5 things In Indian Fintech that Walmart and WhatsApp Saw In. And You Should See it, As Well.


It isn't by chance that Paytm, India's biggest e-wallet company, has nearly 400 m of users. WhatsApp wanted India would conduct an online payment test and forced Walmart to spend billions of dollars on purchases and investments on the sub-continent. It wasn't a short period of time.

Both on startup as well as the bankside the Indian financial and payment industries boom. Governments and local authorities are laying the groundwork and users are moving forward in the past two years on its own, the usefulness of transactions in the Indian market has increased more than 50%.

Here are five things that WhatsApp and Walmart saw both in India. And you should also see if you work in the financial technology sector.


1. E-rupification

the term "e-rupification" was conceived by "The Economist." And then there was also an explanation –throughout the western world the Indian government and public government officials opened the way for the Fintech Revolution and it's booming explosion in a unique way.

"Payment fintech is seamlessly integrated with financial institutions in India than anywhere else," reads the title throughout The Economist, stating that the financial revolution has just been shaped by the government (but not always by design).

So when "The Economist" terms it a transition that is not an exaggeration–over the last two years even, the volume of online transactions on the Indian market has grown just as much to 50-Fold.

The key factors behind this digital breakthrough are:

Adhaar – a method of biometric IDs utilised to start a bank account (2010)

The PM’s decree – compelling banks to allow accounts for everyone (2014)

Unified Payments Interface (UPI) – an interbank system employed for money-transfer (2016)

“Demonetisation” – a sudden and shocking strategy by the Indian Government to call back the banknotes (500s and 1000s) inflow back in 2016

In terms of numbers, in October 2019, UPI crossed a trillion transactions. A new interface, called Sahamati, has been implemented by the local regulator (RBI). In the run, there is indeed a great deal of expectation that UPI will achieve success.


2. Banks innovate, they don't defend

The majority of the large banks, like RBL bank or Yes Bank, has already introduced an API, while Indian financial institutions are technically not mandated to provide such frameworks by law. Most banks try to innovate-in-house and in partnership with startups.

Banks see the Indian economy grow fast and are looking for ways to attract new clients. they are doing so out of their own gain. I consider banks in Europe as defensive as the competition is mature and consumer growth is minimal.


3. The fintech industry is booming

India's fintech product adoption rate is 59%, the world's second-highest speed, as shown by JohrataLabs report. That's also considerably higher than the 33% rate of adoption.

And there are plenty of fintech firms so entrepreneurs witnessing fresh inflows of cash, investment rounds and profitable exits.

Paytm, a digital wallet service, India's first decacorn (a $10-billion venture) operates in a league of its own.

But that's just the edge of the iceberg-Kunal Shah, an Indian businessman who traded his prior startup FreeCharge for $60 million, raised $120 million for his new enterprise Cred, a loyalty credit card program. Zest Money, that offers online buyers a buyer lending service without a credit card, has reared $20 m. There are many well-funded businesses, like PolicyBazaar and Razorpay, to list just a handful.


4. 400 Million Creditworthy Citizens Using Smartphone

another few analysts lifted their eyebrows as Kreditech, a German-based creditor, declared that they would elevate EUR20 m to fuel the Indian market development.

I am very excited about our prospects for development in India. In such a huge and quickly-growing market, we have a first-of-its-kind virtual NBFC (non-banking financial corporation) permit! We were fortunate enough to find our gap in the market and the correct prototype was built. It's now time to dial-up whereas the competitiveness stays unresolved at a main target consumer segment-said David Chan, CEO of Kreditech in the comment.

The two merging makes complete sense. Kreditech utilizes algorithms (big data) to evaluate creditworthiness as well as provide mortgages to clients that financial firms may have rushed for excluding.

India–with at least 400 million creditworthy people and less than 50 million credit cards–is a perfect example of an underserved market.

Global fintech companies such as PayTM, MobiKwik, Lemon and PayU often reap the benefits of the massive increase in mobile use, internet access and shopping online to embed payment services into web apps — reported a 2019 study from the Financial technology Specific Challenges Committee.


5. At last, the Walmart case

The increasing significance of the Indian market well into the approach of the company comes as a shock for all those who slavishly follow Walmart's takeovers.

Flipkart's $16 billion acquisition-driven Walmart to the top place on India's e-commerce trading platforms. And Walmart's committee is definitely pleased with the attempts by the Indian government to have a bank account, a mobile phone and an authentication ID for each and every Indian.

There is indeed a huge growth opportunity here. For both Flipkart and PhonePe payouts enterprise here we are quite enthusiastic about both the team. they are very innovative in their approach and redefining markets to meet the needs of consumers-Richard Richardson, EVP and Financial officer at Target, said at the dbAccess International Product Conference Call back in March 2018.

This isn't just about e-commerce. The Flipkart-owned PhonePe is an app made for all digital payment payments–including e-commerce to bill payments. Walmart views the app as a key component of the environment and it has grown very steadily and quickly.

In Walmart's CFO's words, PhonePe seeks to create the biggest transaction system built on payouts in India. And afterwards "using that platform to manipulate some pretty large fountains of revenue in economies like financial services," added Robert Mayfield.

Seeing that the country plays for creativity, banks are opening up and shareholders ' capital continues to flow to fintech companies, keeping a close eye on India are a must for any fintech spotting developments.

I must say to see what's changing in India is rather exciting. In Europe, but in Germany in particular, the open banking mentality is actually suffering due to the network topology of PSD2 by several banks. In India the financial technology sector, by addition, is flourishing.