FinTechs in India have evolved beyond just accepting payments and from being transactional to ‘transformational and impactful’.
Bengaluru-based payment solutions startup Razorpay is a great a case in point. The company’s CEO and Co-Founder Harshil Mathur believes that Indian FinTech firms are setting new standards for financial services in the country.
“Today, large number of Indians are not catered to by financial service providers in the country – this is a huge segment that FinTech firms are looking to tap into through their innovations, a majority of which come from startups. The FinTech space has and is using new technologies and disruptive approaches to come up with better and innovative products,” Mathur says.
He also adds that there has been a conducive environment in the ecosystem in recent times that fosters innovation. With the introduction of UPI, the NPCI has leveraged the growing presence of mobile phones. This has helped in the reduction of the cost of infrastructure for FinTech ventures significantly. With the smartphone user base expected to expand, the digital banking footprint is projected to grow faster than ever before.
“With 2019 having gone in full speed, I can foresee digital transactions in India accelerating at 70 percent CAGR through 2020, contributing to the GDP by 15 percent,” he says.
According to Mathur, here are the trends to look for in the Indian Fintech space in 2020:
Increased collaboration: Incentivised programs to promote digital payments and greater collaboration between banks and FinTech firms will be beneficial for the digital payment ecosystem.
Better Infrastructure: There’s an increasing demand for low cost infrastructure which will ensure prolonged sustainability resulting in more POS terminals accompanied by better and cheaper payment options for merchants.
Growth of Neo-banking: Neobanks are taking over the FinTech industry by a storm, on a global level. We see a new player in the market every year whose primary intention is to simplify financial services to a greater extent. The concept enables businesses to simplify, accelerate, and supercharge every aspect of their financial operations – from accepting payments and managing cash flow to reconciling transactions and flexible payouts.
UPI will continue to hail: Consistently, there has been an amplifying demand for digital payments over the past few years. We’ve undoubtedly seen the adoption of UPI and other fintech innovations making banking and payments very experiential for both consumers and businesses.