Cash loans abroad in India practical dry (I): how to choose a reliable payment provider?www.deekpay.com

## Lending abroad in India: a guide to payment system risk and the selection of a reliable payment provider In any business, it is impossible to make 100% money. Even if it is a good blue ocean market, there will be some people attacking the city, and some people fall over. Opportunity and risk often coexist, and the back of heaven is sometimes hell. In the past two years, India has become a hot bun in everyone's eyes, "1.4 billion population dividend", "second only to China's cash loan paradise", "usury legal", "Annualised 1000%+", "Blood earns a billion", "Naked put are making money" ...... indeed! , a series of golden words, stimulate the adrenaline rush, all want to go to India to get rich. Especially during the epidemic, taking advantage of the epidemic dividend, the lending institutions in India to make a lot of money in the news, but also let the confined domestic counterparts heart hot. But the more dividends in front, the more we can not ignore the potential risks. This is not, recently there are lending institutions by the payer rolled away the news exposure, the money did not earn, millions of funds also hit the water. Following last year by the NBFC rolled away funds, by the intermediary organisation pit, by the system provider pit ...... has been more than a dozen seafaring India to be cheated events, compared to the windfall profits earned in India, the lending institutions to pay the tuition fees is no less important. A business often involves a number of upstream and downstream enterprises, each link point in the chain of the mine, it is possible to make the enterprise hurt, or even collapse and collapse. Overseas lending in India, involving the NBFC licence, GP on the shelf, system, payment, marketing customer acquisition, financial and legal affairs, manipulation and operation, overseas taxation, landing collection, funds out of the country, profits back to the country, etc., each link is vital. It is related to whether we can make money or not, and whether we have the life to spend the money? Will something happen if you spend it? The so-called rich life, can last, is really rich; those short-lived, are just floating clouds. In this article, we will focus on the difference between the Chinese and Indian payment systems, the risks of the Indian payment system, how to choose a reliable Indian payment provider, as well as the current situation of the payment provider docked by the overseas lending institutions. First, the risk of India's payment system? In the lending industry, it has always been "payment first, then business". Without the support of the payment channel, there is no online lending. Once the lending institutions choose to cooperate with a payment provider, it means that their money to go on the other side of the channel, and even remit the money to the other side of the platform account, if the payment provider is not reliable, there is a risk of being rolled up and run away. Compared to the domestic, lending payment providers in India may bring a higher risk, the main reasons are the following four points: 1. account privileges hanging in someone else's name In the country, technology companies can directly open accounts on third-party payment platforms, and account permissions are in their own hands; in India, only financial companies holding NBFC licences or banking licences can open accounts on third-party payment platforms. Lenders if you want to open an account, you must choose to hold the NBFC licence to cooperate with the company, open the account is also listed in the name of the NBFC company. nbfc company can be the lender to find their own, can also be provided by the payment provider. The lender and the NBFC can stipulate, through an agreement, whether the control of the account of the third-party payment platform is in the hands of the lender. According to Mr Li, the head of commerce of the head system provider in Overseas India, "most of the NBFCs will not agree". If the NBFC does not agree, it means that the money of the lending institution is in the hands of the NBFC, and the risk is self-evident. 2. Unstable technology, no aggregated payment In domestic lending, it is generally the lender to pay the money into its own third-party payment platform account, and then from the third-party platform account directly into the borrower's bank card. Of course, it needs to be a bank card from a bank designated by the third-party payment platform to work. To avoid a bad experience for the borrower due to not having a bank card designated by the third-party payment, the lender will choose to work with multiple third-party payment or aggregated payment platforms. Aggregate payment refers to the payment services of multiple third-party payment platforms that are integrated together by payment providers through integration technology, also known as "fourth-party payment". Through multi-channel co-operation and aggregated payment, domestic lenders can basically lend money directly to the borrower's bank card. However, in India, after the lender remits the money to the account of the third-party payment platform opened by the cooperating NBFC, the lending funds will have three directions: UPI (Unified Payment Interface): the Indian government in order to promote universal digital payment, in 2016 launched the "abolition of banknotes", and through the National Payments Corporation of India (NPCI) launched a cross-bank unified payment interface, able to achieve cross-bank real-time online transfer. The functionality is designed somewhat like China's Netflix. The advantage of third-party payments interfacing with UPI is that it is very convenient, whether the funds go directly to the borrower's bank card or the borrower transfers the funds again. The only problem is that although the government promotes UPI, it is not yet universal. If the