This Week in Fintech (14/6)
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This Week in Fintech (14/6)
Weekly updates on fintech as it happened!
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🏦 Credit Cards and Banking
🚀 Product Launches
Bajaj Finance has introduced a digital health EMI card capitalizing on these times where you can convert your healthcare costs into friendly EMIs
Features
Covers 800 treatments, 5,500+ lifecare partners and over 1000+ hospitals
Applicable to only existing Bajaj EMI cardholders
The card will offer 2-4 times of limit of what you have for your current EMI card
Applicable for the entire family
Notes
This proposition seems to be a great fit for those existing customers of Bajaj who lack the funds to purchase insurance for the entire family
Bajaj has an existing base of 4 crore customers with an eligible pool of 50% (as of Q4 FY20)
The customers who subscribe and use the product will not only help Bajaj expand their business and portfolio but also strengthen their risk assessment and data analytics capabilities as it ties to a an end-use case
Source:
https://www.bajajfinserv.in/bajaj-finance-q4-investor-presentation-pdf.pdf
💻Fintech
💹 Growth
Paytm Payments Bank has announced a 55% jump in profit after tax as it registered profit for the second consecutive year.
A couple of interesting numbers here:
The average deposit per customer is Rs.172
The average transaction value is Rs.948
Their PAT margin is 1.4% of the total earned revenue
G-Pay records 54.1 Cr UPI transactions in May; PhonePe leads in P2M (Person to Merchant)
The May Stats look something like below
Transaction Count: 123 Cr
Transaction Value: 2.18 lac Cr
Average Transaction Value: Rs. 1,023
Google Pay leads the P2P (Person to Person) transactions. It could be because they have marketed that as their primary proposition.
Amazon Pay is trailing very closely behind PayTM and seems to be catching up with the P2P transactions space. Amazing to see that Amazon which is primarily an eCommerce Platform is making it’s way into the payments space whereas rest of the players are payment platforms expanding into a multi-utility platform
Interesting to note: PhonePe dominates the P2M transactions
I think the reason behind their growth could be a robust tech stack, lower transaction failure rates and a very clean and intuitive UI/UX
🚀Product & Feature Launches
RazorPay's NeoBank Arm - RazorPayX has launched payout links that automates transfers to customers without bank details
So merchants can now send a link to the customer over SMS or any other delivery medium, ask them to provide their bank details and the money shall be transferred into their account
Very similar to what Kotak had introduced back in 2013, wherein you could send an SMS to the customer to fill in the bank details to push the money into their account
It would be important that customers are made aware that the link is more to do with getting money into their account and not transacting from theirs
Chances of phishing could increase as some scammers could use this to get money from customers account using UPI Collect functionality
Use Cases
Refunds to customers
Cashback to customers
Game-Winning payouts
Industries
Ecommerce
Travel
Lending
Gaming
Razorpay launched automated receipts on payment pages
I am not very clear on why this is a launch when this seems to be a very normal offering that RazorPay provides
Source:
Paytm’s PostPaid product which is spend now, pay next month option has been opened to use at local kirana stores.
Quite a decent extension to their PostPaid product to encourage local purchases.
Paytm launched scan to order service for you to safely order food while dining out
Pretty neat launch for maintaining customer and restaurant hygiene, safety and social distancing norms - Order from your phone by scanning the QR code of the restaurant
For customers:
They will get to see the restaurant menu, place the order, and pay bills from the phone itself.
Hey, can I also use Paytm postpaid for that?
For restaurants:
They can load and update their entire menu easily
They can promote instant discounts and cashback, maybe the meal of the day, loyalty points, etc to the customer
I am also thinking, maybe add customer feedback, show customers the most ordered meals and a couple of other features which would prompt customers to continue using it
Instamojo Dynamic QR Code: Scan a Payment Link to Pay!
References:
Zerodha Makes TOTP Mandatory to counter phishing
Zerodha has added a new security layer after seeing a lot of phishing that has happened on their platform recently.
I guess it was pretty serious given that the customers were informed about it over SMSes and emails
The TOTP makes the logging in more secure with a time-based OTP that needs to be entered at the time of login. This can be done via some of the apps like Microsoft Authenticator and Google Authenticators
Considering, how large applications are susceptible to phishing and scam, this should be rolled out by large multi-utility platforms where our banking details and payment details are stored.
Zerodha Margins on Kite Window
This is a great and much-needed upgrade by Zerodha.
Every time you create an F&O and intra-day trading, you want to know how much margin you need. It is a hassle to try and test the amount of margin needed which would lead to loss of opportunity to trade due to the volatility of the markets
Zerodha had provided a calculator for that. But now you can actually get to see the margins when you are creating a trade.
💲 Funding
25 Fintech companies in the payments, insurtech, lending, trading sector have received incubation from IIMB and will receive funding from ICICI securities
POS (Point of Sale) Provider Innoviti Raises Series C funding for an undisclosed amount and valuation
They plan to use the funds to expand the scope of its customer-centric payments service by designing different solutions for different market segments.
I smell opportunity in the merchant’s payment space!
💪 Partnerships
PhonePe partners with ICICI Lombard for Travel Insurance
Multi-trip domestic travel insurance at Rs.499 for a year which covers trip cancellation, home burglaries, and all the commute (air, road, and train) under the sun
📅 Previous Week's followup
What is SoftPOS?
I mentioned last week how the launch of SoftPOS is going to onboard merchants faster. Here is a simple visualization to elaborate on the same:
However, the RBI prohibits transactions over Rs.2,000 for NFC (Near-Field Communications) payments, so my best guess is that the merchants will still have to operate both the POS (machine-based and SoftPOS) till these restrictions are lifted or there is a mechanism to add 2-factor authentication for larger payments which I believe would happen once SoftPOS picks up
I am going to expand on this further in the next couple of weeks.
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