FY2017 – FY2027
INDIA FINTECH TRANSACTIONS MARKET FORECAST & OPPORTUNITIES
www.techsciresearch.com MARKET INTELLIGENCE . CONSULTING
Scope of Report Product of Interest (POI): FinTech Transactions
FinTech (Financial Technology) can be described as the intersection between financial services and technology. It is the application of innovative technological advancements to products and services in the financial services industry. FinTech is one of the fastest-growing technology sectors, with companies including startups, tech companies and even legacy providers innovating in almost every area of finance from payments and loans to credit scoring and securities trading. FinTech Transactions are the transactions done over FinTech platforms.
Market Segmentation PAYMENT MODE
Year Range
•
Payment Interfaces
•
North
•
Payment Gateways
•
East
•
PoS Terminals
•
West
Review Period
•
Prepaid Payment Instruments
•
South
•
Remittance
FY2017 – FY2020
•
Others SERVICE
© TechSci Research
REGION
•
Payments
•
Fund transfer
•
Personal Finance
•
Loans
•
Insurance
•
Others
APPLICATION TYPE •
Banking
•
Insurance
•
Securities
•
Others
Base Year
FY2021 Estimated Year
FY2022 Forecast Period
FY2023 – FY2027
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Table of Contents S. No. 1.
2.
Contents
Product Overview (A brief description of the category and product inclusions considered under the scope of the study to give clear picture to the client about the product of interest.) Research Methodology (A detailed methodology on how we have derived the market related information and what are the measures that has been taken to validate the data.)
3.
Impact of COVID-19 on India FinTech Transactions Market
4.
Executive Summary (This chapter covers summary of the complete study.)
5.
Voice of Customers
6.
Page No.
5.1.
Most Preferred Services in FinTech Market
5.2.
Regulatory Barriers
5.3.
Challenges Faced by FinTech Market Players
5.4.
Technologies of Future Investment
India FinTech Transactions Market Outlook, FY2017-FY2027F (This chapter includes a brief overview of the product of interest market such as total market’s growth rate, expected growth rate, key growth levers, leading region, top grossing product types, etc. It includes more of a qualitative information about the market.) 6.1.
Market Size & Forecast 6.1.1.
6.2.
By Value & Volume
Market Share & Forecast 6.2.1. 6.2.2.
By Payment Modes (Payment Interfaces, Payment Gateways, PoS Terminals, Prepaid Payment Instruments, Remittance & Others) By Service (Payments, Fund transfer, Personal Finance, Loans, Insurance & Others)
6.2.3.
By Application Type (Banking, Insurance, Securities & Others)
6.2.4.
By Region
6.3.5.
By Top 10 States
6.2.5.
By Company (FY2021)
6.3. Product Market Map © TechSci Research
3
Table of Contents S. No. 7.
Contents South India FinTech Transactions Market Outlook 7.1.
Market Size & Forecast
7.1.1. 7.2.
8.
Market Share & Forecast 7.2.1.
By Payment Modes
7.2.2.
By Service
7.2.3.
By Application
Market Size & Forecast 8.1.1.
8.2.
By Value
Market Share & Forecast 8.2.1.
By Payment Modes
8.2.2.
By Service
8.2.3.
By Application
West India FinTech Transactions Market Outlook 9.1.
Market Size & Forecast 9.1.1.
9.2.
© TechSci Research
By Value
North India FinTech Transactions Market Outlook 8.1.
9.
Page No.
By Value
Market Share & Forecast 9.2.1.
By Payment Modes
9.2.2.
By Service
9.2.3.
By Application
4
Table of Contents S. No.
10.
Contents
Page No.
East India FinTech Transactions Market Outlook 10.1.
Market Size & Forecast 10.1.1. By Value
10.2.
Market Share & Forecast
10.2.1. By Payment Modes 10.2.2. By Service 10.2.3. By Application 11.
Market Dynamics 11.1.
Drivers
11.2.
Challenges
12.
Market Trends and Developments
13.
Policy & Regulatory Landscape
14.
India Economic Profile
15.
Competitive Landscape 15.1.
© TechSci Research
Company Profiles 15.1.1.
Company Details
15.1.2.
Products & Services
15.1.3
Financials (As Reported)
5
Table of Contents S. No.
16.
17.
© TechSci Research
Contents 15.1.4.
Key Market Focus & Geographical Presence
15.1.5.
Recent Developments
15.1.6.
Key Management Personnel
Page No.
Strategic Recommendations (Based on the findings of the report strategic recommendations on how to enter and expand market share) About Us & Disclaimer
6
RESEARCH METHODOLOGY
Research Methodology
Market Profiling
In-depth secondary research was conducted to determine top players in India fintech transactions market, overall market size and segmental market size.
Formulating Questionnaire
In order to conduct industry experts’ interviews, TechSci formulated a detailed discussion guide.
