The launch of the Digital India initiative has played an active role in transforming our payment interface. Ten to seven years back, individuals were hesitant and skeptic about online payment services, but today, a large proportion of the public has changed the way it made transactions.
What gave most fintech companies a kickstart was demonetization that occurred back in 2016. Today, India holds a cumulative digital transaction value of $81,197 million, increasing at a 25.3% YoY with over 553.7 million registered users online. (1)
Note: India is one of the leading fintech startups hubs in the world, followed by the United Kingdom, Singapore, and Germany, according to reports. (2)
What is FinTech?
FinTech or Financial Technology refers to a firm merging the upcoming technological trends to provide better financial solutions to its clients in the form of digital payments and transactions. The ultimate aim of fintech is to ultimately, or in some form, replace the traditional payment methods with digital solutions.
Business Models for FinTech Companies in India
The growing FinTech ecosystem has given rise to some innovative business models being adopted by major firms. Such innovative methods have assisted in reducing the financial pressure over individuals by providing them direct, on app, finance solutions.
Some of the most excellent business models adopted by FinTech companies in India are:
- Introduction of digital wallets into the ecosystem
- Digital insurance for health, travel, etc.
- Digital banking solutions simplifying banking
- Peer-to-Peer lending systems making credit reliable
- Alternative credit scoring allowing individuals to make better lending decisions
Top Fintech Startups & Fintech Companies in India
India has molded itself into a digital economy where privately owned fintech startups and fintech companies are being promoted based on their service quality. The individuals have become more open towards the idea of digital payments, which has led to the success of various fintech startups India and fintech companies in India.
Let’s discuss the top 10 fintech startups and fintech companies in India that have played a prominent role in influencing the digital payments market in our country.
The top 10 fintech startups and fintech companies in India are:
- Policy Bazaar
Paytm is one of the leading & most widely used fintech startup or company that has gained much traction three months after the demonetization in 2016, which increased its user-base from 125 million to 185 million.
Paytm, founded by Vijay Shekhar Sharma in 2010, is India’s leading digital wallet company holding a substantial finance market in India. The fintech startup is looking to double its transaction volume to 12 billion by the end of FY’20. (3)
Paytm allows its users to:
- Make bank transfers
- Recharge phone
- Pay bills
- Recharge DTH
- Recharge Metro card
- Pay fees
- Carry UPI transactions
- Pay at local vendors and more.
Visit Paytm by clicking here.
PhonePe, based in Bangalore, is another one of India’s leading fintech startups that has been able to soar heights despite the cut-throat competition in the niche. It is an ecommerce payment system & digital wallet company that was founded back in December 2015.
The platform is available in over 11 Indian languages and can be used by individuals to transfer money, recharge, pay bills, shop online, and buy from local vendors.
PhonePe has also partnered with the following companies:
Visit PhonePe by clicking here.
Launched in 2009, MobiKwik is another large digital payment and wallet company that allows users to carry transactions on multiple platforms from the MobiKwik account on their phones.
MobiKwik has registered a 90% growth in monthly active users in FY 2019, where it was also ranked as the second-largest platform for merchant payments. The fintech India firm has originated over 350k entirely digital loans with a loan book standing at $24 million. (8)
Visit MobiKwik’s site by clicking here.
PayU is a Netherlands-based fintech company that forayed its digital payment services into the Indian marketplace in 2011. The company has its services being unfolded in over 17 countries worldwide.
The company recorded a 92% jump in its revenues in the past couple of years. PayU runs its operations across Europe, Latin America, Africa, and India.
Visit PayU by clicking here.
5. Policy Bazaar
Policy Bazaar, launched in 2008 by Yashish Dahiya and Alok Bansal, is an insurance aggregator platform that was initiated to provide transparent and accurate insurance information to its consumers.
The introduction of Policy Bazaar has truly opened the eyes of the public towards openly buying desired insurance on their own by conducting a dense comparative analysis of multiple insurances.
Visit Policy Bazaar here.
The fintech ecosystem has enabled the individuals to gain one-click accessibility to transparent fintech solution right on their screens. LendingKart, launched in 2014 by Harshvardhan Lunia & Mukul Sachan, enables entrepreneurs to gain easy access to working capital finance.