borrower has not registered for a UPI account, the borrower will need to register for a UPI account first to do so. If the third-party payment platform has not opened UPI channel, there is no such option. E-wallet: funds are credited to the borrower's e-wallet, which is currently the most common direction for lending funds. Some e-wallets can be directly consumed, the borrower does not need to withdraw the funds to the bank card; if the borrower has money in the e-wallet, the borrower can also repay the loan directly through the e-wallet, the operation experience is very convenient. However, some e-wallets cannot be directly consumed and require borrowers to withdraw funds to their bank cards; when making repayments, borrowers are also required to top up their e-wallets with money via their bank cards, which is a very cumbersome operation. Therefore, if Party A chooses the third-party payment platform, the funds are through to the electronic wallet, you need to their market share, the use of the scene, the cooperation of the e-commerce platform, and so on, a good research. Internet banking: different from the other two towards, through the Internet banking is not a third-party payment account funds remitted to the Internet banking, but the third-party payment account funds issued remittances to the borrower to make the bank's bank card after the application, by the Internet banking (machine audit) will be the application docked to the corresponding bank funds clearing centre, by the bank funds clearing centre to deal with the funds remitted to the borrower directly to the bank card. Because of the different processing time required by different banks' fund clearing centres, the release of funds through Internet banking is fast or slow. According to the use of the channel of party A, lending through the Internet banking channel, the longest need one or two hours, the slowest also need ten minutes. Compared with the real-time arrival of UPI and e-wallets when they are efficient, the Internet banking channel is undoubtedly the most time-consuming. According to a monthly lending volume has exceeded 500 million of the party in charge of risk control Mr Wang spat, "Whether it is a big platform like Paytm, or Razorpay such as the platform in the not slippery, whether the channel is through the e-wallet, net banking, or UPI, the operation is more cumbersome than the domestic, the user experience is poorer, and also are not stable, said the collapse. " It is very easy to appear "put money out, collect money can not come back" situation. 3. Can not "withhold", borrowers need to take the initiative to repay the loan In China, the payment provider can directly deduct money from the borrower's bank card. Whether the borrower has no will to pay back the money, as long as the bound bank card has money, the payment provider can help to "deduct" the money. "Withholding" function, although to help lenders to reduce the bad debt, but also gave rise to a lot of blackmail charge, like some network fraud, like gambling, pornography under the guise of inducing users to bind the card. Once tied to the card, there is no need for users to recharge consumption, directly with the help of third-party payment "deduction" function, the user's bank card can be looted. In the field of lending, there are also a lot of black hearted organisations, in the user after the success of the card, no matter whether the loan is not a loan, will default loan success, do not lend, but according to the normal repayment of the same from the user's bank card to deduct money. The technology is available in India, but has not been approved for use by the government. 4. Poor contractual spirit and high moral hazard The money of the lender is placed in the account of the third party payment platform opened by the NBFC, which may be hacked by the NBFC or the payment vendor. Firstly, one thing, you must first verify the payment licence of the payment provider, do not be fooled by the flimflam under the banner of a payment provider but without a payment licence. Secondly, the Indian payment licence, because of the high registered capital and the need to pay, can not be transferred, be acquired, whether national or foreign capital into the shares need to undergo a rigorous qualification review and other reasons, resulting in the Indian payment licence application is difficult, but to get in the hands of the hands if there is no suitable project to realize, but also can not be out of the hands of the hands, but it will also become a very chicken ribs. Now there are a lot of early to get a payment licence of the small payment company, poor only licence, languishing. That's when Chinese lenders come along and make them do a double-take, wanting to rip them off. Once the Chinese put money into their accounts, they immediately rolled up the money and ran away. There are still some, will choose to fine woolgathering, in the use of the process, secretly today a row, tomorrow a row. There have been a number of party A complained that the payment provider is not reliable, has been running business, financial data and payment platform data does not match, a check of the water flow, found that there are a lot of funds to go unknown. Want to confront the payment company, the other party simply does not admit, ignore. Second, how to choose a reliable payment provider? After understanding the difference between the Chinese and Indian payment systems and the systematic risk of Indian payment, we are all concerned about how to choose a reliable payment provider, how to avoid the payment risk, as well as the related channel costs involved. What kind of payment provider is reliable? The benevolent see benevolence, different needs, requirements are naturally different. Some people look at the stability of the payment channel, on behalf of the payment, collection of a high success rate; some people look at the payment system user base, user