Data Collection
Developing List of Respondents
List of industry players and industry specialists was developed.
TechSci conducted interviews with industry experts and industry players for data collection and verification.
Data obtained as a result of primary and secondary research was validated through rigorous triangulation.
Primary Research Data Collection
Data Filter & Analysis
Research & Intelligence
Actionable Insights
Business Solution
✓ Identifying Key Opinion Leaders ✓ Questionnaire Design ✓ In-depth Interviews
LinkedIn TechSci Internal Database
The data was scrutinized using MS-Excel, statistical tools and internal proprietary database to obtain qualitative and quantitative insights about India fintech transactions market.
Desk Research
Company Analysis
✓ Recent Developments ✓ Market Changing Aspects/Dynamics ✓ Government Policies ✓ Final Conclusion
Primary Research ✓ ✓
Data Analysis
Data Validation
✓ Market Participants ✓ Key Strengths
Secondary Research ✓ ✓ ✓ ✓ ✓ ✓ ✓
Company Websites Company Annual Reports White Paper Study Financial Reports Investor Presentations Regulatory Body Associations, etc.
Paid Sources
✓ ✓
Factiva Hoovers
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Research Methodology Baseline Methodology Our dedicated team of industry experts has monitored and analyzed various aspects of India fintech transactions market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors such as advancements in financial
technologies. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in India fintech transactions market. Methodology Followed for Calculation of Market Size: •
Market Size by Value and volume: Market size, in terms of value & volume, for the year FY2021 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as automotive companies, distributors, suppliers, industry experts, and other industry participants.
•
The team interviewed more than 40 – 50 automotive fintech transactions companies, 180 – 200 end users, and 15 – 20 Industry experts and
other value chain stakeholders in India fintech transactions market to obtain the overall market size for FY2017 to FY2021, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data for FY2017-FY2021.
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Research Methodology •
Respondents were asked about the current and future market growth rates, market shares by payment mode, by service, by application type, by company and by each region. Removing the outlier responses, the geometric mean of growth estimates and supplier wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other stakeholders depending upon the type of fintech transactions.
Methodology Followed for Calculation of Market Shares: Market shares by payment mode, by service, by application type, by company and by each region were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares, trends and recent development in the India fintech transactions market. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers. Methodology Followed for Forecasting:
•
TechSci Research performed periodical checks on data collected through the surveys with logic checks and analyzed the survey results in SPSS/Tableau Software.
•
Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast India fintech transactions market, TechSci Research used various forecast techniques such as: ✓
Moving Average
✓
Time Series Analysis
✓
Regression Analysis
✓
Econometric and Judgmental Analysis
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Research Methodology TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long-term period to estimate and analyze the market demand scenario. It should be noted that the figures compiled are only for the organized market including market share data.
Partial List of Companies Interviewed ▪ PhonePe Private Limited ▪ Google India Digital Services Private Limited (GooglePay)
Key Secondary Sources ▪ TechSci Research Proprietary Database & Knowledge Repository ▪ Company Annual Reports
▪ One97 Communications Limited (Paytm)
▪ Industry Magazines
▪ National Payments Corporation of India (NPCI)
▪ Industry Reports
(BHIM App) ▪ Amazon Pay (India) Private Limited
▪ News Dailies ▪ Credible Paid Databases
▪ ONE MOBIKWIK SYSTEMS LIMITED ▪ Pine Labs Pvt. Ltd. ▪ Mswipe Technologies Private Limited
▪ Razorpay Software Private Limited ▪ IndiaIdeas.com Limited (Billdesk) ▪ Lendingkart Finance Limited ▪ Policybazaar Insurance Brokers Private Limited ▪ Zerodha Broking Ltd. ▪ State Bank of India (YONO) ▪ Dhani Services Limited
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Industry Brief According to TechSci Research report, “India FinTech Transactions Market By Payment Modes (Payment Interfaces, Payment Gateways, PoS Terminals, Prepaid Payment Instruments, Remittance & Others), By Services (Payments, Fund transfer, Personal Finance, Loans, Insurance & Others), By Application (Banking, Insurance, Securities & Others), By Region, By Top 10 States, Competition, Forecast & Opportunities, FY2017-FY2027”, the India FinTech Transactions Market is projected to cross USD8384.48 billion by FY2027 at a CAGR of 49.13%, on account of strong support by the government for a cashless economy. The government’s vision of ‘Cashless Bharat’ has led to the launch of various initiatives for the inclusion of technology-enabled digital payment services. The adoption of FinTech products in India among customers has increased significantly due to personalized services and superior customer experience via digital channels. Services like BBPS (Bharat Bill Payment System), which is an integrated bill payment system that offering interoperable bill payment service to customers online, has increased the adoption rate. Moreover, the increasing adoption of smartphones, the launch of 5G, etc, is expected to act as a catalyst for the growth of India FinTech Transactions Market. India FinTech Transactions Market is segmented based on payment modes, services, application, and