HOW irritating can be to stop at toll tax areas, and pay the cash? With India promoting cashless economy, the Toll tax centers are also taking a major step towards making the whole process a cashless and in order to do so, GOI has introduced FASTag.
FASTag refers to an electronic toll tax collection system in India, where people will be able to pay toll tax online. It is operated by the National Highway Authority of India (NHAI). To make it simple, there are prepaid rechargeable tags for toll collection that allow automatic payment deduction fixed on the windscreen of the vehicle.
In order to reduce the traffic at the toll places, the GOVERNMENT OF INDIA made it mandated all the toll plazas, to make toll payments electronic, from 1st Dec 2019, and because of this, all the vehicles passing through toll plazas will have to pay toll tax online using FASTag. Lets find out how to pay toll tax online with the help of FASTag.
FASTag is a simple to use, reloadable tag which enables the automatic deduction of toll charges and allows the user to pass through the toll plaza without stopping for toll tax payment.
How FASTag works?
The FASTag uses a simple formula to work. It is linked to the user’s prepaid count from where the amount required for toll tax is deducted. It uses Radio-frequency Identification (RFID) technology which is affixed to the vehicle’s windscreen after the account is active. It is a solution for a hassle-free trip on the highways.
Benefits of FASTag
It has SMS alerts for transactions which allows the customer to receive SMS alerts on the user’s registered mobile numbers for all the transactions done in the tag account.
As FASTag are read by the tag reader at the plaza and the amount is deducted automatically, as soon as the car reaches the toll plaza. So, the vehicle doesn’t have to wait on the toll plaza to pay toll tax, saving both time as well as fuel of the user.
It allows the customer to recharge their FASTag account online via their credit card, debit card, NEFT, RTGS, UPI or net banking.
Due to FASTag, the drivers are now don’t have to carry around cash for toll tax payment.
To keep a track on the statements and transactions the users can check it by log-in to their FASTag customer portal.
Afterwards, the user has to maintain a security deposit of ₹200 for a car, jeep, van and a minimum balance of ₹100.
One can also link the account directly to their account or can keep the amount in their FASTag wallet.
The minimum recharge amount is ₹100.
How to purchase FASTag?
The user can buy the FASTag at Amazon and a few selected banks like SBI, HDFC, ICICI, Axis Bank etc. To buy FASTag, the user needs to submit KYC documents like Registration certificate of the vehicle, passport-size photograph KYC documents of the vehicle owner and ID proof(any of the following driving license, Aadhar card, passport, PAN or Voted ID).
After purchasing it, the user needs to activate it by entering details related to the user and the vehicle in my FASTag mobile app.
How to Activate FASTag?
To activated FASTag, you need to follow these steps:
First, you have to download the FASTag app on your mobile.
On the homepage of FASTag app, click on ‘Activate NHAI FASTag’ option.
Choose the E-commerce site from which you have purchased your FASTag.
After this, either scan the QR code or enter the 24-digit FASTag ID that can be found at the bottom of the tag and you can get your FASTag activated.
After the activation, link your bank account with the FASTag.
FAQs
How to check the balance on the FASTag?
The customer can check the balance of FASTag on the website of the issuer agency.
How to block the FASTag if the card is lost?
Customer can call up the customer care number of the agency from where, they issued the FASTag and can block their FASTag accounts.
What to do if one lost their FASTag card?
After losing the card, one can call up the customer care customer care number of the agency from where, they issued the FASTag and can block their FASTag accounts. Then, one can open a new account and the balance of the old account can be transferred to the new one.
One FASTag can be used for one vehicle only and the customer has to buy separate FASTag for separate vehicles.
The unified payments interface is the buzzword for the pandemic year. Ever since the pandemic hit, people became scared of touching any surface in the world. This was the time when the UPI came to the rescue. UPI or the unified payments interface is a method or gateway that is capable of transferring money from one bank to the other. This is a life saviour in a country like India. We are a country of more than a billion people and everyone has to do certain basic transactions everyday.
With so many transactions happening all over the country, it becomes hard and inconvenient. UPI eases just that thing. It lets you pay directly from your bank and you don’t have to carry notes and currency of small denominations and even larger denominations. In all its sense, UPI was a game-changer in India. It is fast, safe, easy and convenient.
There was however some issue over the UPI case in India. You cannot transfer money outside the borders of India. For that, you will have to follow some other method of transaction. In recent news, it was announced that Nepal (India’s neighbour) will accept the UPI payments from India. In fact, it will be the first country that will adopt the UPI system that India has inbuilt in itself. This step will be playing a pivotal role in transforming digital work all over the place, in India and as well as in Nepal. It was officially announced by the NPCI on Thursday, last week.
NPCI stands for National payments corporation of India. Here we will be discussing Nepal, which is India’s friend and all in all aspects. In this article, we will also discuss what will be the after-effects of this news. How will the fintech startups change, will this be a better move for them or will the move give them a hard time. Let us see first how the UPI works, and why it is so widely used.
A Small Brief About the Unified Payments Interface
We have invented so much, achieved so much and we are still in the process of innovating and adding value to the world. However, any amount of technology in the world is of no use, if it cannot ease the life of humans. Because what’s the matter if tech is useless? When the population rises to a great extent, something has to be invented which will work efficiently in managing human affairs.
In fact, as the population of the world rises, there has to be something that holds the number of transactions happening everywhere. This is when the word digital payment came into the picture. It is a mode of payment that is made via Digital means. Real money is flown out of a payer’s bank and is credited to the receiver’s bank. This is also a fast, easy and secure method to transact.
In a country like India, where the population bubble is so huge, it becomes crucial to innovate in the medium of transactions. This is when the word UPI comes to place. There is a strong possibility that someone has not heard of this word beforehand.
UPI or Unified Payment Interface is a digital payments service that costs nothing to the payer and receiver but makes it easy for both parties. It is a payments service and as the name suggests, it is a pathway through which money can be transferred to anyone in India.
It is the most accepted digital payments method. Since the demonetisation and the covid 19 pandemic, the use cases of UPI has also risen many folds. Which makes it the perfect go-to pathway for any sort of transaction.
It is developed by NPCI, which stands for National Payments Corporation of India. It is safe and secure as it is regulated by the Reserve Bank of India. RBI is the Apex bank in India, which is also the central bank of India. It regulates and secures every UPI transaction happening in the country. It is secure in this manner.
Another thing is that UPI is simple and convenient. All it takes is a mobile number and a bank account. It connects with your email id which is used to make a VPA ID. VPA is a virtual payments address.
As the name suggests, it is the online address to which payments are directed or payments are taken. VPA is something that directs the payment/transaction path. Transfers can be inter-bank and they can also be intra-bank. A mobile number also works seamlessly in the UPI payment system, if it is attached/linked with the bank account of the sender or receiver.
There are many benefits for a service like the UPI. But however, there is one limit to a UPI transaction. You cannot do a UPI payment across borders as it is only available in India. In recent news, something striking happened. It was reported that Nepal will be accepting the UPI structure of India. It is such a great welcoming move by which people can transact even in Nepal from a UPI enabled app. Let us see what is the news and what will be its implications.
India Nepal UPI Collaboration
In recent news, it was announced that Nepal will be accepting UPI which is a great initiative for development in both the countries, India and Nepal. In fact, it will become the first country to do this. The country said that they want to adopt India’s payment gateway for growing together.
NCPI has also given a nod to this agreement. Its foreign wing has joined hands with another technology entity to provide services in Nepal. The work of providing the infrastructure for this facility will begin soon in time.
NPCI International, Gateway Payment Service, and Manam Infotech, all three trifectas have come together and joined hands to deploy UPI solutions in Nepal. NPCI International Payments Ltd (NIPL) is all set to Enable NPCI’s flagship Unified Payments Interface(UPI) platform in Nepal.
This partnership or collaboration will enable many developments, like the creation of a real-time payments system in Nepal, leveraging NPCI’s top of the line or state of the art technology to democratise payments and displace cash
NCPI has come together and joined hands with GPS and Manam Infotech to provide services relating to the Unified Payments Interface to the country of Nepal. GPS here stands for Gateway Payments Services and Manam is a famous tech company on the land of Nepal. It has been clearly stated that GPS or Gateway payment service will be responsible for acting as a system operator for payments in Nepal.
Manam infotech will add the Unified Payments Interface to the whole country. It is a divided work and with the joint efforts of the respected bodies, this work will be done in an effective manner.
The collaboration will also make for the larger digital public good in Nepal. This effort on both ends will improve real-time person-to-person which is called P2P and person-to-merchant which is P2M transactions in the neighbouring country, NPCI said in a statement.
There have been rising sentiments of all the people who see UPI as a great initiative in a digital world. With Nepal joining hands with India, this will boost the usage of UPI and it will also promote the digital economy which everyone today strives to become. Moreover, this broad use of UPI will also bring these two countries together in the same sphere of payments.
As merchants and consumers from both countries will get benefits from this collaboration. Payments can be received and accepted from both countries which will make trade and communication easier on both ends of the locations.
With collaboration with Nepal, we can achieve a greater goal of merging the two economies, not exactly but the magnitude will rise in both places. As the collaboration will start working, it will also be seen that person to person and person to merchant transactions will also improve the number of countries. National payments corporation of India and investors and merchants are all looking forward to all the doors of opportunities that will be open after this collaboration on UPI.
National payments corporation and NIPL (International payments limited) which is its foreign wing, was incorporated in April 2020. The NIPL is a wholly-owned subsidiary of the national payments corporation of India. The sole purpose of NPCI is to regulate all the UPI payments in India.
Everything that is related to the Unified payment interface in India is to be managed by this entity. The foreign department of NPCI is known as NIPL and operates in connecting UPI outside Indian borders. The purpose of NIPL is to employ a payment system that is real-time, with the international markets. It has also the work of card schemes and RuPay which works outside Indian borders.
NPCI or the national payments corporation of India has developed and proved its capabilities in the past. It is the organisation that has the majority stakes in working overtime with the UPI in India.
The widespread usage of the Unified payments interface would not be possible, had it not been with the NPCI. Thus, this body has been the worthy organisation to regulate and promote UPI in Indian markets. The international wing of NPCI has also done immense work in its designated part. NIPL is focused on transforming payments across the globe with the use of technology and innovation
Nepal has a population of about 30 million (3 crore) with around 45 per cent banked. Mobile penetration of over 135 per cent with 65 percent of the population using smartphones provides a bedrock for seamless replication of the digital revolution in India to be replicated in Nepal, NPCI said.
NPCI International, Gateway Payment Service, and Manam Infotech. The trifecta has come to deploy UPI solutions in Nepal. This partnership or collaboration will enable many consequences, like the creation of a real-time payments system in Nepal, leveraging NPCI’s top of the line or state of the art technology to democratise payments and displace cash. NPCI International Payments Ltd (NIPL) is all set to Enable NPCI’s flagship Unified Payments Interface(UPI) platform in Nepal.
