Indian Financial

System CIA 1.2

Technological innovations and financial products

Submitted to- Vanishree

BY-
Sashwat Agarwal (2020230)
Lavya Jain (2020269)
Tarun Rathi (2020272)
M.S. Sai Vishal (2020289)

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TABLE OF CONTENTS

SL TOPIC PAGE
NO. NO.
1. Introduction 3
2. Cred 4-5
3. Funding circle 6-7
4. PayPal 8-9
5. Robinhood Markets 10-11
6. Whatspp pay 12-13
7. Metro cards 14-15
8. Barclays’ voice banking 16-17
9. BharatPe 18-19
10. Paytm 20-22
11. Gpay 23-25

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INTRODUCTION

In the last two decades, India's financial industry has experienced a fundamental
transformation. Technology's function has evolved from being merely a component in a
company's strategic framework to driving, influencing, and reinventing business models
and income streams. While FinTech's digital interface has advanced by leaps and
bounds, cash continues to play an equal role in bridging the traditional vs. digital gap.

In recent years, the Indian Fintech industry has been on an increasing trend. According
to Niti Aayog, the burgeoning digital payments industry is expected to rise to $1 trillion1
by 2023, making fintech a major issue.

The rise of digital commerce, as well as advancements in payment technology such as

artificial intelligence (AI), Blockchain, the Internet of Things (IoT), and real-time
payments, as well as the introduction of mobile Point of Sale (POS) devices and QR
codes, have reduced the cost of acceptance infrastructure while also contributing to its
expansion. The technologically-advanced The Aadhar programme is the most
significant disruptor in the implementation of financial inclusion since it allows for
targeted transfers of government benefits.

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CRED

CRED is a members-only credit card management and bill-paying application that rewards
customers for paying their credit card bills. CRED is regarded as India's second-fastest-
growing unicorn start-up.

Purpose – The app allows the users to make credit card payments. The users are rewarded for
making timely bill payments through the app.

Name – CRED

Owner – Dreamplug Technologies Private Limited

Founder Details – Founded by Kunal Shah. Born on 20th May 1983 in Mumbai. He is an
Entrepreneur and a Venture Capitalist by profession. CRED was founded in the year 2018.

Technology Applied and tools used – The App makes use of 19 technology services and
products which includes Google Analytics, HTML5 and jQuery

Mode of Use – CRED is a mobile app that is easily available on both, Android and iOS devices.

Advantages –

 CRED coins can be utilised to claim exclusive rewards

 Allows to set payment reminders which ensures that users don’t miss on their due dates
 CRED Protect allows the users to keep track of their CREDit limit.
 Data and transactions are safe and encrypted.
 Users can satisfy their taste with unique products at CRED

Disadvantages –

 The App, sometimes fails to process the payments on time

 Lacks in modes of communication – they make use of only an email id to address all
customer grievances

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  They end up having all our information, right from our card number to our monthly
bank statements and hence, increases the risk of information being hacked.

Competitor Details –

 Paytm – Founded in 2010 by Vijay Shekhar Sharma headquartered in Noida

 PhonePe – Founded in 2015 by Sameer Nigam headquartered in Bangalore
 MobiKwik – Founded in 2009 by Bipin Preet Singh headquartered in Gurgaon
 Bill Desk – Founded in 2000 by M.N Srinivasu, Ajay Kaushal and Karthik Ganapathy
headquartered in Gurgaon

Capital Support / Sponsors – Raised funds from Sequoia Capital (India), DST Global, Tiger
Global, and many more.

Marketing – For three years from 2020-22, CRED became the official sponsor for IPL.

RBI Approved – The CRED App works under the requirements of NPCI (National Payments
Corporation of India). The RBI has approved NPCI as an authorised payment system.

References – https://CRED.club/

https://www.crunchbase.com/organization/CRED-6ab0/people

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Funding Circle

Funding Circle is a peer-to-peer lending forum that allows the public to offer loans to small
and medium-sized enterprises directly.

Purpose – Works with the aim of helping the small businesses get their funding.

Name – Funding Circle

Owner – Funding Circle Holdings plc

Founder Details – Founded by Samir Desai, James Meekings and Andrew Mullinger in
August, 2010. It is headquartered in London.

