Bank CSP providers are supporting the local Kirana stores- How?

According to the most recent report on ‘Trend and Progress of Banking in India 2019-21,’ India’s financial inclusion efforts have yet to yield the desired results. This is forcing Indian banking authorities to look for alternative means of reaching out to rural areas, such as local Kirana stores.

Evolution of bank CSP providers

The evolution of a bank CSP provider has the potential to assist retailers in reaching a global audience online. According to World Bank research, 50 percent of the country’s bank accounts had no transactional activity in the previous year.

Although traditional financial institutions have been difficult for new technology to innovate around, in the aftermath of the Covid-19 pandemic, startups are beginning to spearhead the technology movement at a faster pace.

How are the services being delivered?

It is about delivering a range of improvements and enhancements to the ecosystem that provides a more efficient way of delivering financial services to the marketplace.

The disruption of traditional institutions has resulted in a wildly competitive landscape in which banks are increasingly being forced to digitize their processes in order to compete.

Although digital acceleration in retail is likely to be difficult, particularly for retail stores that have spent the majority of their existence as a brick and mortar entity with less emphasis on eCommerce, the evolution in finances has the potential to help stores access a global audience online.

However, while the numbers are encouraging, we are still a long way from becoming a financially inclusive country. Despite the fact that four out of every five adults in the country now have a bank account, up to 78 percent of total transactions are still cash-based.

READ MORE:-What is the purpose of banking through CSP service points?

How does a bank CSP provider work?

Bank CSP provider enables customers to make payments at their leisure and is also a great way to provide the rural population with the convenience of taking advantage of all government policies, particularly those designed for lower-income groups.

It also provides employment opportunities to those who are less educated and do not have a steady source of income. Opening a CSP does not necessitate any specific qualifications or degrees, and the individual can earn a fixed salary ranging from INR 2000 to INR 5000 in addition to commission on transactions completed.

How did the bank CSP support during pandemic?

The pandemic has accelerated retail companies’ push toward cashless payments. While this process may have been intimidating for small retailers, the rise of csp providers were designed to help businesses accept online payments from customers has helped to smooth the process overall.

The rise of innovative payment companies such as Stripe, PayPal, Circle, and Venmo, in particular, has aided in the removal of barriers between retail stores and online customers in a more efficient and secure manner.

How can data enhance the security?

Data leaks pose a risk to businesses of all sizes and industries. However, small businesses in the retail industry, in particular, may be targeted due to their perceived lack of the same comprehensive security measures that larger, more resourceful companies rely on.

Furthermore, as more small businesses embrace digital transformation in the aftermath of the Covid-19 pandemic, their exposure to security threats becomes more digital as well.

READ MORE:-Why are all bank CSP getting popular in the remote areas?

How are the Kirana local stores benefiting from CSP ?

Retailing is one of the pillars of our socioeconomic structure in India, with retailers having deep roots in the communities where they are located. These locally rooted Kirana stores are in a unique position to educate, empower, and upscale their communities, ushering them into a new era of financial inclusion.

A bank CSP provider can also apply for a loan of INR 1-25 Lakh under the Pradhanmantri Jan DhanYojana scheme. In this way, they can also contribute to the country’s growth.

90% of India, which is technologically illiterate and has been excluded from most financial innovations, can be integrated into the formal economy with the help of these local Kirana store.

READ MORE:-How does a CSP help in making the digital payments for all?

Conclusion

An assisted technology module, in which these Kirana stores are trained, outfitted, and equipped to serve their local communities with financial inclusion products, is gradually emerging as our solution to bridging the digital divide. Call for more details and start using online payment modes for your local stores with bank csp providers at your fingertips.