Money & Banking

Mswipe looks to transform into a digital bank for small merchants

Surabhi Mumbai | Updated on July 02, 2021

Also aims to be an NBFC, hopes to have its own license in the next three to six months

Mswipe is looking to transform into a full digital bank for small merchants by offering them more focussed products.

“We should be looking at a digital bank focussed on small merchants and try to cover the merchant ecosystem to the best of our ability. We should be a one stop shop for whatever the merchant needs relating to payment and finance starting from a payment terminal, QR or terminal. We will also look at how to help them with their business with inventory management, lending, buy now pay later platform that is more focussed on the merchant’s requirement,” said Ketan Patel, CEO, Mswipe.

Mswipe, which is a financial services platform for MSMEs, had announced Patel’s appointment on July 1.

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Mswipe also aspires to be an NBFC and hopes to have its own license in the next three to six months. At present, it dispenses loans through partners. It has also created a hybrid credit score with Equifax for MSMEs.

“This is the first step to lending from our own books,” he said. Patel said payments will continue to be the core focus of Mswipe but it will also look at other engagement opportunities with merchants. The company is in talks to enable merchants to offer insurance to customers as well as micro ATMs.

“We want the terminal to create new revenue opportunities for the merchant. They can sell small ticket insurance such as two wheeler and health using the POS terminal. This will be an additional revenue item for them,” he said.

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Similarly, the merchant can offer micro ATMs to dispense cash and earn additional revenue, Patel said.

Mswipe has about 6 lakh merchants as of now and targets to have over 10 lakh merchants over the next three years. At present, it is the largest independent mobile POS merchant acquirer and network provider with 6.75 lakh POS and 11 lakh QR merchants across the country.

Published on July 02, 2021

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