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Pay1 offering tech solutions to issues plaguing unorganised retail mkt
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Monday, 13 January, 2020, 08 : 00 AM [IST]
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Pay1 is a tech company currently solving for the unorganised retailers of India. With various modules that have been developed by the company, it solves critical issues plaguing the unorganised retail market.
The services offered improve the digital infrastructure of the retailer, provide access to credit and also help in increasing the customer footfall in their shops.
India’s retail market is considered to be one of the top five retail markets in the world evaluated by economic value. Even though it has a significant contribution to the countrys economy, it has largely been overlooked for years now.
The Indian consumer is dependent on these stores for their day to day needs especially when it comes to the metropolitan cities like Mumbai, while the rural/semi-urban population is largely dependent even for their monthly stocking up of groceries/ household products. Optimising the unorganised retail chain strengthens a very important pillar of the Indian economy.
Realising this issue and the potential a micro-retailer carries, the company set out to help these retailers earn more by giving them access to additional services that they can provide to their customers.
The upside to this is that the retailer can provide all these services through the same physical infrastructure and doesnt need any heavy spending. By monetising their businesses more effectively and by providing services like micro-ATM, digital payments, insurance to the end consumers a Pay1 retailer is not only able to create multiple revenue opportunities, but is also able to tackle various issues that are hindering the growth of these micro-businesses.
The company aims to help the retailer community to shift from offline business transaction modes to reduce their reliance on cash, become financially inclusive and generate more income through the various services, the technological company provides to its users.
Financial inclusion does not only extend till the Pay1 retailers, but rather the aforementioned services promote digital and financial inclusion to the last-mile customer.
This helps in increasing customer footfall and also creates digital transactional footprints that can be utilised by the retailer to access micro-loans along with an improved credit rating, which also strengthens their core business.
A good percentage of Pay1’s merchants now have access to formal credit, which would have not been possible without the transactional data that has considerably improved the loan eligibility of many of these micro-businesses.
The company serves to holistically develop the unorganised retailers and distributors by digitally transforming the shop and bringing them to a digital forefront.
The formal credit and the various digital services solve issues not just for the small retailer, but also for the entire retail chain, including the retail distributors and the customers transacting with these micro-merchants.
Pay1 has secured a niche position in the market, by providing the latest tech solutions to assist the merchants in improving their online customer management.
Due to this, the number of users for the tech company has doubled in the last two years, along with a rapid increase in the per-user transaction which has grown almost 20 times. Today, it is present in over 300 cities with over three lakh-plus registered merchants on the platform and an annual turnover of Rs 2,500 crore.
To maintain and enhance this merchant engagement, the company has also introduced a loyalty programme that rewards tokens to the retailers for every transaction. It plans to introduce a coupon-based ecosystem that will help the merchants to promote their product by offering discount coupons to their customers.
These coupons, which were till now only common in the organised retail market, have now made their entry into the unorganised retail sector with the current tech innovations that Pay1 has developed. This not only unlocks value for the merchants, but also for the numerous big brands who are partnered with the company.
The company has not only transformed the lives of the retailers, but also established an inclusion point for their customers. With their technological upgradations, Pay1 has now managed to take care of the needs of the largely untapped population of the Tier-II onwards cities of India and has made the most fundamental services available to them at their nearby Pay1 retailers.
Going forward, it aims to expand to other markets that have an unorganised structure similar to India and empower the micro-businesses and merchants by providing them with an avenue of opportunities through digital engagement.
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