Innoviti has Same-day Transfers for Shopkeepers
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