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


💹 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)


🚀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
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!
Zerodha Makes TOTP Mandatory to counter phishing
Zerodha Margins on Kite Window

💲 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

📅 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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Disclaimer: The newsletter contains information about Fintech and Organizations that operate in or around the fintech industry. The information is not advice, and should not be treated as such. Without prejudice to the generality of the foregoing paragraph, we do not represent, warrant, undertake, or guarantee ... that the information in the newsletter is correct, accurate, complete, or non-misleading. We will not be liable to you in respect of any special, indirect, or consequential loss or damage. If a section of this disclaimer is determined by any court or other competent authority to be unlawful and/or unenforceable, the other sections of this disclaimer continue in effect.