Conversely, several countries want to establish a ‘real-time payment system’ or ‘domestic card scheme’ in their own country. NIPL, with its knowledge and experience, can offer these countries technological assistance through licensing, consulting for building real-time payment systems to meet the rapidly evolving need of fast-growing global businesses. It will not only enable payment for Indians but also uplift other countries by enhancing their payment capabilities through technological assistance, consulting, and infrastructure.
As mentioned before, NPCI is the governing body when it comes to any case related to UPI. NPCI stands for National payments corporation India. In this case, when Nepal is agreeing to add UPI in their country, NPCI has to nod. To this query, it is amazing to see that NPCI has agreed to the partnership which will improve payments in both geographies. The foreign/international wing of the national payments corporation of India has cleared any issues related to the collaborations.
NIPL which is National international payments Ltd, which is the foreign department of the National payments corporation of India has joined with some organisations to provide UPI to the international market. In this case, where Nepal will become the first-ever country to get the UPI as their payments gateway, NIPL has planned everything which they will be needing.
They have joined two other entities to fulfil their mission of enabling UPI in Nepal. The two bodies are the GPS and Manam. GPS stands for gateway payments service and the other entity is Manam Infotech. Enabling the Unified Payments Interface in Nepal, which is not an easy task, requires a lot of work and efficiency. These two entities with which the NIPL has collaborated, are well versed with the world of UPI and how it operates.
Gateway Payments Service will be the payment system operator in Nepal. The other company, that is Manam Infotech will be responsible for employing Unified Payments Interface in the neighbour to India.
The collaboration will serve the larger digital public good in Nepal and bolster interoperable real-time person-to-person (P2P) and person-to-merchant (P2M) transactions in the neighbouring country, NPCI said in a statement.
“Nepal shall be the first country outside of India to adopt UPI as the payments platform driving the digitalization of cash transactions and furthering the vision and objectives of the Nepal Government and Nepal Rastra Bank as the Central bank,” it said.
This collaboration will enable the last-mile consumers in Nepal to reap the benefits of an open interoperable payments system driving immediate payment transfers between bank accounts and merchant payments in real-time.
Among all the news of Nepal accepting Unified payment interface as their go-to transacting pathway, one entity is in charge of the settings. You guessed it right, it is Manam Infotech private limited.
Manam infotech will be the responsible body for enabling UPI technology and operations in India. It will work very closely and parallel to the GPS. GPS or Gateway payments service is the service that is entrusted with the responsibility of maintaining the pathway.
Nepal shall be the first country outside of India to adopt UPI as the payments platform driving the digitalisation of cash transactions and furthering the vision and objectives of the Nepal Government and Nepal Rastra Bank as the Central bank.
“Manam has always been part of major digital transformation across the various regions of the world, we believe this partnership will eliminate all the barriers of payment transformation within Nepal and across the border thereby transforming the regional economy,” Naga Babu Ramineni, Director of Manam said.
Manam Infotech Private Limited is a very repeated name in the article and it is worthy to be named many times. Manam Infotech is a Fintech (Finance plus technology) company based out of Bangalore, India.
Manam Infotech is the fintech arm for many leading banks across various regions. The regions in which Manam infotech works fabulously includes Asia, Africa and the Middle East. The company stands tall with over a decade of experience in digital wallets, payments, and all the omnipresent banking and digital lending. Manam Infotech has also been a part of transforming the traditional banks to digital-first banks, which was the primary focus of the government for a long time now.
What is the Gateway Payment Service (GPS)?
Another name that we have repeated in this article is GPS or the gateway payment service. GPS is a payment system operator with expertise in all the works relating to payment services and operators. It is to its core a PSO or a payment system operator.
It is licensed by NRB, which stands for Nepal Rastra Bank, which is the apex bank in the country (Central Bank of Nepal). It has been allowed a PSO licence which enables the entity to work and operate in all sorts of payment and transaction settlement-related technology.
GPS has all the rights that include all that of payment gateway, domestic and international gateway, with UPI, that is unified payments interface in switch and in card transactions.
Benefits of UPI collaboration in Nepal
The benefits that this collaboration entails are endless. The collaboration will help people build real-time money connections with the country without having to go through the hassle of other payment methods. This UPI partnership will be real-time and it will be capable of crossing borders.
All person to person money transactions and remittances between India and Nepal will flow like water. Not just person to person transactions but all the transactions related to the merchant’s part will be carried out effectively if this collaboration gets realised.
The benefits are endless, as UPI is one of the most famous methods of payment in India. India is the second-most populous country in the world and UPI is a hit here. With all the volume of transactions that are received from here, it will benefit a lot from Nepal and it will add a good amount of transactions to Nepal too.
In 2021, UPI enabled 39 Billion financial transactions amounting to commerce worth USD 940 Billion, which is equivalent to approximately 31% of India’s GDP. UPI’s real-time payment infrastructure will help catalyse the process of financial inclusion in Nepal and will also create more opportunities for businesses. It will help modernise Nepal’s digital payment infrastructure and bring the convenience of digital payments to citizens of Nepal.
Ritesh Shukla, CEO of NIPL said, “We are delighted to join hands with GPS and Manam Infotech to facilitate the deployment of NPCI’s flagship Unified Payments Interface in Nepal. At NIPL, we are committed to transforming payments by taking our robust payments solutions to global markets and collaborating with local payment system operators. We are excited about this partnership, which will enable consumers within Nepal to transact swiftly using a state-of-the-art UPI platform and deliver a seamless user experience. We are confident that this initiative will stand as a testimony to NAPLes technological capabilities and vision of scaling our unique offerings globally.”
Naga Babu Ramineni, Director of Manam said, “Manam has always been part of major digital transformation across the various regions of the world, we believe this partnership will eliminate all the barriers of payment transformation within Nepal and across the border thereby transforming the regional economy.”
Rajesh Prasad Manandhar, CEO of GPS said, “The same UPI service has created a significant positive impact in India in terms of the country’s digital payment transformation. We expect UPI in Nepal would play a pivotal role in transforming the digital economy of the country and dreams of building a less-cash society.”
How Will UPI Be Implemented in Nepal?
The neighbouring country of India, Nepal has good population stats. Out of all the population of Nepal, about 45 percent have bank accounts. That 45 percent account for something about 30 million people. Mobile penetration in Nepal is over 135 percent.
Moreover, it is reported that 65 percent of the population uses smartphones which will provide a good base for UPI payments. Not only this, the three major companies will work towards increasing the volume of transactions.
The three companies we are mentioning here are the UPI backed service providers. It is NPCI, National payments corporations of India, GPS, Gateway payment services, and Manam Infotech. All these three companies will work together to employ all the necessary equipment to make Unified payments accessible in Nepal all over the place.
It will also enable the way forward for real-time cross-border P2P remittances between Nepal and India, NPCI said. UPI service has created a significant positive impact in India in terms of the country’s digital payment transformation, Rajesh Prasad Manandhar, CEO of GPS said.
“We expect UPI in Nepal would play a pivotal role in transforming the digital economy of the country and dreams of building a less-cash society,” he added.
In 2021, UPI enabled 3,900 crore financial transactions valuing USD 940 billion, which is equivalent to approximately 31 per cent of India’s GDP. NIPL, being an internationally focused subsidiary of NPCI, is looking to drive deep collaboration with overseas partners in the areas of UPI like deployment, cross-border remittance, acceptance, using indigenously developed technologies in digital payments.
“At NIPL, we are committed to transforming payments by taking our robust payments solutions to global markets and collaborating with local payment system operators. We are confident that this initiative will stand as a testimony to NAPLes technological capabilities and vision of scaling our unique offerings globally,” Ritesh Shukla, CEO of NIPL said in the statement.
UPI’s real-time payment infrastructure will help catalyse the process of financial inclusion in Nepal and will also create more opportunities for businesses, NPCI said.
NIPL, being an internationally focused subsidiary of NPCI, is looking to drive deep collaboration with overseas partners in the areas of UPI like deployment, cross-border remittance, acceptance, using indigenously developed technologies in digital payments, NCPI said.
All the three organisations have nodded to set up a laid out plan in this path. They will be working together in a closely-knit target and process that will enable UPI in Nepal.
The benefits, as previously mentioned are countless. There will be ease in transactions of any sort, people and merchants will be the group of people who will be the first and foremost most affected in a good sense.
In short, it is a great move and that is why the NPCI and the concerned authorities nodded directly to the proposed news. This move is looked at as a win-win for both countries.
UPI is amongst the most successful real-time payments (RTP) systems globally, providing – simplicity, safety, and security in P2P and P2M transactions in India. It is the most popular payment mechanism in India and the recent news said that Nepal will also be accepting this. This is a great move and will benefit both countries in transactions. The better the volume of transactions, the better will it indicate and benefit the growth of the country.
The benefits are endless and will help all the people across the borders who indulge in regular payments across larger boundaries of the land.
FAQs
Is UPI made in India?
Yes, the UPI platform and technology is designed in India and is regulated by RBI.
Who regulates UPI in India?
The Reserve Bank of India (RBI) regulates UPI in India.
How many UPI users are there in India?
There are around 300 million active monthly users of UPI in India.
There is a high chance that you don’t remember the last time you used ‘cash’ for a transaction at a Kirana store. The world is changing and it is becoming cashless, not a new thing but more like the new normal.
The shift from cash to cashless is so welcomed all over the world that it has become the new normal. Tech in transactions is the most in-demand technology and has proved to be really penetrative in every society.
The most famous technology is the UPI. It stands for Unified Payments Interface. It is the most favourite bridge that enables transactions all over India. We all know this and we see just this aspect of the story. However, that is not all. Behind the scenes, a lot of fights happen for customers and numbers. UPI apps are almost always constantly at war. In this article, we talk about these apps and what is the issue that they deal with. But first, the basics.
UPI or the Unified Payments Interface is the most famous bridge of transactions in India. It is fast and secure which makes it the perfect alternative for cash. Handling cash is hard, handing a UPI is not hard at all.
Immense growth was led by UPI last year, which recorded more than INR 73 Lakh Crores in 2021. Moreover, a year-on-year rise of over 110% as opposed to INR 33.87 Lakh Crores transaction in 2020.
UPI is a system that has the ability to attach multiple bank accounts with a smartphone application. That application can be later used to transact with the bank that the user uses. This makes it easy to go cashless when your bank account is linked to the UPI app in your pocket. It’s like taking the bank in your pocket.
Benefits of UPI
You can send money almost immediately through any smart device and even a basic buttoned device.
UPI is available at any hour and any day of the year.
As the name suggests, UPI is a unified payment method that enables a user to add more than one bank account to the application.
2FA is more than easy in this process. 2 FA stands for two-factor authentication which is easily managed with a UPI pin along with the inbuilt app pin.
UPI is easy because it saves you the time of writing details like Card number, IFSC code and all the bank page clutter.
Total Transactions of UPI Apps in India
UPI is the future of payments, or should we say the smart present of payments. The numbers point in this direction as well. We see that just in the first month of this year, UPI transactions touched the cap of 461 crores. Those crores transactions totalled to be worth about 8.31 Lakh Cr.
