Digital-Only Financial Products: Changing the Game for Marketers

Digital-only financial products are becoming more important for fintech innovation . They use real-time data, which is great for both customers and marketers.

Insights from CB Insight’s Fintech 250 Report for 2020

CB Insight made a list of the top 250 private fintech companies that use technology to change finance. These companies have raised a lot of money – around $49.2 billion since 2015. A company called Grab from Singapore raised the most money, about $9.7 billion.

Changes in How We Pay

In recent years, how people pay for things and do transactions online has changed a lot. Moneycontrol looked at the top five changes that made a big impact.

For example: QR codes made business payments easy, while IMPS and UPI made transferring money to friends and family smoother. Video KYC allowed people to open bank accounts from their homes.
Digital-Only Financial Products: Changing the Game for Marketers

Digital-only financial products are becoming more important. They use real-time data, which is great for both customers and marketers.

Insights from CB Insight’s Fintech 250 Report for 2020

CB Insight made a list of the top 250 private fintech companies that use technology to change finance. These companies have raised a lot of money – around $49.2 billion since 2015. A company called Grab from Singapore raised the most money, about $9.7 billion.

In recent years, how people pay for things and do transactions online has changed a lot. Moneycontrol looked at the top five changes that made a big impact.

For example: QR codes made business payments easy, while IMPS and UPI made transferring money to friends and family smoother. Video KYC allowed people to open bank accounts from their homes.

QR Codes: The Big Change in Digital Payments

QR codes, known as Quick Response Codes, are a big deal in digital payments. They were first made to track things by a Japanese company called Denso Corporation. But now, they’re used to figure out who gets paid in transactions. In India, Paytm started using QR codes a lot because they’re a cheap and easy way to pay without using cards.

At first, not many people used QR codes even though they were a big deal. But now, QR codes work with many different apps and can be used to pay anywhere. This is really helpful and makes shopping easier.

Contactless NFC Cards: Making Payments Easier

NFC cards are special cards that make payments easy without touching anything. Before, people had to swipe or put their cards into machines, but with NFC, you just hold your card close to the machine. This is great because it’s fast and safe.

NFC cards are also helping cards stay popular even though smartphone payments are popular too. This is a big change. Businesses that used machines for cards can now use NFC cards.

Because of COVID-19, more people started using NFC cards. Even the bank changed the rules. Before, if you paid with NFC, you had to put in your pin for big payments. Now, you don’t need to do that for payments up to Rs 5,000.

Instant Settlements: Get Your Money Right Away

Getting money quickly is important. In India, people can get money right away with things like IMPS, NEFT, and UPI. These are ways to send money online. Even big payments can happen quickly with things like RTGS.

This change also made it easy for people to send money to each other. Before, they had to use things like wallets, but now they can send money right to their bank accounts.

Also, companies like Google and others joined in. They use UPI for payments too. This is good because it means more people can use UPI for payments.

Video KYC: Opening Bank Accounts from Home

Video KYC is like showing your ID through a video call. Banks started using this because of COVID-19. It’s easy and safe. Banks like Kotak Mahindra and HDFC use video KYC.

Now, people can open bank accounts and do many things without going to the bank. Even getting a credit card is easy. Before, there was a limit for online ID checks, but with video KYC, there’s no limit.

Technology startups like IDfy, Signzy, and Veri5Digital are helping banks with video KYC. This is good because it makes things faster and easier.

AePS: Using Your Fingerprint to Pay

AePS is a special way to pay using your fingerprint. It’s great for people who don’t have cards or smartphones. Instead of a card, you use your fingerprint to pay.

AePS is helpful in rural areas where there are no ATMs. Small machines with fingerprint readers help people get money from their bank accounts.

AePS is also used for government programs where people get money from the government. They can use their fingerprint to get the money.

These changes are making money and payments easier for everyone.