The unprecedented era of Covid-19 has led to the shrunk economy, debts, closure of businesses, inflation, and increased preference towards net banking and online shopping which has highly impacted the retail sector of our country.
In the same economic scenario, there are many villages that are yet to be equipped with banking infrastructure. In such villages, people face problems to meet their daily requirements of cash withdrawal, cash deposit, money transfer, etc.
Fintech companies have addressed both these problems by allowing the local stores to provide banking facilities to their retail partners. This means now retailers can avail basic banking facilities such as cash deposits and cash withdrawals to their customers.
The retailers who were experiencing a slowdown, have bounced back with an increased footfall of customers visiting their stores to meet their banking requirements and for transfer the money. These customers may either want to withdraw their cash money or transfer money across any part of the country.
During the festive season, migrant workers have a demand of transferring cash to their family members, citizens may need to withdraw more money to shop for festivals. In absence of banking infrastructure, these citizens would go to retail outlets to meet their banking requirements.
As local crowds start visiting stores, it is evident to notice a hike in the retail sector that was experiencing slow-down due to the global pandemic of coronavirus. The fintech companies in a very subtle manner have brought back the lost retail sector in the country with their innovative ideas.
According to the survey, the association of the retail sector with fintech companies has marked a huge hike in the earning potential of retailers through the medium of commission and service charge.
Here is how fintech companies support retail outlets during the festive season:
The customer that walks into the retail outlet for cash withdrawal or money transfer, may take a glance at other items in the store and purchase the same leading to cross-selling.
– Advantage over competitors
The fintech-associated retail outlet can allow its customers to pay money digitally, by swiping their credit card or just with the help of their Adhar card through AEPS, which gives them an added advantage over their competitors in the festive season.
– Retailers can offer discounts
The retailer is sure to earn commission on payments, provided; he collects the payment using Mico ATM or through AEPS. If the retailer is getting an extra commission, he can offer that much of a discount to his customers to get an additional advantage over his competitors in the festive season.
– Additional Income
Additional Income in the form of commissions per transaction and overall by assisting retailers to increase their service portfolio. Also, the retailers can charge a premium from the customers as they are providing this service even when there is non-availability everywhere. Moreover, the fintech companies like Biznext also guide the retailers on ways in which they can earn more.