The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    Challenging times ahead for digital payment companies: Kunal Shah, Freecharge

    Synopsis

    Superapps which offer multiple set of services will become popular because people tend to follow known brands

    "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," said Kunal Shah.
    MUMBAI: 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 and profits but their Indian competitors cannot go that way thereby giving the global players the edge, said Kunal Shah the founder of Freecharge 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."

    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.
    Register for ETRise Top MSMEs Ranking Digital Felicitation Ceremony. Visit www.etrise.com/topmsmes

    Also Read

    The Economic Times