Innovative Digital Payment Business Models for Small Merchants and Low-income Households
A closed-door session on ‘Innovative Digital Payment Business Models for Small Merchants and Low-income Households’ was held as a break-out session at the Inclusive Finance India Summit 2018, at Hotel Ashok, New Delhi, on 12 December, at 12:30pm.
The session accentuated how to responsibly transition small business ecosystems (i.e. merchants, low income customers, suppliers) to a digital payment platform. It covered series of interventions undertaken by CATALYST in Jaipur across the low-income ecosystems to understand the opportunities for digitizing payments.
While digital finance has increased significantly in India in recent years, there exist significant gaps in reaching out to the last mile. Micro-merchants and low-income households, in particular, remain an under-served segment in digital finance. Building on a set of experiments facilitated by CATALYST in Jaipur, the discussions provided insights for solution frameworks and business models by implementing a learning-by-doing approach. The speakers presented major insights from four types of business models:
- Distributors and their merchant networks in dairy, pharmaceutical, and FMCG supply chains
- Low-income households in urban slums,
- Payment collections for subscription-based services, and
- Fixed store kirana merchants
The session brought together practitioners, policy influencers, and financial service providers. The presentation was facilitated by Jayshree Venkatesan (Financial Sector Specialist) and Ayush Chauhan (Design Strategy and Innovation Specialist).