Opportunities beyond UPI payments
Bridge the gap between traditional commerce and digital finance
By MANISH KUMAR GOYAL
Managing Director, Finkeda
The corner shop, also commonly known as the ‘Kirana store’, has been serving as much more than an outlet to buy groceries and other necessities. It serves as a centre for information, a social place, and increasingly as a supplier of essential financial services for many communities. As digital technology reshapes consumer behaviour, smart shop owners are recognising the untapped potential of providing financial services with their traditional shopfronts.
The advancement of financial technology has democratised banking services, allowing small businesses to bridge the gap between traditional commerce and digital finance. The objective of the shift is to grow into a vital aspect of the consumers’ financial lives while solidifying the foundation of the business, along with adding an additional source of income.
Financial Services: Why?
Consider those devoted customers that come into your store multiple times a week. They rely on your establishment, know your face, and trust you. This established relationship provides an excellent platform to offer financial services. When consumers can handle their banking requirements while picking up their everyday needs, you’re not only saving them time but also making their lives easier.
Financial services also have the potential to substantially boost your profitability—the bottom line. While retail margins are often in the single digits, financial services often have higher profits and generate recurring income streams. These services can be as basic as mobile top-ups and bill payments, or as sophisticated as money transfers and E-Account ledgers.
Getting Started
The secret to successful implementation is to start small and grow over time. Start with services that compliment with your current business and that will satisfy specific consumer needs. Money transfer services, for example, can be an entry point if the shop caters to a community that has migrant workers. If you live in a community where many people pay their utilities in cash, bill payment services could be a good place to start.
Accepting digital payments is often the initial step. Additionally, shop owners can become registered merchants by collaborating with banks or fintech companies that offer financial services, including digital payments, micro-ATMs, utility bill payments, and mobile phone recharges.
They become trustworthy financial service providers by integrating smart microATM hubs and adhering to regulatory regulations. This not only diversifies their revenue streams but also positions them as essential enablers of financial inclusion in their communities by closing access gaps to banking and digital money.
Establishing Credibility
Maintaining trust becomes increasingly important as you explore the financial services industry. Your reputation as a trustworthy shop has to carry through to your role as a financial service provider. This entails investing cash in training staff, implementing robust security measures, and making sure that every transaction is completely transparent. Compliance with regulations is not negotiable. Different types of financial services have different regulatory obligations that must be understood and followed. Collaboration with reputable financial organisations will provide guidance and support in fulfilling these needs.
Technology the enabler
Micro ATMs nowadays can do much more than handle transactions. Using debit cards lets you easily manage your transactions, making it simple for customers and staff to manage financial transactions. Look for options with strong backend support and intuitive user interfaces.
Many financial technology companies currently offer complete platforms that could transform a basic smartphone or tablet into a strong financial services interface. These platforms often come with real-time reporting capabilities and integrated compliance features, which allow you to oversee your expanded service offering more easily.
Additional Value
Think about including financial services with your merchant business. For example, you could provide special grocery discounts to consumers who use your bill payment services, or you could set up a loyalty scheme that rewards customers for using different services. This strategy not only improves the adoption of your financial services but also increases conversions.
Information collected through financial transactions can provide key facts about the needs and behaviour of customers. Incorporating these insights may find new opportunities to modify price techniques and boost the store’s inventory.
Looking ahead, the future of retail is about providing integrated experiences that meet multiple customer demands under one roof. As financial technology evolves, businesses will have additional chances to increase their service offerings. Keep up with market developments and interact openly with customers to understand their evolving needs.
Keep in mind that change is a process rather than a final goal. Begin with a solid understanding of your community’s needs, then expand gradually and strive for excellence in execution. Your shop can serve as an essential financial hub, strengthening your community while establishing a more sustainable business for the future.
In conclusion, keep in mind that change is a process rather than a final goal. Begin with a solid understanding of your community’s needs, then expand gradually and strive for excellence in execution. Your shop can serve as an essential financial hub, strengthening your community while establishing a more sustainable business for the future.
By embracing this transition purposefully and strategically, you can set up your business at the crossroads of retail and financial services, delivering value for your consumers while securing your position in the shifting marketplace.