The topmost player surprisingly was not Google Pay, In terms of market share PhonePe carried out 21,403 Crore transactions. Those mentioned transactions were worth INR 4.05 Lakh crore in the first month of the year.
The new entrant in the payments market, WhatsApp Pay saw the value and number of transactions grow to great magnitudes. The overall share of the company however is as low as 0.03 percent which entails about 13.4 lakh transactions in the first month. Those transactions were reported to be around 205 Crore in Indian Rupees.
In the month of January, the UPI transactions were recorded to hit the number 461 crore. Those transactions in the month touched the magnitude of 8.3 lakh crore in Indian rupees, equivalent to 111 billion dollars.
This number was not usual in any sense and was the highest recorded number in the history of UPI transactions. Even after this number is the highest in the magnitude of UPI transactions, it grew only about 1 percent month on month. This is in no doubt a jump and halt situation.
Noticing the surge in transactions and magnitude in the UPI sector, it was also noted that app performance had not grown that much. App wise, the growth was not new, it was the previous pace that continued and no jump was noticed in the app sector.
Apps performance recorded a single digit of growth in this month on month. Even in this segment, PhonePe was the winner that carried 4.05 lakh crore transactions. Google Pay, which most people were anticipating, did not come to the first resort. It was the second runner up in the race of UPI transactions. That maintained to get some transaction value that was worth almost three lakh crores.
The third number, in terms of transactions and magnitudes, was won by the Indian player that is also now a publicly listed company. Yes, you guessed it right, it is Paytm. Paytm saw a transactional rate of 85 thousand crores which was a fall from before. Amazon pay got transactions that were worth about 67 hundred crores. WhatsApp, the new entrant in the payments market touched the 205 crores of transactions with its messaging app which is now a UPI payments app too.
Among all these numbers, one thing is common, that thing is UPI. It is the transaction that everyone is looking at and it is also the point of conflict of many multinationals.
UPI war is on with all the players in the market. The goal is to get maximum density in markets and to get a viable customer experience that can increase loyalty. Before we read more about the ongoing UPI war let us read some important words in the UPI market. Basically how the UPI world works.
There are many technical terms that can confuse a noob when we talk about technology. The UPI world is also not an exception. Let us talk about a few things that the UPI entails before we read more about the UPI war.
VPA ID
VPA or virtual payment address is the virtual address of someone. As the name suggests, it is the address to which payment in a transaction can be directed. To begin a transaction, one has to share their virtual address to which the payee can direct the payment.
The payer has to confirm the VPA by entering the MPIN, or mobile pin, to be sure that it is an authentic translation and is done by the owner of the bank account. Once checked, the transaction is completed and a change in balance is reflected, without any delay.
QR code
QR code is a better alternative for VPA IDs, these are codes that can be scanned via a mobile device. Stores have these types of transaction mechanisms that help in the easy collection of payments from buyers.
They can be scanned from the UPI app itself and transactions can happen easily. This is easy and faster than sharing VPA IDs and most smart stores have them as a payment aid.
QR Code Scanner
Several Bank Accounts can be added using the UPI app and Several VPI Ids can be maintained. A maximum of 20 transactions is allowed in 24 hours. All transactions take place on a real-time basis.
The Mobile Number
Most people in India are not tech-savvy and this is a hindrance in payments via UPI. Even if someone sets up a VPA and UPI Id on a shopkeeper’s device, he won’t know it and would not remember it.
UPI apps save the day with one more feature. Mobile numbers can also direct payments to the right address. This feature was enabled recently and has massive use cases.
Every mobile number now is connected to the bank account of the holder and can serve as a UPI or VPA ID. They are known as linked MMID and can direct payments to the right bank account.
Bank Credentials
Another factor in payments of UPI is the bank credentials themselves. You can manually enter the saving account number and/or the IFSC code to the UPI app and the app can direct payments to that specific account. This is however not the best alternative to transactions but is popular in India.
NFC
New smartphones nowadays come with a new technology called NFC. NFC is an audio technology that is contactless and can connect two devices. This connection can also help in UPI transactions and is authenticated by both ends. According to RBI guidelines, one can interlink all their existing KYC compiled e-wallet accounts. But, only a few apps provide this service.
Market Share of UPI Apps and the Ongoing UPI War
A Detailed Look at the UPI App War
The UPI apps we are talking about, have their own territory. Market share refers to that territory in this context.
PhonePe
Last year the UPI app with the most wins was PhonePe. This year the war continues. PhonePe won on all the key metrics that there is to track payments. Be it the value of transactions, registered users and all the merchants’ average.
While PhonePe’s count of transactions remained the same, the volume of transactions rose to 48.7 percent. The startup has been the leader in the market with over 46 percent market share in the transactions volume processed last year. This metric proves the dominance that the UPI startup has gathered.
PhonePe’s share in transactions counts remained the same but the volumes transcended a big jump and it rose to about 48 percent. The company also claimed that the ‘registered users’ have crossed the 350 Million mark. They also mentioned that they were witnessing a 28 percent month on month growth from January to December 2021.
PhonePe is the first payment platform in India. Based out of Bangalore, this UPI payments app became the heartthrob of payers. The company collaborated with Yes bank to get into the UPI space and captured about 37 percent of the new market in India. Later, the company was acquired by e-commerce giant Flipkart. It is soon to be added as a valid payment option in Walmart India’s “B2B Cash & Carry Stores”.
They had the first movers advantage in many aspects. Just like the google pay (Tez earlier) app, the PhonePe app has a lot of features that make them stand out. With the money transfer limit using UPI set to ₹1 lakh, one can pay credit card bills too. An outstanding UI is a cherry on top.
Google Pay
Next in the line of market shareholders is the most household name of Google pay. They didn’t witness significant growth. The market share for google pay dropped from 37.5 per cent to 34.4 percent. According to an NPCI guideline, all third party UPI apps have to add a cap to the value of their transactions at 30 percent by December 2023. This can be good news for this fall in the market share of the US fintech giant.
With great goodwill at the back, Google really stands on a pedestal. The google pay UPI app is by far the most famous UPI payments app in India. Google has always remained a top innovator in every part. Any of the Google services can be relied upon. The name Google itself stands for efficiency and simplicity. The Google Play app has also made it easy for app users to use proximity features. They have NFC enabled in the app.
The payments app from google has all the features that it takes to make it the best UPI app out there. With online trade being a fast option for most people, google play also includes more than 2000 merchants partners in India alone. In India, Google pay is the second-largest UPI payments app with a market share of 35 per cent. It entails figures like 320 Million transactions in terms of volume and 61000 crores in terms of value being the guns on its trajectory.
The app really features loaded and has every feature of a top-notch character. Carrying the ‘Simplicity’ thing that google has managed to carry on all its services and apps, the UPI app has managed to get the second most UPI payments in the country.
PhonePe and Google Pay were the topmost choices of UPI payments in the last year. We will discuss the rest later, let’s focus on the war of these two first.
Paytm
Paytm is another famous name in the UPI segment. It has an inbuilt feature of wallet which can be used without KYC and bank account, this is one of the most unique features that the app has. It is also a differentiator. The war of UPI apps has led Paytm to get a share of almost 6% in the UPI segment. This is rather small but the app has a lot of potentials. The primary rivals are Google Pay and the leader PhonePe.
Paytm was the first digital payment service provider that had its hands on Indian territory. The homegrown brand is the largest digital wallet service provider in the country. The app is known to have dominated the cashless payments market. The company also claims that they have more downloads across Android and IOS than most UPI payments apps. The initial problems that the company faced were the UI and the acceptance of digital payments in India.
After updates and updates with learning’s and learnings, the Paytm app has improved much and now comes with an excellent UI. The app first lost in the war of UI and user experience but the overall performance has been quite impressive. It is the most famous homegrown UPI app in India. Founded by Vijay Shekhar Sharma and being a homegrown company, the startup has a lot of leverage that adds to its revenue.
Paytm is one of the easiest to use UPI apps out there and not only that, the app offers a long list of features. There is a unique wallet feature, then there is a Paytm bank, then a mall on your phone, it is also now entering the investments category.
You can pay your credit card bills, do shopping of all sorts and buy now pay later options are available too. Thus, this small package of apps offers a decent amount of features and accessibility to money and transactions. That is one of the main reasons for its market share of 6%, which is decent in India.
Amazon Pay
The next rival or participant in the UPI war is Amazon Pay. The new entrant in the market with great tech support and seamless payment options, amazon pay is out there to win.
As of November 2020, it was reported that amazon pay was the fourth most used app in the UPI segments. The app wins over everyone in terms that it is a sidekick of payments in shopping. The brand of amazon gives it a good boost. It was reported that Amazon Pay got 37.15 million transactions in volume that added to over 3600 crores in total value. Which is a pretty good sum in the segment.
Not only a shopping aid but the amazon pay app also offers payments of groceries and small buys at a Kirana store. The shopping integration of Amazon is really a great kick start but the app is also growing out of that segment too. Amazon pay got 37.15 million transactions in volume with Rs 3,624.51 Cr in transaction value in this month.
The ongoing war is nothing but a fight of features and like-ability. The app that has the most unique and helpful factor wins the game and takes the customers. All the top players in the market which we discussed above have their own set of features and uniqueness. Here we will try to uncover what lies behind the bush of differentiators.
PhonePe
PhonePe, the most used UPI app in terms of volume, is bound to have awesome features and traits. The startup has made its app look really different and simple. The app is capable of linking various accounts and e-wallets to itself.
You can link free charge, Jio money, and e-wallets like Airtel wallet to your PhonePe account. The app also allows people to pay credit card bills within the app which saves a lot of hassle.
The users of PhonePe can even buy gold with the new update. Cashback and rewards are the most common features of UPI apps in the market. PhonePe has that, without mentioning it. The app follows all the guidelines of UPI payments and thus, one can make a transaction of upto 1 lakh. The app also has the basic categories of regular payments like electricity, gas broadband, data card and the like.
Bill payments and recharges are very easy on PhonePe and there exists a separate icon for money transfer from bank accounts. You can check bank balances too and they are super attentive to negative feedback. Which makes it the all-rounder UPI payments app.
Google Pay
Google Pay is another famous app. The UPI app from Google runs on the same principle as of the parent company Google. The app is simple and works every time without any hassles. However the wallet option is not available, the app does work overtime to make it right for users. You just need a mobile number and a bank account to start your payments. It is easy and reliable.
You can chat with a person on google pay before and after any transactions. The User interface and the experience that it entails is also top-notch. Payment services are available across all the Google services and they can also be used to 3rd party apps. There exist extensions like Zomato, Swiggy, Groww and etc. within the application itself. It is the first to use NFC technology. DTH, broadband, landline, mobile recharges are also reminded to the user. The app is secure and has a safety shield feature too and users can also enable biometrics.
