FinTech : Covid-19 a turning point

2020-04-20T10:28:05+00:00April 20th, 2020|FinTech|0 Comments

While most Fintechs are grappling with the shocks of coronavirus pandemic and trying new ways to absorb them. The Covid-19 outbreak has led to a slump in digital payment transaction by 30% owing to people hoarding cash for unforeseen circumstances amidst country-wide lockdown.

However, the risk of transmission of coronavirus still persists through exchange of currency notes. While financial institutions have been appealing customers to go digital for transactions. The shift in the payments habit amidst the covid-19 and post will be fairly visible in coming months.  Demand for virtual cards have shot up like 600%, everybody is asking for virtual cards and not prepaid cards. Mainly because people have started becoming risk averse. Enquiries for contact less cards where there’s no touch have shot up. Virtual cards will soon see an upward trend. “The scenario of card not present virtually is absolutely accepted and will be the norm going ahead to prevent less human touch or human interaction.
With virtual credit cards—also known as online credit cards—customers can make secure payments online, even if they don’t own a physical card. Virtual cards comprise only a card number, an expiration date, and a security code. Because they do not have physical characteristics such as a magstripe or an EMV chip, virtual cards cannot be used in physical stores (unlike prepaid cards). Virtual cards are ideal for people who often make online or MOTO payments.

Future Plans :
The fintech is developing a product where on a dashboard customers would be able to see their balances from multiple bank accounts, pull the money and push the money in real time. Because today the entire system of clearing and settlement is all archaic technology.

Israel companies have solution were the cardholder does not have to leave home to find transfer points, and instead can execute the transfers on his own on any day at any hour. The receiving cardholder (like the transferring cardholder) can withdraw the money from any ATM, or use it to make purchases in any business in Israel or across the globe.

Relevant companies, interested to learn more on Israel innovative technology are invited to contact the Trade and Economic Department at the Israeli Consulate General in Bengaluru.

For further queries:
contact: Kavitha Saravanan, Trade Officer, Trade and Economic Mission
Tel: +91-80-49406515.

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