Fintech Revolution in India: Peer To Peer Lending Platforms
India is rapidly evolving as a Fintech products hub with the existence of almost 400 firms in the Fintech area.
The increasing collaboration between finance and technology has stimulated the vision of business people to come up with ground-breaking solutions, thereby diversifying the scope of India’s tech startups companies, according to a report by The National Association of Software and Services Companies (NASSCOM).
The chief operating officer of Freecharge, Govind Rajan stated: “At this point in time, we see a lot of momentum for digital payments and the government is taking initiatives to address the challenges. The biggest challenge is that acceptance of digital payment is very low in India. There are a lot of barriers in accepting conventional payment mechanism which is done through the point of sale machines. We believe that these barriers can be dispensed with digital payments. As a company, we have moved on from just being a deals oriented consumer internet company to being a wallet focused company with an aim to connect every merchant with the consumers and make payments frictionless.”
The NASSCOM report also stated that the overall Fintech software and services market is projected to be worth $8 billion and pegged to increase 1.7 times by 2020. Processing of payments and merchandising are the two significant emerging sectors in Indian Fin-tech landscape.
Freecharge, a digital wallet company that’s owned by Snapdeal, upgraded its “chat n pay” component by introducing Freecharge on WhatsApp. It lets consumers to WhatsApp ‘money’ to any of their contacts in less than 10 seconds. With the ‘chat n pay’ feature, traders and clienteles can connect over chat and make payments.
Paytm, a mobile wallet company raising a big round of funding, and Traxcn, a data analytics company, pegged different amounts into fintech and their investments had reached $1.2 billion.
Moreover, a startup company, BankBazaar had secured $60 million in a Series C round. Fintellix and Itzcash are two companies that had also raised certain sums in a Series C round. Fintellix is a compliance and financial analytics startup that had raised $15million while Itzcash is a payment startup providing cash card and remittance solution had raised $15 million. MobiKwik, also a wallet company, had raised $25 million in a Series B round and SME lending platform Capital Float has raised $25 million.
With the growing internet penetration in the country, more people have started buying things online using digital wallet services in making payments.
In India, the procreation of the connected devices has led to the development and growth of startups in the finance and technology sector. There is a vast demand to deliver mobility solutions.
Transaction platforms, mobile banking, and ATM & POS services are the emerging horizontals in the Fintech zone. Startups are more engrossed on payment processing and trading solutions.
Technology is altering the way people handle banking transactions. Several developing companies concentrate on building financial products, creating innovations that include peer-to-peer (P2P) lending platforms and making smoother transaction solutions a reality.
In the UK, we at Stratosphere peer to peer lending is currently undergoing changes and embracing the Fintech revolution and in due course our existing electronic platform using some of this technology will be available to help facilitate and improve our borrower and lending processes for better integration and protection for all.