region. On the basis of payment modes, the India FinTech Transactions Market can be divided into Payment Interfaces, Payment Gateways, PoS Terminals, Prepaid Payment Instruments, Remittance & Others. The Payment Interfaces segment held the largest market share in FY2021 as the launch of Unified Payments Interface (UPI) has made digital payments extremely convenient and hassle-free for consumers. The UPI interface powers multiple bank accounts into a single mobile application that merges several banking features, enables seamless fund routing and merchant payments into one hat. The UPI interface is developed by the National Payments Corporation of India and is regulated by the Reserve Bank of India. In terms of Services, the India FinTech Transactions Market is categorized into Payments, Fund Transfer, Personal Finance, Loans, Insurance & Others. The Payments service dominated the market in FY2021 owing to the growth of smartphones, e-commerce, and connected devices. The government’s push along with the ease of payments from digital channels has led to the growth of payment services in the India FinTech Transactions Market. Moreover, with the development of innovative mobile applications such as Coin, Groww, etc. and with advanced technologies such as Artificial Intelligence and Data Analytics will lead to the growth of other sectors such as insurance, personal finance, etc. in the forecast period. In terms of Application, the India FinTech Transactions Market can be segmented into Banking, Insurance, Securities & others. Banking applications segment is leading the India FinTech Transaction Market in FY2021. Due to the rising internet penetration, smartphone usage, a crowd of payment apps and booming e-commerce have made direct fund transfer from bank accounts hassle-free, increasing the use of FinTech technologies in banking applications. Further, the Insurance segment is the fastest-growing segment and is forecast to grow at the swiftest pace until FY2027. The growth of the insurance segment can be attributed to the launch of on-demand digital insurances from banks and other financial institutions. The India FinTech Transactions Market by Region is segmented into South, North, West, and East. In this segment, south region dominated the market in FY2021 with a share of 37.39%. This is because the majority of the start-up companies are based in the southern region which leads to the growth of FinTech Transaction Market dominantly in this specific region, making customers fully satisfied with the services. North region has been forecast to grow at a high pace until FY2027 as the region has emerging start-ups as well as there is an increase in the customer's adoption of these technologies. PhonePe Private Limited, Google India Digital Services Private Limited (GooglePay), One97 Communications Limited(Paytm), National Payments Corporation of India (NPIC)(BHIM App), Amazon Pay (India) Private Limited, ONE MOBIKWIK SYSTEMS LIMITED, Pine Labs Pvt. Ltd., Mswipe Technologies Private Limited, Razorpay Software Private Limited, IndiaIdeas.com Limited (Billdesk), Lendingkart Finance Limited, Policybazaar Insurance Brokers Private Limited, Zerodha Broking Ltd., State Bank of India (YONO), and Dhani Services Limited, etc. are among the leading players operating in the India FinTech Transactions Market. The companies operating in the market are focusing on adapting to changing technology, bringing innovative solutions for the customers, data security, and expansion of sources to increase their shares in the market. Companies operating in the market are using strategies such as product advancements through the addition of new features, mergers, and collaborations to boost their share. “The shift in the customer preferences from traditional banking to online banking over the past few years has risen owing to the rapid increase in the availability of supporting platforms, digitization, and services provided at no cost. Moreover, there is a rapid advancement and adaptation of new technologies by the FinTech players, and all these are highly supported by government initiatives towards digitization, and cashless economy, etc. The shift of customer base from traditional banking methods to digital platforms is expected to drive the India FinTech Transactions Market through FY2027.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm. © TechSci Research
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Sample Data - Snapshot India FinTech Transactions Market Size, By Value (USD Million), By Volume (Thousand Units), FY2017-FY2027F
5.00 10.00
FY2017
7.00 30.00
6.00 20.00
8.00 40.00
CAGR By Value & Volume
XX%
9.00 50.00
10.00 60.00
FY2021
FY2022E
11.00 70.00
14.00 100.00
13.00 90.00
12.00 80.00
CAGR By Value & Volume
FY2027F
YY%
By Value (USD Million)
15.00 110.00
By Volume (Thousand Units)
India FinTech Transactions Market Share, By Payment Modes, By Value, FY2017–FY2027F Payment Interfaces FY2027F FY2026F FY2025F FY2024F FY2023F FY2022E FY2021 FY2020 FY2019
FY2018 FY2017
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Payment Gateways
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
PoS Terminals
Prepaid Payment Instruments
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Remittance
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Others
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
North India FinTech Transactions Market Share, By Service, By Value, FY2017–FY2027F Payments FY2027F FY2026F FY2025F FY2024F FY2023F FY2022E FY2021 FY2020 FY2019 FY2018 FY2017 © TechSci Research
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Fund transfer
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Personal Finance
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Loans
Insurance
20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Others
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
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