in the Indian computerized exchange scene will result in more comfort and security, guaranteeing continuous misrepresentation anticipation.

With increasingly more fintech firms breaking new ground through their ground-breaking, front line innovation, India has problematic potential in the fund area, bringing about a record-breaking number of digital transactions as vendors and purchasers both grasp the simplicity of digital payments.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Targeting offline business, Paytm shifts cashback from P2P payments to merchant payments

Alibaba-backed digital payment firm Paytm has announced to shift its focus to offline merchant payments from incentive-led peer-to-peer (P2P ) UPI payments.

The payment firm will now invest money in offline merchant expansion, for which it claims to have high-frequency usage. It plans to partner over 20 million kirana stores enabling them to accept the digital mode of payments including UPI, wallets and cards.

The move is part of the next growth strategy, where Paytm eyes to reach out to smaller cities and villages.

By investing in real merchant payments even in the remotest part of our country, we will help expand the vision of Digital India to the grassroots.” said Deepak Abbot, senior vice president of Paytm in a press statement.

The Noida-based firm, by cutting cashback on P2P payments, believes that Paytm users, who have been using the app for long now do not need cashback push to keep transacting on the platform.  Instead, cashback will be given to those who are not yet part of digital payments, the company said.

The move will further also help weed out artificial transactions on the platform. Besides, it also plans to invest in lending and insurance to help merchants get better access to capital and provide more financial security.

In May, it claimed to clocked over 70 million of the estimated 120 million UPI-based merchant transactions. With about a 10% MoM growth in this segment, it has claimed to have 60% of UPI-based merchant payments market share.

In FY 19 Paytm clocked about 5.5 billion transactions. The payment major aims to cross over 12 billion transactions in the next 18 months.

In offline merchants base segment, PhonePe, which has about 1 million offline merchants, competes against Paytm. Google Pay has also piloted the offline payment service with kirana stores.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://entrackr.com/2019/06/paytm-cashback-from-p2p-payments-merchant-payments/

PIL filed against Paytm Payments Bank for alleged illegal operations of Post Paid Wallet

A Public Interest Litigation (PIL) has been filed against the Paytm Payments Bank for operating a post paid credit facility allegedly in contravention of law which regulates such facility.

In response to the PIL, the bench, headed by Chief Justice Rajendra Menon and Justice Brijesh Sethi, has issued a notice to the Reserve Bank of India (RBI) and Paytm Payments Banks Limited (PPBL) asking them to clear their stand on the matter. The next date of hearing is on  September 3, as per an agency report.

The petition has been filed by financial economist Abhijit Mishra. He has alleged that Paytm Payments Bank Limited is operating post paid wallets in defiance of Operating Guidelines for Payments and Guidelines for Licensing of Payments Banks as issued by the Reserve Bank of India.

The guidelines do not permit lending facilities to customers by such entities without prior approval of the Central bank, he contended.

Paytm ‘Post Paid’ is a credit facility being offered by the company to its customers. As part of this service, customers can recharge mobiles, book movie and travel tickets and also shop on Paytm and pay the following month at zero cost or interest.  The facility is being offered to customers subject to verification of their creditworthiness as per the company’s assessment. It is therefore open only for “eligible” customers.

The PIL further seeks punitive action by the RBI against the directors, management and officers of the PPB for malpractice and violation of relevant banking acts.

It also claimed that Paytm Bank by the means of its post paid service has provided un-monitored and unauthorized access to the personal information such as Aadhaar, PAN, transactions etc. of its customers to unauthorized third party, thereby clearly violating Article 21 of the Indian Constitution and other relevant banking acts.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

PhonePe seeks $8 billion value with $1 billion fund-raise

After Flipkart’s board gave approval to hive off PhonePe, paving the way for a solo fund-raise, the payments platform is in talks to raise about $1 billion from marquee investors like China’s Tencent and Tiger Global, three people aware of the development said.

Tencent and Tiger Global had backed Flipkart, which acquired PhonePe three years ago. However, the outcome of the talks would depend on the valuation at which these investors are willing to put money in the firm. PhonePe is looking at a valuation of at least $7-8 billion and will not take transaction forward at a lower level.

“Valuation can make or break these talks. PhonePe is in discussions with Tencent as it could leverage a strategic investor willing to back it for the long-term, especially to fight well capitalised Paytm,” a person aware of the discussions said. This person added it could take another two-three months for the investments talks to close formally.

For Walmart, which would remain a large shareholder in the case of new investors coming on-board, PhonePe’s valuation will be crucial since it bought a 77% stake in Flipkart for $16 billion, at a steep valuation of $22 billion. “Board will have to approve PhonePe’s valuation for the independent fund-raise,” the person mentioned above added.

This is not the first time PhonePe has explored independent funding as Nigam-led PhonePe had held talks for investments from strategic players like PayPal in 2017. Back then, too, valuation emerged as a deal-breaker and those talks did not result in an investment. However, the discussions with the new investors are more realistic to come through, sources added.

A PhonePe spokesperson did not respond to an email query by TOI. Tiger Global and Tencent did not respond to TOI’s queries either.

