Spice Money: Industry Monitoring 01 March 2019
- Priyanka Kanodia
- Mar 6, 2019
- 4 min read
Spice Money
Industry News
From payments to lending : fintech firms eye the next big game
Publication- ET Tech
Edition- Online
Date- 01 March, 2019
Deep Singh’s chocolate cakes were becoming more and more popular, with considerable help from Facebook videos which made it possible for the Delhi-based entrepreneur to advertise the product and from the online gateway which allowed him to cater to online orders and accept payments as well. But to scale up and convert his passion into business he needed capital to buy bigger ovens and hire staff. Banks and non-banking finance companies (NBFCs) shied away from lending to a small-scale baker. However, his payment service provider thought otherwise. Calculating his daily transactions, cash flows and consistent business metrics, the payment gateway sanctioned a loan to him.
After solving basic problems like accepting payments for micro merchants, companies such as Razorpay, Instamojo and PayU India are eyeing the next big game: lending. With rapid digitisation of payments, companies which process these transactions have caught the pulse of the business. On the basis of cash flow they are open to lending small amounts to start with and then expanding the scope of operations consistently.
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Safer way to transact online: Tokenisation of card transactions enhances digital payments ecosystem
Publication- The Financial Express
Edition- Online
Date- 01 March, 2019
The Indian economy has traditionally been dominated by cash. However, the increased adoption of smartphones together with a favourable regulatory environment are pushing the economy to a less cash-dependent state, and promoting the usage of digital payments. There has been a rapid growth trajectory as India moves to a less cash-dependent state. The value, and volume, of online transactions more than doubled in the last year alone. Increased adoption of the new mode of online payments increases the need to seek measures to mitigate cyber risk. Globally as well, cybersecurity is a top focus. Keeping this in mind, regulators have increased their focus to ensure a safe and secure environment to promote a cashless economy and further the vision of digitalisation for all.
In this scenario, the recent announcement on extending permissions for tokenisation of debit, credit and prepaid card transactions to multiple use-cases/channels enhances the safety of the digital payments ecosystem, and is a welcome move that will be highly beneficial to address the safety concerns of payment channels. The in-app payment landscape would be the greatest beneficiary of this move, as a majority of the mobile app providers stored card details to facilitate e-commerce, and were susceptible to hacks and data loss.
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Government releases compliance schedule to ensure MSME payments
Publication- Zee Business
Edition- Online
Date- 01 March, 2019
The government has decided to crack down on companies delaying payments to small businesses by insisting that all defaulting entities mandatorily provide it details of outstanding money with reasons by April or face action that could result in imprisonment up to 6 months or fine of not less than Rs 25,000 up to Rs 3 lakh. It has also asked over 12 lakh active registered companies in India to mandatorily upload all their particulars, including details of registered offices, in an e-filing to the government as the Centre continues with its crackdown on "fly-by-night and dummy" entities incorporating stringent KYC regulations.
The Ministry of Corporate Affairs, which notified new guidelines to address the concerns of small businesses over delayed payments in January, has now released a compliance schedule under which private and public companies will be required to fill Form DPT 3 on or before April 22, for disclosure of details of outstanding money or loan received by company but not considered as deposits.
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Aadhar not mandatory for second installment of PM-KISAN
Publication- Money Life
Edition- Online
Date- 01 March, 2019
In a measure to woo farmers ahead of the Lok Sabha polls, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved waiving, in the interim, Aadhaar seeding for farmers to receive the second instalment of the income support scheme under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Union Minister Ravi Shankar Prasad said the one-time waiver of the mandatory quoting of Aadhaar to avail benefits under PM-KISAN was made due to paucity of time as the second instalment is to be given on April 1 as promised by the Modi government.
"The PM-KISAN was launched in Gorakhpur (Uttar Pradesh) on February 24 by the Prime Minister and the first instalment of the income to the tune of Rs 2,021 crore has already been transferred to the beneficiaries. "For the second instalment which is to be paid on April 1, the cabinet has decided that Aadhaar quoting will not be mandatory," said Prasad.
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True Balance offering UPI Service as a New Payment method to Users in Collab with PayU India
Publication- Indian Web 2
Edition- Online
Date- 01 March, 2019
Taking India one step closer to become a cashless economy, TrueBalance, Softbank-backed balance and data management mobile app has tied up with PayU to connect customers and merchants by enabling seamless payments through a digital platform. TrueBalanceis on the verge of expanding its business by way of providing e-commerce platform enabling customers to have the benefits of EMI on payment, insurance, and purchase of products.
UPI launched in India in 2016, allows bank-account holders to transact using their smartphones by just feeding in their Aadhaar numbers or mobile phone numbers instead of entering bank account details. PayU is a Netherlands-based fintech company providing a safe payment technology to online merchants. This True Balance-PayU tie-up strengthens the Digital India initiative through TrueBalance’s vision of targeting the untapped one billion mobile phone users without access to digital financial services.
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