In order to get a non-linear growth, Bajaj is rethinking how the Bajaj Pay app can also deliver that for them. As Bajaj Pay for merchants emerges, it creates a nonlinear way to grow this pool is really what we'll wait for and we'll build that out from second half of next fiscal onwards.”īajaj had shrunk their retail emi business last year because of CoVid and restrategized its growth. We cannot then serve 200,000 merchants if we had a design on retail EMI card stores for which we will have to do linear staffing. We shut it because the model was becoming completely linear. We did not shut it because we had a credit cost problem. “Once we launch merchant, and that's really what the team is working on, that as we launch Bajaj Pay for merchants, we intend to bring this back but in a completely new design. Now further to that, Bajaj also intends to launch Bajaj Pay for merchants as well which means Yup, a rewards infrastructure to incentivize the customers to use their application to make purchases.
However, our view remains our 110,000 merchants, their $100 billion of commerce.” You will be able to pay via credit cards, net banking, UPI. So, you will be able to pay via of course wallets. It will lead to the fifth last item on the checkout page of a consumer called adjust against rewards.
So, it’s an integrated RMS platform that we’re creating, which is more complex than the normal rewards management systems you get.
So we are investing in a rewards management infrastructure which we will have behind it – rewards will have reward points on one hand, a voucher management system on the other. With Bajaj Pay, it will take a step further to engage with the customers for their payments as well. Their strength however has been their ability to cross-sell customers faster than anyone else and continue the engagement with the customers throughout their lifecycle. Consumer Durables or infamously called BNPL. And that’s really where this frame is – this payment stack is relevant for me.īajaj has a strong acquisition business via various acquisition channels (online/offline) i.e. I need engagement, engagement with day-to-day usage. I have, as I said, 120 million prospects. So what has everybody done in our assessment, it maybe a little cold view, is mainly thrown money at acquiring customers. What we are building is when we looked at Google Pay, PhonePe, Paytm, one of the areas that we find there is a huge gap. “Now what is happening there is essentially it’s highly commoditized. All of a sudden all the payment options are within the Bajaj ecosystem.
Paytm postpaid on hold by risk engine license#
Customers can choose to use either of the following:īajaj Wallet (Bajaj recently got a license for the prepaid instrument) The application also doubles down as a payment instrument. Rajeev Jain, Bajaj Finance Group Investor Call organized by Bank of America Securities June 09, 2021 This is how it will integrate at a fundamental level and many more ways as we deliver this between July and September.” Today, monthly, Rs.5 crores to Rs.8 crores gets converted from reward points into margin money by customers to buy a product. That's how it will integrate into the business. Today, you can walk into a store and use your reward points on a co-branded card and convert into margin. That's how it will integrate with a broader B2B business. Based on a reward that we may offer to a merchant, it may appear, based on a merchant, it may not appear. Based on the merchant, an EMI may appear, based on merchant, it may not appear. “At a checkout page, you will see these four options. Bajaj’s 100,000 merchants already move $100 billion dollars of commerce today. Nevertheless, I see how this could grow into the eCommerce business as well. Bajaj is already toying with integrated commerce onto their platform, but these plans haven’t been put into force yet. Look at where Bajaj is going with this now. The Chrome OS (Android OS) further deepened that relationship by integrating both browsers and search embedded into it. Google integrated their search bar right into the browser and that made it the defacto browser. Until then, internet explorer had a 95% market share. Google launched its search engine in 1997 and then introduced the chrome browser in 2008. We think we have an opportunity to double that volume in the medium-term, just staying with that organized ecosystem so that we further ring-fence it.” We are not looking at competing in where the big elephants are fighting. We will launch “Bajaj Pay” mainly meant for our merchants. “We will launch “Bajaj Pay” for consumers some time in Q4. Bajaj Finance is looking to leverage Bajaj Pay to give non-linear growth for their EMI Cards business : Bajaj intends to release this in the Q2 of Fiscal FY21-22.