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Tag: Digital Wallet

  • Kumar Mangalam Birla says financial services to grow 10-22% in 3-5 years

    Kumar Mangalam Birla says financial services to grow 10-22% in 3-5 years

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    India’s financial services sector is expected grow at a CAGR of 19-21 per cent in three-five years, according to Aditya Birla Capital Digital (ABCD) Chairman Kumar Mangalam Birla.

    “The financial services sector is expected to outpace GDP growth by 2X in the next five5 years. The three largest components —credit, investments and insurance — are expected to grow at a CAGR of 19-21 per cent, 20-22 per cent, and 10-12 per cent, respectively over the next three-five 3 to 5 years,” Birla said.

    Aditya Birla Capital, under its newly-launched D2C platform Aditya Birla Capital Digital (ABCD) has applied for a PPI (Prepaid Payment Instrument) licence from the Reserve Bank of India and is awaiting the regulatory go-ahead.

    “We have submitted the application,” said Pankaj Gadgil, MD & CEO of Aditya Birla Housing Finance Ltd and Group Head – Digital, Payment and Analytics at Aditya Birla Capital. He added that once the licence is received, the wallet will act as another touch point to enable ease of transactions for customers.

    PPIs are instruments that facilitate purchase of goods and services, conduct of financial services, enable remittance facilities, etc., against the value stored in instruments such as cards or wallets.

    Ease of use

    “The eventual plan is to route a bulk of transactions, at least UPI payments, through the wallet as that seems to be a preferred mode of choice for customers,” a senior official told businessline on the sidelines of an event to launch the ABCD mobile platform.

    Payments is the first touch point for most customers and usually sees the most volumes of transactions. It then makes sense to offer a comprehensive product to allow for most transactions within the ecosystem, both from the perspective of data collection and ease of use, the senior official added. 

    The ABCD platform offers 22 products and services across payments, investments, lending to insurance. The target audience is the ‘First Income to First Kid’ customer base, the company said.

    On subscription-based device strategy for soundboxes and EDC machines on the payments side, which are being rolled out by peers such as Bajaj Finance and Jio Financial, Gadgil said that the platform is currently in early stages and the payments suite will continue to evolve and grow, going ahead.

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  • Alternative payments drive 58% of e-commerce: Report

    Alternative payments drive 58% of e-commerce: Report

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    The e-commerce sector is witnessing a growth in the use of alternative payment methods, which accounted for nearly 58 per cent in 2023, according to a report by data and analytics company GlobalData. Mobile and digital wallets have eclipsed traditional payment modes, according to the report.

    Use of cash has fallen significantly, with an increase in preference for Amazon Pay, Google Pay and card payments, among other alternative options.

    Demonetisation effect

    “Alternative payments have gained huge traction in India since the demonetisation in 2016. The Covid-19 pandemic has accelerated this trend as both consumers and merchants preferred digital payments to avoid exposing themselves to disease vectors such as cash. The growing popularity of alternative payment brands among consumers and merchants also supported this trend,” said Ravi Sharma, Lead Banking and Payments Analyst at GlobalData.

    According to GlobalData’s 2023 Financial Services Consumer Survey, alternative payment solutions have consistently gained popularity in the last five years

    Payment cards are the second most popular e-commerce payment method in India, with a share of 25.7 per cent, with credit and charge being the preferred card types, accounting for 15.4 per cent in 2023. Cash, which is widely used for in-store payments in India, accounts for only 6.2 per cent share in online purchases.

    E-commerce growth

    The growth of India’s e-commerce market is supported by rising internet and smartphone penetration.

    India’s e-commerce market is projected to see a compound annual growth rate (CAGR) of 20.9 per cent, from $147.5 billion in 2024 to $315.5 billion in 2028. As per the Telecom Regulatory Authority of India, there were 881.3 million internet subscribers, up from 865.9 million in December 2022.

