NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, May 5, 2016

Powered by innovation in payment processing, the fintech software products segment is expanding at a rapid pace in India, according to the National Association of Software and Services Companies (Nasscom), which represents country’s IT industry.

In a recent report entitled Indian Fin-tech Products — Innovation Driving Growth, Nasscom said that the total fintech software and services market from India was worth $8 billion at present and is pegged to grow 1.7 times by 2020. “The Indian fintech software product market has generated revenues of $1.2 billion in 2015 and this was expected to double by 2020,” the report said.

With more than 400 companies including 200 startups, India was “quickly emerging” as a fintech products hub and of them, more than 30 percent were mature firms with demand across regions.

Payment processing — including transaction gateways and platforms, online/mobile wallet, ATM and POS services, remittance, and cash cards — accounted for 34 percent of the Indian fintech landscape, followed by 32 percent by banking (accounting and treasury management, core banking software, risk management, mobile banking), and another 12 percent by the trading, public, and private markets.