SRI PADMAVATHI MAHILA VISVA VIDYALAYAM

APPLICATIONS OF FINTECH IN RETAIL INDUSTRY

PRESENTED BY
UNDER THE GUIDANCE OF
THAMMIREDDYGARI NIHARIKA(H.R)-M.B.A 2nd YEAR
MR.SUNIL SUBRAHMANYAM
THANEERU VARALAKSHMI(FINANCE)- M.B.A 2nd YEAR

SOMPALLI BHANUMATHI (FINANCE)-M.B.A 2nd YEAR

RSKP.NIHARIKA(H.R)- M.B.A 2nd YEAR

DEFINITION OF FINTECH
• Fintech, short for financial technology, is the use of technology to improve
and automate financial services. Fintech has had a significant impact on the
retail industry, revolutionizing the way consumers interact with financial
services and products.

Here are the examples of fintech applications:

1. Mobile payments: Google Pay, Apple Pay, Samsung Pay, and PayPal.
2. Digital wallets: Paytm, MobiKwik, and PhonePe.
3. Point-of-sale (POS) systems: Square, Shopify, and Lightspeed.
4. Online lending platforms: LendingClub, Kabbage, and OnDeck.
5. Digital banks: Chime, Varo, and Ally Bank.
6. Investment apps: Robinhood, Acorns, and Stash.
7. Insurance platforms: Lemonade, Policy-bazaar, and Coverfox.
8. Robo-advisors: Betterment, Wealthfront, and Ellevest.
9. Blockchain-based solutions: Ripple, BitPesa, and Circle.
10. Personal finance management tools: Mint, Personal Capital, and YNAB.
RETAIL INDUSTRY

• The retail industry refers to the group of

businesses involved in the sale of goods and
services directly to consumers.
• These businesses can be physical stores or e-
commerce websites, and they may sell a wide range
of products or specialize in specific categories.
Examples:
Amazon,Target,Best-Buy,Nike,Starbucks
IMPORTANCE OF FINTECH IN RETAILINDUSTRY
1. Improved Customer Experience: Fintech solutions have enabled retailers to provide a more
seamless and personalized shopping experience to customers, leading to increased customer
satisfaction and loyalty.

2. Increased Efficiency: Fintech solutions such as POS systems and supply chain management tools
have helped retailers to streamline their operations, reduce costs, and improve efficiency.

3. Better Access to Finance: Fintech solutions such as digital lending platforms have provided easier
access to finance for small businesses that may not have qualified for traditional bank loans.

4. Innovation and Disruption: Fintech companies have introduced disruptive business models that
have challenged traditional retail practices and spurred innovation in the industry.

5. Competitive Advantage: Fintech solutions have provided retailers with a competitive advantage
by enabling them to offer innovative products and services that meet the evolving needs of
customers.
HISTORY OF FINTECH IN RETAIL INDUSTRY
WORLD WIDE
1950s: The First Credit Card
Diners Club introduces the first credit card in the United States, paving the
way for cashless transactions.
1967: The First ATM
The world's first ATM is installed in London, UK, making it possible for
people to withdraw cash anytime, anywhere.
1971: The First Electronic Stock Exchange
NASDAQ is founded in the United States, becoming the world's first
electronic stock exchange and paving the way for electronic trading.
HISTORY OF FINTECH IN RETAIL INDUSTRY
1983: The First Online Banking Service
Bank of Scotland launches the first online banking service,
allowing customers to access their accounts and carry out
transactions over the internet.
1997: The First Online Payment System
PayPal is founded in the United States, revolutionizing online
payments and enabling people to send and receive money
electronically.
2009: The First Cryptocurrency
Bitcoin is created by an anonymous person or group using the
pseudonym Satoshi Nakamoto, ushering in the era of
cryptocurrencies and blockchain technology.
HISTORY OF FINTECH IN RETAIL INDUSTRY
IN INDIA
1996: The First Internet Banking Service
ICICI Bank becomes the first bank in India to launch internet banking,
making it possible for customers to access their accounts online.
2000: The First Online Trading Services
The National Stock Exchange of India launches online trading
services, enabling investors to buy and sell stocks electronically.
2002: The Introduction of Electronic Clearing Services
The Reserve Bank of India introduces electronic clearing services
(ECS), making it possible to electronically transfer funds between
bank accounts.
2005: The Establishment of the National Payments Corporation of
India
The National Payments Corporation of India (NPCI) is established to
provide electronic payment systems in the country, including the
popular IMPS and UPI platforms.
HISTORY OF FINTECH IN RETAIL INDUSTRY
2008: The Launch of BillDesk
BillDesk, one of India's first online payment systems, is
launched, enabling customers to pay bills and make other
transactions online.
2010: The Founding of Paytm
Paytm, a digital wallet and mobile payments platform, is
founded in India, becoming one of the country's most popular
fintech companies.
2016: The Launch of the Unified Payments Interface
The Indian government launches the Unified Payments
Interface (UPI), a real-time payment system that allows instant
mobile payments between bank accounts.
 APPLICATIONS
OF
FINTECH
IN
RETAIL INDUSTRY
MOBILE PAYMENTS