    According to e-commerce retailer Flipkart, the online shopper base in India is anticipated to increase to 400–450 million by 2027. In 2019, the company launched an initiative called Flipkart Samarth Programme to help small and medium enterprises sell their products online. As of December 2023, the programme has spread to 28 states across the country.

    “The uptrend in e-commerce sales in India is likely to continue over the next few years supported by the growing consumer preference, improving payment infrastructure, and growing popularity of alternative payment solutions,” Sharma added.

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  • Synchrony to expand payments offerings, operations in 2024 | Bank Automation News

    Synchrony to expand payments offerings, operations in 2024 | Bank Automation News

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    Synchrony Financial is expanding its distribution network through acquisition and additional product offerings in 2024.  The Stamford, Conn.-based company “continued to diversify our programs in 2023, broadening the utility of our offerings and extending our reach,” President and Chief Executive Brian Doubles said today during Synchrony’s fourth-quarter 2023 earnings call. Synchrony is working toward providing […]

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    Whitney McDonald

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  • Future of finance: The digital wallet | Bank Automation News

    Future of finance: The digital wallet | Bank Automation News

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    The digital wallet is on its way to becoming the focus of financial well-being for consumers, and financial institutions can lead the charge with AI on their side.  As it morphs into a financial tool beyond a vessel for transactions, the digital wallet is being shaped by the possibilities AI presents for predictive analytics, financial […]

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    Whitney McDonald

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  • Q&A with Jeri Scheel on digital solutions at Fiserv | Bank Automation News

    Q&A with Jeri Scheel on digital solutions at Fiserv | Bank Automation News

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    Technology service provider Fiserv continues to invest in its digital solutions including its digital wallet platform, CardHub, which allows real-time controls, transaction monitoring, digital wallet support and enables digital issuance of new, lost and stolen replacement debit and credit cards. 

    Fiserv clients include Microsoft and Google, as well as banks like Fort Lauderdale, Fla.-based Evermore Bank and Marlborough, Mass.-based Main Street Bank. The technology provider has a “variety of clients already using the digital issuance solutions and is adding more every day,” Jeri Scheel, senior director of product strategy for digital solutions at Fiserv, told Bank Automation News.

    Bank Automation News sat down with Scheel to discuss digital issuance, adoption of the digital wallet and CardHub enhancements for digital card issuance, and more. What follows is an edited version of that conversation. 

    Bank Automation News: What is the state of digital wallet adoption today? 

    Jeri Scheel: Digital wallets are one of those areas that [have] really taken off as a result of the pandemic. A recent study, 2023 Global Payments Report, found in the last eight years in North America, digital wallets have become the leading online payment method. Digital wallet growth has actually come at the expense, to a degree, of cash. Cash use is down to 16% usage globally, and it’s expected to go down to 10% by 2026. So, cash is not king in this aspect. 

    Digital cards really help a financial institution meet cardholders’ unmet needs. Clients don’t have to go to a branch to pick up a card, they don’t have to wait up to 10 days to get their plastic, they don’t even have to be home to get the card. This is useful, for example, in high-stress situations when a card is lost during travel or when a card has been compromised. The client benefits because they can receive a new card digitally, and the financial institution benefits because the cardholder can start using the card immediately. 

    BAN: What are the benefits of the shift to digital issuance? 

    JS: The immediate benefit for digital issuance for financial institutions is revenue. Digital issuance means transactions, it means loyalty, it means engagement. FIs can issue a card and clients can keep transacting while they wait for a plastic card. 

    Additionally, FIs can avoid rush charges. If a client is on vacation or a business trip and needs a card, instead of shipping them a card, they can have immediate access to make transactions. 

    The Fiserv digital issuance product launched in March with a total of six clients. 

    BAN: How does digital issuance work? 

    JS: Within the digital experience, you get a text message, you click on it, and the card gets added to your digital wallet. When the plastic card arrives, there’s nothing else you have to do. If you don’t have digital issuance, and you get your plastic card, you would have to physically put it in the digital wallet. Whereas with digital cards, you’ve done it already. The CVV automatically updates in your wallet, and you have the plastic card available for your card-present transactions. 

