Fintech platforms facilitating payments services to promote digital channels for financial services

payments

Photo by Shutterstock

Back to Search
Fintech platforms facilitating payments services to promote digital channels for financial services
Fintech platforms facilitating payments services to promote digital channels for financial services
Select for Comparison
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Financials
Corporate and Retail Banking
Business Model Description

Fintech platforms for facilitating Person to Person (P2P), Person to Business (P2B), Business to Business (B2B) payment transactions through technology backed platforms that allow for interoperability between banking entities using infrastructure such as Unified Payments Interface, Quick Response (QR) code allowing platforms to charge a commission for enabling utility payments and other transactions. Using payments as a gateway to garner client acquisition, these Fintech platforms also have an opportunity to offer value added services such as booking keeping services for small businesses, lending to small businesses that offer additional source of revenue to these platforms.

Expected Impact

Improve access to and adoption of digital financial services by households/businesses from low resource settings by creating easy to use, affordable payment platforms for financial transactions.

How is this information gathered?
Updated: 4 Aug, 2021 Date of Production: 1 Nov, 2020
India
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
In 2019, fintech emerged as the largest cross-sector x-tech segment in India, both in terms of deal value at USD 2.4 billion and deal volume at 83. (17.6)
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Good health and well-being (SDG 3) Industry, Innovation and Infrastructure (SDG 9) Reduced Inequalities (SDG 10) Partnerships For the Goals (SDG 17)

