Winning the new financial era

Chapter 369 Indian Demonstration Order

印度政府突然在11月8号宣布：旧版500卢比和1000卢比纸币从11月9日零时起停止流通，同时发行新的500卢比和2000卢比面值的钞票，民众可在12月30日前将手中旧钞换成新钞。

Due to the insufficient supply of newly issued banknotes, this has caused a large group of third brothers to suffer, and there are long queues for "exchanging banknotes" in front of banks and ATMs everywhere.

At the same time, most people still face the dilemma of not having enough new banknotes and have to go home and wait for the next day.

The Indian government claims that the move is to combat corruption and black money from unknown sources.But the common people were pitted miserably.

You said, if you exchange banknotes, you can exchange banknotes, and you must get a vaccination in advance. The sudden announcement of the "abolishment order" caught the common people completely by surprise.

Or maybe you have to prepare enough for the new version of banknotes. After queuing for a day, it's finally my turn.

Fuck, the teller told me there are no new notes, come back tomorrow!

Even if someone succeeds in getting new banknotes, they are not relieved.

Because the first new banknotes to come out in large numbers in India are only the new 2000 rupee notes, while the new 500 rupee notes are very rare.

市面上主要流通的钞票为2000卢比、100卢比、50卢比、20卢比、10卢比以及硬币。

This means that even if ordinary people have 500 rupee bills in their hands but cannot spend them, the 100 rupee banknotes have become a tight commodity that can be effectively circulated.

In addition to withdrawing money, it is another headache for people to deposit the deprecated Rs 500 and Rs 1000 notes in the bank.

Because according to regulations, to deposit old banknotes into personal bank accounts, various identity and address information need to be submitted according to different amounts for verification, and the procedures are very troublesome.

Under normal circumstances, it often takes more than a year or even two or three years for a currency to exit the market in an orderly manner.

The speed of India's action this time is simply jingle bells!

India is a highly cash-dependent country, with more than 90% of transactions done in cash.

In this context, 86% of the banknotes in circulation are abolished at one time. It is conceivable how much this "demonstration order" will cause the Indian market!

As soon as the "demonstration order" came out, the Indian stock market plummeted, highways were paralyzed due to traffic strikes, the agricultural sector was damaged, and commercial activities were largely suspended.

The entire market transaction in India has been paralyzed, which affects not only economic activities, but even the daily life of every Indian.

Banks are also hit!
People flocked to banks from all directions, and every bank was caught in a run.

There was a long queue of people who exchanged banknotes, and those who could not exchange banknotes made trouble in front of the bank, and even smashed the bank, causing chaos everywhere.

The world's major financial institutions have lowered their expectations for the Indian economy.

Zhang Yida received the news as soon as the banknote abolition order came out.

Ruixiang Industrial Investment Fund has invested hundreds of millions of dollars in India, invested and acquired 6 technology companies; Zhang Yida also personally invested 1 million dollars in OYO Hotel.

Because of the demonetization order, most of these companies will face a lot of impact.

The only exception is BBPay.

The introduction of the demonetization order is bad news for other industries, but it is good news for the electronic payment industry.

Within the first hour of the demonetisation announcement, funds on BBPay accounts across the country increased by nearly $200 million, compared with a typical daily increase of $20.

Zhang Yida urgently held a remote video conference, instructing BBPay CEO Singer to start investing heavily in advertising, and must take advantage of this wave of policy dividends.

After getting orders from Zhang Yida, BBPay started to act, and huge billboards were quickly erected in New Delhi, Mumbai and other large supermarkets.

On the other side of the increase in payment customers is the wide spread of payees, including not only major shopping malls, restaurants, hotels, but even taxis and grocery stores have begun to collect payments through BBPay.

The Indian government has also taken steps to strongly encourage electronic payments.

For a while, the electronic payment industry not only found a good opportunity for rapid development, but also helped the government and the people reduce the difficulties in the transition period.

More than a month has passed, and the various shocks caused by India's demonetization order have gradually subsided.

Zhang Yida connected to Singer again through the video conferencing software, ready to inquire about the development.

Singer with a beard appeared on the screen in the conference room, his majestic body took up more than half of the screen.

Singer's first words were, "Boss, you are really good at predicting things! Haha!"

He laughed again, "Now that the impact of the demonetization order has gradually subsided, we, BBPay, are definitely one of the biggest beneficiaries of this incident!"

Zhang Yida smiled and nodded, "Tell me! How about the data growth?"

Singh said with a smile on his face, "Over a month since the implementation of the demonetization order, more than 2000 million people have started to use BBPay wallets.

Traffic to the company's website soared seven-fold, and smart client application downloads tripled.

The total number of registered users exceeded 7500 million, and the number of cooperative merchants exceeded 150 million, initially equal to the number of merchants accepting credit card payments. "

Zhang Yida frowned, but was still a little slow, and asked again: "How is the situation of Paytm? I heard that their registered users have exceeded 1.5 million? The number of cooperative merchants has exceeded 210 million?"

"Yes," Singh said with a heavy face, "In the Indian market, Paytm is well-deserved No. 1 in the industry, and our BBPay can only rank second. No. 3 is FreeCharge with 3000 million users.

In addition, I also heard that Samsung Group intends to launch a payment application Samsung Pay;

WhatsApp, an instant messaging service with 2 million users in India, is also exploring payment options for Indian users;

The Indian government is also planning to launch the Bharat QR code payment system, which will allow users to easily transfer money between bank accounts;

Flipkart acquired PhonePe, a UPI payment platform founded by its former employees. The major shareholder behind Flipkart is Penguin Group from China;

Also, Google and Amazon are said to be launching their own mobile payment wallets in India too…”

The demons danced wildly!
Zhang Yida lamented that with a population of 13 billion, India is a piece of fat that cannot be fatter!
Domestic Internet giants Ali and Penguin, mobile phone giant Samsung, international Internet giants Facebook, Google, Amazon, and the Indian government are all eyeing electronic payments.

