FinTech (Financial Technology) are disrupting the traditional finance practices with better and efficient innovative technologies. As the financial sector explores opportunities to adopt this shift, it is imperative to understand the potential of such innovations and business models. Fintech is key for financial transactions in near future. However, Firms had to innovate with technology, but with business models not just in India. Only way to lure the consumer is to try to help them in purchase. While delivery has been one tweak never used from the credit card driven economies, finance in e commerce is primed for another step in the evolution of payment. Two investments produced by Amazon in India in times that are latest point to what’s next. Amazon led a 82 crore investment in Mumbai based insurance technology company Acko General Insurance Ltd the next month. Slowly, but Amazon which has invested as well is laying the foundations for building an ecosystem of products and services its payments method, around Amazon Pay.
Since it could take on Paytm coupled with its partnerships with millions of retailers, Amazon is widening the range of alternatives on Amazon Pay. Amazon has partnered with film ticketing merchants in areas like food shipping, bus and travel. That type of our play, where they looked at the heart customer problem and working backward from it to build an adventure that’s trusted and suitable and might assist us replace money, Mahendra Nerurkar, mind of Amazon Purchase India, said in a latest interview to Forbes India. For the time being, the partnerships are usually about clients having the ability to utilize their Amazon Pay equilibrium amounts to, say, book movie tickets through BookMyShow, purchase a pizza in Dominos or pay bills at ACT Fibernet.
The latter two are one of the most latest retailers tying up to take Amazon Pay and the number of such retailers has gone more than a thousand, Nerurkar says. In future, expect Amazon Pay becoming a much larger platform for a combination of retail and personal finance. For example, if a client used a loan from Capital Float to purchase something on Amazon, it might be loaded directly on to her Amazon Pay balance. You’re in the right direction in believing that, said an individual comfortable with Amazons partnership with Capital Float. Extend that to Acko or BankBazaar or other investments Amazon has made, and its own easy to see that the amount of all such ventures will be a platform which offers the 3 things which every Amazon executive is likely to obsess about choice, advantage and superior experience. Nerurkar says: If you had to look at specialised startups, they’re helping us determine how to construct the right consumer solutions to extend charge to the right type of customers. And there’s a lot of innovation happening on each one of the 3 fronts simplifying payments, extending credit and inducing consumers to become habituated to on-line commerce, he added. The partnerships also assist both Amazon and start-up companies to slice and dice their client segments, and tailor products.
Thus, taking into consideration the need of financial inclusion in remote areas of India, Fintech can play major role in meeting the desired result. As technological awareness is increasing day by day, reaching remote areas are now that much easier to meet their respective financial needs.
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About Author:- CA Udit Aggarwal (FCA, LLB, BCOM) is Chartered Accountant and Legal Consultant, academically he is highly qualified and have gone through various certifications. He extensively speaks and writes on finance, taxation and legal matters. The author can be reached at email@example.com