Paytm
The app comes with an excellent user interface now and is completely made in India. Which makes it a famous application among Indians. The app has one of the most differentiating features of a wallet that helps it find a good product-market fit in the UPI segment. Many people who do not operate a bank account can go with this feature of e-Wallet. Paytm Payment Bank is linked with Rupay Virtual Debit Card.
Due to all the features and an excellent UI, the app works in most locations. From a small Kirana store to big malls, Paytm is accepted. You can even invest your money directly from the app itself. Paytm services range from bank to mall to mutual funds etcetera.
Amazon Pay
Amazon Pay is also a famous app because of its parent company, Amazon. The app first originated as a payments app for nearby UPI payments. Now the app has grown into a full-feature app on its own. It is a great aid in shopping for people who love to shop.
Apart from that the app also makes it possible to use it as a UPI payments app. This was the unique feature with Amazon pay but it is not that famous like Google Pay and others.
The reason is that many people don’t know about it, Amazon customers just use Amazon to buy something and forget about their account. Once this barrier is lifted, the Amazon pay app can be a big disrupter in the online payments market.
UPI Guidelines and Regulations
When the online market in the payments sector is booming, it becomes important that the market is regulated. NCPI has come forward to make some guidelines for UPI payments. Here we will discuss some of the most notable ones. These are the guidelines for TPAP, or third party app providers.
NPCI’s guideline had asked all the third-party app providers (TPAP) to cap their transaction value at 30% by December 2023. This means that UPI payment apps like PhonePe and Google Pay now need to rescue their market share. As per NPCI, the upper limit for UPI is Rs. 1.00 lacs.
The Third-party app provider guidelines for TPAP guidelines are also aimed to prevent oligopoly and to promote competition. Competitions will be healthy for the overall market and it has the ability to make the market a little better than before for everyone. These guidelines were also the reason why WhatsApp has a very small UPI share in the whole market. WhatsApps share is equal to 0.08 percent.
Adding to the guidelines above, The NPCI has also disallowed WhatsApp from leveraging its payment platform. They have ordered a cap of 50 crores. This means that Whatsapp payments will not go above the magnitude of 500 million dollars or 50 crores. It is to be noted that WhatsApp had around 487 million registered users in India last year. In 2021, it had 390 million active users growing 16% year on year in India alone.
It was recently seen that the messaging app WhatsApp is entering the payments market which makes people suspicious. WhatsApp was also made to put a cap on their payments feature to prevent monopoly over the market. Their users were limited to 20 million. But now the revised relief says that the company can double down the users of the payment, NCPI said.
Now the cap is reported to be 40 million and WhatsApp has done really well in the past financial year. In January, last month, WhatsApp recorded a total of 23.4 Lakh transactions. That was worth INR 205 Cr. It also entailed a 9% month-on-month growth (highest among the top four, mentioned in the article).
RBI has mentioned that about 50% of the transactions through UPI were below INR 200, thus, a framework to enable small value digital payments in offline mode has been announced. Users will now be able to make small transactions (within 200 rupees) offline (without the use of the internet). We will now be able to channel transactions without any instruments such as cards, wallets and mobile devices in any UPI app.
100% of post office banks will come under the core banking umbrella to boost financial inclusion. The move is aimed at giving access to post office bank accounts through net banking, mobile banking, ATMs, and also provide online transfer of funds between post office accounts and bank accounts, During the Budget 2022 speech, Finance minister Nirmala Sitharaman said.
To boost the adoption of digital banking services further and to mark 75 years of India’s independence, 75 digital banking units in districts will be set up by scheduled commercial banks, Finance minister Nirmala Sitharaman said.
“This will be helpful, especially for farmers and senior citizens in rural areas, enabling interoperability and financial inclusion,” she mentioned in her Budget speech.
All the guidelines point in one direction, and that direction is the direction of a cashless future. We are all moving to a cashless world where paper money will be a thing of the past. This was not easy before but looking at the current trends and shifts in technology, it is the near future. Exciting as it gets, the UPI market in India is set for more tides and currents.
As per a report by ACI Worldwide, India retained the top spot in terms of digital transactions worldwide. India saw payments of 25.5 billion on a real-time basis. It is the highest number, followed by China.
No doubt, that the UPI market is set for growth in India and anyone capitalising on this will make real cash. This is the reason UPI payments companies are fighting for this and thus the UPI war.
Apps like PhonePe, Google Pay, Paytm and amazon pay have been fighting for market dominance and the market is evenly distributed in most parts of India. Besides growing in India, the Unified payments interface is all ready to enter overseas as well, reports say. UPI will be prevalent in countries such as the USA, the UK, Japan, China, Singapore, etc.
FAQ
Which are some of the Indian UPI apps?
Phonepe, Paytm, and BHIM are some of the UPI apps based in India.
Are UPI apps safe?
Yes, UPI apps are completely safe as it is regulated by the Reserve Bank of India & NPCI.
Which payment app is the best?
Google Pay, Paytm, Phonepe and Apple Pay are some of the best payment apps.
The biggest digital payment brand, dominating the whole digital transactions companies around the globe, is Visa. Visa Inc. is widely famous across the globe and serves over 200 countries and numerous territories. Visa facilitates dozens of services at a broad level to the individual consumers, financial institutions, governments, and merchants. It offers authorization, settlements, and clearing services in the smoothest manner.
Visa Inc. does not issue debit or credit cards although it does authorize the service of debit, credit, and prepaid cards to the enterprises as well as consumers. Visa gains its most profitable deals by selling services to various financial businesses and merchants, acting as the middleman. Visa’s biggest business strategy comes from expanding its presence to various digital payments, E-Commerce, and others. The biggest rival to Visa is Mastercard Inc. and PayPal Holdings Inc. in the market. In this article, we will discuss the business model of Visa and how it makes money! Let’s get started.
Visa Inc. is a prominent global digital payment company that acts as the middleman in facilitating consumers, financial institutions, government, and other businesses. Visa’s services are available in more than 200 countries and territories across the globe.
The American multinational corporation, Visa works as a financial services provider headquartered in Foster City, California, United States. Visa was founded by Dee Hock in 1958 as the BankAmericard.
Visa is known as the second-largest debit and credit card payment corporation, after China’s UnionPay. This data is based on the number of card payments made and the number of card issues of the company, annually. Apart from this, Visa is the leading banking card company in the whole world, dominating around 50% market share of the entire card payments.
Where does Visa Operate?
Visa is a global payment company that serves more than 200 countries and territories, worldwide. It’s four secured data centers operated in Highlands Ranch, Colorado; Singapore; Ashburn, Virginia, and London, England.
Key Products and Services of Visa
Visa Inc. offers tons of services to its consumers such as clearing, authorization, and settlement services. Its major services and products are:
Services: Clearing, Authorization, and Settlement services. Moreover, mobile payments, top-up services, and money transfers.
Products: Visa provides its allotted credit cards, commercial cards, debit cards, prepaid cards, and other mobile and money transaction-based products.
Visa majorly targets the people with a good income to spend and those who need credit points. The company targets its consumers through various channels such as banks or other financial institutions.
The digital payment company believes in providing consumers with the utmost convenience of its stakeholders.
Business Model of Visa
Visa logo
Visa functions on a pretty different business model as compared to the conventional models. Who doesn’t have a Visa card nowadays? But it’s pretty amazing how its business model functions. The digital payment company, Visa is a publicly-traded company that comes in the listing of the New York Stock Exchange.
Visa follows the Multiple sided platform- business model. It functions by spreading its card services everywhere. And the maximum the customer through a Visa card makes will be accepted by the merchants and vice versa.
Visa mainly focuses its marketing campaigns on the customers holding Visa’s card and are the subsidy side of the company. Visa provides the best facilities for payment to consumers, businesses, and government organizations. In a further manner, Visa uses a proprietary transaction processing network of technology.
What is unique about the Business Model of Visa?
Visa’s mode of generating revenue is entirely different from any other organization. It functions with an open-loop system and follows a transaction-centric business model.
Visa’s business model is based on connecting the consumers to the business owners as the middleman. Visa’s revenue generation isn’t based on the money made by the discount offers of merchants or consumer’s membership fees for issuing the card.
Visa functions as a transaction-centric business model where it earns its revenue through the payments as well as transaction volume done from its personalized cards.
Visa charges little transaction fees from the merchants. Let’s suppose there is a certain amount the consumer transacted to the merchants. So around 2-4% of the total will be merchant fees. That 2-4% will be split between the consumers and the organization, based on the interchange fees. There is always a high risk of default payment by the consumer but the person with a Visa card keeps more generated money from the merchants.
Visa generates its revenue from transactional processing, payment volumes, and value-added assistance including dispute management, issue processing, value-added information services, loyalty services, and many more.
The revenue is distributed in four streams as Service revenue, International transitional revenues, data processing revenue, and other sources of generating more revenue.
Conclusion
Visa is an excellent digital payment company when it comes to serving customers promptly. Although it does make it the second-largest digital payment company after UnionPay of China. But apart from that, Visa is the first choice of everyone across the globe. It offers tons of amazing services to merchants, financial institutions, and others. Through this article, we got the knowledge on how the company makes its money as well as its business model. Stay tuned for more updates!
We have witnessed many digital payments for paying off our expenses via Google Pay or PhonePe. Additionally, Our Honorable Prime minister Narendra Modi has launched e-RUPI, a seamless cash payment for Covid-19 Vaccination in India on 2nd August 2021.
e-RUPI is a contactless digital payment solution that is done by a QR Code or SMS based e-Voucher to all mobile users. Over and Above, e-RUPI is an e-voucher one-time digital payment mode with three benefits- Cashless & Contactless digital payment, Ensures leak-proof delivery of various welfare services and connects the beneficiaries servers without any intermediaries involvement.
e-RUPI is introduced as a hassle-free e-voucher digital payment, where beneficiaries don’t need a card, digital app or even internet banking to redeem the voucher. Because it is done through e-RUPI where vouchers are transferred into QR Scan or SMS for an effortless method to endure the service of the voucher.
e-RUPI is a cashless and contactless digital payment mode, which is done by decoding the code of the cards which is shared via SMS or the QR code. e-RUPI is the first digital currency in India with an aim to spurn the leakages in Government. It is done via redeeming payments through e-vouchers that are in the form of QR codes or SMS.
Many Indian Citizens find it so difficult to pay spontaneously on any such expenses, For instance, if you are in a line and billing for those products and getting a physical form voucher on the product which you have bought.
Meanwhile, next time on availing the voucher services, you find dilate in processing the payment neither in swiping card nor digital payments app. Therefore, the National Payments Corporation of India along with the department of financial services, National Health Authority developed e-RUPI in order to meet the expenses through e-vouchers in the nature of the prepaid model. So, if you receive a voucher then automatically you can store it in an electronic form- QR code or SMS-based.
