Mobile Wallet Transactions Declining as UPI Gains Popularity
Mobile wallets were once the driving force behind digital payments in India, but with the rise of the Unified Payments Interface (UPI), they are facing a challenging time. As per the data from the Reserve Bank of India (RBI), mobile wallet transactions have dropped by 24% between 2024 and 2023. Since the beginning of this year, these transactions have been steadily decreasing month-on-month. Even major players like Amazon Pay, MobiKwik, and PhonePe are experiencing a plateau in transactions. The suspension of Paytm wallets under RBI action has further impacted the sector, leading to a slowdown in business activities.
- Mobile wallet transactions drop by 24% between 2024 and 2023
- Transaction decline observed since the beginning of this year
- Major players like Amazon Pay, MobiKwik, and PhonePe are stagnant
UPI Emerges as the Preferred Payment Mode
On the other hand, the Unified Payments Interface (UPI) has become the preferred digital payment mode for retail users. The interoperability and zero charges for merchants have made UPI extremely popular among users. The shift towards UPI is not only sidelining wallets but also posing a threat to debit cards, especially in the small-ticket merchant payment category.
Potential Reversal of Fortunes for Wallets
Industry experts believe that if the RBI allows small value wallets to operate on UPI with minimum KYC requirements, there might be a resurgence in the usage of wallets among retail users. Additionally, with the introduction of interoperability, many payment companies could incentivize users to utilize their wallets. Unlike UPI, which operates on zero charges, wallet payments offer a revenue generation opportunity for companies.
Tech Talent Migration to Smaller Cities During COVID-19
During the COVID-19 pandemic, as tech employees moved back to their hometowns, the focus of the IT talent hunt has shifted to tier-II and smaller cities in India. These locations offer advantages such as lower operational costs and reduced attrition rates, making them an attractive destination for tech firms and global capability centers (GCCs) of multinationals.
- Shift towards tier-II and smaller cities for tech talent
- Lower operational costs and attrition rates driving the migration
- Expansion of operations beyond metros by tech firms and GCCs
FirstCry Raises Funds from Anchor Investors
Brainbees Solutions, the operator of FirstCry, has successfully raised Rs 1,886 crore from anchor investors as part of its initial public offering (IPO). The shares were allocated to investors at Rs 465 apiece, marking the upper end of the IPO price band. Notable investors in the anchor portion of the IPO include the government of Singapore, Abu Dhabi Investment Authority, Nomura, Fidelity, and SBI Mutual Fund.
- Raised Rs 1,886 crore from anchor investors for the IPO
- Shares allocated at Rs 465 apiece
- Domestic mutual funds participated in the anchor investment round
Flipkart Launches ‘Minutes’ Quick Commerce Service
Flipkart has introduced its quick commerce service, Minutes, in select areas of Bengaluru. The service aims to deliver groceries, electronics, smartphones, and other products within a short timeframe of 8-16 minutes. Competing with players like Swiggy’s Instamart, Zomato’s Blinkit, Zepto, and BigBasket’s BB Now, Flipkart plans to operate around 100 dark stores to strengthen its quick commerce play during the upcoming festive season.
- Flipkart’s Minutes service now live in Bengaluru
- Delivers products within 8-16 minutes in select pin codes
- Plans to operate 100 dark stores to boost quick commerce
Indian SaaS Startups Embrace AI
A report by Bessemer Venture Partners reveals that nearly 92% of software-as-a-service (SaaS) startups in India have integrated some form of artificial intelligence (AI) features into their products over the past year. These companies, identified as AI-native or AI-enabled SaaS, are projected to generate significant revenue, with Indian SaaS unicorns and centaurs expected to reach $20 to $25 billion in revenue by 2030.
- 92% of Indian SaaS startups adopt AI in their products
- Expected revenue growth for Indian SaaS unicorns and centaurs
- Global-first firms like Zoho and Amagi set to achieve significant ARR
Hot Take: Stay Informed, Stay Ahead in the Crypto Space
As a crypto enthusiast, staying updated on the latest trends and developments in the tech and finance sectors can give you a competitive edge. Whether it’s understanding the impact of UPI on traditional payment methods or exploring the growth of AI in Indian SaaS startups, being informed can help you make well-informed decisions in the dynamic world of cryptocurrencies. Keep exploring, learning, and growing in the crypto space!
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