Published On: Fri, Dec 27th, 2019

Semi-Urban & Rural Karnataka is seeing a rapid increase in the uptake of digital financial services

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-          Over 2000 transactions daily on AEPS service and 20%transaction increase every month through Payworld

-          Average  9000per day Transactions through Money Remittance, with an average ticket size of Rs. 2650 on the Payworld platform

-          Close to 40% increase in transaction volume YoY on the Payworld platform

Bangalore, 26thDecember 2019: Karnataka, one of the largest states in India, in terms of the demographics, has lately seena substantial growth in the uptake of digital financial services. The growth has been recorded through Payworld, an assisted financial services company, which provides a digital platform to their retailers to target semi-urban and rural customers. With close to 204,412 retailers registered in their system, Payworld covers30districts in Karnataka with presence of retailers across all major cities in the State.

Payworld data shows that there are over 200Aadhaar-Enabled Payment (AEPS) transactions per day being undertaken by people in the semi-urban and rural pockets of Karnataka. This number has been on the rise and is increasing constantly at close to 60000 per month. Moreover, Money Remittance services has been the biggest grosser through Payworld, with an average of 9000transactions per day with an average ticket size of INR 2650. This clearly indicates that the rising trend of adopting digital financial services is due to the increase in awareness of these services as well as the simplicity of using them through assisted means.

Working at the grassroots level, Payworld has set up a huge network in the State, which gives the semi-urban and rural consumers access to financial services like Money Remittance, e-commerce, loans, mutual funds, insurance among others.

 Mr. Praveen Dhabhai, COO, Payworld said, “Our entire focus since inception has been to provide complete access of digital financial services to semi-urban & rural consumers. We are happy to witness that the efforts have paid off and there is a great uptake of our services in one of the largest States in India, Karnataka. Covering Karnataka was a challenge initially due to the vast demographics, but thanks to the prioritized push by the Government towards digital financial services, we were able to build a strong network of10,000retailers, who are providing these financial services to people living at the bottom of the pyramid.”

“The presence of our retailers, who are locals from the area, has helped us gain the trust of the villagers and bring about a behavioural change within the community, which is imperative for the growth of these services. Now, people don’t have to travel long distances for basic transactions. Instead, they just walk into a Payworld Retailer shop, where our retailer will assist them in undertaking all financials services, whether it be remittance, loans, insurance or even ticketing. This is how we are simplifying the lives of people in the semi-urban and rural areas.”, he added.

Over and above the financial services, over 96,255railway tickets are being booked by the semi-urban and rural customers in Karnataka through the Payworld assisted platform. Payworld is also providing cash flow Loans, like the 90 –day loan to their retailers. These loans are provided at a very low interest rate to the retailers (MSME segment) with easy daily repayment options. Payworld expects a robust growth in the 90/180-day loan category, with at least 3000new loans in the coming 3 months. Another new service offered by Payworld is the Mutual Fund portfolios, offering investments in low-risk liquid funds to the customers. The idea of getting the semi-urban & rural customers to get into a habit of saving is really getting acceptance and Payworld is creating over 3000 mutual fund portfolios for customers through its retailers in Karnataka.

Overall, the growth and uptake of the digital financial services through Payworld retailers have been on the rise in the State of Bengaluru with a growth of 40% year on year.

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