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NEW DELHI: By Sirish Kumar<\/strong>\n
Mobile wallets have been one of the primary beneficiaries of the increasing digitalization of payments. The demonetization drive brought in an early Christmas<\/a> for the wallet players last year, with the leading e-wallets<\/a> declaring an unprecedented increase in the number of users and transaction volumes. Besides, there are over one billion mobile connections and six million new connections are added each month. Taking into account the massive opportunity, the e-wallet industry in India is set to acquire share of more than $ 6.6 billion by 2020.
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Despite the surge in the user base and popularity, the increasing cases of consolidations in the e-wallets and payments space cannot be overlooked. Amazon<\/a> acquired the online payment<\/a> gateway, Emvantage. Flipkart<\/a> took over the payments app, PhonePe, while Shopclues acquired Momoe, the mobile wallet<\/a> for offline stores. Last year also witnessed one of the top acquisitions in the FinTech space, with PayU snipping up Citrus Pay for $130 million.
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\nConsolidation: The Survival of the Richest?<\/strong>
\nThe dynamics have changed since 2016. Drying of source of funds and lack of growth in transactions between merchants and existing customers of the Wallet companies has made the case for consolidation in the mobile wallet space. Consolidation often is also a reflection of investors getting into the driving seat, steering different enterprises to reach breakeven and be profitable. The two entities operating in the same ecosystem- one with perhaps the right customer connect and the other with an advanced technical infrastructure, are better off operating as a single entity.
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\nThis way, investors not only get to minimize the costs, but also bring about a change in the business model of the top-level management. It is critical that, right from the beginning, focus is on automating and maintain efficiency of operations rather than allocating money for hiring more people.
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Most of the mergers and acquisition, especially in the FinTech, ecommerce<\/a>, hyperlocal marketplaces and logistics segment have been to get newer technology, domain knowledge or talent or access to merchants or repeat consumers. However, at the heart of such deals was the concern of the investors to minimize cash or resource burnout. Hence, the ecosystem today appears to be more in favour of the players that have got the maximum money, instead of standalone entities with unique business model. This approach should raise concerns, because the times ahead are bringing newer challenges for mobile wallets and payments solutions providers.
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\nTop Challenges for E-Wallets: Cash & 'UPI + BHIM'<\/strong>
\nThe ubiquitous cash continues to be a popular means of payment, despite the demonetization drive. While initially, different players in the segment registered an upsurge in the utility, the dip was apparent from January onwards, with the cash resuming its flow in the economy.
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Digital payments have only reached out to 10% of Indian users so far. In fact, while India has over 30 million retail outlets, only one million of them possess the required wherewithal for digital payments. In fact, the presence of e-wallets and digital payments services providers is highly fragmented in the economy today, limited only to the urban locales. As per the reports shared together by Google<\/a> and KGMP, 68% of Indian SMEs have remained completely offline. Moreover, only 2% of the total number of SMEs with digital presence is actively engaged in online buying or selling of goods.
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\nRegardless to say, transacting in cash is the easiest, especially for people with a lack of technical know-how or electronic equipment. Instead of burning cash for acquiring customers, e-wallets and payment solution providers need to rethink their on-boarding strategies, whilst making digital transactions on their platform easier and more seamless in cash.
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\nThe launch of UPI and the BHIM (Bharat Interface for Money) app marks the onset of another era in the digital payments landscape in India. UPI, as an instrument for electronic funds transfer, makes it easier for users to receive or send money simply by putting the mobile number or VPA (Virtual Payment Address). This gives users a much required break from having to enter their net-banking or card details for making payments. Wallet companies utilize customers as data. They make it inconvenient for users to transact, by asking them to share extensive personal information. For any user who is not comfortable saving their bank or card details on a third-party app, UPI is the fastest means for transferring money.
