InvestorQ : Is it true that Bajaj Finance is planning to get into the Fintech space?
Arti Chavan made post

Is it true that Bajaj Finance is planning to get into the Fintech space?

Rutuja Nigam answered.
2 years ago

The Fintech space may have its latest player and also a touch competitor with deep pockets and a formidable marketing network. Bajaj Finance, which is today part of the 10 most valuable companies on the index, plans to get into the highly competitive yet lucrative payments business in India.

How will it go about? Bajaj Finance plans to launch Bajaj Pay for its customers in the Mar-21 quarter, which is already on. This Bajaj Pay will offer payment solutions via UPI, EMI Cards, credit cards and other pre-paid instruments. In other words, Bajaj Finance opens up an additional source of revenues for themselves by this method.

Digital payments have picked up substantially during the pandemic and even the volumes of UPI payments have surged to a whopping Rs.4 trillion in Dec-20. As a result of this, Bajaj Finance sees a huge opportunity in this space. Apart from the general payment offerings for clients, it is also planning a payment offering for the merchant network.

UPI is already dominated by merchant to merchant transactions so that would be a big opportunity pocket. Bajaj Finance will follow up its payment push with the launch of 5 unique and proprietary market places, which will cover a total of five unique market places including broking, insurance, EMIs and health. All these will be integrated with the payment Fintech plan.