Technology Applied and tools used – Instant Decision Lending Platform, Clojure, AWS,
Apache Kafka and Kubernetes

Mode of Use – Investors make use of their online accounts to lend to businesses looking for
funds.

Advantages –

 No minimum requirement of revenue

 Cash is available within 3 business days
 Rates of interest are competitive among the lenders online
 No additional fees or prepayment penalties
 Helps to build and improve business credit

Disadvantages –

 High eligibility requirements and hence not easily available for newer businesses
 Personal guarantees as well as business commitments are required.
 Origination fees are high
 On late monthly payments, a penalty of 5% is assessed
 Does not provide factoring services for accounts receivables.

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Competitor Details –

 iwoca – Founded in 2011 by Christoph Rieche and James Dear headquartered in

London
 LendingClub – Founded in 2006 by Renaud Laplanche headquartered in California,
U.S
 Assetz capital – Founded in 2012 by Stuart Law headquartered in Manchester, England
 Zopa – Founded in 2005 by Richard Duvall, James Alexander, Giles Andrews, David
Nicholson and Tim Parlett headquartered in United Kingdom

Investors – Waterfall Asset Management, Accel and DST Global

Acquisitions – Zencap, LeapPay and Endurance Lending Network

Government Support – Funding Circle is the first lending platform accredited by the
Government-owned British Business Bank to provide business loans of £25,001 to £350,000
under the Recovery Loan Scheme (RLS). The government has provided unprecedented support
for small businesses across the country throughout the pandemic and has introduced various
loan schemes. Coronavirus Business Interruption Loan Scheme, Bounce Back Loan Scheme
and Coronavirus Large Business Interruption Loan Scheme are some of the loan schemes
introduced by the Government.

References – https://www.fundingcircle.com/

https://www.crunchbase.com/organization/funding-circle/company_financials

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PayPal is an online payment service that allows people to send money to one other.
Customers can sign up for a PayPal account that is linked to their credit card or checking
account.

Purpose – PayPal’s purpose is to enable users to perform financial transactions using

electronic devices by using particular encryption software. It has grown in popularity
around the world and is showing no signs of slowing down.

Name – PayPal

Owner – bought by eBay in 2002

Founders – Ken Howery, Luke Nosek, Max Levchin, Peter Theil, Yu Pan, Elon Musk.

Technology applied - PayPal, at its most basic level, uses a digital technology layer to
enable more smooth Automated Clearing House (ACH) transfers between bank accounts,
considerably reducing the friction of online and P2P payments. PayPal technology allows
online merchants to accept payments from customers who do not have a PayPal account.

Tools used in PayPal – chartmogul, databox, chargebee, recurly, cheddar etc

Mode of use – PayPal has many different payment methods available that gives its users
options that can be convenient for them. PayPal is a app that can be used in both android
and IOS devices.

Advantages –

• People who do not have access to a credit card will benefit from having a PayPal
account. People can link their PayPal accounts to their bank accounts, allowing
them to buy things online, including books.

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 • Using PayPal boosts account holders' financial security. Sellers are not given the
account holder's bank account or credit card data. They simply share their PayPal
account information.
• PayPal account customers can also use their accounts to buy products in different
currencies, such as books. This simplifies and streamlines international purchases.

Disadvantages –

• If PayPal feels account holders are violating the terms of service, it may limit the
amount of money they may send or withdraw from their account.
• PayPal may also suspend or limit accounts if suspicious activity is detected.
• The monies moved from PayPal to bank accounts are not instantly available to
account users. PayPal will take some time to release the cash.

Competitors details –

• Skrill Limited - was founded in the year 2000 and is headquartered at 25 Canada
Square in London, United Kingdom.
• WePay - was formed in Boston in the year 2008, with its headquarters in
California.
• Dwolla - is a US-based firm with headquarters in Des Moines, Iowa, that was
founded in 2007.

Target market - PayPal’s core target market consists of both professionals and
merchants who provide services and accept payments online. Paypal is used by a huge
group of professionals, including freelancers from all over the world, to send and
receive payments from other countries.

