In­noviti has Same-day Trans­fers for Shop­keep­ers

The Economic Times - - Disruption: Startups & Tech - [email protected] times­

Bengaluru: Dig­i­tal pay­ments com­pany In­noviti is bet­ting on fa­cil­i­tat­ing same-day fund trans­fer to shop­keep­ers ac­cept­ing card pay­ments, to en­cour­age small-scale mer­chants in towns and ru­ral ar­eas to move away from cash. With the in­no­va­tion, the com­pany is set to take a small credit risk on the mer­chants us­ing In­noviti ter­mi­nals to ac­cept pay­ments. While card trans­ac­tions take at least a day or two to get the funds set­tled into the mer­chants’ bank ac­count, In­noviti will pay the mer­chant on the same day. “This will al­low the mer­chants to ac­cess the funds im­me­di­ately al­most sim­i­lar to cash, which will help them save on over­drafts that they have to ac­cept from banks,” said Ra­jeev Agrawal, chief ex­ec­u­tive of­fi­cer, In­noviti Pay­ments. “We are tak­ing the ex­po­sure on our books as of now, but will charge mer­chants a small ser­vice fee to start with.”

Hav­ing al­ready pi­loted the prod­uct with 700 mer­chants across cities like Jaipur, Am­bala, Jammu, Su­rat, Nag­pur and In­dore, Agrawal said that mer­chants have re­ported a jump of av­er­age 15% on trans­ac­tions hap­pen­ing dig­i­tally. “This share would jump 40% on week­ends and na­tional hol­i­days when banks re­main closed and set­tle­ment through nor­mal chan­nels get de­layed,” he said.

He added that mul­ti­ple mar­ket sur­veys had showed him that de­lay in set­tle­ments and push up of op­er­a­tional costs of the mer­chant were few of the main rea­sons they pre­ferred trans­ac­tions in cash.

Amount raised by firm in Se­ries-B round

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