The average transaction speed in the industry is 7 seconds as opposed to transactions on Innoviti which take 2 seconds.
Innoviti is a payments technology firm that delivers differentiated solutions for payments automation, consumer credit distribution, and SME lending.
The company strongly believes in “Look Ahead Technology” where they focus on developing analytics to figure out the route that has already been used so that they can understand their path for following transactions. Called the declarative style of programming, it allows Innoviti to create systems with extremely high reliability.
Leveraging a robust technology framework, Innoviti processes around Rs20,000 crore worth of transactions annually and has grown 100% in terms of value and volume of transactions over the last year.
The fintech form has a wide customer base of about 100 clients including brands like Reliance Retail, Star Bazaar, Next, Inox, PVR, Indigo, Walmart, eZone, Croma, UniverCell, Titan, Lifestyle, Max, Tanishq, etc as its customers. And all the leading banks use the platform to access customers for processing payments and disbursing loans.
In an interview with ETCIO.COM, Rajeev Agarwal, CEO, and Founder of Innoviti Payment solutions talks about the technology innovations that helped Innoviti outpace the payment industry in terms of speed, flexibility, and reliability of transactions and the bouquet of payment service offerings from Innoviti
Can you give our readers a sense of the breadth of the payment service offerings and the different challenges in the Indian payment space that you help solve for the customers?
At Innoviti, we have created a multi-sided payment platform – it’s a platform on which different kinds of customer groups are connected. In a classical platform, there would be two types of customer groups- one would be merchants and the other would be a bank. So a payment system would take payment from the merchant and get it processed by a bank.
At Innoviti, we have created a multi-tenant platform where besides merchants and banks, a large number of customer groups are also connected. So for example, we may have employee benefits service provider like Sodexo, nonbanking lenders like bajaj finance, wallet providers like Mobikwik or Jio wallet, a business which are business facing say a supply chain participant like Dell.
So there are 10 different types of customer groups connected on this payment platform and all these groups are interested in transactions happening at the customer level. All groups have different interests in the transaction because they are looking to come to the platform to either reduce the cost of their existing business or increase their sale.
Innoviti looks at payment transactions across the value chain thereby helping merchants accept payments across channels such as the web, mobile, in-store or at the time of delivery.
We have also come up with uniPAY Next platform, an offering that allows merchants to accept digital payments through various modes such as cards, wallets as well as UPI.
Reliability, speed, and flexibility are the three problems you are looking to solve for your customers. Please explain how you deliver on each of these promises?
You’re right. Innoviti’s main agenda has always been to deliver speed, flexibility and reliability in payment gateway solutions. These three factors prevent the increased adoption of electronic payment solutions.
Innoviti payment terminals typically process payment transaction in an average of a 2-3 second per transaction- against a market norm of nearly 7-8 seconds per transaction.
Our platform is very reliable. On average, Innoviti terminals show a consistent transaction success rate of above 95% of transactions attempted versus market norms of approximately 80-85% success rates.
We offer a great deal of flexibility to the customers. Innoviti terminals allow merchants to process a wide variety of cashless payment mechanisms for 1 single unified terminal – for example, apart from normal credit/debit cards, payments via mobile -wallets ( like Reliance Jio Money) or Meal Cards ( like Sodexo) or UPI-based payment apps ( like BHIM) are all integrated. Similarly, the merchant can also process payments via Loyalty Points redemption across 18 different Card Loyalty programs.
How does technology help you maintain high standards of speed, flexibility, and reliability of payment transactions?
In order to deliver a market leading performance on speed, and reliability of transaction processing, Innoviti relies on LookAhead transaction routing technology.
Essentially, this allows the Innoviti payment gateway to scan all available acquiring bank networks in advance –to determine the least cost option for the merchant. In case the least cost bank network happens to be facing speed or network availability issues at that specific point in time, LookAhead automatically switches to search for the next- best cost option.
Thus, LookAhead pro-actively searches for the optimal combination of cost, speed, and reliability while deciding where to route each new transaction — essentially functioning the same way Google Maps keeps dynamically scanning for the least-traffic driving route.
In a world where technical glitches are a part of every operational process, retail outlets often face connectivity issue during acceptance of card payments. This cause utmost inconvenience and often results in loss of sales. How has Innoviti leveraged Card Acceptance Outage Prevention Technology to overcome this challenge?
Innoviti is offering a solution to the challenge of card acceptance while retail stores face connectivity downtime.
In place of sustaining transactions during the period of connectivity downtime, uniPAY NEXT payment platform automatically re-routes card transaction via pre-configured secondary backup GPRS connectivity.
Similarly, in the event of primary acquiring bank network going down, the transaction is automatically re-routed to a pre-configured secondary or even tertiary backup acquirer.
The UniPayNext system also provides portal-based reporting tools to enable merchants to analyze past transaction trends for identifying the optimal combination of primary/secondary/tertiary acquirers.
Travelling abroad for most people means making mental calculations of every item of purchase. The preferred method of calculation is not always available making it difficult for customers to imagine the cost of a product in their native currency. How does Innoviti’s Dynamic Currency Conversion feature solve this problem?
In situations like these where customers purchase products elsewhere, Innoviti’s Dynamic Currency Conversion feature in its new uniPAY NEXT payment allows foreign card users in India like tourists or business travelers to have their billing amount charged to their card in either Indian Rupees or as the converted amount in their native currency at prevailing currency conversion rates.
Currently, the Unipay Next platform supports Dynamic Currency Conversion from 72 different foreign currencies. The uniPay Next platform is currently being rolled out across Innoviti’s existing installed merchant base of over 50,000 points of sale across 700+ cities in India.
The new feature is designed for use by merchants having a high volume of foreign card transactions like hotels and shopping destinations in popular tourist locations. An additional benefit for the merchants is that they can save normal merchant service fee on each foreign card transaction if it is billed in the native currency. It is getting good traction in hospitality and high luxury retail.
Innoviti has come up with an offering for SME lending. How will it benefit the SME segment?
Innoviti’s smelending.com product targets payment and lending in order to facilitate working capital loans to kirana stores, small merchants and brand franchisees right across the supply chain. The platform enables loans as small as Rs30,000 for periods as short as 15 days.
Smelending.com processes more than 150,000 loans annually for over 30,000 such small businesses and has so far disbursed loans worth over $500 million.
What is the next growth frontier for Innoviti? How do you plan to expand your offerings?
We are looking at the B2B payments. We have initiated that through smelending.com where we are providing easy short-term business loans to our merchant partners via access to a 3-way digital lending platform that connects them with their principal suppliers and also interested lending banks.