• Mobile payments refer to transactions that are conducted using a mobile device, such as a
smartphone or tablet, instead of cash or a physical credit card.

• The fintech industry has played a significant role in the growth and adoption of mobile
payments, as new technologies have made it easier and more convenient for consumers to
make purchases using their mobile devices.

• Mobile payment solutions can range from mobile wallet apps, which allow users to store
and use their credit or debit card information digitally, to contactless payments, which use
near-field communication (NFC) technology to transmit payment information wirelessly.

• Some popular mobile payment solutions in the fintech industry include Apple Pay, Google
Pay, Samsung Pay, PayPal, and Venmo.

• Mobile payments offer several benefits to consumers, such as convenience, speed, and
security. They also offer businesses a way to streamline transactions and improve the
customer experience, while reducing the costs and risks associated with traditional payment
methods.
DIGITAL WALLETS
• Digital wallets are software-based solutions that allow
consumers to store and use their payment information
digitally, eliminating the need to carry physical credit or
debit cards.
• Digital wallets are a popular solution in the fintech industry, as
they provide a convenient and secure way for consumers to
make transactions.
• Digital wallets can be used for a range of transactions,
including in-store purchases, online shopping, peer-to-peer
payments, and more.
• Some popular digital wallets in the fintech industry
include PayPal, Venmo, Apple Pay, Google Pay, Samsung
Pay, and Square Cash.
• Digital wallets typically use encryption and tokenization to
protect users' payment information and provide an added layer
of security.
• Digital wallets offer several benefits to consumers, such as
convenience, speed, and security. They also offer businesses
a way to streamline transactions and improve the customer
experience, while reducing the costs and risks associated with
PEER-PEER LENDING
• Peer-to-peer (P2P) lending, also known as marketplace lending, is a type
of lending that connects borrowers directly with investors, usually
through an online platform.
• P2P lending has emerged as a popular solution in the fintech industry, as it
provides an alternative to traditional lending channels, such as banks and
credit unions.
• P2P lending platforms allow borrowers to apply for loans online and
receive offers from multiple investors. Investors can choose which loans to
fund based on the borrower's creditworthiness and the potential return on
investment.
• P2P lending offers several benefits to borrowers, such as lower interest
rates, faster approval times, and more flexible loan terms. It also offers
investors a way to earn higher returns than traditional investment options,
such as savings accounts and bonds
• Some popular P2P lending platforms in the fintech industry include
LendingClub, Prosper, Upstart, and Funding Circle.
 ONLINE MARKETPLACES
• Online marketplaces are digital platforms that connect buyers and sellers, allowing
them to transact with each other directly.

• Online marketplaces have become a popular solution in the fintech industry, as they
provide a convenient and cost-effective way for businesses to sell their products and
services, and for consumers to buy them.

• Online marketplaces can range from general marketplaces, such as Amazon and eBay, to
niche marketplaces that cater to specific industries or product categories, such as Etsy
for handmade goods or Airbnb for short-term rentals.

• Online marketplaces offer several benefits to both buyers and sellers, such as increased
access to a wider range of products and services, competitive pricing, and a streamlined
transaction process.

• Some popular online marketplaces in the fintech industry include Amazon, eBay, Etsy,
Airbnb, and Uber.

