Worldline India's India Digital Payments Report for Q2, 2019

Worldline has over 1 million merchant touch points PAN-India accounting for 30% of the merchant acquiring touch points. We have analyzed transactions processed by us in Q2 2019 (Apr-May-Jun) and derived some unique insights.

“May was the month with the highest number of transactions in Q2 2019. 2nd June 2019, ranked as the day with the highest number of transactions but this should come as no surprise given it was the weekend and Eid-ul-Fitr was just three days away. The days with second and third highest number of transactions were 1st June and 13th April which were near Eid-ul-Fitr (June 5) and Ram Navami-Baisakhi (April 13-14) respectively. The trend of highest number of transactions recorded during festivals continued like previous quarters.”

The merchant categories with the highest volume and value of transactions in Q2 2019 were Grocery, Restaurants, Petrol Stations, Apparel Stores and Speciality Retail which accounted for about 65% volume of transactions and about 40% value of transactions. It is interesting to note that while jewelry stores accounted for only 2% of total volume of transactions, they accounted for 9% of total value of transactions. The top categories remained the same for both credit and debit card transactions.

The states and cities with the highest number of transactions are:

Top 10 states in transactions
Maharashtra                 
Karnataka
Tamil Nadu
Delhi
Andhra Pradesh
Kerala
Gujarat
Uttar Pradesh
Haryana
West Bengal

Top 10 cities in transactions
Bangalore
Chennai
Mumbai
Pune
Hyderabad
New Delhi
Kolkata
Gurgaon
Coimbatore
Ernakulam

Key Highlights:

* The number of point of sale (POS) terminals increased to 3.99 million in June 2019 from 3.31 million in June 2018, an increase by a mere 20.5%. This could well be a key impediment in transformation to a cash-lite economy.
* In Q2 2019, the average ticket size on POS terminals for debit card transactions was INR 1,366 and INR 3,423 for credit card transactions.
* UPI has been taking some share away from more traditional modes of digital payments such as cards and net banking. The total volume of UPI transactions in Q2 2019 was 2.2 billion, a 263% increase from Q2 of the previous year. In terms of value, UPI clocked INR 4.4 trillion, up 336% from Q2 of the previous year.
* There are about 837 million debit cards and about 49 million credit cards in circulation. It is interesting to note that between June 2018 and June 2019, there was an addition of about 10 million credit cards and reduction of about 107 million debit cards. While the rise in credit cards may be attributed to growing digital payments and the expansion of retail borrowers in the market, the fall in debit cards could be due to the mass closure of zero balance accounts.
* The Reserve Bank of India has permitted 46 entities to launch their Prepaid Payment Instruments (PPI) for consumers and according to their latest data, the number of transactions done on mobile wallets in Q2 2019 was 1.08 billion, an increase of 18.4% over Q2 of previous year while the value of transactions in Q2 2019 was INR 474 billion, an increase of 17.5% over Q2 of the previous year.
* As of now, NETC amounts for 25% of the total toll collected. It is the perfect solution as it enhances efficiency in processing transactions, tackles the menace of toll evasions done on highways and reduces congestion around toll plazas, fuel consumption and air pollution. NETC transactions in Q2 2019 stood at 80.1 million, a jump of 53.9% over Q2 2018 and the value of transactions was INR 17.9 billion, an increase of 44.4% over Q2 2018. The tag issuance base in Q2 2018 jumped manifold, with an increase of 118%, to 5.22 million tags in Q2 2019. The increase in these numbers show sustained consumer acceptance.
* Aadhaar Enabled Payment System (AePS)- The total volume of AePS transactions (ONUS, OFFUS, DEMO AUTH & eKYC) in Q2 2019 was 584 million, a 31% increase from Q2 of the previous year, while the total value was INR 274 billion, up 107% from Q2 of the previous year.

Mr. Deepak Chandnani, Managing Director, Worldline South Asia & Middle East expressed, “With a number of digital payment options available with consumers to make purchases, the acceptance infrastructure now needs to grow to meet the demand from consumers and merchants alike. Obviously for this to happen, similar to how incentives are being given to merchants and consumers, incentives need to be given to merchant acquiring companies to meet this goal. The merchant acceptance ecosystem is a diverse one with multiple modes such as POS, UPI, BQR among others.”.

NITI Aayog for Steps to Deal with Indian Economic Slowdown

Government think tank Niti Aayog on Thursday made a case for extraordinary steps to deal with the unprecedented stress in the financial sector which has resulted in an economic slowdown in the country.