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\nWhile e-wallets have huge numbers to flaunt, the BHIM app is soon gaining steam. The UPI-based payments app already reached 10 million downloads within the first 10 days of its launch, while facilitating more two million transactions, within the same time span. Offering interoperability and a seamless experience, both UPI and BHIM app together should inspire e-wallet players to rethink their business models and strategies.
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\nTipping Point for E-Wallets to Consider Overhauls<\/strong>
\nOne significant flaw in the business model adopted by mobile wallet players in the past was offering cash-backs for consumers to transact. The advent of a number of Government initiatives makes it impossible for e-wallets to exist as a standalone more. While one can certainly not deny the attention and activity attracted by mobile wallet space today, until and unless the leading players rethink their models, e-wallets will be haunted by the impending fear of running out of business.
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\nThe mobile wallet companies may either build or partner to gain access to a technically advanced and secured payment platform. This can help them move ahead of the offering of online banking as a payment method to pay online. If you as an individual consumer pay online by using internet banking, you still face challenges of buyer experience. Additionally, online sellers still face the challenge of not being able to offer all banks as options to their buyers. With UPI launched, we expect to see these challenges being addressed in the next 12 months.
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\nMobile Wallet companies will have to be ready to offer buyer experience, secure online payment platform and place no restrictions for their consumers to transfer money to another wallet that is owned by another mobile wallet company or work seamlessly with online payment aggregators in India, which are not more than 4 or 5 players in the country, anyway. Otherwise, the business model is fraught with challenges, given the pre-existing fragmentation in the economy. For instance, Flipkart had to shut down PayZippy that was launched back in July 2013.
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Mobile wallet companies may endeavour to move beyond their core service and deliver collateral services. For instance, Paytm<\/a> today provides a broad range of m-commerce services. In fact, offline connect has come to be one of the significant domains adopted by mobile wallet players, in order to democratize their platform. In addition to m-commerce, other e-wallet players like MobiKwik<\/a> have ventured into other domains like hyper local transactions, cash pick-up and micro-credit facilities. It is not possible to predict its success but this endeavour of offering bouquet of adjacent services seems to be in the right direction.
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\nI believe the social messaging platforms will enable revolution in two ways by 2020, one way image and voice will become more dominating form of communication and the other way is that social media and mobile phones will drive conversion of social conversations to business conversation and online payment. Can mobile wallet companies have a bigger role to play in this revolution?
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新德里消息:由Sirish库马尔
手机钱包的主要受益者之一越来越数字化的支付。禁止流通驱动器在早期圣诞节钱包的球员,去年领先电子钱包声明一个前所未有的增加的用户数量和交易量。除此之外,有超过十亿手机连接和六百万每个月添加新连接。考虑到巨大的机会,印度电子钱包产业将获得的份额在2020年超过66亿美元。
尽管激增的用户基础和知名度,增加用例合并的电子钱包和支付空间不容忽视。亚马逊收购了在线付款网关,Emvantage。Flipkart公司接管了支付应用,PhonePe Shopclues Momoe,手机钱包对于离线商店。去年也目睹了一个顶级收购FinTech空间,与PayU删节了柑橘支付1.3亿美元。
整合:最富有的生存?
