Budget 2023-24: Fintech industry hopes for incentives as sector pushes India's unbanked masses to transition digitally

Budget 2023-24: The National Payments Corporation of India (NPCI) recently permitted non-residents from 10 countries, including the US, Canada and UAE, to digitally transfer funds using the UPI platform from NRE/NRO accounts.

There are no second thoughts that financial technology (better known as Fintech) is driving the Indian economy and it needs to be rewarded with both fiscal and non-fiscal incentives in the Budget 2023-24.

Manan Dixit , Founder, FidyPay said, "The government should formulate tax incentives for venture capitalists and angel investors investing in fintech Startups to promote investments in the sector. The government should provide tax exemptions on software purchases used by fintech companies to promote technological advancement in the sector." 

The government should provide tax benefits for research and development activities conducted by fintech companies to promote innovation in the sector. 

Dixit added that among the non-fiscal incentives the government should relax regulations and create an enabling environment for fintech companies to operate and innovate. The government should provide support for incubators and accelerators that are working to promote the growth of the fintech sector. The government should also provide support for talent development initiatives in the fintech sector to ensure the availability of skilled professionals." 

FidyPay is Banking as a Service Platform aiming to enable the Businesses of Bharat on Digital Economy for multiple Financial and Payment Services. Through their financial inclusion efforts, FidyPay is providing access to useful and affordable financial products and services such as Connected Banking, Prepaid Cards, BBPS, UPI/BQR, UPI AutoPay, eNACH, PoS Solutions, WhatsApp Payments in a responsible and sustainable way.

How it's bringing people under financial net?

It is helping to bring people under the financial net by making these services more accessible and providing financial education to empower users to make informed decisions when it comes to their financial future. 

FidyPay is different from RazorPay and Paytm as they are more focused on Payment Gateway and Consumers Payment where FidyPay with its Banking as a Service Platform offers several features that are not available with Razorpay and Paytm. It is an omni-channel payment system, with one unified platform that allows banking, payments and collections from any customer, anytime, anywhere. Additionally, Fidypay offers quicker settlement cycles and the lowest fees in the market, making it a cheaper and more convenient option for businesses. 

Preventing digital payment system fraud

Due to the increasing use of mobile and digital payments, cybercrimes have increased and complaints registered in such matters have gone up in recent years. 

Manan Dixit said, "FidyPay is a secure, reliable, and safe online payment platform. It is PCI-DSS certified, which means it meets the highest industry standards for data security and encryption. All sensitive customer data is encrypted, and all transactions are processed through secure servers. We also monitor all transactions for any suspicious activity and will take immediate action if any is detected. In addition, we provide round the clock customer support to answer any questions client may have and provide assistance if any issues arise." 

Unlike conventional crime, frauds in digital payments have no boundaries and are characterised by fast-paced technological changes.

Digital Payments System in India 5 Years down the line

Manan Dixit noted that in five years, we expect to see India become a leader in digital payments. India has already made great strides in the digital payments space, and we believe this momentum will only increase in the next five years.

We expect to see increased adoption of digital payment solutions among consumers, businesses, and government entities, leading to greater financial inclusion and a more efficient payments ecosystem. We also anticipate a surge in the development of innovative payment solutions that cater to the unique needs of the Indian market.

Also Read | Delhi weather, temperature today: Cold wave sweeps national capital as temperature plunges to 1.4 degrees Celsius, IMD issues orange alert; trains hit

Also Read | Sanjiv Bhasin strategy, stocks today: Buy Bajaj Finserv, Bajaj Auto, Hind Copper - check price targets