• Online marketplaces are expected to continue to grow in the coming years, as more
businesses and consumers shift towards digital commerce and e-commerce.
BLOCK-CHAIN TECHNOLOGY
• Blockchain is a decentralized digital ledger that records
transactions across a network of computers. It uses
cryptography to secure and verify transactions and
provides a transparent and tamper-proof record of all
transactions.
• Blockchain technology has emerged as a disruptive force in
the fintech industry, as it offers a range of benefits such as
increased security, transparency, and efficiency.
• In the fintech industry, blockchain technology is being used
for a range of applications, including digital identity
management, supply chain management, and payment
processing.
• Blockchain-based payment processing solutions offer
several benefits over traditional payment channels, such as
faster transaction processing times, lower fees, and
improved security.
• Some popular blockchain-based payment solutions in
the fintech industry include Ripple, Stellar, and Bitcoin.
HOW BLOCK-CHAIN TECHNOLOGY WORKS?
1. Transaction is
initiated
2. Block validation
3. Transaction
verification
4. Transaction added
to a block
5. Chain of Blocks
6. Distribution
7. Mining
8. Execution
9. Repeat
POINT OF SALE FINANCING
• Point-of-sale (POS) financing is a type of lending that allows customers to
apply for and receive financing at the time of purchase, often for expensive
or big-ticket items. Some benefits of point-of-sale financing include:
• Increased sales: By offering financing options, businesses can make
expensive items more affordable for customers, which can increase sales
and revenue.
• Improved customer satisfaction: POS financing can provide a convenient
and accessible way for customers to finance their purchases, which can
improve their overall shopping experience and satisfaction.
• Reduced risk: Since POS financing is often offered by third-party providers,
businesses can reduce their financial risk and avoid the costs associated
with managing their own financing programs.
One example of point-of-sale financing is the "buy now, pay later" (BNPL)
model offered by companies like Afterpay, Klarna, and Affirm. These
companies partner with retailers to offer financing options at the point of
sale, allowing customers to split their purchase into several interest-free
installments.
EXAMPLE
• Walmart is an American multinational retail corporation that operates a chain of hypermarkets, discount
department stores, and grocery stores.
• Walmart has implemented several fintech solutions to streamline its checkout process and make it more
efficient. For example, Walmart Pay is a mobile payment solution that allows customers to pay using their
smartphones. This solution has helped Walmart to reduce the checkout time and improve the overall
shopping experience for customers.
• Walmart has also developed its own point-of-sale system, Walmart POS, which is designed to improve the
checkout process and enhance the customer experience. The system is equipped with advanced features such
as cash management, inventory tracking, and customer data management, which helps Walmart to optimize
its operations and provide better service to customers.
• In addition, Walmart has been using data analytics and machine learning to personalize its offerings and
promotions for customers. The company uses algorithms to analyze customer data and purchase history, and
then offers targeted promotions and recommendations to customers based on their preferences.
• Overall, Walmart's fintech solutions have helped it to improve its retail operations and provide customers
with a more convenient and personalized shopping experience. Walmart's success in the retail industry has
helped it to become one of the largest and most successful retailers in the world.
 CONCLUSION

• Fintech has revolutionized the retail industry by

introducing a range of innovative tools and
technologies that streamline transactions, reduce
costs, and enhance the overall customer experience.
• With fintech applications such as mobile payments,
digital wallets, online marketplaces, and data
analytics, retailers can improve their operational
efficiency, increase sales, and deepen customer
engagement. Overall, fintech has become an essential
component of the retail industry, enabling businesses
to stay competitive and adapt to changing consumer
demands.
CASE-STUDY
BACKGROUND:
ABC Clothing is a retail chain with over 100 stores across the United
States. The company has been in business for over 50 years and has
built a strong brand reputation for offering quality clothing at
reasonable prices. In recent years, the company has faced increasing
competition from online retailers and has seen a decline in foot traffic
to its brick-and-mortar stores. To stay competitive, ABC Clothing has
been exploring ways to enhance its customer experience through the
use of technology. The company has decided to implement a fintech
solution that will help streamline its payment process and improve its
overall customer experience.
QUESTIONS
1. How FINTECH will impact ABC Clothing Retail
2. What specific FINTECH solution is ABC Clothing
is implementing? How does it work?
3. What will be the benefits of implementing that
FINTECH Solution?