The government needs to take steps which eliminate apprehension from the minds of private sector players and encourage them to step up investments, Niti Aayog vice-chairman Rajiv Kumar said.

He also said private investments will drive India out of the middle-income trap.

Terming the stress in the financial sector as unprecedented, he said nobody had faced this sort of situation in the last 70 years where the entire financial system was under threat.

“Nobody is trusting anybody else... within the private sector nobody is ready to lend, everyone is sitting on cash...you may have to take steps which are extraordinary,” he said at an event here.

Elaborating further, Kumar said some of the steps have already been announced in the Union Budget to address stress in the financial sector and give a push to economic growth which hit a 5-year low of 6.8 per cent in 2018-19.

Explaining how stress in the financial sector has led to a slowdown in the economy, the Niti Aayog vice-chairman said the entire episode started with indiscriminate lending during 2009-14 leading rise in non-performing assets (NPAs) post-2014.

Kannada Cine Actress Hari Priya Inaugurates Asia Wedding Fair 2019

Asia Jewels Fair ’2019, one of South India’s most Glamorous  & Niche Jewelry Exhibition is hosting its 16th edition in Bengaluru city from August 23-25, 2019. The Jewelry Fair will take place at The Ritz-Carlton, Bengaluru Hotel situated opposite Cash Pharmacy on Residency Road. - the most luxurious 5 star hotel in Bengaluru from 10.30 a.m. to 8 p.m. The Grand Inauguration of the exhibition was  done by famous Cine  Actress Ms Haripriya  at 12 noon on August 23, 19. This show is a very exclusive one as for the first time the expo will showcase never seen before best jewelry designs from top handpicked jewelers from across India, all under one roof.

Asia Jewels Fair ‘19 is a niche event exhibiting exclusive and high-end branded gold and diamond Jewellery among others. The event showcased some of the latest collection from, Fine gold Jewelry, Diamond Jewelry, Platinum Jewelry, Traditional Jewelry, Wedding Jewelry, Precious stone Jewelry, Kundan, Jadau & Polki Jewelry to name a few.

“Asia Jewels Fair “ is one of the finest jewelry exhibitions in the city. Shop for or Pre book your jewelry for the upcoming festivals & for all the prospective grooms and brides, a fair like this is a one stop-shop that brings some of the best jewelry, design and precious stones under one roof. It is the perfect destination to buy exquisite and world class jewelry in South India.”

On display is Luxury jewelry designs from top leading brands of Bangalore, New Delhi, Mumbai, Jaipur, Surat & Hyderabad creating the most glamorous & spectacular platform for all branded jewelry. Adding to the exquisite display was a dazzling array of International jewelry designs, from Best handpicked  Jewellery Designers & Brands from all over India like:

Shobha Asars  - Bangalore / Mumbai, Golden Jewells By Anand Shah – Surat, Aabushan – Bangalore,  P.C.Chandra Jewellers, Creations Jewellery – Bangalore, Sri Ganesh Diamonds & Jewellery –Bangalore,  Nikhaar Jewels – Bangalore Ananya Jewels –Bangalore

Kalasha Jewels, Diamond Mantra – Bangalore, Reyna Gems & Jewels – Mumbai, Gold Karat –Delhi, Seghal Jewellers – Delhi, Ziva Jewellery – Mumbai,   Neha Creations  - Mumbai, Vitrag Jewels – Bangalore,   Kimayas Collection – Delhi,  Diyaash Jewels (By Dolly Gurbani)- Hyderabad

Abira Jewellery –Bangalore / Kolkata, Renuka Fine Jewellery – Mumbai, ModiGold –Delhi,   SSR Jewellers – Bangalore,   Zurie Jewels -Mumbai

The Exhibition is brought to you by Introduction Trade Shows Pvt Ltd. This the 16th successful edition.

STPI Anounces Opening 28 Centres of Excellence in Emerging Tech at an Investment of Rs 400 Crore

Software Technology Parks of India (STPI), is in the process of opening 28 Centres of Excellence (CoE) in emerging technologies at an investment of more than Rs. 400 crore, said Dr. E.V.  Ramana Reddy, additional chief secretary, Department of IT, Bt and S&T, Government of Karnataka, delivering the keynote address at the CII India Innovation Summit 2019 being held the The Taj Westend in Bengaluru. "He said five centres of excellence are currently operational and in two years, all 28 CoEs will be operational. Emerging technologies such as AI, IoT, Medical Electronics, IoT in Agriculture, Automotive Electronics will be the focus of the CoEs.