experience is good, low cost of customer acquisition; there are also people look at the guts of the payment provider, whether it can be "black put"? After consulting a large number of parties and system vendors, we found that many people believe that the larger the user base of the payment provider, the higher the relative credit rating. This is because large payment providers usually have UPI, the experience of release/repayment will be better, the probability that the borrowing users are already using it is also high, and the technology will be more perfect. So to conclude, the bigger the payment provider, the better. Currently, the first tier of payment vendors in the Indian payment market are Paytm, PhonePe, BHIM, Google Pay, and WhatsApp, which is ready to enter the market.Behind these are either international giants or the Indian government, and with hundreds of millions of users, they naturally satisfy the requirement of being big. But they are looking at the trillion-dollar volume of e-commerce and formal payment market, the cooperation of small-scale lenders will not be big. Only Paytm because of its own Paytm Postpaid in the credit business, open to lenders. According to a party A that has already landed in India, the system vendors they approached, Indian Cow Technology, StarHub and MAD-ELEPHANT, have all docked with Paytm. However, there are also many parties and system vendors complained that these large payment vendors have a high threshold for co-operation, qualification assessment and audit materials, if the assessment is not qualified, time-consuming and costly. Moreover, compared with some small payment providers docking requirements are low, fast audit, large payment providers channel costs are also high. Mr Shang, the CPO of the party that has landed in India at the end of 2019, revealed that many payment merchants' channel fees are charged according to a ladder, which is routinely divided into four levels: Monthly lending volume of Rs 0-2 crore Monthly lending amount of Rs 2-10 crore Monthly disbursement of Rs 1 crore - Rs 1.5 crore Monthly lending volume of 5 billion + Of course, there are also calculations based on individual lending amounts, and the step divisions are generally: Single Lending Volume below Rs. 1,000 Between Rs. 1000 - Rs. 10000 in a single disbursement Single discharge above Rs. 10000 The difference between the two is that in case of monthly lending volume, the higher the monthly lending volume amount, the lower will be the single charge; in case of single lending volume, the higher the single lending volume, the higher will be the fee. You can calculate which one is more suitable according to your monthly lending volume and single lending volume. This article mainly takes the monthly lending volume as an example. According to the monthly lending volume gradient, when lending on behalf of the corresponding UPI channel fees are generally Rs. 6-8 per transaction, Rs. 5-7 per transaction, Rs. 4-6 per transaction, and Rs. 3-5 per transaction. The better the monthly disbursement volume, the lower the per-pen fee. In the first tier, for example, there are fewer that can go as low as Rs 6/pen, basically between Rs 7-8/pen. There are also some that reach Rs 10/stroke, and there are quite a few that break Rs 10/stroke. Corresponding e-wallet channel fees are generally charged at 0.81 TP3T-1.51 TP3T of the transaction amount, with 11 TP3T being charged mostly. Some will also charge per pen, compared to UPI, the channel fee will be much cheaper. For card checking, it's usually Rs 3-6/pen. Lower ones also charge Rs 2.5/pen. For collections, the UPI channel charges are generally comparable to those for payments. The channel charges for e-wallets and net banking are quite different. e-wallets are generally charged at 0.8%-1.5% of the transaction amount; net banking is generally charged at 1.5%-3% of the transaction amount. The cost of the payment channel varies greatly with the difference in charges. Sometimes, the payment provider is not the right choice, only the cost of the payment channel, the cost of expenditure, it may be doubled. So, while everyone pays lip service to the fact that the big payment providers are good, when it comes to actually making a choice, it's often another story. There are not many lenders who are really willing to work with Paytm. Third, the current overseas Indian lending institutions to cooperate with the payment merchant situation Now with the Chinese lending institutions to cooperate with more payment vendors is Razorpay, like Epoch, Indian cattle technology, Star Hopes Technology, Getrupee, MAD-ELEPHANT, OFG (flash cloud Jinke), Yafei digital science and other system vendors, docking payment vendors include Razorpay. The research found that Razorpay in the Indian payment market, whether it is the market share, business model, or the number of users, do not have a clear advantage, why it will be deeply seafaring institutions like it? According to the sea circle has a wide network of system vendors responsible for business Mr Li revealed to us, "Razorpay is not the head of the payment market in India, but it is quite well connected in the sea crowd." Many system vendors and A-side to go to sea in India have said that when they are looking for payment vendor cooperation, they are often recommended to Razorpay by intermediaries or friends, indicating that it has penetrated the local Chinese circle. There are also party A told us that Razorpay has the background of Matrix Partners and Sequoia Capital, familiar with Chinese capital and cash loan play, willing to let some Chinese play in its channel circulation. And in other payment systems, it may not be allowed. After all, Indian financial regulation is much more mature and strict compared to domestic. Despite this advantage, not all partners are satisfied with Razorpay. In the industry's offline salon, there are a number of parties and system vendors complained that