PhonePe, before Walmart acquired Flipkart, got a capital commitment of $500 million in late 2017. Little over half of this capital has been pumped into PhonePe, sources added.

While PhonePe has access to the rest of the capital pool committed by parent Flipkart, it needs new funds to feed its high-spend expansion spree that started in the past few months.

PhonePe has got well-capitalised rivals such as SoftBank and Alibaba-backed Paytm, Google Pay, which are fighting for local payments market. Impending entry of WhatsApp could put further pressure on PhonePe and its rivals. A person aware of the matter said PhonePe’s annual spend for 2019 is said to be in the range of $150-170 million. Its rival Paytm too is stitching up a deal that could see it raising $1-2 billion.

As PhonePe plans to continue its offline payments network expansion and enter new business-like wealth management and lending, it will be crucial that it has adequate capital to spend on existing and new businesses.

BharatPe sets sails for providing credits with cheaper interest rate to merchants

To head towards that one goal of business – profits, every startup has to think up ways to monetize efficiently. For digital payments startups, especially for the ones keenly focussing on the merchant side of the business, credit as a monetization avenue really becomes the need of the hour.

One such startup – BharatPe – that is a digital payments platform and has a separate app for merchants, has also started providing credits to these merchants digitally.

It counts on interdependent cyclical relationship of credit and application usage to increase the revenue on its platform. How? More usage of digital payments meaning more scope for lending, and higher the need for credit more the usage of this applications.

This has been done keeping in mind that these unorganised small merchants find it difficult to procure loans from regular institutions, be it NBFCs  or banks or others in the game.

The company that has onboarded with 7 lakh offline merchants on its platform till now has now partnered with NBFCs like Apollo Finvest to offer loans with ticket sizes between the range of Rs 10,000 to Rs 1 lakh at a minimum interest rate of 1.67%, lower than most in the industry.

The target is that at least 20-25% merchants on the platform use the credit services, making for a healthy, efficient, and successful revenue model.

Apart from monetization, this will also help the company in scaling up from the current figures of 10 million transactions worth $400 million altogether to the total payments on the platform reaching around a billion dollars, as co-founder of BharatPe Ashneer Grover told ET.

Given the importance of credit to merchants, BharatPe isn’t the only fish in the pond doing the business of lending to the merchants. Several others like Cars24, Flipkart, Ola and other pure-play fintech platforms are doing the same.

Two differentiators BharatPe is counting on to scale the business and credit facility in this highly competitive market is the separate focus on merchants via the BharatPe Merchant UPI platform powered by QR codes and the low-interest rate.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Google Pay most downloaded fintech app in 2018 globally, recorded 6X more install than PhonePe

Google Pay is the most popular digital payment app in the country. The Google-owned app was most overall downloaded fintech app last year as per Sensor Tower data. It was downloaded over 327 million times, with over 6X lead from second most downloaded fintech app.

PhonePe, at the second spot, got about 49 million installs. It’s worth noting that Paytm has been the most popular payments app. However, owing to Paytm Mall, Sensor Tower and Similarweb consider it in the shopping category, not in payments.

Both the apps (Google Pay and PhonePe) were also top most downloaded fintech apps on Google Play Store worldwide. They were followed by Alipay, Paypal, and Cash Back. The National Payment Corporation of India (NPCI) developed BHIM was at the eighth position on overall download and fifth on Google Play.

Google Pay sensor Tower

Google Pay has in last one year witnessed a phenomenal growth in terms of a number of active users. From 25 million monthly active users (MAU) in September last year to 45 million MAU by March 2019, it has added the most number of users in the period.

In terms of UPI transactions, Google Pay has left behind its close competitors such as Phone Pe and Paytm.

In March, out of total UPI recorded transactions 800 million worth Rs 1,33,460,72 crore, Google Pay recorded UPI transactions worth Rs 43,000-Rs 45,000 crore. Whereas its rivals did transactions worth below Rs 32,000 crore.

Google Pay’s average transaction value (ATV) is higher by 50 % compared to PhonePe and Paytm.

Google-owned firm has become a preferred app for merchants. As per a report by Razorpay, Google Pay accounted for 54% of merchant transactions, which is 8 percent lesser than last year figure, on its platform.

Meanwhile, Similar Web Data also had almost similar ranking for fintech apps downloaded on Google Play Store. Google Pay and Phone Pe were top fintech apps. BHIM was at ninth place.

The rapid growth of private players has made a huge dent on government-regulated BHIM. In the last two years, the BHIM app has lost its market share. It processed about 1.9% of all UPI transactions and accounted for 4.6% of the amount transacted in April. The number of transactions on the BHIM UPI app was 15.2 million for the month of April.

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

wallet script - rpay

 

As mobile wallet plays a vital role, Roamsoft introduces a digital wallet platform “RPay” with customer app, merchant app, end- to- end admin panel. If you want to possess your own digital wallet solution then RPay is the right choice.

Source : https://entrackr.com/2019/05/google-pay-most-downloaded-fintech-app/

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.

Continue reading What makes merchants adopt digital payments?