Research references - PayPal Analytics: Top 11 Tools Of 2021 - Putler

Fin - How does PayPal work?, Wikipedia

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 Robinhood Markets, Inc. is an American financial services firm based in Menlo Park,
California. It is best known for pioneering commission-free stock and exchange-
traded fund transactions through a mobile app that was launched in March 2015.

Purpose - Robinhood's purpose is to make finance more accessible to everyone. We

believe that everyone should have access to the financial markets, so we designed
Robinhood from the ground up to make investing simple, approachable, and
understandable for both new and seasoned investors.

Name – Robinhood markets

Owner – the founders of this service are the owner.

Founders’ details - Vladimir Tenev: born in 1986, Bulgarian American entrepreneur

and CEO of Robinhood. Baiju Bhatt: born in 1984, American entrepreneur and co-
founder of Robinhood.

Technology applied – Robinhood uses 21 technology products and services

including HTML5, Google Analytics, and Google Fonts, according to G2 stack.

Tools used – recently launched an IPO feature, market news, top movers, earning
calendars etc.

Mode of use - It accomplishes this by attracting a large number of users with

incentives like "free" stocks and commission-free trading, retaining those users and
encouraging trading activity through behavioural triggers in the app, and earning
razor-thin margins on those trades through a process known as payment for order flow
(PFOF).

Advantages –

• Commission-free: Robinhood has a reputation for being one of the first

trading platforms to offer commission-free stocks.

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 • Easy-to-navigate: Robinhood's platform is said to be intuitive, user-friendly,
and simple to use by many investors.
• Deposits are made instantly: Account users with a Robinhood Instant account
get immediate access to deposits of up to $1,000.

Disadvantages –

• Unreliable: In the year 2020, Robinhood experienced a number of service

interruptions.
• There is a scarcity of research: With the platform's limited tools, day traders
will be unable to do in-depth research or stock analysis.
• Support is scarce: Email is the sole way to contact customer service.
• Restrictions on margins: To trade using leverage, you'll need at least $25,000
in your Instant or Gold account, which is a method used by many day traders.
The equity requirement of Robinhood makes it difficult for day traders to get
started.

Competitors details –

eToro – founded in 2007, type: private, locations – Sydney, Hoboken and Limassol

River financial – founded in 2019, type: private, locations – San Francisco, US

E-trade – founded in 1982, type: subsidiary, locations – Las Vegas, Roseville,

Arlington

Target market - The company's target market is young individuals who are new to
investing and are attracted to the app by advertisements that use words like "free" and
"democratisation."

Research references - Robinhood Review 2021 - Pros and Cons Uncovered

Top Robinhood Competitors and Alternatives | Craft.co, Wikipedia.

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 WhatsApp Pay

WhatsApp Pay is an in-chat payment service that allows users to send money to their
contacts over WhatsApp. It's a UPI-based money transfer service that lets you send
and receive money.

Purpose - This safe payment method makes sending money as simple as sending a
text message. People can safely send money to a family member or split the cost of
goods without having to exchange currency or visit a local bank.

Name – WhatsApp pay

Owner – Facebook

Senior head executive – Manesh Mahatme

Technology and tools used - The payment system uses the Unified Payments Interface
(UPI) technique, which allows fund transfers to be made without the need for
recipients' bank account numbers or IFSC codes.

Mode of use – it can be accessed through the WhatsApp app

Advantages –

• Pay anyone on your WhatsApp contact list from anywhere at any time.
• The ‘pay' tool is simple to use and allows transferring dollars as easy as
sending a photo or a message.
• Once the funds have been transferred, the payee/beneficiary will see a
payment notification in their chat window.
• Finally, having a payment method on WhatsApp is beneficial to small
businesses.

Disadvantages –

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 • The service is limited to peer-to-peer transactions only. WhatsApp Payments
will not suffice for users who rely on digital transactions for a variety of
reasons.
• On WhatsApp, there are fraudulent transactions. The messaging service has
long been a sanctuary for spam letters, and the payments option might now be
used to defraud unsuspecting customers.
• WhatsApp Payments is limited due to the lack of functionality such as bill
payment.

Competitors details –

Google pay – developed by google in September 11 2015, head office situated in US.