STPI is a society established in 1991 by the Indian Ministry of Electronics and Information Technology with the objective of encouraging, promoting and boosting the export of software from India.

Bengaluru has been widely cited as one of the fastest growing technology hubs and startup capitals in the world. Bengaluru is ranked 11th Best Global Startup Ecosystem, as per the Startup Blink Startup Eco-system Rankings Report 2019, moving up from rank 21 in the year 2017. Our Department is in the process of drafting a new policy on innovation and technology with the view to address the new age challenges in regulation for innovation. We are considering innovative concepts such as regulatory sandboxes to ensure adequate legal framework for innovation is available. Our aim is to make the state a leading promoter for all emerging technologies by strengthening existing technology Centres of Excellence in areas such as Cyber Security, Data Analytics, IoT, Artificial Intelligence.”

Kris Gopalakrishnan, Past President, CII & Chairman, India Innovation Summit, said that the march of technology is continuous and the world has made great strides in quantum technology and artificial Intelligence. New business models are continuously emerging, and it is imperative to stay up-to-date in order to be relevant. With industry boundaries blurring, policy makers need to ensure that regulations keep up with innovation. Sandbox models may be needed to test innovation, and business models to ensure the desired outcome is achieved. India Innovation Summit is a platform to deliberate, debate and learn. Citing the current distress in the auto industry, he said it is encouraging that the government is promoting greener technologies. However, in order to successfully implement new policies, we need to adopt a holistic approach that looks at the entire ecosystem right from raw materials to finished products.

Rekha M. Menon, chairman & senior managing director, Accenture said that in India, innovation will be the main pivot for India to be a USD 5 Trillion economy. Innovation will be the cornerstone and there is no other choice. We need to be mindful that in achieving our target of a $5 trillion economy, innovation for socio-economic growth is not overlooked. In order for India to move up the global innovation index, we need to ensure that innovation is a process, a collaborative approach that involves government, academia, research and startups.

Startups are the key in the innovation ecosystem. India now is the third largest hub for technology startups which is a positive sign. The other area to focus on is investment in R&D. India ranks 50th in R&D investment and this number must go up with participation of government, academia and private sector, she added.

Nicole Girard, Consul General, Consulate General of Canada, said that India is Canada’s fastest growing trade partner and people-to-people ties continue to grow in double digits. Canada has a strong innovation partnership with India and there is a strong opportunity to explore. Both countries have phenomenal tech talent and for deeper India-Canada relations, Canada has launched an Innovation Super Cluster Initiative to propel economic growth. She enumerated five super clusters i.e. digital technology, protein industries, advance manufacturing, ocean tech and AI that will be key focus areas for Canada.

Digital Start-Up Mavyn Onboards Atul Kawatra as Non-Exec Director

Digital trucking start-up, Mavyn, announced the appointment of Atul Kawatra as its Non-Executive Director. Atul will guide Mavyn on overall company strategy, with a special focus on financing decisions, investor relations and capital allocation.

Commenting on the appointment, Mr. Sachin Haritash, Founder, Mavyn, said, “The expertise and experience that Atul Kawatra brings to the firm will further strengthen our finance function. This appointment is another step towards consolidating the leadership of our organisation, while reinforcing our position at the forefront of revolutionising the digital trucking industry.”

With more than 16 years of experience in finance roles, the newly appointed Non-Executive Director’s key tasks will be to define overall business objectives, guide fund raising plans and create strategies to maximise ROI for Mavyn on long-term investment plans.

Discussing his new role at the company, Mr. Atul Kawatra said, “It is a great honour to be joining Mavyn at a stage where I have the chance to contribute to a rapidly growing business. Mavyn is exceptionally well positioned to take advantage of the expanding logistics sector, and I look forward to helping the team accelerate growth even further.”

Mr. Atul has worked with various reputed global organizations and is currently based out of Singapore. He heads the Corporate Loans business for the Asia Australia region at Siemens Bank. He was instrumental in setting up Siemens’ finance business in the region and has been part of the organization for over ten years. Prior to Siemens, Mr. Atul has worked with Deutsche Bank, American Express and ICICI Bank.

Latest CII-JLL Study Reveals Increasing Share of Institutional Investments in Indian Real Estate

Institutional investments increased in the last ten years and have improved investor confidence, risk appetite and transparency. Enhanced use of technology across asset classes have changed the outlook of investors towards Indian real estate. As a result, investments have more than tripled to INR 1,400 bn during 2014-18 as compared to INR 465 bn during 2009-13, says the latest CII-JLL report ‘Innovation Led Opportunities - Changing IndiaE 2�™s Real Estate Landscape’, released today at the 11th Edition of CII Realty & Infrastructure Conclave.

