Hardeep Singh
BharatPe had evolved at an exponential rate, becoming the most popular payment mechanisms in the UPI person-to-merchant (P2M) market. It is an automated payment system in India built by NPCI, Mastercard, and Visa. The system, which went live in September 2016 and was relaunched in 2018, allows users to move money from one account to another.
Money sent by BharatQR is deposited directly into the user’s connected bank account. It is fully compatible with all banks and offers a shared interface among RuPay, Mastercard, Visa, and American Express, as opposed to other similar schemes used by startups. It is currently available for Android and iOS users.
Though scanning QR codes is the primary method of payment for BharatQR, it is not the only one. It enables users to pay using their Aadhaar number, UPI payment address, or account number and IFSC code, reducing the need to use debit and credit cards, which are allegedly less reliable than BharatQR.
The framework also facilitates the development of dynamic QR codes, which removes the need to manually input the payment number. The company’sQR Immediate Payment Service allows for quicker and more reliable transfers (IMPS). There’s no reason to give out your phone number, account details, or CVV to someone.
1. BharatPe hitting a Milestone in March 2021
- In March 2021, BharatPe revealed that it had reached a major milestone by processing 106 million transactions per month in the UPI QR payments segment.
- With an 8.8% market share,It maintained its trend of extending the competition. It also reported that it had held the No. 3 slots in the UPI P2M classification, which it had gained by displacing Google Pay in November 2020. In March 2021, It reported US$ 830 million in transactions (US$ 10 billion annual rate).
- BharatPe has evolved at an exponential rate over the last year, being one of the most widely used payment systems in the UPI person-to-merchant (P2M) market.
- From April 2020 to March 2021, the firm saw a 7x increase in UPI transaction value. In addition, from February to March 2021, the UPI payments segment rose by 23.7 per cent.
- Over the last year, India has seen a tremendous increase in digital payments. The number of Digital payments more than doubled from 1.0 billion in April 2020 to 2.7 billion in March 2021, with the TPV increasing from US$ 22 billion to US$ 72 billion in March 2021.
- According to a new study by ACI Worldwide and Global Data, India has surpassed the United States and China as the world’s largest legitimate digital payments segment, led by both P2P and merchant payment.
- According to the survey, by 2025, digital payments will account for 70+ per cent of total payments volume in India, with cash and cheques accounting for less than 30%.
- Over 70 billion true payment transactions were conducted globally in 2020, up 41% from the previous year, as the Covid-19 pandemic exacerbated movements away from cash and cheques and toward greater dependence on real-time and digital payments.
2. Business focus
BharatPe is dedicated to assisting small business owners and Kirana shop owners in expanding their operations. It offers a variety of fintech items for retailers, including an interconnected UPI QR with no transaction costs, business loans with low-interest rates, and India’s first null POS machine that accepts a variety of debit and credit cards.
Distributor to Retailer (D2R) Finance, the company’s revolutionary lending tool, was recently introduced, designed to offer immediate liquidity to manufacturers, wholesalers, brokers, and dealers through industry verticals. The company provides collateral-free loans of up to Rs. 50 lakhs for a term of 7 to 30 days with this product.
The company aims to become a Digital Bank for retailers who will act as a one-stop-shop for all merchant requirements, and the lending industry will be an important part of that path. It has set a 3x target rate for its payments business, with a TPV of $30 billion by March 2023.
3. BharatPe’s Expansion in Hundred cities
BharatPe, an Indian financial services startup, has extended its presence to 100 cities across the country, covering tier 2 and 3 cities, with the goal of covering 300 urban areas by 2023. The expansion is the result of company’s latest $108 million Series D funding round, which was driven by New York-based hedge fund Coatue Management.
Guwahati, Vellore, Hosur, Nagpur, Raipur, Bilaspur, Bhubaneswar, and traveller areas like Pondicherry, Amritsar, Varanasi, and city square measure among the recent additions.
In the first round, the company rolled out its Unified Payments Interface (UPI) payment acceptance programme to merchant partners in the new cities via fast response (QR) codes and loans. In the following months, it will support this with other fintech offerings in the second step.
BharatPe co-founder and CEO Ashneer Grover previously told Mint that the firm expects to raise up to $500 million in debt by FY23, after raising $35 million from investment debt providers Alteria Capital, Trifecta Capital, and InnoVen.
Grover previously stated that the company already plans to collect $200 million in debt from banks and financial institutions this year. The company has expanded its product ranges in the last year, including point-of-sale card portals that support BharatSwipe and similar loyalty cards.
It has also been concentrating on disbursing credit to younger retailer markets. BharatSwipe, which operates in ten markets, plans to generate $1.5 billion in annual TPV revenue. BharatPe is rising day by day and developing to get more trusty to their customers. The company soon to come on the list for Unicorn startup list.
Do comment down your views. Will it be India’s best Digital Payment app?
