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How Fintechs Are Propelling E-Commerce Growth in India

Fintechs have transformed the way we pay for our goods and services as it has introduced new payment methods.

In the financial service industry, the number of fintech firms operating in the financial service sector has received widespread attention from the media and industry observers.

Several fintech firms have made a mark in the market and are outlining new standards within financial services. Fintech firms share two features: a sharp focus on the customer proposition and a desire to apply technology in innovative ways. These are the core differentiators in a marketplace where product-focused financial services find it difficult to deliver personalized user experiences to consumers.

That said, consumers are willing to avail fintech services because propositions are convenient, simpler, transparent, and personalized. This has a domino effect across the industry as consumers expect these   characteristics in all financial products, irrespective of it being retail banking, insurance, and wealth management.

Many players have benefitted with fintech services. For instance, e-commerce industry has benefitted the most with the growth of fintech industry. According to Worldplay, India is on the cusp of becoming the second largest e-commerce player in the world in less than two decades.

With the growth of new payment solutions—digital wallets and Unified Payments Interface (UPI), the online payment users have grown by leaps and bounds. Several e-commerce players grew at a rapid rate due to the success of Cash on Delivery (COD) model, as large amount of cash is being circulated in India. At the same time, it can be said that due to the demonetarization drive, Indians began using electronic payments services.

The e-commerce industry has realized the benefits of offerings of seamless checkout experience by consumers while shopping online. Fintechs have cashed in on this opportunity as they cater to the needs of new age consumers. These are the following trends in the e-commerce space, where fintechs will act as a catalyst.

Seamless checkout experience

Today, consumers of the new generation wish to carry out payment transactions in the fastest possible way.  Putting address details, One Time Passwords (OTP), debit/credit cards will become a thing of past. Fintech innovations make things happen with the touch of a button. The emerging trend is that regular shoppers need not put in their address details and with just a click their order will be placed.

For instance, there is a ‘shop Now Pay Later’ option where the consumer is allowed to stack all the purchases and pay later, without the use of OTPs, CVVs, etc. This increases the speed during the checkout process, leading to success rate, and user experience. That said, fintechs offer easy credit online.

Credits to drive e-commerce market

In many quarters of the world, the access to credit has been a big hurdle for several people. In India, several transactions don’t go through due to insufficient funds. Lack of credit is a roadblock for e-commerce merchants.

Interestingly, point of sale credit drives the online users to e-commerce platform. Availing EMI payment options at the checkout interface and getting quick approvals will help consumers to complete their purchase process without fretting over cash crunch.

That said, credit is in the form of installments or fintech players offer an option called ‘Buy now Pay later’. Credit solutions help to increase conversion rates along with basket size for merchants, and allow consumers to increase their usage of online shopping.

Overall, smartphones and consumer durables are purchased in India with the help of EMI option. This trend will gain momentum with the rise of no cost EMI options and easier credit availability at POS.

Conclusion:

Fintech has transformed the way we do business and it has become a popular substitute for traditional forms of financial services. And choose fintech payment services to get easy credit online.

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