We compare leading payment-led fintech apps (Paytm, PhonePe and Google Pay) with Bajaj Finserv Markets and Bajaj Finance Experia apps to get a sense of how each player is approaching the environment w.r.t. user experience. We note that Bajaj group apps play to their strengths of being the largest consumer durable financier of the country in the offline channel.
While all apps encourage use of wallets by selectively offering cashbacks to users, Bajaj Finserv Markets focuses on driving UPI through cashback (Finserv Markets does not have a wallet).
In our view, this stance indicates a significant mindset change from BAF/Finserv’s perspective to focus on app traffic. Bajaj Finance Experia offers financial products only from its own stable whereas Finserv Markets follows a marketplace model by offering third-party financial products (home loans, personal loans and insurance) with a wide range of partners.
Consumer durables is the most prominent differentiating factor of Bajaj Group apps vs. other leading players. After personal loans/ BNPL, insurance remains the mostly contested category across all apps.
We observe that Bajaj apps have some distance to cover with respect to non-financial partnerships (e.g. food, travel, entertainment and other spend categories) where payment led competitors have a more engaging experience. Addition of such partnerships should drive greater engagement and transaction throughput, thus extending the platform from being a leading financial services provider to an omnichannel financial marketplace.