Fintech Market Updates | Market shares | Lending Market | RedSeer

UPI has a strong market share in higher value use cases  Published on: Aug 2019 Wallets continue to remain strong in the recharge and SME merchants category. India’s tech-enabled/alternative lending market is being driven by multiple business models  Published on: Aug 2019 With increasing MSME digitization, tech-enabled lending is disrupting the status quo and expected.

The digital payments market in India has been on a rapid growth spree recently.  However, a closer look reveals that while the market has indeed grown to a significant size, a lot of growth currently comes from P2P payments, which are non-monetized currently. Growth in this category is driven by increased comfort of consumers to even pay for high value transactions using this mode (rent payment, school fees etc.). Yet players need to still figure out the optimal way ahead in terms of monetizing it.

Many of the P2P focused players are looking to overcome this challenge by- 1) aggressively adding to their online and offline merchant base and 2) by using cashback/discounts on recharge/bill payment transactions.  With the goal being to drive other merchant payments from the P2P-loving consumer base. This approach includes increased tie-ups with heavily used online platforms (Swiggy, Zomato, uber, BookMyShow etc.)  and also increase the offerings on electricity, gas bill payments, pre-paid and post-paid recharges.

Per RedSeer research on mobile wallet users across city tiers, differences emerge between the value propositions sought by wallet users in these geographies- users in Metros/Tier 1s use wallets for broadly similar reasons (as the close clustering of reasons indicate), while customers in smaller cities have widely varying reasons for wallet usage (as the wide dispersion in the reasons indicates).


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