Landmarks in fintech industry post demonetization

By Apurva Venkat Nov 3rd 2017

As we near the first anniversary of demonetization, here is a quick look at how the fintech sector has evolved in the past one year. 

  • First anniversary of demonetization

    First anniversary of demonetization

    At 8 pm on November 8th last year, Prime Minister Narendra Modi announced that Rs 500 and Rs 1000 notes would not be a legal tender post 12 midnight. The move was aimed at curbing terrorism and reducing black money. While the results of those are debatable, the last one year has surely seen a huge jump in the fintech sector.

  • Bharath Interface for Money (BHIM) app

    Bharath Interface for Money (BHIM) app

    On December 30 2016, National Payment Corporation of India (NPCI) launched the BHIM app. It allowed people to transfer money and make payments using Unified Payment Interface (UPI). Users can use their Aadhaar number to register and start using the app. As of July this year, BHIM has had more than 16 million downloads. 

  • BHIM-Aadhaar Pay

    BHIM-Aadhaar Pay

    In March 2017, BHIM-Aadhaar Pay was launched. The app allows transfer of money using biometric credentials. Merchants can use the app if they have a fingerprint scanner, essentially allowing those who do not have a phone also to pay in cashless mode.

  • RBI releases PPI guidelines

    RBI releases PPI guidelines

    With the increased use of digital payment modes such as wallet and UPI based models, the Reserve Bank of India put regulations in place for them. The guidelines released in March 2017 mandated Know Your Customer (KYC) for wallet players, as well as increased the capital the company needs to maintain. 

  • Digital Food Coupons

    Digital Food Coupons

    Moving forward with a clear aim to maximum digitization of the payment industry in the country, a mandate has been put forth, where food and employee coupons need to be digitized by March next year. This means Sodexo and restaurant coupons will also be digitized. 

  • Inter-operability among wallets

    Inter-operability among wallets

    In October 2017, the central bank revised the guidelines for wallet and PPI payments, allowing interoperability among wallets and banks. This could lead to a lot of consolidation in the sector. Also, new forms of payment or technology could come up, as innovation would now be key for the players to stay relevant.

  • Big players bet big investments

    Big players bet big investments

    Almost every investor is betting big money on the digital payment sector currently. A clear indication to this is Paytm’s funding round from Softbank. Paytm is now operating as Paytm Payments Bank. Amazon India is investing Rs 2000 crore into Amazon Pay, while Indian rival Flipkart has committed to invest $500 million into Phone Pe. Google started Google Tez in India and claims to have 30 million transactions in five weeks of launch.

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