Pay­world ..............................................

Help­ing the un­der­banked to use the dig­i­tal is the aim:

Banking Frontiers - - Highlights - Mo­han@bank­ingfron­

Pay­world, an ag­gre­ga­tor, which of­fers mo­bile fi­nan­cial ser­vices like money trans­fer, recharges, bill pay­ments, in­sur­ance POS and GST fil­ings as well SME loans, espe­cially in the semi-ur­ban and ru­ral ar­eas, has now started of­fer­ing train­ing for the tar­get con­sumers and the re­tail­ers on us­ing the ser­vices. “This is in­tended to bring about a be­hav­ioral change among the con­sumers, espe­cially in the ru­ral ar­eas and this has in fact helped us as there is huge up­take of the fi­nan­cial ser­vices among this seg­ment of the pop­u­la­tion,” says Praveen Dhab­hai, COO of the com­pany. “We def­i­nitely feel that this will be the way for­ward for the en­tire sec­tor,” he has­tens to add.


Dhab­hai ex­plains that the com­pany, founded by Su­gal & Damani group of com­pa­nies in 2006, has built a for­mi­da­ble pres­ence in coun­try with over 190,000 ac­tive re­tail touch-points across 630 cities and 23 states pro­vid­ing ac­cess to the un­touched mar­ket seg­ments to the ser­vice providers. “In fact, we ag­gre­gate ba­sic bank­ing ser­vices like money re­mit­tance, mu­tual funds, loans, in­sur­ance, cash-out fa­cil­ity, do­mes­tic money re­mit­tance, AEPS and util­ity bill pay­ments, in ad­di­tion to other ser­vices such as mo­bile recharg­ing, bus/train/flight ticket book­ing from var­i­ous ser­vice providers on a sin­gle plat­form,” says he.

Pay­world, ac­cord­ing to Dhab­hai, fa­cil­i­tates a con­sumer to do trans­ac­tions by vis­it­ing re­tail touch points and mak­ing pay­ments ei­ther dig­i­tally or in cash. These re­tail points use Pay­world’s ap­pli­ca­tion which runs on desk­tops, lap­tops and mo­bile phones. Some 100 mil­lion trans­ac­tions are done us­ing this plat­form every year through the ac­tive re­tail touch points.


Dhab­hai says dig­i­tal and fi­nan­cial lit­er­acy is the ma­jor chal­lenge which the firm faces while cater­ing to this seg­ment of the pop­u­la­tion. Most of them are un­e­d­u­cated and are un­aware of ex­is­tence of dig­i­tal fa­cil­i­ties which can bring ease to their lives and to over­come that “we are train­ing the tar­get con­sumers and the re­tailer on us­ing the ser­vices.

How does he jus­tify the phi­los­o­phy that it prof­fers ‘Mak­ing Life Sim­ple’?

Says Dhab­hai: “Most of the fin­tech com­pa­nies and banks cater to the ur­ban pop­u­la­tion and the priv­i­leged sec­tions of the so­ci­ety, ig­nor­ing the poor or the un­e­d­u­cated. We sought to re­verse the trend and ini­tially catered to the mi­grant la­bor pop­u­la­tion, which needed to send money back home, as well as peo­ple who do not know how to use a debit card/in­ter­net bank­ing to carry out trans­ac­tions on­line. Our ser­vices are also in­tended for peo­ple who do not know how to buy a train ticket or pur­chase an in­sur­ance pol­icy on­line. Our mo­bile PoS de­vices are used by re­tail­ers to ac­cept pay­ments from their cus­tomers through credit/debit card for the goods/ser­vices sold to them. This de­vice also works as mini ATM, which means any­one can with­draw up to `2000 from any part­ner re­tail out­let by swip­ing their debit/ATM cards. The ul­tra-por­ta­ble de­vice can be used to en­able card ac­cep­tance at the cus­tomer’s doorstep as well. We are able to pro­vide all ba­sic and some com­plex fi­nan­cial ser­vices to the sec­tion of the pop­u­la­tion which was ig­nored by the gi­ants of the in­dus­try and we have a strong net­work of more than 190,000 re­tail­ers fo­cus­ing on pro­vid­ing these ser­vices to the ru­ral con­sumers on a daily ba­sis. That is how ‘we make life sim­ple’ for peo­ple in the re­mote ar­eas in the best pos­si­ble man­ner.”


He adds that Pay­world pro­vides the last mile con­nec­tiv­ity to the en­tire al­liance part­ners for the spe­cific tar­get seg­ment of con­sumers. “We wanted to fo­cus on peo­ple, who do not have the band­width and knowl­edge to use a debit card/in­ter­net bank­ing to fill money in his wal­let and then do a trans­ac­tion. We are tar­get­ing peo­ple who are oth­er­wise dif­fi­cult to reach out to. Banks con­tinue to fol­low tra­di­tional meth­ods of dis­tri­bu­tion and they find the de­liv­ery daunt­ing. The in­clu­sion of the last man in the pyra­mid - a veg­etable ven­dor or a vil­lage tai­lor or a cy­cle re­pair me­chanic - never hap­pened. We aimed to reach the un­tapped pop­u­la­tion,” says he.

Pay­world has have tied up with some of the renowned names in the in­dus­try, which in­clude YES Bank and RBL Bank for money re­mit­tances and AEPS, State Bank of In­dia and HDFC Bank for Cash Out / mPOS, NPCI for IMPS trans­ac­tions, YES Bank for UPI and lately with Reliance Mu­tual Fund for fi­nan­cial in­clu­sion of low-in­come house­holds at the bot­tom of the pyra­mid.


Dhab­hai says Pay­world has tied up with NBFC Cap­i­tal Float for its loan ser­vices. For mi­cro, small and medium en­ter­prises and re­tail­ers, the av­er­age loan ticket size is `30,000-`50,000 while for end-users, the av­er­age loan amount is below `10,000. “Well, the loan ser­vice which we of­fer is much has­sle free as the route is through re­tail­ers. They do ev­ery­thing for con­sumers and make their life sim­pler,” says he.

Pay­world has dig­i­tized al­most 100% of its ser­vices. It has a state-of-the-art ICT in­fra­struc­ture.

Praveen Dhab­hai points out that Pay­world tar­gets cus­tomers who are not con­ver­sant with dig­i­tal trans­ac­tions

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