YAP has its own digital payment program solutions. Today, it has turned out to be the largest Neo-Banking Platform not only in India but also throughout Asia. It is also popular for being the largest prepaid service card provider in india. YAP over a period of time with their innovation and Technological solution has supported several fintech start-up and Banks to operate their digital payments in a very efficient manner. Muthukumar A, Co-founder, YAP informs about YAP solutions and explains why its adoption would accelerate in a post COVID world.
What are the API solutions and services that YAP offers?
YAP is a financial services API platform. It today provides the ability to offer across multiple banks and the ability to operate
- Accounts: Open and manage savings and current accounts, deposit products,
- Lending: Unsecured loans, Gold loans, EMI collection from banks, Credit cards
- Payments: UPI, IMPS, Credit, Debit, Prepaid products, Fastag, wallet, Cross border remittance
- Investments: Mutual funds, Gold
- Acceptance: UPI, BharatQR
What was the story behind the genesis of YAP?
YAP started with the fundamental thought process of helping businesses get access to financial services products and make a platform for them to take it out as their own product for today’s customers. What we have been able to achieve over the last 5 years is to make every company a fintech company a reality. This was achieved by partnering with 15 banks and leveraging 200+ fintech partnerships.
Our revenues increased by 200%-300% last year. We have recently received the funding of Rs 10 Cr (February 2020) and $4.5 Million (April 2020) from the Singapore based firm BEENEXT and multiple top angel investors of India. Today YAP has turned out to be the largest Neo-Banking platform and prepaid card provider of the country with over 50 live programs and over 2.5 Million cards issued
How would you explain the lego banking concept you talk about?
When you think of lego, the thing that comes to our mind is the ability to piece together different blocks and different colours to make something to our liking within the constraints of the number or size of the blocks. Likewise, we have broken banking products and services into various pieces and allowing our fintech partners to really come and mix and match and build their own products to their liking. What they cannot do is change the size of the block. Think regulations like KYC, AML etc, the colour of the block, but however everything else is left to their creative best. The outcome can be a great product that is operating within the set rules and regulations and the compliances.
What is the GTM model YAP follows for the India market?
Our GTM is very simple. We have a very strong WOM through entrepreneurs, investors, payment networks etc that help us reach out to more customers. We do not actively sell, but we co-create products with companies. Thereby our ability is more of a consultative approach.
How critical role will digital payments start to play now in a post COVID19 world?
This will be extremely important. The macro societal change is towards more hygiene and reduced physical contact. This habit change will continue in the post COVID world as well. Much like how demonetization gave an impetus to digital payments, COVID singularly will nudge mobile and NFC payments in a big way. We also see the advent of proximity payments like wearables getting adopted significantly
What are your key differentiators over other fintech competitors?
In the business we are in, we do not have competition. There are however other players who are aspiring to catch up with our model and we will continue to build on our competitive advantages and best left not to be described.
Who are your marquee clients and what are their use cases?
We have over 200 fintechs connected to our platform. Many of them including large consumer Internet companies like Ola, Cred, Swiggy and large NBFCs like Muthoot, TVS Credit, Bharat pe, Razorpay, Finin are our clients on the lending space. In banks we work with several of the large private sector banks including Yes Bank, DCB Bank, Equitas SFB, SBM Bank among others.
We also cater to multidisciplinary startups in the country which include the likes of Payments (SafexPay, PayVega, Slonkit) Corporate / expense management (Paysack, Cinqo, Techmojo), Alternate lending (Stashfin, Olly Credit) Retail / financial inclusion (BharatPay, Payzello), Merchant payments (Benow, Trupay, Slonkit).
You had planned to touch 500 fintech companies by 2020. With the changing dynamics due to the CIOVID19 impact, how are you revising on these plans?
COVID19 will accelerate our efforts to make every company a fintech company. While the lockdown is a speed bump and will delay our efforts by couple of quarters, we are well on our mission to enable 500+ fintechs by the end of the financial year.
How do you ensure the security of the model that you operate on?
Payment is a highly regulated and cost governance implementation. We have significant controls both from security as well as data and privacy related that are required for us to be working in partnership with banks. By virtue of our aspirations to be a pan Asian API platform company, we take the best practices from some of the most complex markets both from operating principles as well as regulatory guidelines stand point to be applied in every market that we have operations.
At a high level payments have ecosystem level controls in the form of PCI DSS certifications. Besides we conform to regulatory requirements like data residency or hosting of data in soil in markets like India. In the third level we have bank related controls in terms of how a bank would expect us to run the platform
What has been the COVID19 impact in changing your business model and how has YAP adopted?
There have been no changes to our business model due to COVID. If at all many of our client engagements have accelerated.
How are you looking at customer retention vs customer acquisition in the current scenario?
We continue to be engaged with prospective clients and keep executing on our business. While at a macro level some customers may churn out due to lack of funding or business slow down, we will double down on growth as economic activity returns to the market.