Spice Money: Industry Monitoring 07 March 2019
- Priyanka Kanodia
- Mar 18, 2019
- 4 min read
Spice Money
Competitors
Bandhan Bank didn't pay control premium for Gruh Finance
Publication- DNA India
Edition- Online
Date- 07 March, 2019
Amid concerns that Bandhan Bank overpaid for taking over Gruh Finance from HDFC, Bandhan Bank has defended the deal, contending that the acquisition has happened without any controlling premium. The deal brings one of the most efficiently run home finance business specifically targeting small home owners with a proven business model to Bandhan Bank, which itself targets small borrowers.
"Since both the companies are listed (Bandhan Bank and Gruh Finance), the exchange ratio was determined by exchange traded prices on which we have no control. That said, the deal gives us a control over the Gruh without having to pay a control premium, which normally happens in any such deals. As against that, Bandhan's offer was valued at a discount of 7-8% to Gruh's market price at that time," Bandhan Bank founder and managing director Chandra Shekhar Ghosh told DNA Money.
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Industry News
Startups look to cash in on ‘buy now & pay later’
Publication- The Economic Times
Edition- Online
Date- 07 March, 2019
As mobile wallets grapple with regulatory constraints, startups working around the buy-now-paylater model sense fresh opportunity by leveraging the ease of transaction they offer. Industry insiders said mobile wallets, which were originally positioned as a single-click checkout process for online commerce, can slowly give way to a tab system where consumers can make purchases in one go and pay in bulk later. They might not be as mass market as wallets, but from a checkout convenience factor, they could be better than wallets. Success rate for transactions on this mode are as high as 99%, which is one of the major selling points for ecommerce companies, according to the insiders. Nityanand Sharma, who cofounded Simpl, said that his product leverages the age-old ‘khata’ system, where the local grocer or the merchant maintained a notebook and the consumer would pay in bulk at the end of the month.
“The practice of keeping a ‘tab’ is an old tradition in India and permeates from large cities to small towns and villages. We want to build Simpl as a massmarket product in that fashion based on people’s trust,” he said. Sharma said that mobile wallets could hardly offer a single click checkout option because in more than 80% cases a consumer would need money to be added to the wallet during the purchase. A product like Simpl, on the other hand, offers the true single-click checkout option.
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Push to Digital India: SBI, Hitachi announce joint venture to boost digital payments
Publication- Zee Business
Edition- Online
Date- 07 March, 2019
In a bid to boost digital payments, the Indian banking major State Bank of India (SBI) and Hitachi Payment Services, a wholly owned subsidiary of Hitachi Ltd, announced the launch of merchant acquiring joint venture, SBI Payment Services Pvt. Ltd. (SBIPSPL) in Mumbai on Tuesday, for establishing a state-of-the-art digital payments platform for India and other countries in the region. This Joint Venture will facilitate expansion of the digital payments landscape in India by creating a state-of-the-art digital payments platform that will enable offering of innovative products to suit the requirement of all segment of merchants, leveraging the brand value and unparalleled distribution network of SBI and bringing Artificial Intelligence and other technological capabilities of Hitachi to SBI Payment Services Pvt Ltd (SBIPSPL).
Speaking on the development Rajnish Kumar, Chairman at State Bank of India told Zee Business Online in a written statement, “Through this Joint Venture, we aim to maintain our position as the top acquirer in the merchant digital payments space by providing technologically superior and seamless services to our customers. We will also utilise business analytics to develop strategies to penetrate into hitherto untouched Indian towns and cities through merchant centric digital payments solutions”.
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7 ways to protect yourself from credit, debit card frauds
Publication- India TV News
Edition- Online
Date- 07 March, 2019
With more and more people switching to online modes of making payments, the chances of credit card, debit card, ATM cards and banking frauds are on the rise. In what has become a regular phenomenon, most of the card frauds identify themselves as bank executives over the phone and convince card users to share confidential details about debit-card details in the name of providing efficient services. In a recent development, even the State Bank of India (SBI) has warned card users to stay alert in order to avoid card skimming frauds, which involves copying data of a credit, debit or ATM card illegally. In its mail to the customers, the lender warned cardholders of skimming frauds.
Card skimming frauds are still reported even after the magstripe ATM-cum-debit cards are now replaced with EMV chip cards. Though online frauds can be controlled by keeping your card and banking details confidential, there are other steps that can be followed to avoid falling prey to debit card frauds.
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