A market as large as China's domestic market. Although the economy is slightly worse than China's, it is as big as a continent.

Isn't Xiaomi just making a fortune in India?

Due to social conditions such as caste system, low status of women, and wealth inequality, India's economy has been unable to develop.

In fact, even with these circumstances, India’s GDP growth rate last year was 7.3%, and it is expected to be 7.1% this year.

From 1978 to 2013, China's GDP growth rate was far ahead of India's almost every year.

By 2014, India's GDP growth rate began to surpass that of China, becoming the fastest growing major economy in the world.

However, last year China's total GDP was US$11 trillion, while India's was just over US$2 trillion; China's per capita GDP was US$8000, while India's was only more than US$1700.

Anyway, regardless of comparing countries or per capita, the gap is four or five times.

Of course, this data is not recognized by India!They think their country's GDP is more than twice that of China.

Indian Prime Minister Narendra Modi is still very strong-handed. The currency reform under such great pressure this time is to force the Indian people to deposit cash in the bank.

Promoting the digitization and systematization of currency will lay the foundation for the development of India's modern payment system, which is conducive to the long-term development and circulation of India's commercial trade.

At the same time, it also facilitates tax supervision.

There is a clause in the demonetization order that if residents deposit old coins worth less than 25 rupees (about 2.5 yuan) in the bank, the government will not ask them;

After exceeding this limit, residents will face a punitive tax of up to 60% if their storage does not match their reasonable income.

The reason why Zhang Yida paid so much attention to India's demonetization order is because after the demonetization order, mobile payment exploded in India.

With Europe and the United States unable to enter, India has become the most important overseas market for Mobao Pay, and you have to pay attention to it.

"Singh, I have allocated 5000 million US dollars to BBPay, do you have the confidence to increase the number of registered users to 1.5 million by the middle of next year?"

Singh was in a bit of a dilemma. In half a year, the number of users had to double to 7500 million, and the funding was only 34 billion rupees, which was less than 50 rupees per user.

He said: "Boss, this may be difficult! Although the demonetization order has promoted the development of the electronic payment industry, it is very difficult to increase 7500 million users in half a year.

I think it is more realistic for us to adjust the target to between 1 million and 1.2 million. "

Zhang Yida shook his head, "Singer, I don't like bargaining. At present, the number of our C-end users is fully twice that of Paytm. If you don't catch up, do you want to be the second child for thousands of years?

In terms of the number of cooperative merchants, we are not much worse than Paytm.So, the gap between us and them is not as big or unbridgeable as you might imagine.

As far as I know, the current customer acquisition price of financial products in India is only about US$0.5, which is equivalent to RMB 3.44 and Rs 34.

I will provide you with 34 billion rupees of funds, if used properly, you can get 1 million users. "

When he said this, Zhang Yida was also very envious.

At present, when the cost of acquiring customers for domestic mutual gold products is as high as thousands of yuan, India is still in good times, and the cost of acquiring customers is only more than three yuan...

It can also be seen indirectly that the competition among start-ups in the Internet finance industry in India is not yet fierce, and there is not much hot money pouring into this industry.

Maybe the situation will be different next year. Giants from all walks of life will enter the arena, and soon there will be fights between gods, and the cost of acquiring customers will definitely rise sharply.

Spending more on advertising now is also saving money in the future.

Wannian's second son poked Singer's sore spot!

Before BBPay was acquired, he was still the boss, and when the company was still called MobiKwik, he was always under the pressure of Paytm, and he was the second in the industry for several years.

Faced with the excessive burning of money in the electronic payment industry, he could not afford it, and the financing could not be financed by Paytm, which was blessed by the giant Ali, so he chose to sell the company to Zhang Yida.

Deep down in his heart, he has the idea of ​​bringing BBPay to India's No. [-], but he has not received strong support.

He is not those untouchables who have nothing to do all day long. As a noble Kshatriya named "Lion", he also has his own pride.

"Okay, 1.5 million is 1.5 million, I will definitely accomplish this goal."

Singer was heartbroken and agreed.

"Okay, when a man starts a career, he just needs to show some courage, and don't be coy."

Zhang Yida added: "The cooperation between OYO, Zomato, and Ola and BBPay is going smoothly, right?"

Singer nodded, "It went smoothly, thanks to these companies, it has greatly broadened our payment application scenarios.

Hotels, food delivery, and taxis are all high-frequency payment scenarios, which are very helpful to increase the transaction activity of BBPay users. "

Zhang Yida smiled, this is the model left over from the domestic game, and copied it to India to test the water, it seems that the effect is not bad.

“However, Ola seems to be opening a new round of financing to launch its own mobile payment platform, Ola Money.

If this is the case, our BBPay will be greatly affected. "Singer said worriedly.

"Okay, I got it! Just ignore it for now, just be mentally prepared!"

Zhang Yida lamented that there are really no tigers in the mountains, and monkeys are called kings!
This is true of Grab and GoJek in Southeast Asia, as well as Ola in India.

Does domestic Didi dare to launch its own payment platform?The two fathers, Ari and Penguin, will teach him how to be a human being.

There are no giant Internet companies in Southeast Asia and India, and there are much fewer constraints, so you can play as you want.

(End of this chapter)