The company makes use of tools based on big data analysis, which facilitates lenders to evaluate a borrower’s creditworthiness and provides other related services.
Visit LendingKart here.
The Gurugram-based fintech company was launched in August 2010 by Kunal Shah and Sandeep Tandon. Freecharge allows its users to pay utility bills, pay Landline bills or recharge Mobile, Broadband, DTH, and Metro cards through its platform.
The platform also provides savings, payments, insurance, and lending services to its users.
Visit Freecharge by clicking here.
You are directed to an online payment gateway whenever you make a transaction. BillDesk is one of the most prominent Indian online payment gateway firms that has been serving the digital payment interface in India for over two decades.
The Mumbai-based company was founded by M.N. Srinivasu, Ajay Kaushal, and Karthik Ganapathy back in 2000 when online payments were nothing but a heard story you heard from your NRI relatives. However, today it has received total funding of $257.5 million and is valued over $1 billion.
Visit BillDesk here.
Mswipe is one of the leading fintech companies in India that provides retailers and businesses with their latest smart POS terminal that accepts all payments – card, chip, magstripe, NFC, and Scan-to-pay QR.
Mswipe assists owners in making faster transactions and also has an added advantage of a 15hours battery life with just one single charge.
Visit Mswipe here.
Ezetap, cofounded by Abhijit (Bobby) Bose and Bhaktha Keshvachar, provides businesses and financial institutions with smart technological transaction solutions. Ezetap’s Universal Payments platform has been built to offer the unique ability to let businesses accept any mode of payment, anywhere, through any device, along with any banking partner of the customer’s choice.
Visit ezetap here.
Future of Fintech Startups post COVID-19
In the financial world, Fintech companies in India seem to have been a buzz word for some time now. Fintech startups have influenced other finance domains, be it savings, insurance, or financial planning, considerably, beginning with banking. Fintech companies’ field should continue in a post-COVID 19 world to play a very crucial role. Nevertheless, Fintech companies in India must evolve and adapt to a new world to be able to do so.
The following are five approaches that Fintech startups can expect to remain relevant in a post-pandemic world in which ‘the new standard’ is the order of the day:
1. Developing Customer Trust
Before people feel safe to revisit banks and other offices, it will be a while before banks and other financial transactions are likely to move online in a significant way. But clients who are used to face to face experiences would like to know that the virtual commodity they use has a real face, especially where significant amounts of money are involved.
For Fintech companies in India to build customer confidence and to engage their customers to have to fill this loophole. More can be expected from video conferencing tools that facilitate communication between banks, insurance companies, and mutual fund suppliers and their customers.
2. More Senior Citizens in the Conflict
Fintech companies were thought to have been used mostly by the millennials, but the pandemic has changed all that. Senior citizens are more vulnerable to coronavirus, so they use more equipment to handle so purchase supplies from their residences. Fintech startups would need to customize their goods to the desires of this demographic group. Watch for new apps that consider senior citizens.
3. Super Smart Apps
Thanks to COVID-19, people have tried more applications to get their business done if they want to collect food, visit a surgeon, and so on. Apps that are clunky and less user-friendly will, therefore, not work. Fintech companies in India require not only a quality product but also applications that have a fantastic user interface and a secure consumer service.
4. Boosting Security
More digital purchases mean more damage to records. More than ever, consumers would want to keep their data and confidential details safe. Fintech startups would have to inform their customers on the threats and how to stay secure against ransomware and other associated fraud. For the same purpose, Fintech companies would also need to rely further on security functionality to handle consumer data in a safe to protected manner.
5. Communication is the focus
Fintech companies in India ought to move beyond conventional forms of contact, such as phone calls and emails, for businesses operating with limited staff. Although social networking is a platform for connectivity, specific platforms, such as chatbots, push alerts, in-app FAQs, and other apps, need to be set up so Fintech startups users can answer their questions and address their grievances.
Fintech Companies in India: FAQs
1. Is Paytm a Fintech company?
Initially, Paytm was only a payments company, but today, as it provides its users with financial services from banking to loans, it indeed has transformed into a Fintech company. Fintech makes use of technology to offer better and instant financial services to its customers with the help of technology at hand.