When it comes to who can use e-RUPI, as it is said above, the government makes these e-vouchers in order to create funds for other welfare services. So, ultimately e-RUPI is accessible for healthcare services. Furthermore, businesses or corporations can issue e-RUPI to their employees.
e-RUPI doesn’t only benefit the receivers of the token but also the corporates and hospitals. The beneficiaries of this digital payment system include all the major stakeholders relating to this scheme.
Corporates
According to the National Payments Corporation Of India (NPCI), the corporates will benefit largely from this scheme. They can look after the welfare of their employees. The corporates would benefit from cost reduction while using this digital payment as this works on end-to-end digital transactions and doesn’t require physical issuance.
The issuer being corporates can track the voucher redemption. During this global pandemic, everything has made us focus on the safety of our lives. This digital payment mode allows for quick, contactless and safe voucher distribution.
Hospitals
It is a difficult task to stand in long queues in hospitals and pay for the service as it takes time to use a card or cash. This can lead to major inconvenience during these times. So the NPCI has made the authorization of these vouchers easy and safe by doing it using a verification code.
e-RUPI also solves the problem of usage of cards or cash by making the payment collection hassle-free and contactless. The redemption process of the e-RUPI is quick as it can be redeemed in a few steps and the chance of decline rate is less as there is a pre-blocked amount.
End-Users
e-RUPI, the electronic voucher digital payment system is mainly made for the welfare and well-being of the people of the country. The official NPCI website lists the various benefits the consumer of the end-user of the e-RUPI will reap.
This payment is contactless and digital. The beneficiary shouldn’t carry a printout of the voucher. The consumer can redeem his voucher in a two-step process making it easy, quick and time-saving.
The beneficiary isn’t required to share personal details on the redemption of the vouchers making it a safe and secure form of payment as privacy isn’t compromised.
For the redemption of the vouchers, the consumer does not need a digital payment app or a bank account making it accessible to many who don’t have a bank account.
Banks are supported by e-RUPI
e-RUPI is launched by NPCI in association with the Department of Financial Services (DFS), National Health Authority (NHA), Ministry of Health and Family Welfare (MoHFW) and partner banks.
Banks support e-RUPI, unlike other digital currencies making this voucher digital payment mode easy and trustworthy. The banks that support e-RUPI are Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Indian Bank, Kotak Bank, Punjab National Bank, State Bank of India and Union Bank of India.
Conclusion
e-RUPI is an initiative by the government in connecting people’s lives through technology. India is progressing to a transparent and digitalized country. e-RUPI as a replacement for cash is seen as a big step that is favorable and necessary in the growth of the country.
e-RUPI guarantees safety as people do not have to carry cash or be worried about losing their cards while trying to avail themselves of essential services. e-RUPI can also route the subsidies the government gives on education, agriculture and nutrition. e-RUPI if worked effectively can be helpful to the people of the country in their dire times.
FAQ
What is e-RUPI?
e-RUPI is an electronic voucher digital payment mode, where the physical form of a voucher is transferred into electronics like QR Code or SMS-based, where you can access the services without any card or internet banking to redeem it.
Who launched e-RUPI?
The National Payments Corporation of India along with the department of financial services, National Health Authority developed e-RUPI which was promulgated by Prime Minister of India Narendra Modi to the citizens on 2nd August 2021.
What are the benefits of launching e-RUPI?
The government of India launched e-RUPI because to serve the beneficiary services to welfare services such as Mother & Child health care, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana and other welfare centres, where the e-voucher become a benefit element in extending much more purpose in the society.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Rural Banking Programme (RBP) Finivis.
Rural Banking Programme (RBP) Finivis Pvt. Ltd. is a FinTech firm that promotes the theory of financial inclusion. It launched MEGO Pay app providing AePS, mATM, and DMT with instant settlements, and saw 700 plus subscribers downloading the app on the first day of launch. Founded by husband-wife duo, Sam and Sanaya Gupta, RBP Finivis is a business correspondent to Fino Payment Bank, ICICI Bank, SBM Bank India, along with a few contracts still in the pipeline with India Post and Utkarsh Small Finance Bank.
StartupTalky interviewed Mr. Sam Gupta, Founder & CEO of RBP Finivis to know the startup story of the organization. He also gave insights on the fintech industry, how RBP Finivis was incorporated, its business model, growth, future plans, and more.
Rural Banking Programme (RBP) Finivis Pvt. Ltd. is a Fintech firm that promotes the theory of financial inclusion. It offers few products in the B2C segment which are unique and have an edge over technology where it redeems cash backs given to subscribers via the web, app, and cards, etc. Today, India is converging into digital payments and a cashless economy, and the platform RBP Finivis is totally focused on providing digital services in this payment sector.
The company’s short-term goal includes bringing door-step banking to the unbanked and to scale-up its business volume. Long term goal is to create a consistent flow of services with value-added products. The company’s core belief is to work hard with honesty and be true to one’s work.
RBP Finivis – Fintech Industry Details
Fintech is transforming how financial services are being packaged and delivered to consumers from an experience, access, and cost-saving perspective. According to the market, one cannot calculate the actual figure of the market because most of the Retailers have a minimum of two to three IDs for different companies.
As per media reports, there are about 8 Tier I cities, 26 Tier-II cities, 33 Tier III cities, and over 5,000 Tier IV towns, while there are more than 638,000 villages in the country. India is currently the 4th largest retail market in the world and is further expected to grow to $1.3 Crores.
It’s well known that the demonetization of the currency has raised digital transactions while the month-on-month rise may not be as high. According to the market, so many startups are already providing financial services through POS, Micro ATM, AePS, and various digital banking solutions. RBP is also part of this journey, it almost covers 6% of this market. But still, there is the scope of a 40% vacant market presence in India where RBP Finivis can reach easily with its products.
Since the start, Sam has had a passion for online sales. He completed his studies in Electronic Commerce Operations Management (ECOM) in 1998. In 2004, Sam launched a website with unlimited web space with email which was six months before Google launched Gmail.
In 2006, Sam founded Netmax.tv for online movie streamingbut could not do big due to lack of funding. In 2015, he created and founded MEGO for the recharge business which was high in this era. Having over 23 years of exposure in countries like Hong Kong, Singapore, Thailand, Malaysia, and Dubai, Sam came back to India in 2019 from Kuala Lumpur and incorporated RBP Finivis Pvt. Ltd.
The team has constantly followed the prime players like PayTM on their products and business strategies and MEGO products were created keeping in mind the requirement of subscribers with cashback offers.
Coming to financial inclusion, happened due to research on subscribers’ needs and market base. As per their business study, AePS, mATM, DMT, and recharge were highly demanded. MEGO products like MEGO Selfie, MEGO Zone, MEGO Ginni, and MEGO Bars are designed on the same pattern ready to be launched, the team is just awaiting relaxation on the Covid lockdown.
Friends and professionals experts in eCommerce gave them a go-ahead on the idea shared with them as these products were unique and in demand. They have also incorporated redeeming of cash backs from the web and app to cards.
RBP Finivis – Product/Service
Products are offered as devices, apps, and web-like AePS, mATM, and DMT. These products are offered as doorstep banking. Its user-friendly app and web are its main USP. Also, it has added real-time settlement which is unique and innovative. The team is also launching other MEGO products with cash backs and coupons. RBP Fintech Pvt. Ltd. is a wholly-owned subsidiary of RBP Finivis Pvt. Ltd.
RBP Finivis – Founders and Team
Husband – Wife duo, Sam and Sanaya Gupta are the founders of RBP Finivis Pvt Ltd. Sam takes care of IT, Sales, and Marketing while Sanaya takes care of Administration, Management, and Finance.
Sam Gupta – Founder & CEO, RBP Finivis Pvt Ltd
Mr. Sam Gupta and Mrs. Sanaya Gupta are married for 16 years and both have followed the eCommerce business very closely. Sam completed his studies in 1988 and went to launch a website in 2004 offering unlimited web space with email ID 6 months before Google launched Gmail. Then in 2007, launched a website for online movie streaming but could not do much due to the lack of funding. The idea of MEGO was conceived in 2015 offering recharge and cash backs and finally was officially launched on 4th January 2021.
The company has a highly qualified and experienced tech team with over 10 years of work experience in the same industry in-house. It has 34 employees onboard in India and 3 employees in Singapore.
“The team here is provided with the coolest work environment and 180-degree views of Himachal Hills with full sunlight to bring out better talent at work. We have an in-house HR who constantly brings in young and experienced talent on board in the team” Says Sam Gupta, Founder & CEO, RBP Finivis Pvt Ltd.
Rural Banking Programme (RBP) Finivis Pvt. Ltd. is a FinTech firm that promotes the theory of financial inclusion. Its new product MEGO makes the best use of it.
RBP Finivis Logo
MEGO was a short catchy and easy name and represented Me Going, as a short form it came up with MEGO. It plans to launch a male and female mascot which subscribers can customize according to their liking and this mascot will appear on the screen of subscribers offering discounts and coupons using GPS Tracking.
RBP Finivis – Business Model and Revenue Model
RBP Finivis operates on a SaaS and BaaS module and is offering the best commissions and margins against its competitors.
RBP Finivis – Launch and Marketing Strategy
It launched MEGO Pay app providing AePS, mATM, and DMT with instant settlements, and it saw 700 plus subscribers downloading the app on the first day of launch. The company gave organic feeds on social media and is yet to launch the Advertising schedule.
The company is getting instant hits on its app as it is user-friendly, very easy to operate, and the look and feel are liked by the subscribers.
The team is focusing more on customer support and 24×7 call centers help the subscribers with all their issues instantly.
RBP Finivis is a business correspondent to Fino Payment Bank, ICICI Bank, SBM Bank India, along with a few contracts still in the pipeline with India Post and Utkarsh Small Finance Bank.
It recently launched a leader board for merchants with maximum transactions where the company is giving coupons and bikes to the winners. It is to date the most appreciated offer of the company.
“We have a good budget for our marketing campaign and we are looking forward to customer acquisition and retention” Sam added.
The most challenging part was signing up and onboarding banks as a business correspondent which involves a lot of compliance. The technical collaboration also was a challenge but our IT Team was capable of handling the situation with ease. The team has been working on strict policies and strategies and all modules that they have worked on were pre-calculated and thoroughly analyzed and implemented.
RBP Finivis – Current Status
RBP Finivis’ platform is completely focused on providing digital services in the payment sector. The company has a highly qualified and experienced tech team with over 10 years of work experience in the same industry in-house. It has 34 employees onboard in India and 3 employees in Singapore. The team strategically located the office which is easily approachable and visible giving the company free brand promotion.
“The main aim to establish the company was to reduce poverty and provide financial support to lower-income entrepreneurs” says Sam.
RBP Finivis – Funding
RBP Finivis is a self-funded/bootstrapped company and has not raised any funding yet.
“We are ready with our pitch deck and will be looking for angel investors soon” Sam Gupta (Founder & CEO , RBP Finivis) added.
RBP Finivis recently acquired a major share in RBP Fintech Pvt. Ltd. and have plans to acquire entities in Thailand, Malaysia, Amsterdam, and Singapore.