Paytm – founded in 2010, head quartered in Noida, Uttar Pradesh.

PhonePe – founded in 2015, head quarters in Bangalore, Karnataka

Target market – the targeted audience is already there on WhatsApp. Because the app
has a global userbase, it's a great place to advertise to a wide range of demographics,
whether you're targeting Americans or people all over the world.

Research references - WhatsApp Pay feature now rolling out to more Indian users -
Technology News

(4) What are the disadvantages of UPI payments via WhatsApp Pay? - Quora

Wikipedia

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Metro cards

The MetroCard is a magnetic stripe card that is used to pay for public transportation in New
York City. The MTA's Revenue Control, MetroCard Sales section, which is part of the
Office of the Executive Vice President, is in charge of the MetroCard.

Purpose: The card would take the place of the tokens that were used to pay for transportation
fares at the time and to upgrade the transit system's technology and alleviate the
inconvenience of carrying and collecting tokens

Founder details: The metro cards were founded by Raymond deKozan in the year 1993.

Technology applied and Tools used: The materials used in making the metro cards is
polyester, and the technology used is the magnetic stripe and the ten-digit serial number to
carry out the transactions.

Mode of use: Metro card vending machines.

Advantages:

• Cashless transaction
• it reduces the load to carry tokens and standing in long queues.
• unlimited swipes

Disadvantages:

• in case the card is misplaced, it can be wrongly used.

• destruction of the metro card vending machines causing a loss of millions
• unauthorized sale of transportation services.

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Competitor details: OMLY will soon take the place of metro cards. Customers pay for their
fares using a contactless payment system that involves waving or tapping credit or debit
bank cards, cellphones, or MTA-issued contactless smart cards.

Capital Support/Sponsor: Metropolitan Transportation Authority.

Research references:

https://new.mta.info/fares

https://omny.info/

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Barclay’s voice banking

In its more than 300-years of existence, Barclays has had a run of firsts to its credit, from
funding the world's first industrial steam railway in 1819 to introducing the world's first
automated teller machine in 1967.

Purpose: Customers' voices will be recorded and stored by the bank under the new
technology. Then, when customers phone to get access to their account, they have a brief
chat with a representative.

Founder details: Barclays began as a goldsmith banker in Lombard Street, London, on

November 17, 1690, when John Freame, a Quaker, and Thomas Gould began business as
goldsmith bankers.

Technology applied and tools used: Nuance Free Speech voice biometrics technology.
Few other software tools used in making the app are eThority, Liferay, ManageEngine and
many more.

Mode of use: Phone calls. They also have an app built which is easily accessible.

Advantages:

• This technology is not only faster than giving password but it is also a more secure
barrier from fraud.
• People will be able to meet their banking requirements over a secured phone call.
• If a customer forgets his/her password they can take the advantage of the voice
banking system for verification and authentication.

Disadvantages:

• The voice biometrics being used at Barclay might be dependable, as far as authentic
clients' voiceprints can be coordinated to their put away voiceprint.

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 • Any person can pick up the call made to authenticated customers and make a criminal
offence.
• Attacks such as synthetic speech attacks, brute-force attacks, and recording attacks
could happen.

Competitor details: Banco Santander- Banco Santander is an organization that gives

different retail and business banking items and administrations.

Bank of America- is a worldwide banking and monetary administrations enterprise which

offers banking, contributing, and other monetary and hazard the board administrations to
people, SMBs, and huge partnerships.

Capital Support/Sponsor: Barclay’s Bank (parent company), Eagle Capital Management,

Northern Trust Corp. and many more.

References:

https://www.computerweekly.com/news/450301604/Barclays-to-use-voice-recognition-
for-phone-banking

https://home.barclays/who-we-are/our-history/

https://www.barclays.co.uk/ways-to-bank/telephone-banking/

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BharatPe

BharatPe Merchant Software is a QR code-based offline payment app for Indian merchants.
It is a FinTech firm that assists merchants in accepting free payments from customers.

Purpose: They engage retailers to acknowledge installments from any installment

application for free. They have made installments acknowledgment totally free for all
organizations with no exchange charges by any means. We seek to be the one-stop business
utility application for disconnected vendors in India.