2. How can I open a Fintech Company in India?
Starting a Fintech company in India requires thorough planning and the right execution for success. There are a number of steps that you would be required to go through to start up your Fintech company in India. Some of these steps are:
- Incorporating a legal entity for Fintech in India
- Tax Registration for financial technology Startup
- Legal Agreements and Contracts for financial technology Startup
- Intellectual Property Rights – Trademarks, Copyrights & Patents for financial technology Startup
3. Where is the headquarter of Fintech company?
Headquarters for Fintech companies are usually located in metropolitan cities where it is easier for companies to operate. Some of the headquarters for companies like Paytm, MobiKwik, and Policy Bazaar is located in Noida and Gurugram.
4. What is an example of FinTech?
Fintech is any app or service that uses technology to provide its users with relevant financial services. For example, platforms like Policy Bazaar provides its users with the best insurance, ranging from home insurance to car insurance, with minimal human interference. Fintech helps ease out the process of finances by providing one-click services to its customers.
5. Does Fintech pay well?
Yes, Fintech mostly pays well to its employees (depending on the job role you have). Moreover, the demand for jobs in the Fintech sector is rising because of which the candidates can expect a higher CTC than that for normal business.
6. What is an example of fintech companies?
Many prominent businesses, including Personal Capital, the Lending Club, Kabbage, and Wealthfront, are examples of FinTech companies that came into existence over the past ten years to offer different ways of modifying financial principles and enable consumers to impact their business performance. There are various other examples of fintech companies that are a part of this growing industry.
7. What are the fintech companies?
Financial technology (Fintech) defines a digital technology that aims to enhance and automate financial services distribution and use. The concept was initially applied to the technologies employed in the back-end existing financial organizations’ networks as fintech startups originated from the 21st century.
8. What is the number 1 fintech companies in India?
PayPal. No argument on Fintech is full without discussing the $113 billion market cap on electronic payments firm PayPal. PayPal has long been the cornerstone of the fintech startups India, since 1998, Peter Thiel and Tesla’s Elon Musk, among others, founded PayPal. Paypal is known to every individual who uses digital payments.
9. How do banks use fintech companies?
Fintech startups financial technologies turn the whole banking network from a limited branch phase into the diverse web, virtual, and interactive media networks. This, therefore, reduces the reliance of the bank on its branches. Fintech startups have evolved the Banking industry revolutionarily.
10. What does the word Fintech companies include?
fintech companies in India, the term, is a mixture of financial technology. fintech startups also encompass several markets and businesses, including finance, retail banking, marketing, and non-profit and wealth services. fintech companies also cover cryptocurrency, including bitcoin creation and usage.
11. Is blockchain technology also Fintech?
Blockchain is Fintech’s critical infrastructure. Blockchain’s original architecture was based on Bitcoin cryptocurrencies. Blockchain is the backbone technology that drives fintech companies in India revolution and plays a vital role in financial developments. Many people confuse blockchain technology with Fintech companies.
12. How do I prepare for a fintech companies interview?
Prep the responses to traditional questions for the interview: the strengths and shortcomings, your goals throughout your profession, your most significant success, the obstacle you face. Prepare the boss for any interesting questions, maybe regarding their workplace atmosphere or what they expect in a top engineer.
13. How to start a fintech startups India?
- Determine the niche
- What is the X-Factor of your fintech companies?
- Understand the rules
- Recruit the squad
- Select the right technology stack
- Construct an MVP
- Get Sponsored
- Build Alliance
14. How many Fintech companies exist?
Throughout the USA, the area with the most Fintech startups worldwide was 8,775 financial development startups throughout February 2020. In contrast, Europe, the Middle East, and Africa had 7,385 these Fintech startups, with 4,765 in the Asia-Pacific region.
15. How many fintech companies in India are present?
India houses the second-largest in fintech startups in the world, with 2,565 companies, just 737 in 2014. India ‘s key share is in ‘payment’ from Fintech companies, led by deposits, wealth services, private financial institutions, insurrections, regtech, and others.
16. Will fintech companies in India replace banks in the future?
fintech companies are capable of fantastic stuff that only the most dominant players in the business are sure of. Around this time, the major banks and other financial companies have bought and employed several Fintech startups but are by no means the replacement for the entire sector.
17. What is Fintech payment?
Financial technology is a development and invention sometimes simplified to fintech startups India that is meant to engage in financial services with conventional finance methods. It is an evolving sector that utilizes technology to improve financial operations.