RBP Finivis – Competitors
Competitors of RBP Finivis are Mahagram, PayNearBy, Relipay, and Bankit among others.
RBP Finivis – Recognition and Achievements
The company has ISO 9001 and 27001 certification and has its legal entity identifier for international recognition.
It plans to develop a Country Wide Web of distributors and a million merchants by the year 2022.
The company plans to achieve 100,000 users in the next 1 month (Aug-Sept 2021).
It will be launching its White Label, Distributors, B2B and B2C in the first week of August 2021 and will cover all financial inclusion products range by the year 2022.
RBP Finivis will cover PAN India with a 500 plus workforce and an annual turnover of around 400 Crore.
RBP Finivis – FAQs
What is RBP Finivis?
Rural Banking Programme (RBP) Finivis Pvt. Ltd. is a FinTech firm that promotes the theory of financial inclusion. It offers few products in the B2C segment which are unique and have an edge over technology where it redeems cash backs given to subscribers via the web, app, and cards, etc.
Who founded RBP Finivis?
Husband – Wife duo, Sam and Sanaya Gupta are the founders of RBP Finivis Pvt Ltd.
What is the business model of RBP Finivis?
RBP Finivis operates on a SaaS and BaaS module and is offering the best commissions and margins against its competitors.
What is MEGO?
RBP Finivis launched MEGO Pay app providing AePS, mATM, and DMT with instant settlements. The team is also launching other MEGO products with cash backs and coupons.
Is RBP Finivis Bootstrapped?
Yes. RBP Finivis is a self-funded/boot-strapped company and has not raised any funding yet.
In this new Startup Insight series we connect with industry professionals to know ‘How did they do it’ – features startup experience and learning from professionals who have done a particular thing in a startup!
Let’s see what Mr. Nityanand Sharma, Founder & CEO of Simpl has got to say on ‘How BNPL (Buy Now Pay Later) is Transforming Customer Purchasing Behavior‘
Simpl provides the convenience of an online khata connected to 5000+ merchants. Simpl works on BNPL mechanism – ‘Buy anything on the internet with 1 tap. Pay later.’
BNPL, with its convenient credit purchases and interest-free credit period, is playing a pivotal role in transforming consumer buying patterns. This stands reflected in the surging popularity of BNPL as a payment mode. According to a 2021 Global Payments Report by FIS, BNPL outpaced other payment modes in the high-growth e-commerce and online shopping space in India and is expected to command a 9% market share by 2024, with a 53% CAGR, up from the 3% share in 2020. India’s consumerism-oriented middle class, driven by purchasing power and aspirational purchases are fueling the growth of BNPL, which aims to deliver a digital credit experience to 400 Mn Indians who fall outside the net of the organized credit card financial system.
How BNPL is Revamping India’s traditional Khata system?
BNPL has brought to the fore an age-old tradition often practiced informally by retail shops in India i.e. taking nagad payment from relatively new customers and allowing udhaar purchases for creditworthy customers. All of the transactions were rooted in trust with the shopkeeper sharing strong relationships with a close-knit circle of customers, often residing in nearby locations.
BNPL has resulted in the reimagining of an existing concept that Indians are already familiar with. Further, with merchants less inclined to offer cash on delivery given the thrust on the cashless digital economy, there is a perceptible mindset shift in the buyers. Seeing the growing buyer interest, BNPL is now available across merchant categories- essentials, staples, groceries, medicines, apparel and clothing, electronics, and beyond. The diversification has further encouraged higher usage levels and reinforced BNPL as a viable alternative to other mainstream payment modes.
Nityanand Sharma – Founder & CEO, Simpl
How BNPL is driving a data to value transformation?
As a product, owing to its ease of use and easy to integrate functionality, BNPL is inherently customer-centric and merchant-friendly. By leveraging cutting-edge tools like AI (Artificial Intelligence) and ML-based credit decisioning, BNPL is enabling faster transactions with almost instantaneous credit-line approval for purchases at the time of checkout. Through better information about customer credit history and purchase patterns based on predictive models, the BNPL model has accelerated the trust-building process between merchants and buyers. With the pandemic throwing a spanner in the budget of many households, the option to split the purchases bill across time in a convenient manner has eased the financial burden for many. Buyers are able to avail improved liquidity towards purchases without the need to worry about upfront funds outlay.
A key factor that works to the advantage of BNPL is the relatively small ticket size of the credit limit available. Thus, the repayment amount is affordable and does not feel like an ‘EMI’ with an attached high-value tag. While EMIs are based on the principle of breaking up a large-sized payment into smaller monthly payments with interest, BNPL is a convenience offered to loyal and trusted buyers of merchants with an interest-free credit period. The low amount size relatively reduces the credit risk and default uncertainty compared to a credit card with a higher credit limit. It has been observed that the buyer propensity to spend is enhanced with BNPL owing to the mere 2 clicks transaction completion process. A study reveals that with BNPL, the basket size has grown in most transactions:
What is the need of BNPL?
India’s young demographic profile, comprising millennials, prefer a prompt and seamless purchase experience. Further, most of these buyers are inclined towards buying on online platforms and making payments through digital modes that are completed within a few seconds. Another notable trend is the moving away from traditional credit facilities that involve a long-drawn and cumbersome approval process. A credit card is often positioned as an alternative to BNPL. However, out of 900 Mn banking customers, it is estimated that only about 3% use credit cards attributable to the high charges and exorbitant interest rates associated with plastic money. It is expected that a high percent of the bank customer pool would be open to using BNPL, given its almost instantaneous credit approval and zero-friction payment experience.
The payment happens via a 1-click checkout option – No OTP, no CVV, No net banking. The final Bill can be cleared via any mode of payment, but BNPL purchases don’t require OTPs. This is one of Simpl’s USPs
Concluding thoughts of Mr. Nityanand Sharma
The universal goals of every digital payment mode are to ensure prompt transaction completion for merchants and deliver superior payment experiences for customers. BNPL achieves all of this and much more. Armed with a comprehensive database of customer purchases, buying patterns and payment records, BNPL can aid merchants with actionable customer insights for business strategies, give a fillip to digital-led purchase volumes and reduce overall payments fraud risk in the digital payments ecosystem.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byGojek.
While Indonesia’s digital economy is predicted to rise to $124 billion by 2025, according to a 2020 research by Google, Temasek Holdings, and Bain & Company, the country’s 18,000 islands are spread across a region larger than the European Union, making it highly costly.
As rivals bulk up in the fast-expanding market, Indonesian ride-hailing and payments provider Gojek and e-commerce leader Tokopedia are merging to form GoTo, a multi-billion dollar internet corporation. Gojek, based in Jakarta, is an Indonesian on-demand multi-service and electronic payment tech company.
As of May 2021, Indonesian ride-hailing and payments provider Gojek and e-commerce leader Tokopedia are merging to form GoTo, a multi-billion dollar internet corporation.
The merged company will be Southeast Asia’s largest privately-owned technology enterprise, spanning online shopping, courier services, ride-hailing, food delivery, and other services. By the end of 2021, it intends to go public in Indonesia and the USA. The firms claimed in a joint statement that their previous aggregate worth was $18 billion, based on fundraising in 2019 and early 2020.
The combination of Gojek and Tokopedia, both of which are backed by global heavyweight investors, comes amid increased competition in Southeast Asia’s ride-hailing and food-delivery businesses. Food delivery, e-commerce, and e-payments are all on the rise as a result of the pandemic’s forced confinement.
About Gojek and How it Works?
Gojek (also known as Aplikasi Karya Anak Bangsa) is a company that creates on-demand smartphone apps for ride-hailing and a number of other services. The company’s app offers services such as transportation and logistics, food ordering and delivery, digital payment, shopping, news, and entertainment, among others, allowing customers to access travel, logistical support, and a variety of other activities with only a few taps on their smartphones.
Gojek started out as a call center in Indonesia in 2010, connecting customers with courier delivery and two-wheeled ride-hailing businesses. GoRide, GoSend, GoShop, and GoFood were the only 4 services available when the app was first released in 2015.
Gojek, which is now valued at $10 billion, has evolved into a super app that offers over 20 different services. GO-Academy, a software development training program, is also part of the corporation.
Gojek – Name, Logo and Tagline
Because the company’s name is derived from the Indonesian word Ojek, which means “motorbike,” the online service’s first logo portrayed a man riding a motorbike.
Gojek’ s Company logo
Michaelangelo Moran, the co-founder, is also noted for designing the firm’s first distinctive logo and branding the entire company, in addition to working as the business’s Brand Director.
Gojek introduced its new company logo on July 22, 2019. Gojek’s s new brand logo, dubbed “Solv,” symbolizes the company’s evolution from a ride-hailing service to a super app that offers a number of clever methods to minimize difficulties.
The Gojek brand was introduced with the tagline ‘Cerdikiawan.’ Cerdik connotes dexterity and a positive sense of time. It reflects, according to the creators, how the company solves problems for Indonesia despite the challenges it faces.
Gojek – Mission and Vision
Gojek’ s mission statement states, “Gojek is dedicated to creating and scaling up positive socio-economic impact on the ecosystem of users, driver-partners, business and micro-small-medium enterprise partners, as well as service providers.“
Gojek – Founder and History
Founded in 2010 with 20 motorcycle riders, the company now has a fleet of over 1 million drivers and, as of May 2018, offers 18 app-based on-demand services. The Gojek app was released in January 2015, and it has approximately 30 million downloads in less than two years. Gojek has teamed up with DBS, Singapore’s largest bank.
Nadiem Makarim – Co-founder of Gojek
Nadiem Makarim, Kevin Aluwi and Michaelangelo Moran co-founded the company Gojek. Nadiem holds degrees from Brown University and Harvard Business School and is an Indonesian native. He spent three years at McKinsey and Co-consulting before founding Gojek, which began as a small phone center with just 20 ojek drivers who ultimately became recruiters.
Nadiem noticed as a frequent ojek user that ojek drivers spend the majority of their time waiting for passengers, while clients waste time walking around looking for an open ojek. Gojek was created to address this issue by creating a platform that allows drivers and riders to connect quickly and earn more money.
Gojek’ s edge in negotiating the local regulatory framework and understanding the local market stemmed from the fact that it was founded and controlled by Indonesians. As a result, they were able to include features in their app that benefit both local drivers and local consumers. In 2017, Gojek brought on board 100 additional engineering graduates from India.
Gojek – Products
Go-Pay is the fourth largest e-wallet service in Indonesia.
GoRide is Indonesia’s first online motorbike taxi service.
Go-Car is a car ride-hailing service.
Customers can use the Go-Blue Bird app to request Blue Bird cabs.
GoFood is an instant meal delivery service in Indonesia with over 250,000 merchants. Go-Food Festival is a Go-Food-branded offline food-court concept that sells food and beverages from Go-Food vendors.
Go-Mart is an app that allows you to shop for groceries at supermarkets that are listed in the Gojek app.
Go-Shop, like Go-Mart, allows users to buy items from stores that aren’t listed in Go-Mart.
