Challenging times ahead for digital payment companies: Kunal Shah, Freecharge
Superapps which offer multiple set of services will become popular because people tend to follow known brands
"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."
Further talking about Indian consumer behaviour being mistrusting in nature, Shah said that superapps which offer multiple set of services will become popular because people tend to follow known brands. In that scenario standalone payment companies could 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.