Auth n Capture Quotes

“People typically want credit to cover or fulfil (a) Big expenses (maybe to buy a bike) (b) aspiration (I want that iPhone now!) (c) Emergency. But are these pay later products meeting these credit requirements? No, they are not. BNPL companies give small credit lines to users so what exactly are they up to? Their play is different, here is what they are trying to do - Most of our spends are on small tickets e.g., Food order, medicine, utility bill, or bus ticket booking. So, BNPL companies are targeting these use cases (or merchants who are in those businesses) and trying to replace credit cards and/or other payment instruments.”
― Aditya Kulkarni, Auth n Capture : Introduction to India’s Digital Payments Ecosystem

“Net-banking ‘was’ an important payment method because of (a) lower credit card penetration (b) fear of using cards online. Over a period, net-banking users started moving to debit cards (as every bank account has a debit card) but the rise of UPI drastically affected net-banking transactions. Erosion of net-banking can be attributed to both merchants and customers alike: Customer: Multiple hops to complete the transaction, non-optimised mobile pages and remembering password (not a user-friendly flow). Merchant: Success rate is inconsistent and lower; commercials are higher (than debit cards) for majority of sectors. Few years ago, net-banking options were prominently displayed on merchant’s checkout pages. But nowadays net-banking options are at the bottom of the page or hidden as the merchants still wants to have it but don’t want users to pay using those.”
― Aditya Kulkarni, Auth n Capture : Introduction to India’s Digital Payments Ecosystem

“Net-banking is a payment instrument where customers can transact using a bank account that is enabled for online payments.”
― Aditya Kulkarni, Auth n Capture : Introduction to India’s Digital Payments Ecosystem

“Future of Prepaid Instruments Merchants continue to have their closed loop wallets as an easy way for pushing refunds, a tactic for increasing customer stickiness. But with instant refund solutions, these wallets also may lose their charm. Only a few types of prepaid cards have some value: Gift Cards (because these are a lazy person’s gifting choice), Forex cards (Quintessential for overseas trips) and Specialised cards (Sodexo). But this status is changing with the growth of a particular sector – NBFC/LendingTech. As NBFC/LendingTech companies cannot issue credit cards so prepaid cards are used as instruments to lend the money (by doing just in time funding to the prepaid card). In Apr’21, RBI have issued new guidelines for prepaid cards/wallets: Balance limit is increased to Rs. 2,00,000 Interoperability among PPI instruments Cash withdrawal at ATM and POS PPI entities can set-up operations for NEFT/RTGS transfers With these new guidelines and boom in neo-banks & LendingTech companies, prepaid cards and wallets may get another shot at not just revival but a remarkable growth. Let’s wait and watch!”
― Aditya Kulkarni, Auth n Capture : Introduction to India’s Digital Payments Ecosystem