Go-Transmit is an on-demand courier service that allows you to send things and documents inside a single delivery zone with no distance restrictions.
For moving heavy products utilizing pickup trucks, single-axle trucks, and single-axle box trucks, Go-Box is identical to Go-Send.
Go-Tix is a mobile app that sells entertainment tickets.
Go-Med is a mobile app that offers a medication delivery service, has teamed up with HaloDoc to develop the “Apotik Antar” functionality.
Customers can request a personal masseuse with Go-Massage.
Go-Clean is a professional house cleaning service that operates through an app.
Go-Glam is a personal hairdresser app that also offers nail care, waxing, and facial services.
Go-Auto is an app-based auto maintenance service that includes car cleaning and emergency repairs.
Go-Pulsa is a phone credit top-up service that operates through an app. Only
Go-Pay can be used to pay for Go-Pulsa.
Go-Bills is a service that allows you to pay your PLN electricity bills, buy PLN electricity tokens, and pay your BPJS insurance premiums all in one place.
Gojek’s loyalty program is called Go-Points. Each transaction earns the user a token, which they can exchange for prizes in the app.
Go-Play & Go-Studio: The company announced plans to enter the Internet content market through Go-Play, a video streaming service, and Go-Studio, a production firm. In September of this year, GoPlay will formally start its service.
Go-Pertamina is an on-demand fuel delivery service in conjunction with Pertamina, Indonesia’s largest oil company. It delivers fuel from the nearest Pertamina gas station to users.
Go-Nearby is a directory service that connects Go-Food merchants with clients of Go-Jek.
Gojek – Business Model
The Gojek business model works on:
Commissions from Companies – Several businesses join Gojek in order to benefit from its seamless operation and increased sales. Gojek, in turn, takes a modest commission on each successful order placed through the app.
The consumers’ commission – Gojek is a one-stop shop for its customers, offering a convenient answer to a wide range of issues. It avoids the hassle of having to switch between apps to meet various demands. Gojek also charges a little price on each order for this service, which users are happy to pay in exchange for Gojek’ s convenient and trustworthy services.
The Drivers’ Commission – For each order they deliver, individual drivers or delivery partners with Gojek pay a tiny commission to the platform. Given the benefits that the platform provides to drivers, a tiny commission fee seems like a good deal.
Gojek’ s adventure has been incredible. Over the last few years, the startup has experienced significant growth.
Gojek reported that the value of its annualized gross transaction value in 2020 will be USD 12 billion, up 10% from 2019. The year 2020 saw an almost threefold increase in GoPay transactions and the pay-later services.
“What is suddenly booming is our online investment feature, probably because people find it easy to access,” said Gojek’s co-CEO Andre Soelistyo.
The company’s grocery service showed a fivefold spike in annualized GTV, indicating that more people are relying on it for shopping during the pandemic. The number of merchants registered with GoFood surged by 80% to 900,000. This year, Gojek did not reveal which vertical contributed the most to its revenue.
Gojek – Partnerships
It established a partnership with Blue Bird, a large Indonesian taxi firm, in 2016. It also launched Go-Car, which expanded ride-hailing from motorcycles to vehicles, and Go-Auto, which provides on-demand mechanic services, in the same year. It was Indonesia’s first online transportation system by August 2016.
It teamed with Google Maps to handle their GPS. Entertainment, Google Play, and MNC Vision are among the other collaborations. Suzuki Finance Indonesia, AEON Credit Service, and Bill Payment PLN, the national electricity supplier, and BPJS Kesehatan, the national health insurance provider.
Gojek is teaming up with Unilever in September 2020. Gojek has partnered with Unilever through the freshly launched GoToko as part of this relationship. GoToko is a B2B digital platform that connects Indonesian MSMEs with global consumer products corporations.
Gojek – Funding and Investors
Date
Round
Amount
Lead Investors
May 10, 2021
Corporate Round
$300M
Telkomsel
Nov 17, 2020
Corporate Round
$150M
Telkomsel
Jun 3, 2020
Series F
$375M
Facebook, PayPal
Mar 10, 2020
Series F
$1.2B
Mitsubishi Corporation, Mitsubishi Motors, Mitsubishi UFJ Financial Group, Visa
Mar 4, 2019
Series F
$100M
PT. Astra International Tbk
Oct 30, 2018
Series F
$920M
Google, JD.com, Tencent
Feb 12, 2018
Series E
$1.5B
Tencent
Aug 4, 2017
Series E
–
–
Aug 4, 2016
Series D
$550M
Kohlberg Kravis Roberts, Warburg Pincus
Apr 1, 2016
Series C
$170M
–
Gojek – Investments
Date
Organization Name
Round
Amount
May 12, 2021
MPPA
Post-IPO Secondary
IDR144.9B
Mar 9, 2021
LinkAja
Series B
–
Dec 18, 2020
Jago
Post IPO-Equity
$160M
Feb 17, 2020
Blue Bird Group
Corporate Round
$30M
Jan 29, 2020
ZULU
Corporate Round
–
Jul 1, 2019
rebel Foods
Series D
$125M
May 7, 2019
Safeboda
Series B
–
Feb 3, 2019
JD.ID
Venture Round
–
Oct 31, 2018
escapex
Funding Round
–
Aug 10, 2018
PasarPolis
Series A
–
Gojek – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
WePay
WePay is an online payments services provider.
Sep 14, 2020
–
Moka
Moka is an Indonesian fintech startup that focuses on building mobile point-of-sale (mPOS) for small and medium businesses.
Apr 20, 2020
$130M
AirCTO
AirCTO is an AI-powered recruitment platform that helps companies recruit top developers.
Jun 12, 2019
–
Coins.ph
Coins.ph delivers financial services over mobile to people who are currently unserved by traditional banks.
Jan 18, 2019
$72M
Promogo
Promogo is a platform that enables brands to advertise on the body of individually owned vehicles.
Sep 17, 2018
–
PT RUMA
To increase dignity, income, and access for the poor through technology.
Dec 25, 2017
–
Midtrans
Midtrans empowers eCommerce through technology.
Dec 15, 2017
–
Kartuku
Kartuku is a third party processor and payment service provider delivering end-to-end, mission critical payment solutions in Indonesia.
Nov 15, 2017
$50M
LOKET
LOKET is the first event management platform in Indonesia that gives the freedom of selling tickets on one’s own website.
Aug 8, 2017
–
Leftshift Technologies
We build loveable products for iOS and Android
Nov 8, 2016
–
Gojek – Awards and Recognitions
Gojek is the only firm from Southeast Asia to reach Fortune’s list of “56 Companies That Changed the World” for 2017. Gojek was the first Southeast Asian firm to be named twice in Fortune’s Top 50 Firms That Changed The World list, rising to number 11 out of 52 global companies in 2019.
Other international honors include the Top Performer in ASEAN Award in 2017, Ernst & Young’s Entrepreneur of the Year Award, and the Superior Products and Services Award in 2016.
Among the national honors are –
Top 15 Most Valuable Indonesian Brands 2019,
Top 3 Brand Performer and Top 3 Most Powerful Transportation/Logistic Brands,
Top 3 Netizen Choice in Online Transportation,
The BrandZ Top 15 Most Valuable Indonesian Brands 2019,
The BrandZ Top 15 Most Valuable Indonesian Brands 2019,
The BrandZ Top 15 Most Valuable Indonesian Brands 2019,
The BrandZ Top 15 Most Valu Best Indonesia Mobile App 2015,
Best Startup Category Work Life Balance,
Most Admired CEO in Indonesia 2017, and
Most Creative in Solving Economic Challenges 2017.
Gojek – Competitors
The top competitors in Gojek’s competitive set are Lyft, Grab, Uber, ComfortDelGro, Gett, MOIA, Ryder, Easy Taxi Services, and Space Neobank.
Grab has dominated the ride-hailing sector in Singapore since the Grab-Uber merger. Grab will have to enhance its service quality now that Gojek, an Indonesian startup, has joined the Singapore market. One of the biggest issues Gojek is facing is a driver shortage, as many self-employed drivers are now listed with Grab.
Gojek is looking forward to organize driver recruitment efforts and offer larger incentives to potential drivers in order to overcome this. Allowing drivers to withdraw money from their virtual wallets is one of them, as is a points system that can be converted into cash and a minimum hourly wage.
Another issue that Gojek is dealing with is a lack of demand. With so many transportation alternatives in Singapore, Gojek will have to rethink its product to stand out from the crowd. To address this, Gojek will need to expand its service offerings, such as its proposal to offer housecleaning services.
Gojek’s quick expansion and market dominance have sparked widespread media attention, as well as criticism from traditional taxi and ojek providers. The Minister of Transportation briefly stopped Gojek and other ride-hailing firms from operating. The restriction was met with widespread opposition, with the hashtag #SaveGojek becoming Indonesia’s most popular trending subject on Twitter.
The ban was removed the same day when President Joko Widodo denounced it, saying that the government should not limit innovation and that the prohibition will have a negative impact on the lives of many Indonesians who rely on Gojek’s services. Budi Karya Sumadi, Indonesia’s Minister of Transportation, enacted a new regulation for online taxis in October 2017. The former PM 26, which regulated the use of private cars for public transportation, was replaced by PM 108.
Gojek – Future Plans
A new ride-hailing service has launched. Gojek plans to expand its operations outside of Indonesia this year, according to co-CEO Kevin Aluwi.
“Over the last few years, we’ve definitely invested relatively smaller amounts in our markets outside of Indonesia. But, we think this is the year where we really want to spread our wings and be a regional and global business,” Aluwi, founder of Gojek, added.
Gojek began as a ride-hailing service in Indonesia in 2010 and has subsequently expanded into food delivery, digital payments, and logistics. It now has a presence in over 200 cities across five Southeast Asian nations, with Indonesia remaining its most important market.
Aluwi also declined to comment on “merger speculations,” saying Gojek’s priority is to grow its business. Gojek is “extremely optimistic” about 2021, he added.
“We do think that 2021 is going to be a growth year and, more importantly, we spent 2020 really investing in a lot of the business and product and operational fundaments, such that profitability and long-term sustainability looks meaningfully better year-over-year,” he said.
Gojek – FAQs
What does Gojek do?
Gojek is a company that creates on-demand smartphone apps for ride-hailing and a number of other services. The company’s app offers services such as transportation and logistics, food ordering and delivery, digital payment, shopping, news, and entertainment, among others, allowing customers to access travel, logistical support, and a variety of other activities with only a few taps on their smartphones.
Which country is Gojek based in?
Gojek is an Indonesian company.
Who founded Gojek?
Nadiem Makarim, Kevin Aluwi and Michaelangelo Moran co-founded the company Gojek.
How does Gojek make money?
On each successful order placed using the app, Gojek charges a tiny commission fee. Gojek is a one-stop-shop for its customers, offering a convenient answer to a wide range of issues. It saves time by eliminating the need to switch between apps to meet different demands.
Which companies do Gojek compete with?