Founder details: This app was founded in the year 2018 by Ashneer Grover, Bhavik
Coladiya and Shashvat Nakrani.

Technology applied and tools used: According to BuiltWith, BharatPe is actively

implementing 52 technologies on its website. Viewport Meta, iPhone / Mobile Compatible,
and SPF are among them.

Mode of use: BharatPe is a mobile app which is available on both Android and iOS devices.
It is easily accessible.

Advantages:

• There are no expenses for wallet-to-wallet transfers; however, UPI may have few
expenses.
• No cost transactions
• It is a fast mode of carrying out transaction for merchants.
• BharatPe transfers your money directly into your bank accounts.

Disadvantages:

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 • There is a higher risk for scams.
• Users might enter wrong details regarding the transactions leading to loss of money.
• Sometimes the app might not respond, delaying the transaction process.

Competitor details: Few competitors of BharatPe are MobikWik- MobiKwik is a major

competitor of BharatPe. MobiKwik is a private corporation based in Gurugram, Haryana,
that was created in 2009. MobiKwik is a Fintech company. Paytm- Paytm was founded in
2010 and is headquartered in Noida, Uttar Pradesh. Paytm is a financial technology
company.

Capital Support/Sponsor: Beenext, Sequoia, Rabit Capital, Steadview Capital

Management, and few others are the main supports and sponsors of BharatPe.

References:

https://bharatpe.com/about

https://www.owler.com/company/bharatpe

https://www.crunchbase.com/organization/bharatpe/technology

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PAYTM

Paytm is one of the largest digital payments platforms, allows you to transfer cash instantly to
anyone at zero cost using the Paytm Wallet. Paytm is an acronym for "Pay Through Mobile."
By using your mobile phone number and email ID, you can create your own Paytm account
and enjoy its services.

Purpose – The app allows the user to transfer cash into the integrated wallet via online banking,
debit cards, and credit cards, or even by depositing cash via select banks and partners.

Name – Paytm

Owner – One97 Communications

Founder Details – Vijay Shekhar Sharma (born 1978) is an Indian billionaire businessman. e
was ranked as India's youngest billionaire in 2017 by Forbes with a net worth of $1.3 billion.

Technology Applied and tools used – Paytm used these web technologies like Javascript is a
light weight, object-oriented,cross platform scripting language. Client side programming
language, Markup language, Character Encoding, Zendesk, etc

Mode of Use – Paytm is a mobile app that is easily available on both, Android and iOS devices.

Advantages –

• Easy to accept payment through multiple payment sources (UPI, Wallet etc.)
• High security of payments
• Industry high success rate (99.99% payment gateway uptime)
• Easy checkout with saved cards
• Real-time bank settlements
• Business growth insights on Paytm Merchant Dashboard

Disadvantages –

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 • You may lose your available Paytm cash if you losses you mobile, they don’t have
authentication using email id,
• Sometimes the application doesn’t work properly as it comes with lots of services
combined in a single app.
• Not available on at least all popular websites like Amazon/Flipkart right now.

Competitor Details –

• Freecharge- Founded in 2010 by Kunal Shah and Sandeep Tandon in Gurgaon.

• PhonePe – Founded in 2015 by Sameer Nigam headquartered in Bangalore
• MobiKwik – Founded in 2009 by Bipin Preet Singh headquartered in Gurgaon
• Bill Desk – Founded in 2000 by M.N Srinivasu, Ajay Kaushal and Karthik
Ganapathy headquartered in Gurgaon

Capital Support / Sponsors –

• In October 2011, Sapphire Ventures invested $10 million in One97 Communications

Ltd.
• In March 2015, Paytm received its huge stake from Chinese e-commerce company
Alibaba Group took 40% stock in Paytm
• In August 2016, Paytm raised funding from Mountain Capital
• In May 2017, Paytm received its biggest round of stake by a single investor – SoftBank
• In November 2019, Paytm raised $1 billion in a funding round led by US asset manager
T Rowe Price

Marketing –

Launched PayTM karo campaign and made it the brand’s tagline.

Actively marketed in cricket matches.

