Electronic Payments Enable Efficiency in Financial Inclusion

Financial inclusion is one of the key trends that expected to enable efficient transfer of benefit schemes to the citizens. The industry is witnessing rising trend of outsourced ATMs in India as well which highlights that the banks expect to decrease their ATM operations and work toward their core business. Another key trend witnessed in the industry at present is the trend of moving towards a less cash economy. This and much more In an conversation with Faiz Askari of SMEStreet, Thyagarajan Seshadri, President, Banking Relations at Electronic Payment and Services (EPS) explained trends and opportunities in the electronics payment market.

Excerpts:

What are the key trends you observe in the electronic payment services?

The electronic payments ecosystem is changing rapidly as we speak, and at the heart of this change are the digitally enabled consumers. The present scenario is an interesting one wherein both cards and cardless transactions are happening simultaneously.

What level of transformation is happening around EPS in India? 

As per a report by Retail Banking Research, the APAC region is undergoing the maximum growth in the ATM industry, resulting in an increased installation base of ATMs. The Western Hemisphere, particularly Europe and North America, is also witnessing a change. The economic expansion in India has served as a catalyst for the growth and development of electronic payments system. With the launch of UPI we are one step closer to reaching a less cash economy, and we can achieve a lot more in the coming days in terms of infrastructure wherein cards and cardless transaction will go together that’s the kind of transformation happening around EPS in India.

What are the drivers of this market? 

The main drivers of Indian ATM industry growth are the initiatives implemented by the governments further financial inclusion like Direct Benefit Transfer (DBT) program, Pradhan Mantri Jan-Dhan Yojana (PMJDY) which is the biggest financial inclusion initiative in the world where millions of accounts have been opened and RuPay cards were issued, and rolling of White Label ATMs in rural India, etc.

Please highlight your organization's unique offering for vendors, small businesses? 

EPS specializes in large-scale end-to-end project management and consulting services for ATM Operations & Outsourcing Services and ATM Managed Services (24x7x365). Apart from providing end-to-end ATM services to banks, EPS developed its own specialized monitoring tool on technology and automation platform, providing analytics about the ATM network. In 2014, the company launched Centralized ATM Managed Services Centre with the aim of improving ATM operations, thereby enhancing the value of the MoF project. By providing various services, EPS enabled its customers i.e. Banks, focus on their core banking activities.

What prospects do you foresee for SMEs, MSMEs through EPS?

SME’s and MSME’s are a developing sector and play a vital role in the development of our economy. They are one of the best vehicle for inclusive growth, and for creation of local demand and consumption to fight with the global meltdown. A micro enterprise of today will be a big enterprise of tomorrow, and might well become a multinational enterprise eventually, if given the support in finance and capacity building. It is the right time to put greater emphasis on SMEs and MSMEs. In the coming days, they will have greater access to credit at a reasonable cost which further lead to their growth.