The top competitors in Gojek’s competitive set are Lyft, Grab, Uber, ComfortDelGro, Gett, MOIA, Ryder, Easy Taxi Services, and Space Neobank.
The PayU Insights report had stated that during 2020 because of the coronavirus pandemic and the mass restrictions laid down by the countries, the digital platforms and the digital apps had seen a huge surge in their user base which is over more than 100%. Let’s look at how the digital platforms have doubled their growth in 2020.
The PayU Insights report said that due to the Covid 19 pandemic and because of the various suggestions by experts to avoid paying physical cash as a precaution to not get in touch with the virus, the UPI payment has seen an increase in their demand.
This is because of certain places like shopping malls, supermarkets and stores implementing digital payments as the primary source of payment based on the guidelines given by the governments and considering it to be safe for the customers.
The UPI transactions have seen a growth of around 288 % in the year 2020 and the expenditures through UPI have grown up to 331 % between the years 2019 and 2020.
OTT
The OTT segment has also seen a huge rise in their demand. Due to the pandemic, people were restricted to stay in their homes and most of them would resort to a piece of entertainment. The coronavirus pandemic had led to the shutting down of offline theatres and other sources of offline entertainment avenues.
Since the OTT platforms are available for a reasonable rate and additionally serving their purpose to keep them entertained. Moreover, all the new movies which were supposed to be released in the theatres were released on the OTT platforms.
The OTT platforms have released a wide range of movies in the Indian Languages rather than concentrating on the western languages. This would be one of the major reasons for the increase in demand for the OTT platforms.
In 2020, there were a lot of local OTT platforms which came into existence and a lot of OTT series and super hit movies. Some of the OTT platforms include Zee5, Sony Liv, Voot and many more.
The OTT segment had witnessed an incredible growth in their transactions of around an increase of 144 % in the year 2020 and also an increase in their expenditure of up to 139 % in between the years 2019 and 2020.
Even the gaming sector has seen an increase in their demand. Again, the gaming sector is also considered to be part of the entertainment industry and it plays a major role in entertaining the millennials and the children.
The new and updated games, better laptops and computers with greater graphics and higher software upgrades would let the users try different games to keep them entertained. There are multiplayer games where the players can converse with each other and letting them play as a team.
These games provide a feeling of playing the games together with their friends even though it is in a virtual model. The gaming sector is the secondary source of entertainment and is also considered to be the primary source by certain people.
The gaming sector has witnessed a phenomenal increase in expenditure of up to 100 % in the year 2020 and also an increase in their average ticket size of up to 154 % in between the years 2019 and 2020.
e- commerce segments
The e-commerce segments have also seen an increase in their demand. The e-commerce sector was one of the booming industries in the country but still had to face a lot of challenges to gain the trust of Indians.
But due to the restrictions laid down because of the coronavirus pandemic and the safety concerns in going to a retail outlet the e-commerce industry has seen an increase in their demand. Another factor would be the wide range of advertisements and promotions done by the e-commerce giants such as Flipkart and Amazon on the safety precautions they undertake for the safety of their customers.
All these factors have led to a massive increase in the number of transactions for the e-commerce segments of up to 106 % in the year 2020 and an increase in expenditure of around 124 %, that is in between the first six months and the last six months of 2020.
Even the Ed-tech had seen a considerable rise in their demand. As the colleges and classes for students had been shifted to the online mode and certain colleges making it important to have an online course to be taken up by students have increased the demand for the Ed-tech platforms.
A lot of colleges have also taken up subscriptions to certain Ed-tech platforms to provide a platform for the students who would want to upskill themselves. Even the professionals have used these platforms to upskill themselves and to work on their growth.
Indian EdTech Sector Funding in last Five years
In the year 2020, the number of transactions in the ed-tech sector had seen an increase of up to 78 % and expenditures of the Ed-tech industry have seen an increase of up to 44 %. The Ed-tech industry has seen a sharp rise in their demand as soon as the implementation of lockdown with an increase in their transactions of up to 69 %.
The gaming industry is expected to have a statistical worth of about $300 billion by 2025.
What is the future of OTT?
According to KPMG Media and Entertainment Reports, the Indian OTT market is expected to grow 45 per cent to reach USD 5 billion by the end of fiscal 2023.
How big is the EdTech market?
The global education technology (EdTech) market size was valued at USD 76.4 billion in 2019 and is expected to reach USD 89.1 billion in 2020.
Conclusion
In India, the major growth in the digital platforms was seen in the North-Eastern part of the Country. The countries such as Nagaland with 93 % increase, Manipur with 74 % increase, Tripura with 63 % increase, Arunachal Pradesh with 66 % increase and Meghalaya with an increase of 82%. These countries have been on top of the list.
As of today, 160 million unique digital payments users are found just in India, which accounts for about 13% of the population. In European countries, the percentage is as high as 68%. The pandemic has further boosted the use of digital payments. This triggers a question, that being, “Which is the best suited platform for digital transactions?”
Here, we are going to discuss and compare two digital payments platforms, namely Instamojo and Razorpay, both of which were founded in India, with a difference of 1 year. Although the primary difference in the interface one would notice, is that while Instamojo is more of a payment processor and uses payment gateway in the back-end, Razorpay is in itself a proficient payment gateway with a plethora of other options such as payment links and webhooks, there are many other factors which draw the line.
Founded in 2012 and based in Bengaluru, Instamojo is a convenient and adaptable payment gateway solution, which seamlessly integrates with websites through the use of feasible APIs. When it comes to online payments, the user usually looks for security, transaction speed, and transparency. Instamojo has all of these to offer and more.
Instamojo has an excellent pricing model compared to its counterparts. With a freemium approach, the its basic services come free of cost, while the more advanced features are priced.
It also offers management of gift cards for a positive customer experience.
Instamojo also has an efficient fraud protection algorithm to prevent unnecessary revenue losses.
Cons of using Instamojo:
Instamojo doesn’t work for you if you are a freelancer. It is specifically built to cater to the needs of small to large enterprises.
There is no subscription based plan like Razorpay.
Instamojo has a relatively limited availability, and is not available on WinPhone, IOS or Macintosh.
The interface is designed in such a way that the user has the convenience to provide payment links on their website, add pay buttons with integrated payment gateways. Instamojo is a multi-channel payments collection, encompassing some great amenities such as effortless checkout and payment links. Through the use of payment APIs, platform plugins and webhooks, Instamojo integrations with a website or a stack has never been easier. Along with that, its Android SDK enables payment through applications through Android integrations.
Features offered by Instamojo:
Instamojo free version
Instamojo premium version
Payment gateway available
Payment gateway available
Transaction fee is 5% + 3
Transaction fee is 2% +3
Allows 1 picture for each product
Allows 10 pictures for each product
No offers or discounts
Offers, coupons, discounts and gift cards
All the mentioned payment methods come with payment analytics and a post payment customizable experience, which makes the experience of both, the user and the customer, an inordinate one.
The analytics feature that Instamojo has to offer is no less than the payment aspect. It offers analysis and overall rundown of the sales performance which not only helps manage payments, but also offers insights as to where and in what domain the strong suite lies. It also allows you to Geo-navigate your customer base and engagement with real time performance comparison as well as gives a detailed look on the payments through an organized and user-friendly dashboard. Also, even if the payment fails, Instamojo adds it as a lead as well as allows you to communicate with your potential customers to make their experience a bit more personalized.
Instamojo is more than just a payment gateway. Instamojo provides complete business solutions right from business capital requirements shipping & logistics.
Instamojo offers a suite of products to help businesses grow. The business solutions are as follows :
mojoCommerce: mojoCommerce is a free online store, you can sell your physical and digital goods through the platform.
Smart Links: Smart payment links can be created with the help of Instamojo smart links. These smart links help to make payments faster and collect customer data.
Instamojo App Store: As a business, you can connect your favorite apps with Instamojo through the Instamojo app store.
mojoCapital: mojoCapitals allows people to simplify and resolve their business cash flow requirements and capital requirements.
mojoXpress: mojoXpress provides delivery services for businesses. It delivers to more than 12000 pin codes in India.Instamojo for Developers: Simple Payment APIs and Plugins to integrate into websites or mobile apps.
Razorpay
Razorpay was founded in 2013 and is based in Bengaluru as well, with the current serving CEO, Harshil Mathur since 2014. One of the first few things that crosses your mind when it comes to a successful payment application is its user base, because that is what reflects its reputation and usage. That is exactly where Razorpay excels; with a market of more than 8,00,000 users, Razorpay flaunts an interactive interface with features such a automated receipts and custom payment pages.
With a payment gateway that supports Credit/Debit cards, Netbanking with over 50 banks, UPI and various mobile wallets, Razorpay has a plethora of payment modes which make it customer friendly and accounts for a greater transaction number due to the availability and variety of payment methods. Its powerful and interactive dashboard offers in-depth analysis and statistics on payments, invoices, and refunds making it easy to use. Also the real-time stats help user in strategic and performance based decisions and generate custom reports.
Features offered by Razorpay:
Razorpay Standard features
Razorpay Enterprise features
Designed for small and medium business
Designed for big enterprises
Transaction charges 2-3%
Custom pricing for business needs
Support via email and call
Offers 24/7 priority support
Complete online activation
Online activation within 24 hours
Many a times, a customer is retained by the ease of interface and transaction if you have an online marketplace. Razorpay offers seamless and android integrable SDKs(one of the lightest there is, with about just over 200KB) with features such as auto update and auto fill OTP, which helps provide customers, the best experience. Thirdwatch, a subsidiary of Razorpay, helps you track fraud customers and recognize non deliverable addresses, saving users from unnecessary revenue loss. It is an AI based engine which recognizes and flags the high risk addresses with a red and low risk ones with green color, which is quite convenient, to say the least.
Built for all MSMEs and caters to individuals as well
Does not support individuals and/or freelancers; only enterprise support
Does not offer SSL support making it less sequre
Secured through Secured Sockets Layer(SSL)
Razorpay Pricing for MasterCard, Debit Card, Visa and net banking is 2%
Pricing for MasterCard, Debit Card, Visa and net banking is 2% + INR 3 and 5% for digital goods
Offers mobile optimization on standard and enterprise version
Does not permit mobile optimization
Permits recurring payments
Does not allow recurring payments
Auto-update feature updates the application with every new mobile wallet update to hit the market
No auto-updating available for mobile wallets
Failed payments are not handled as well
Failed payments are altered into leads and are organised
Does not allow personalised customer interaction
Allows a more personal interaction with customer
Conclusion
To say, one works better than the other would be quite unjust, since both of these applications excel at user specific areas. While Instamojo charges a little more than Razorpay, it also offers SSL security. Moreover, while Razorpay offers mobile optimization for both of its versions, Instamojo gives away gift cards for better customer service. An apt comparison would be that Razorpay can be used for even individual business and freelancing purposes, on the contrary, Instamojo could be slightly more suited to bigger enterprises which demand security.
Vidhi Punamiya