RBI Approved –

• Paytm Payments Bank has to wait another two years before it would be eligible for
becoming a small finance bank (SFB)
• The RBI mandates that payments banks should have five years experience in the
payments space to be eligible for becoming an SFB

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References –

https://paytm.com/about-us/

https://inc42.com/buzz/paytm-payments-bank-approaches-rbi-for-in-principle-approval-to-
become-small-finance-bank/

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GOOGLE PAY
Google Pay is a digital wallet and online payment system created by Google to support in-
app, online, and in-person contactless purchases on mobile devices, allowing users to pay
with their Android phones, tablets, or watches.

Purpose- Google Pay allows you to send and receive money, but unlike other digital wallets,
it allows you to accept payments directly into your bank account. As a result, getting money
in wallets and transferring it to a bank account is no longer a source of concern.
It's worth noting that you don't have to be using the Google Pay app to receive payments.
Even through their website, Google Pay simplifies the procedure of money transfer.
Although the app's primary purpose is to facilitate simple money transfers, it also allows
users to make purchases in stores that support UPI.

Name- Google Pay

Owner- Google
Founder Details- Google LLC is a global technology corporation based in the United States
that specialises in Internet-related services and products such as online advertising
technologies, a search engine, cloud computing, software, and hardware.
Technology is being employed, as well as the tools that are being used. Google Pay uses
near-field communication (NFC) to communicate card information and allow money
transfers to stores. It allows users to upload credit or debit card chip and PIN or magnetic
stripe transactions to their Google Pay wallet, which may then be used to substitute credit or
debit card chip and PIN or magnetic stripe transactions at point-of-sale terminals. It is
comparable to contactless payments, which are already extensively used in many countries,
since it includes two-factor authentication. The service allows Android smartphones to
interact wirelessly with point-of-sale systems using a near-field communication (NFC)
antenna, host-based card emulation (HCE), and Android security.
Where physical authentications such as fingerprint ID are available, Google Pay uses them.
Google Pay is activated with a passcode on devices without fingerprint ID. Google Pay does
not send the credit or debit card number to the retailer when the user makes a payment.
Instead, a virtual account number is generated, which represents the user's account
information. Instead of providing the card or user credentials, this service sends a one-time
security code, which keeps client payment information confidential.

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Mode of Use – Google pay is a mobile app that is easily available on both, Android and iOS
devices.

Advantages
➢ Simple online integration: The Google Pay API is simple to use and gets you up and
running quickly. The amount of backend or server-side work required depends on
your payment processor and desired implementation approach, although it is usually
low.
➢ More store visits, more time spent shopping, and more money spent: Faster, easier
checkouts in stores can lead to more store visits, more time spent shopping, and more
money spent by customers. Customers who use Google Pay to make online purchases
aren't routed to a third-party site; instead, they stay in your checkout flow throughout
the transaction. Google Pay not only saves customers time and effort, but it can also
help shops increase cart conversions.
➢ Customers can make quick and easy purchases wherever they go when they use
Google Pay on their mobile device to tap and pay at stores.
➢ There is no charge: Google Pay is a free Android software that can be downloaded
from the Google Play Store. When customers use Google Pay to make purchases, they
don't have to pay any additional transaction costs.

Disadvantages
➢ It isn't always well received.
➢ It's not invincible, let's face it. Despite the fact that Google Pay has multiple layers of
protection, it isn't impenetrable....
➢ Only NFC technology is supported....
➢ Your device is linked to all transactions.

Competitor Details –
➢ Freecharge- Founded in 2010 by Kunal Shah and Sandeep Tandon in Gurgaon.
➢ PhonePe – Founded in 2015 by Sameer Nigam headquartered in Bangalore
➢ MobiKwik – Founded in 2009 by Bipin Preet Singh headquartered in Gurgaon
➢ Bill Desk – Founded in 2000 by M.N Srinivasu, Ajay Kaushal and Karthik
Ganapathy headquartered in Gurgaon

Capital Support/sponsors
Funded by parent company google co.

Marketing:

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 ➢ Cash burn by offering various discounts on various products
➢ Campaign- “Stampwali Diwali
➢ Offers Various games to be played for cash backs

References –

➢ https://joyofandroid.com
➢ https://support.google.com
➢ https://en.m.wikipedia.org

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