    BAN: What is Fiserv working on in 2023 within the digital issuance space? 

    JS: Since March, Fiserv has issued about 15,000 digital cards and client and cardholder feedback has been taken very seriously. Through feedback, Fiserv has determined that one area that needs attention is the delivery of digital cards through text message. 

    When a digital card is delivered via text, the URL can be lengthy and might even be mistaken for spam. Fiserv is looking to convert the digital card URL into something more easily recognizable by consumers. 

    Get ready for the Bank Automation Summit U.S. 2024 in Nashville on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.

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    Whitney McDonald

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  • Listen: U.S. regulations for open banking, digital wallets | Bank Automation News

    Listen: U.S. regulations for open banking, digital wallets | Bank Automation News

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    Digital wallet providers are creating customer-centric experiences as more clients desire open banking with control over their finances. In this episode of “The Buzz” podcast, Curve U.S. Chief Executive Amanda Orson discusses what consumers want at the center of their financial universe amid lacking U.S. open-banking regulations. Banks can get ahead of regulatory scrutiny by […]

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    Whitney McDonald

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  • How is RBI’s digital rupee different from cryptocurrency?

    How is RBI’s digital rupee different from cryptocurrency?

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    The Reserve Bank of India (RBI) made the announcement to launch the first pilot for the digital rupee today on December 1. With the launch, India has joined a handful of nations to launch its own blockchain currency that can underscore India’s pre-eminence in digitalised finance. To give some perspective, not even the United States has launched their Central Bank Digital Currency (CBDC) yet. 

    One of the most common questions asked is how digital rupee going to be similar to cryptocurrency. Well, the similarity between CBDC and cryptocurrency ends at the fact that they both have blockchain as the underlying technology. Therefore, with blockchain as a base, all transactions can be tracked on the ledger with no ability to modify the past – leading to transparency and easy bookkeeping. Hence, CBDC will be a technology-led currency of the RBI with control on the supply as well as usage side. It won’t be decentralized the way cryptocurrencies are. 

    The one stark difference between the two is while there is no regulator for cryptocurrency, digital rupee is a legal tender with RBI as the regulator. Here transactions may be a little more anonymous than other digital transactions, as money moves from wallet to wallet after a one-time deduction from the bank account, but still they can be tracked with RBI as the regulator. 

    “Since CBDC will be issued by the Central Bank like a digital form of currency notes and distributed by banks( distribution nodes) underline technology ( blockchain like tech stack) will record and maintain a transaction trail like the way it is done in banks core system. In case of CBDC transaction trail right from the issuance will be available within CBDC nodes, since the distribution of the CBDC will be by REs only, it would be offered to Kyced users in some cases may be non-Kyced users,” says Vishwas Patel, Director, Infibeam Avenues Ltd and Chairman, Payments Council Of India.

    Patel adds, “It’s currency in digital token form on a blockchain. With a retail CBDC, you should be able to transact without any bank involved (like physical cash). It will have the same denominations like physical cash. It’s quite different from UPI which is an actual debit from your bank account. CBDC is a currency, a legal tender guaranteed by RBI.”

    Moreover, unlike cryptocurrency, you will be able to make payments and transact with digital rupee through a digital wallet offered by the participating banks and stored on mobile phones. “A successful pilot and by extension, a full rollout of the digital rupee is expected to boost the reach of payment and financial needs of a wider category of users while ensuring transparency and low operational cost, and in this regard, it is encouraging to witness RBI’s support for innovation in creating a world-class, future-ready digital ecosystem,” says  Jaya Vaidhyanathan, CEO, BCT Digital.

    Finally, digital rupee is the electronic form of cash, which will be used for buying and selling goods and services. Unlike cryptos you cannot treat it as an asset class and invest in it. 

    Also Read: Digital Rupee pilot today: Features, where and how it will be rolled out; all you need to know

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  • How Your Identity Is Tied to Your Mental Health — and How Innovative Technology Can Help Protect Both

    How Your Identity Is Tied to Your Mental Health — and How Innovative Technology Can Help Protect Both

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    Opinions expressed by Entrepreneur contributors are their own.