18. Why do banks need fintech startups?
Banks can lend capital to consumers; Fintechs can’t. It seems like a no-brainer, but Fintech companies can allow the customers to transfer their cash digitally or from their phones without a bank’s liquid assets. The bank’s share capital is provided through deposits, lending interest, and equity, and liability.
19. Is fintech startups an excellent industry to work in?
As one of the fastest developing markets, the fintech companies t is ideal for those who want to gain exposure to, interact in, or experience operating with emerging innovations, particularly technology enthusiasts.
20. What skills are required to work in Fintech companies?
Like several other developed markets, fintech companies in India have a strong demand for Php, Java, C #, C++, Python & SQL programming expertise.
- Skills in Programming
- Emotional and cognitive knowledge.
- Industry adaptability and flexibility
21. What is the difference between Fintech and Blockchain?
Blockchain’s most significant usage would be affecting transfers to all banks and consumers by rising money transfer costs and time. fintech companies will sell banks but would not enable them to grow and maintain a new consumer base.
22. How big are fintech companies?
The 2018 global demand for fintech startups was $127.66 billion, a projected annual growth pace of ~25 percent to $309.98 billion between now and 2022. Compared to the global market for financial services, it is still quite small.
23. Is there a future for fintech companies in India?
Fintech companies provide the hope of an interconnected future. Through this “de-centralization” of financial services, the incentives will build an environment, through which banks and fintech startups collaborate in exchanging capital, thereby helping to stay pace through our constantly evolving society.
24. How old is the concept of Fintechs companies?
The infrastructure of Fintech startups 1.0 (1886-67) was the first time when this concept was introduced. This is an era in which we can start talking about financial globalization first. It began with innovations such as telegraphs and railways and steamships, which for the first time, allowed the rapid cross-border transfer of financial details.
25. Fintech companies posing a threat to traditional banks?
In the last few years, banks struggled when Fintech supplied users with previously inaccessible technology. The challenge of fintech startups India to banks was a foundation for mainstream banks worldwide, and traditional banking approaches looked irrelevant to plummy enterprises for conventional banks.
26. Why are fintech companies in India exciting?
Benefitting from the ground up, the modern fintech startups India will genuinely concentrate on building positive, defensible ties with millennia. Paralysis, frustration, and boredom may be assured by a mission-oriented name, functional and exciting UI and material.
27. What qualifications are required for working in fintech companies in India?
Typically a business, accounting, or financing degree is required to function as an assistant finance manager. Anyone who chooses to become an accountant in fintech startups India will profit from a degree in accounting, while related degrees may also be approved.
28. What can you do with a Fintech degree?
- Blockchain Developer
- Apps Developer
- Financial Analyst
- Product Manager
- Compliance Expert
- Cybersecurity Analyst
- Quantitative Analyst
- Culture Champions
29. How do banks compete with fintech companies in India?
A traditional bank mainly links clients to them by delivering a variety of services, which makes them adhesive by increasing the cost of shifting. As a key to their strategic advantage, 90 percent of Fintech companies mention improved consumer interactions.
30. Do regulators guide fintech startups?
The central bank, the Reserve Bank of India, is the primary authority for fintech startups India. Non-bank payment providers, for instance, also have the same processes as banks’ consumer onboarding and KYC.
31. What is the difference between Fintech companies and Financial innovation?
Examples of financing innovations include automated teller machines and interest rate swaps. Therefore, financial innovation is a specific description of financial market reform, whereas fintech startups are a technical type of finance disruption that may challenge the existing financial system.
32. Why join fintech companies in India?
Fintech startups India jobs can be highly exciting and unique for students-perfect for those who rely on a diverse and high-energy climate. Likewise, due to the exponential development of the sector, position in fintech companies in India give graduates the ability to take on several roles early in their careers.
33. Is Fintech beneficial for us?
FinTech startups allowed telephone banking and are the leading service in the developing world outside the comfort it provides in the developed world. Furthermore, FinTech companies have and the prices of all sorts of financial services, credit cards, and brokerage, etc.
These were the top ten fintech startups and fintech companies in India that have assisted in our country by providing support for better financial solutions with their high-quality services. The fintech sector is expected to grow further with multiple AI technology being discovered every other day.