The digital payments space is looking for explosion in terms of the number of participants but the companies in India must be more careful because the global tech giant contend for the market share those are not chasing the revenue and the profits
The digital payments space is seeing an explosion in terms of the number of participants, but Indian companies need to be careful because global tech giants vying for market share here are not chasing revenue but their Indian competitors cannot go that way thereby giving the global players the edge, said the founder of Freecharge Kunal Shah at the Digital Money 2.0 conference on Tuesday in Mumbai.
“The purchasing power of Indians is very low and multiple cos are vying for that share which by itself is a challenge,” said Shah. “In India payment margins are declining and I think even the biggest unicorns are not safe.”
Talking ahead about the Indian consumer behaviour those are mistrusting in nature. Shah also said that the superapps those offer multiple sets of services will become more popular as people tend to follow the well known brands more.
In this scenario the standalone payment companies would surely feel the pinch.
With the payment space seeing back to back regulatory changes like compulsory localisation of data, full KYC of its customer base Shah lamented that in many cases regulations are coming faster than innovations, which is not a healthy sign.
“In India I can select to do away with pesky calls with Do not Disturb but I cannot still do away with second factor authentication on my credit cards,” he said.
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