Budget 2023-24: Fintech industry hopes for incentives as sector pushes India’s unbanked masses to go digital

Budget 2023-24: The National Payments Corporation of India (NPCI) recently allowed non-residents from 10 countries, including the US, Canada and the UAE, to digitally transfer funds using the UPI platform from NRE/NRO accounts.

There is no second thought that financial technology (better known as Fintech) is driving the Indian economy and it needs to be rewarded with both fiscal and non-fiscal incentives in the Budget 2023-24.

Manan Dixit, Founder, FidyPay said, “Government should formulate tax incentives for venture capitalists and angel investors investing in fintech startups to promote investment in the sector. Government should provide tax exemption on software purchases used by fintech companies to promote technological advancement in the sector.”

The government should provide tax incentives for research and development activities carried out by fintech companies to promote innovation in the sector.

Dixit added, “Among the non-fiscal incentives that the government should relax regulations and create an enabling environment for fintech companies to operate and innovate. The government should provide support to incubators and accelerators working to promote the growth of fintech- sector. The government should also support talent development initiatives in the fintech sector to ensure the availability of skilled professionals.”

FidyPay is Banking as a Service Platform which aims to enable the businesses in Bharat on digital economy for more financial and payment services. Through its efforts for financial inclusion, FidyPay provides access to useful and affordable financial products and services such as Connected Banking, Prepaid Cards, BBPS, UPI/BQR, UPI AutoPay, eNACH, PoS Solutions, WhatsApp Payments in a responsible and sustainable manner.

How does it bring people under the financial net?

It helps bring people under the financial net by making these services more accessible and providing financial education to empower users to make informed decisions when it comes to their financial future.

FidyPay is different from RazorPay and Paytm as they are more focused on Payment Gateway and Consumer Payment where FidyPay with its Banking as a Service Platform offers more features that are not available with Razorpay and Paytm. It is an omni-channel payment system, with one unified platform that allows banking, payments and collections from any customer, anytime, anywhere. In addition, Fidypay offers faster settlement cycles and the lowest fees in the market, making it a cheaper and more convenient option for businesses.

Prevention of fraud with digital payment systems

Due to the increasing use of mobile and digital payments, cybercrime has increased and complaints registered in such cases have increased in recent years. Manan Dixit said, “FidyPay is a safe, reliable and secure online payment platform. It is PCI-DSS certified, which means it meets the highest industry standards for data security and encryption. All sensitive customer data is encrypted and all transactions are processed through secure servers. We also monitor all transactions for suspicious activity and will take immediate action if any are detected. In addition, we offer 24/7 customer support to answer any questions the client may have and provide assistance if problems arise.”

Unlike conventional crime, fraud in digital payments has no borders and is characterized by rapid technological changes.

Digital payment system in India 5 years later

Manan Dixit, Founder, FidyPay noted that in five years we expect to see India becoming a leader in digital payments. India has already made great strides in the digital payments space and we believe this momentum will only increase over the next five years.

We expect to see increased use of digital payment solutions among consumers, businesses and public entities, leading to greater financial inclusion and a more efficient payment ecosystem. We also expect an increase in the development of innovative payment solutions that cater to the unique needs of the Indian market.

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