    The past few years have been devastating for mental health. We can blame it on social media, Covid-19, war, climate change fears or even a growing dependency on dangerous and over-prescribed pharmaceuticals — the fact remains that mental health around the globe is in the midst of a precipitous decline. People around the world in ever-growing numbers are struggling with anxiety, depression, stress and sleeplessness, all of which can impact mental acuity and focus.

    When our mental health suffers, our identity health suffers. We can define “identity health” as a person’s overall state relating to their sense of self and having a defined purpose for their life. Any deficiencies in our mental health detract from our focus, attention and confidence — critical factors of our identity health. But just as technology has arguably worsened some of these problems, it can also hold the solution.

    Related: Identity is Your Birthright, and It Must Be Protected

    Mental health in an app

    Several companies are developing ways to monitor and treat mental health through digital mediums. For example, Dana Brain Vital, a U.S.-based software company, is developing a cognitive testing platform to help doctors and patients capture and treat cognitive vital signs in clinical testing. It’s designed for mobile platforms, which means patients and their healthcare providers can flexibly administer it to suit each patient’s unique circumstances.

    VR-EVAL is another company doing yeoman’s work in telehealth delivery. It uses cutting-edge virtual reality technology to help victims of human trafficking share their experiences and receive care for their trauma in a safe place. Solutions like this provide a safe and comfortable way for trauma survivors worldwide to receive targeted care from professionals without feeling judgment or pressure from others. It’s another tool in helping people improve their own mental health.

    The tools themselves aren’t the only breakthroughs. Online identity management is a crucial component of this move to telehealth. With intimate personal medical details out in the ether, we must ensure the entire process is secure. This is where digital identity wallets factor in; such technologies can ensure that personal information is safe, accessible and relevant only to the patient and their provider. Such developments are part of the innovations that will completely revolutionize how people manage their identity health.

    Innovations for your identity

    Innovations in identity health aren’t limited solely to mental health apps, although this is an essential component. Online identity health and management can also cause mental distress as people worry about how much of their data is susceptible to thievery or how secure their online transactions are. The digital world has brought many incredible benefits to humanity, but it’s also brought significant stressors. We have to find innovative ways to overcome these stressors so people can once again feel whole in their identities.

    In reality, we’re after our authentic identities — more than just a collation of personal data that makes up our identity in a “legal” sense. Our authentic identity is much more than our work history, identification or credit score. It’s who we are at our core: our thoughts, feelings, sense of purpose, and yes, our mental health. Identity innovation solutions, when at their most effective, can aid us in our journey to gain clarity on who we are, which can multiply our impact and influence on the world around us.

    Related: Cybersecurity Trends and Drivers in 2022

    Investing in ourselves

    The more we can define and gain confidence in our sense of self, the more our identity becomes our foundation for growth and innovation in who we are. That, in turn, helps drive self-investment, where we take those insights (that innovation has helped us discover) and use them to help improve our own self-care in mind, spirit and body. With innovation, we can take control of our own health and well-being like never before.

    All of these technologies in telehealth, identity management and others create an opportunity for everyone on the planet to have access to help wherever they are. Improving everyone’s mental health provides a solid foundation for (and can even accelerate) enhancing our identity health. Imagine the problems we could solve and the healthy communities we could create if we each had a greater capacity to invest more time in our identities.

    Related: 5 Ways to Protect Your Mental Health

    As humans, we need others to challenge us, care for us and inspire us. Unfortunately, our move to a digital world has left many feeling isolated from the people around them for too long. Instead, we need to shift the paradigm. Our identity is tied to our mental health and sense of self, and innovation helps us to discover more about ourselves. These tools have the potential to improve quality of life, but it has to be done in connection with others. So, stay connected and empathetic to those around you, and buckle up for the innovation and change that will lift humanity.

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    Jeff Jani

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