Fintech - A $10Tn opportunity in India

Which app do you open to scan a QR?

Fintech in India is flourishing with so many tailwinds-

1. Changed User behaviour - To change user, one needs to build category education, drive incentives and acquire customers to adopt the new bahaviour. This herculean task got done partially thanks to demonetization earlier and then covid. So, sight of a QR on a thela (handridden cart) is not an unusual sight anymore.
> #Digital txns now make up ~40% of all value of transactions, up by 33% in FY22 over 21.

2. Increasing Smartphones penetration - 62% penetration and increased internet usage ( 74 cr smartphones out of 118 cr phones) is clearly the enabler. Govt now is even thinking low internet BW transactions and even offline payment platform for feature phones. This is bound to go up.

3. Realised convenience - This one is killer. Given the charges and fees are nil for users and merchants at least on #UPI (which is the biggest of them - 46%), both parties are happy to use this convenience offered to them. With time stickiness will ensure that difficult things like insurance, loans etc can be availed via apps itself...obviously thats the goal for fintech companies.

#Fintech is estimated to $3Tn currently as per a recent report and supposed to more than triple to $10Tn by 2026.

However, most apps are trying to be the ONE app while for consumer its just a scan app. So we have seen incentivization, Gamification and what not.

In long run, it will be about intuitive UI/UX that can get things done in seconds for consumers. And even solve a problem of say keeping track of cashback, reversals, etc.

For merchants also is about getting one app that can help maintain a proper ledger, no delayed status confirmations, less failures etc. Frequent dialoguing, helpdesk, education on problem solving are other facets of thier experience and thus retention ...And yes, larger the merchant penetration of any app, better the chances of having a larger pie of future!

Otherwise, #consumer doesnt give a damn to which app to open and scan the QR with? Do you? Thoughts?

#CX