Traditional real estate segments such as residential and commercial have been using modern technology across construction, planning and development for over a decade now. Policy reforms in the sector, the concept of shared economy giving rise to new asset classes such as co-living and co-working spaces and technology driven businesses resulting in the increased interest in data centers have together made times exciting, both for occupiers and investors. Additionally, introduction of Real Estate Investment Trusts (REITs) have opened new doors for retail investments in commercial real estate.

“India has gradually transformed into an investment destination of international repute post the global financial crisis and real estate and infrastructure have played a vital role. Within the space, adoption of technology coupled with policy reforms is one of the key factors for investors to consider greater participation,” said Ramesh Nair, Chairman, CII Realty and Infrastructure Conclave and CEO & Country Head, JLL India.

“While metros like NCR-Delhi, Mumbai and Bengaluru accounted for 74% of the total institutional investments during 2009-18, we expect tier II and III cities to draw more funds in the coming years. Government’s focus on the growth of smaller cities is leading the change,” Nair added.

The report also highlighted that the commercial office segment witnessed the maximum share of institutional investments in the past ten years. Rise in the development of environmentally sustainable buildings and subsequent demand from occupiers have added strength to this trend.

From 2009 to 2013, opportunistic funds returned to Indian markets and picked up marquee assets in select offices (commercial and IT parks/SEZs). India’s improving reforms scenario added value to the overall scenario. Notification of REIT regulations in 2014 led to a deluge of investments in high yielding assets with attractive valuations. This was especially in the non-IT office space as most quality IT/ITeS assets were acquired by funds. Investors took note of the innovation introduced at all levels.

With a superior sustainability quotient, Grade-A offices with single ownership and limited supply have pushed global investors to close large deals. But lower availability of quality assets has led to large investors chasing entity level deals leading to extended investment cycles. As a result, the share of investments in the office segment declined during th e first six months of the year as compared to the corresponding period the last year.

Commenting on the investors’ preference, Samantak Das, Chief Economist and Head of Research & REIS, JLL India said, “Investment strategies have shifted to long-term partnerships from being merely opportunistic. There has been a rise in investments in the past decade. Institutional investments in real estate in H1, 2019 stood at INR 195 bn, reflecting continued momentum of capital infusion. The investment climate, however, in the first half of 2019 was uncertain. Initially, this was due to the NBFC default crisis and later due to general elections.”

LIVA from the Aditya Birla Group Ventures into Saree Category

LIVA, the new age fabric from the Aditya Birla Group announced its foray into the Saree category this week at country’s largest ethnic wear event.

Mr. Dilip Gaur, Managing Director, Grasim Industries Ltd. said, “Saree is an iconic category but its growth is sluggish as compared to other women’s wear segment. There is strong need for innovation in saree as a category which LIVA will be able to fulfill with its fluidity.”

As per a report by Technopak in 2018, the saree market in India is worth Rs. 60,000 crores and constitutes 29% of the total women’s apparel market.  Aditya Birla Group recognized this need-state and potential in this category. They therefore bridged it with this announcement at the Kolkata Fashion Expo.

Sponsored and presented by LIVA, the event showcased a fashion show using fabrics from LIVA and a lounge where collections by the Value Chain Partners from prominent hubs were showcased for the first time. Indian celebrity and fashionista Mandira Bedi also crafted a collection with LIVA fabric and showcased during the show. One of the first Indian celebrities to make saree fashionable and trendy, Mandira was most fitting for launching the saree collection.

Premium labels including Parasmani, Surya Sarees, Parvati Fabrics and many others presented contemporary festive collection “Reimagined” with LIVA. Various Partners of LIVA from different textile hubs country including Varanasi, Chanderi, Bhagalpur, Salem, Kolkata, Delhi & Surat showcased their latest saree & lehengas collection at an exclusive LIVA Pavilion.

The event received an overwhelming response. It was attended by over 1500+ retailers, boutique owners & wholesalers all over India, including top players like Nalli’s, Chennai Silks, Manyavaar and many others

LIVA leveraged its attributes of drape, natural sheen and softness and wants consumers to re-imagine saree in a new way.  To better suit the needs of the value chain, LIVA also introduced new blends for both occasion wear and regular wear.