Statistics suggests that the fintech market in India is likely to expand to $31 billion in 2020. Read on...
In the past few years, there has been a wave of Fintech spreading all over the global economy. In India, the evolution of fintech has attracted the eyeballs across the globe as the growth happened quite speedily, thanks to India’s encounter with demonetization. Fintech apps like Paytm, PayPal, and many others have made Indian consumers familiar with the concept of the ‘cashless economy’ and there has been no looking back for these fintech startups since then.
As per recent reports, India has secured second spot globally with the largest number of Fintech startups. Statistics also show that the fintech market in India is likely to expand to $31 billion in 2020, which is a clear indication of the storm that it is going to create in the Indian financial ecosystem in the near future.
With diverse fintech categories, there is a huge vacuum that needs to be filled, so, for investors and entrepreneurs having the know-how of the finance and technology, the market seems alluring. Watch out for these three hottest fintech business ideas to invest in.
Peer to Peer Lending
Peer to Peer lending, or crowd lending, allows individuals to borrow money from investors directly, without connecting with a financial institution. A peer to peer (P2P) lending website or app let users in carrying out digital transactions. The site sets the rates and the terms and enables the transaction. In simple language, peer to peer lending enables an investor (lender)
P2P lending websites and apps give both lenders and borrowers a safer platform to achieve their respective goals – it helps a lender who is looking for a better return on their cash savings lend his money to the other person (borrower) who is looking for a loan.
P2P lending in India has been facing struggles in many ways, but there are still many brands like LenDen Club and Faircent.com are doing very well in the market. So, there is a wide scope to disrupt the market by more players.
Digital Payment Services
Digital payment services have made a huge impact in India during the demonetisation period and are still used by consumers for various purposes. A digital payment platform enables users to carry out monetary transactions instantly through mobile phones or PCs. As soon as a payment is credited, it reflects into the account instantaneously. These platforms are often referred to as digital wallets or mobile wallets and let users make transactions electronically, without bothering about whether they have cash or not.
Apps like Google Pay, PhonePe, Freecharge etc have introduced users with the ease of carrying out big transactions at a small touch on their mobile screens. The ease of using such apps is what makes it a lucrative option for investors to invest in, without having a second thought.
Remittance services are used for making money transactions from bank to provider in different currencies and geographically diverse areas. Many remittances are made in a country to someone in another while many remittances are made to a business too.
Many brands like Paypal and Western Union enjoys the hegemony of being the leaders of their category. So, there is a scope of disruption by newer players in the market. There is a potential in a remittance service segment, so it could be another sector to invest in.