Expand all

Print

Sector Sources
  • (5.1) https://www.uncdf.org/financial-inclusion-and-the-sdgs (5.2) https://niti.gov.in/sites/default/files/2018-12/FirstDeltaRanking-May2018-AspirationalRanking.pdf (5.3) https://gflec.org/wp-content/uploads/2015/11/3313-Finlit_Report_FINAL-5.11.16.pdf?x38887 (5.4) https://content.centerforfinancialinclusion.org/wpcontent/uploads/sites/2/2018/08/Agents_of_Change_India_FINAL-1.pdf (5.5) https://globalfindex.worldbank.org/ (5.6) https://globalfindex.worldbank.org/#:~:text=The%20Global%20Findex%20database%20is,make%20payments%2C%20and%20manage%20risk.&text=The%20data%20are%20collected%20in,adults%20in%20over%20140%20economies. (5.7) https://www.business-standard.com/article/news-cm/msmes-contribute-29-7-of-india-s-gdp-119120200888_1.html (5.8) https://pib.gov.in/Pressreleaseshare.aspx?PRID=1579757 (5.9) https://www.rbi.org.in/Scripts/AnnualReportPublications.aspx?Id=1259 (5.10) https://www.intellecap.com/wp-content/uploads/2019/04/Financing-Indias-MSMEs-Estimation-of-Debt-Requireme-nt-of-MSMEs-in_India.pdf (5.11) https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/publications/a-wider-circle-digital-lending-and-the-changing-landscape-of-financial-inclusion.pdf (5.12) https://www.irdai.gov.in/admincms/cms/uploadedfiles/annual%20reports/IRDAI%20English%20Annual%20Report%202018-19.pdf (5.13) https://data.worldbank.org/indicator/per_si_allsi.cov_q1_tot?locations=IN (5.14) https://www.dvara.com/blog/2019/11/27/the-state-of-micro-pensions-in-india/ (5.15) https://economictimes.indiatimes.com/industry/banking/finance/banking/govt-asks-banks-to-open-15000-branches-in-fy21/articleshow/73286116.cms?from=mdr (5.16) https://www.grameenfoundation.in/decoding-bank-account-usage-by-low-income-segments-placing-reality-in-digital-ecosystem/ (5.17) https://www.trai.gov.in/release-publication/reports/telecom-subscriptions-reports (5.18) https://www.iamai.in/KnowledgeCentre [Digital in India 2019- Round 2 Report] (5.19) https://niti.gov.in/sites/default/files/2019-01/Strategy_for_New_India_0.pdf (5.20) http://documents1.worldbank.org/curated/en/989721587512418006/pdf/COVID-19-Crisis-Through-a-Migration-Lens.pdf (5.21) https://www.worldbank.org/en/news/press-release/2020/06/30/world-bank-approves-750-million-emergency-response-program-for-micro-small-and-medium-enterprises-in-india (5.22) https://www.microsave.net/wp-content/uploads/2020/06/Impact-of-COVID-19-pandemic-on-micro-small-and-medium-enterprises-MSMEs-India-report-1.pdf (5.23) COVID 19 Impact on Financial Services Sector: April 2020; EY (5.24) https://www.npci.org.in/product-statistics/upi-product-statistics
IOA Sources
  • (17.1) https://www.bis.org/press/p200414.htm#:~:text=Fintech%20can%20contribute%20to%20improved,and%20lower%20market%20entry%20barriers. (17.2) https://cms.iamai.in/Content/ResearchPapers/d3654bcc-002f-4fc7-ab39-e1fbeb00005d.pdf (17.3) https://www.business-standard.com/article/news-cm/number-of-smartphone-users-in-india-likely-to-double-to-859-million-by-2022-119051000458_1.html (17.4) https://economictimes.indiatimes.com/news/economy/finance/remittances-to-bharat-hit-by-return-of-the-native/articleshow/74974059.cms?from=mdr (17.5) https://www.rbi.org.in/scripts/bs_viewcontent.aspx?id=2900#:~:text=100%20crore.,7.5%20per%20cent%20of%20RWAs. (17.6) https://www.bain.com/globalassets/noindex/2020/bain_report_india_private_equity_report_2020.pdf (17.7) https://timesofindia.indiatimes.com/deals/-ma/reliance-capital-exits-paytm-parent-one97-communication-nets-rs-275-crore/articleshow/57510334.cms (17.8) https://www.bloombergquint.com/business/fintech-investments-in-india-double-to-37-billion-in-2019-accentureanalysis#:~:text=Fintech%20Investments%20In%20India%20Double%20To%20%243.7%20Billion%20In%202019%3A%20Accenture%20Analysis,-PTI%40PTI_News&text=Investments%20in%20financial%20technology%20in,an%20analysis%20by%20Accenture%20Plc. (17.9) https://assets.kpmg/content/dam/kpmg/in/pdf/2019/08/Fintech-in-India%E2%80%93Powering-mobile-payments.pdf (17.10) https://www.nathaninc.com/wp-content/uploads/2017/02/Fintech-in-India.pdf (17.11) https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=923#ANB (17.12) https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=923 (17.13) https://www.livemint.com/companies/people/phonepe-aims-to-be-profitable-by-2022-go-public-in-2023-ceo-11587567542758.html (17.14) https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/NSFIREPORT100119FF91DAA6B73B497A923CC11E0811776D.PDF (17.15) https://inc42.com/resources/fintech-in-india-an-analysis-of-current-legislation-and-what-lies-ahead/ (17.16) https://inc42.com/resources/fintech-in-india-an-analysis-of-current-legislation-and-what-lies-ahead/ (17.17) https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=938 (17.18) https://www.rbi.org.in/scripts/bs_viewcontent.aspx?id=2900#:~:text=100%20crore.,7.5%20per%20cent%20of%20RWAs. (17.19) https://www.thehindubusinessline.com/money-and-banking/five-out-of-the-11-payments-banks-have-shut-operations-why/article29381134.ece#:~:text=Airtel%20Payments%20Bank%2C%20Aditya%20Birla,seven%20players%20operational%20until%20recently.&text=India%20Post%20Payments%20Bank%20is,small%20finance%20bank%20(SFB). (17.20) https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/NSFIREPORT100119FF91DAA6B73B497A923CC11E0811776D.PDF (17.21) https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11947&Mode=0 (17.22) https://razorpay.com/learn/tax-incentives-exemptions-startup-india-2019/ (17.23) https://iclg.com/practice-areas/fintech-laws-and-regulations/india (17.24) https://www.statista.com/statistics/1013812/india-fintech-startup-numbers-by-segment/#:~:text=Number%20of%20fintech%20startups%20in%20India%20by%20segment%202019&text=The%20payments%20sector%20were%20flush,banking%20sector%20as%20its%20backbone. (17.25) https://economictimes.indiatimes.com/news/economy/finance/remittances-to-bharat-hit-by-return-of-the-native/articleshow/74974059.cms?from=mdr (17.26) https://www.smeventure.com/fintech-india-opportunities-challenges/