The game of giants in the Indian startup circle and the buzzing section called Fintech is not something new. Although, this sector has been quite a lot acquainted in the western parts, it’s relatively little less in India. Yet, in India the Fintech startups are seeing growth at a hyper speed.
How Fintechs are using technology?
Fintech companies in India like Freecharge, Mobikwik, Paytm, Citrus Pay are using technology in a big way and redefining their marketing strategy. Thus, making their financial products, services and systems a lot more effective and methodical.
Well, what exactly these companies are trying to solve, and what is that revolutionary aspect they are looking forward to bring in the financial services space? Plenty of such questions like this come to our mind, right? And so here is the article where we tried to give you an introduction of this Fintech landscape in India and those unlimited opportunities that are most likely to be tapped by these companies.
Here is a brief explanation on different verticals focused by Fintechs, how they are classified and what these companies are doing here.
Innovation in payments. The change in the payments world is gaining rapid growth and strengthening the Financial tech companies to alter as to – how, when and where the payments are made. These companies are allowing both private businesses and individual companies to accept payments on the web. With the integration of easy payment option on both desktop and mobile offered by Fintech companies, payment processing and maintenance at the merchants’ side has become a little simpler. Also, the companies have directly linked bank accounts of payee with their respective individual accounts created at these payment services – this of course will eliminate fraudulent activities.
This m-wallet segment includes services that are related to money transfer, easy online shopping payment option, banking transactions, ticketing, easy recharge, bill payments, funds transfer and other value added services. The segment currently has the highest market share, which is almost close to 40%, of which much of the business is captured by money transfer services alone. And followed by one-click payment solutions in recharge, utility bills, bill payments and more. Here are some of the mobile wallet companies in India that are experiencing substantial growth in Indian market – Paytm, Mobikwik, Oxigen Wallet PayU Money, AliPay and more.
Crowd funding services
This segment is one of the most prominent ones in Fintech sector that allows budding companies to raise capital from the retail market. As the funding from various reputed venture capitalists has very less rate of conversion. So a lot of early-stage companies are opting for this service. Hence, the opportunity here is unlimited.
Banking infrastructure services
This service includes providing a wide range of solutions pertaining to infrastructural issues for various conventional banks, financial institutions, early-stage startups and more by using technology. These Fintech startups have given access to easy solution that has significantly improved the access to analytics, data, digitized data, information and other sources.
This space is changing by the day with new technologies being used. Fintech companies in India and their services are getting crowded without being affected by slow consumer adoption.