动态自2016年以来已经发生了变化。干燥的资金来源和缺乏增长的商人和现有客户的钱包公司之间的交易使得手机钱包的整合空间。整合往往也反映了投资者进入驾驶座位,转向不同企业达到盈亏平衡,盈利。两个实体操作在同一生态系统——一个与客户也许正确的连接和其他先进的技术基础设施,更好操作作为一个单一的实体。
这样,投资者不仅能减少成本,但也带来一个顶级管理的商业模式的变化。这是至关重要的,从一开始,重点是自动化操作和维护效率而不是分配钱雇佣更多的人。
大多数的并购,尤其是在FinTech,电子商务,地方性市场和物流环节已经得到更新的技术,领域知识、人才或访问商家或消费者重复。然而,此类交易的核心是投资者的担忧减少现金或资源倦怠。因此,生态系统今天似乎更支持的球员得到了最多的钱,而不是独立的实体具有独特的商业模式。这种方法应该提高关注,因为时代带来新的挑战手机钱包和支付解决方案提供商。
前挑战电子钱包:现金& UPI + BHIM '
无处不在的现金仍然是一个受欢迎的支付手段,尽管禁止流通开车。虽然最初,段不同球员注册的效用急剧上升,下降明显从1月开始,经济恢复其现金流。
数字支付只有达到10%的印度用户到目前为止。事实上,印度拥有超过3000万家零售店,只有一百万人拥有所需的数字支付资金。事实上,电子钱包和电子支付服务提供商的存在是经济高度分散的今天,只有有限的城市地区。根据报道在一起共享谷歌KGMP, 68%的印度中小企业仍完全离线。此外,只有2%的中小企业的总数与数字的存在是积极参与在线购买或出售的商品。
不管说,交易的现金是最简单的,特别是对于那些缺乏技术或电子设备。而不是烧钱获取客户、电子钱包和支付解决方案提供商需要重新考虑加载策略,同时简化数字交易的平台和更加无缝的现金。
启动UPI和BHIM (Bharat接口为钱)应用标志着另一个时代的开始在数字支付景观在印度。UPI,作为电子资金转帐的工具,使得用户更容易接收或发送钱只需把手机号码或VPA(虚拟支付地址)。这让用户更需要打破从进入net-banking或信用卡付款的细节。钱包公司利用客户数据。他们让用户方便交易,让他们分享大量的个人信息。对于任何用户不舒服储蓄银行或信用卡详细信息的第三方应用,UPI是最快的方式转移资金。
虽然电子钱包有大量炫耀,BHIM应用很快就日益活跃。UPI-based支付应用已经达到1000万下载前10天内推出,同时促进更多的二百万个事务,在相同的时间跨度。提供互操作性和无缝体验,UPI和BHIM应用起来都应该激发电子钱包的球员重新思考他们的商业模式和策略。
电子钱包考虑改革的转折点
商业模式中的一个重要缺陷通过手机钱包球员在过去是为消费者提供返还现金交易。许多政府计划的出现使得电子钱包不可能作为一个独立的存在。虽然可以肯定不是否认的关注和活动所吸引手机钱包今天空间,除非领先的玩家重新考虑他们的模型,电子钱包会被即将到来的恐惧的业务。
手机钱包公司可以建立或者伴侣获得技术上先进、安全的支付平台。这可以帮助他们前进提供网上银行的网上支付方式支付。如果你作为一个个体消费者在线支付通过网上银行,你仍然面临挑战的买家体验。此外,网上卖家仍然面临的挑战不能提供所有银行选择他们的买家。UPI推出,我们希望看到在未来12个月内解决这些挑战。
移动钱包公司必须准备提供买家体验,安全的在线支付平台和地点没有限制他们的消费者将资金转移到另一个钱包被另一个移动钱包公司拥有或与在线支付聚合器在印度合作的天衣无缝,不超过4或5的球员,无论如何。否则,商业模式充满了挑战,鉴于经济存在的分裂。例如,Flipkart公司不得不关闭PayZippy 2013年7月也曾推出过。
手机钱包公司可能会努力超越他们的核心服务和提供担保服务。例如,Paytm今天提供了一个广泛的移动商务服务。事实上,离线连接已经成为一个重要的领域通过手机钱包的球员,以大众化的平台。除了移动商务,等其他电子钱包的球员MobiKwik涉足其他领域如超本地事务,现金提货和小额信贷设施。不可能预测其成功但这努力提供束相邻服务似乎是在正确的方向上。
我相信社会消息传递平台将使革命到2020年两种方式,一种形象和声音将变得更加主导的交流方式,另一种方法是,社交媒体和移动电话将推动社会对话转换成业务对话和在线支付。移动钱包公司可以发挥更大的作用在这个革命?
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