Razorpay's channel stability and the success rate of payment on behalf of its disappointment. In addition to Razorpay, there is a name "Mpurse" payment provider in the circle is also more active. Unlike Razorpay, whose investors have experience in dealing with the Chinese, Mpurse's real controller is said to be Chinese, with operational teams in Gurgaon and Shenzhen. Compared with other Indian payment providers, Mpurse still has quite an advantage in terms of language, distance and time difference. But there are also partners complained: the same Chinese, although the relationship is close, but the price is not close at all! After research, now the Chinese organisations out of India to cooperate with the payment provider Paytm, Mobikwik, Razorpay, Mpruse, Yes Bank, ICICI, Cashfree, Dokypay ...... and so on more than a dozen, each payment provider has its advantages and disadvantages! . None of them dare to guarantee that they can meet the needs of all outgoing organisations, and even the needs of most outgoing organisations may not be available. Between the various payment providers, in fact, half a catty, it is difficult to say who is outstanding. In this regard, the party and the system provider is not like a mirror. Although on the surface we all pretend to be ignorant of the low posture, in fact have the guts to go out to sea to make money which is not the old man of the wind and moon. Everyone understands that, from their own contact with these payment providers, randomly choose one, can help build the basic channel function; but it is difficult to find that how to find the willingness to help themselves to build special functions or proprietary functions of the payment provider. If it is in the country, of course, this is not a problem, as long as there is such a payment provider, through a variety of relationships, you can always find. However, when you go to India, you are not familiar with the place and the language is still not understandable, and your resources are really limited, so you know only a few payment providers in India, and even fewer of them can be contacted, so you can't conduct due diligence and comparison of payment providers. Sometimes, it is already good enough to find a willingness to co-operate with oneself, which still have the heart to consider whether the mode of co-operation of the payment provider is suitable for oneself, whether the channel fee is reasonable, whether there is a backdoor to solve the problem of "black release"? Therefore, we are facing the problem of choice of payment providers, in the final analysis is to be able to contact too few payment providers. If you have the opportunity to directly contact dozens of payment providers? If you can compare the service plans of dozens of payment providers in detail? If you could negotiate with dozens of payers to develop your own specific needs? Isn't it true that the problem you face in choosing a payment provider is not a problem anymore? IV. Summary The reason why people struggle with the question "how to choose a reliable payment provider" is because there is no choice, or there are too few choices. In essence, there is a lack of resources and information channels. In order to give you more choices, access to more information channels, and a more comprehensive understanding of Indian payment providers, business registration, overseas tax, funds out of the country, profit repatriation, system, credit super, GP shelves, licences, systems, wind control, landing collection, on behalf of the operation of the relevant issues, we set up a professional service community - See! We have set up a professional service community - See Society, focusing on consumer finance overseas, sharing practical dry goods in the group, and will hold online and offline salons from time to time, inviting experts from all walks of life to carry out thematic sharing and practical training on the issues of concern to everyone, and providing corresponding resource docking. In order to ensure the quality of the community, to avoid falling into the "advertising base", we set up some group rules for the community, and hope that you can know and abide by them when you apply for joining the group. This is a real-name community. After joining the group, you need to change the group name to "Name+Company+Business". This group is not open to the public. If your friends need to join the group, please add the "see time gentleman" WeChat (micro-signal: kstd09527), by its invitation to join the group. This group is a business exchange group. Advertising, rumours, disturbing the social order, illegal content is prohibited. If there is any violation, one warning, two retired. This group is a resource matching group. If you have a need for NBFC licences, business registration, systems, payments, GP shelves, collections, operations, promotion of customer ......, etc., you can contact the "see the time gentleman" WeChat (micro-signal: kstd09527), which will match you with the appropriate resources. This group exists only to provide value, and will be adjusted, upgraded or disbanded according to specific circumstances. Due to the limited length of the article, this issue about payment merchants, we will talk about it here, if you want to know more. Please scan the QR code in the picture below, add "see the gentleman" WeChat, by which you are invited to join the "see the society", more practical dry content, we will first released in the group. Recommended Reading: Why India is still seen as the best lending market in the world! Unravelling India 2020 under locusts, riots and wars! Busted orders, riches, scams, crashes, jail ...... The far-reaching impact of the Wuhan epidemic on cash loans out of India! (Please add images, QR codes or other relevant information as appropriate) We hope the above can help you better understand the payment system risks of lending abroad in India and tips on choosing a reliable payment provider.