Date: Friday , October 07, 2016
Headquartered in U.S, the company is a provider of easy, secure and cost effective way of payment to businesses and people. This leading mass-payout entity has facilitated Fortune 100 companies with its innovative ways.
Increased access to the internet and mobile devices has transformed our lifestyle and enabled a high degree of disruption to virtually every area of business. In today’s fast paced lifestyle, everything takes place at the click of a button. As a result, ecommerce has boomed worldwide, giving rise to the need for effective, fast and secure payment solutions. The Indian market is no exception to this surging financial technology revolution. As the country sees vast technology developments, the payments processing market is undergoing a huge change, lowering borders for Indian businesses and entrepreneurs. FinTech is filling in gaps left by traditional financial services, and revolutionizing legacy banking systems. It is disrupting cash economies, slashing costs and opening doors people never knew existed. In a nutshell, financial technology is revamping the payments industry’s status-quo!
According to a report by Nasscom, there are close to 400 Indian companies focused on serving the global FinTech market, of which startups make up around 200, or 50 percent of them. A majority of these start-ups, and 46 percent of the Indian Fintech industry overall, are focused on the payment processing products and services. This overall market share is projected to increase to 55 percent by 2020, indicating that payment processing is taking the lead in the FinTech revolution.
Within payment processing, international payments are receiving a lot of attention. Traditional cross-border transactions are usually expensive, given that payments may pass through three to six intermediary banks before reaching their destination, each one charging a fee. The processes work in a uniform fashion for a $50 or $100,000 transaction, thereby making the cost structures prohibitive for small scale entrepreneurs and merchants. The transaction is complex, there are few or no status updates, and completion can often take weeks, which results in cash flows being locked and rising interest costs. These factors have been deterrents for new or small business considering global expansion.
FinTech advancements have given hope to those dreamers tucked away in a corner of their cities waiting to expand. Existing and emerging financial technology companies are laying a foundation which is enabling businesses of all sizes to transact globally at lower costs, and without the painstaking hassles of regulation and legal compliance, as well as tax and accounting considerations. The new systems offer more transparency for businesses, reduced fee structures, and payments that are processed within days, or even hours. The innovation is also emerging in the direction of providing deeper solutions such as payment acceptance through multiple methods like prepaid cards, credit & debit cards, offline payments, mobile payments and API’s that can integrate with third party software’s like accounting and invoicing, and so on. This helps especially the entrepreneur run businesses to as it becomes a one stop shop for all their transaction related needs.
For the individual entrepreneur, like a seller in Jaipur exporting handicrafts globally, payments no longer need to take weeks and time-intensive tracking. Now, he or she can get payments sent directly to their bank account, in local currency, in a matter of days, hassle-free. Not only has financial technology broadened borders, but this tectonic shift has amped up the measures taken to improve security, risk monitoring, and anti-fraud solutions. Small and medium businesses can now transact globally at par with large organizations, without having to worry about online theft and data safety issues.
The entrances of non-bank digital players are transforming customer’s experiences and re-shaping the broader financial services landscape. Traditional banking infrastructure is being modernized, allowing even unbanked populations in developing countries to gain access to financial services for the very first time. The challenges to cross-border payments are many and complex, but solutions are on the rise too. True FinTech disruption is bringing easy and cost effective processes for the modern Indian business.