Digital adoption in remittance payment flows

Varying rates of digital adoption across send and receive-sides impact payment-flows

Very simplistically put, payment is the movement of money from A to B. And the world is becoming increasingly comfortable with money flow going digital. Whether its a consumer paying another consumer (P2P) or consumer paying a merchant (P2M) or business paying its vendors/suppliers (B2B) – the levels of digitization of these use-cases is very impressive. But, what happens when the speed of digital adoption is very different at point A vs point B. What does that mean for the digitization opportunities, challenges and product related nuances for the send and the receive side. Let’s take domestic remittances as an

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Payment friction

Quest for Friction Less Experiences

Yesterday, I got to experience the WhatsApp payment flows. It surely felt like a neat friction-less experience both for adding/mapping bank accounts and for in-chat payments. And in my excitement I forwarded it to a friend who didn’t have any UPI handle so far. And I was surprised by the reaction. How does WhatsApp know my bank account ??!!  And frankly I had looked at it the other way round – they are showing me the specific account that I want to associate here. And this got me thinking about friction in digital consumer experiences. I remembered my Amazon experience.

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Migrating away from cash is intimidating – Stickiness of Cash Part 2

Ask any payment professional, and while they might disagree on what’s the best payment experience, they would all agree that Cash is sticky. And one of the core reasons for the stickiness of cash is that the migration journey is intimidating for most cash-heavy users. Too many choices Here are some of the many questions the cash users who want to migrate away from cash, grapple with: Is it safe to use a card for payments Should I use a separate card for ATM withdrawals and purchases What should I start using – prepaid, debit, credit , mobile wallets If

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Thin Mobile App or a Fat one – Digital banking toolkit

Mobile is the new frontier and banks know this well. Amongst the various choices to make as part of the bank’s overall mobile initiative, is the decision around the structuring of mobile app(s). Thin App Vs a Fat App. These might sound strange terms especially in reference to mobile apps and no, we are not talking about the size of the app in MBs. A Thin Mobile App is a niche solution available for select instances or customers, which allows a small subset of activities to be handled. On the contrary, a Fat app is one where all the possible

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Why mobile payments must arrive soon

I try to go walking on most weekdays. And I prefer to do so light – carry just the minimal stuff. On my way out for a walk yesterday, I stopped by to take some cash along with me – just in case. And this got me thinking, with my smartphone (& earphones) I do not need so many other things. I know the time(so that I am in time for that movie), can listen to music while I walk, I can track my work emails (allows me to stay away from my laptop) , I know I can be reached anytime

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PayTm bill payment

Why I use Paytm for all bill payments except Airtel

Consumer behavior used to be a course that marketing folks took in 2nd year of Bschool. I stayed away , like most other marketing courses. But over the years, time and again I have seen the importance of understanding the consumer behavior – why do consumers behave a specific way, why and how are habits formed, are all habits sticky, what would prompt a habit change and so on. My Online Bill Payments Behaviour Recently I just noticed something interesting about how I pay my bills. It brought up the importance of consumer behavior yet again. So here’s what happened. Every

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Basics of Mobile Payments

Understanding the basics of Mobile Payments required me to find answers to these questions. What is a mobile payment What are the formats/models of mobile payment  What is the infrastructure required for mobile payment Are mobile payments secure? What are the security measures adopted?  

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M PESA story

What are the things M PESA did right? Clean and focused campaign – “Send Money Home” – focused only on national remittances – something that was done in abundance Transaction fees were the lowest for any mode of money transfer Fees clearly communicated with slabs/displays at agents Differential pricing for customers paying to other customers vs non-customers. This brought in viral effects and drove further registrations Security was the main plank as money transfer was not all that safe Realized that trust resides in timely delivery of SMS receipt. Initial outages or delays created a lot of complaints. mPesa team

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Consumer pitches for payment solutions

Any new payment solution seeks to change the consumer behavior in a significant way and hence tries to ride on one or multiple triggers. These triggers are the reasons why a consumer would prefer our payment option over all the others at the moment-of-truth. I do not want to carry cash/cards/bulky wallet This feels really safe and secure I get the best deals at merchants, when I use this option I earn rewards for most/all of my spends This is really fast/easy/convenient The fee structure on this option is most exciting

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