In the digital payment segment, if there is any country where big companies can be set up in this, then India’s name is at the top in this. In a country with a population of 140 crores, 70 percent of transactions are still in cash. The RBI set up new types of banks for consumer payments in 2014 and was invested by the country’s leading industrialists, but now they are stepping back.
Five firms that were licensed at the time for internet, mobile and online transactions have either stopped operations or stopped investing. Three of them received funding from the country’s leading businessmen. Given the huge investment, Dilip Shanghvi has already stopped his payment bank before it starts. According to Credit Suisse’s report, by 2023, this market will be one lakh crores. According to the KPMG report, digital payment companies will take at least three years to turn profitable.
Currently, around 90 companies in the country are working in it. In the coming times, only a few of these are expected to survive. Ramaswamy Venkatachalam, director of banking and payment of the FIS Group, says that Indian companies are trying to win the gun battle with a knife.
Mukesh Ambani’s company is also testing; Compete with Google, Walmart and Facebook
- Many financial services have to be provided to get into profitExperts say that companies will have to start services of other financial products to attract consumers and profit. Currently, most companies are incurring losses. In the results announced on 31 March, Phone Pay and Amazon Pay have shown a total loss of Rs 3,000 crore. However, Paytm, which showed a loss of Rs 20.7 crore a year ago, has shown a profit of 19 crores.
- Google Pay’s 61% stake in razor-pay transactions, It is difficult to extract all the market data right now, but according to Razer-Pay data, Google Pay topped UPI with 61 percent share in its platform transactions. 24% transactions were done through PhonePe and only 6% transactions were done through Paytm. Although Google did not provide detailed financial information about its India payment business, CEO Sundar Pichai says that India holds an important place in their strategy.
- Google’s brand value more than banks in IndiaInstead of getting a license to start a business, Google devised a strategy to tie up with traditional lenders. According to research firm Forrester, the brand value of Google in India is more than the banks in the country. Aditya Birla Payments Bank closed in July due to losses. Tech Mahindra Payments Bank surrendered the license even before it started. However, Mukesh Ambani’s company is testing to launch payment services. The company will have to compete with Google, Walmart, and Facebook.