May 01, 2021 | Vanshika Kaushik
India is witnessing a major digital revolution.Wholesalers,retailers and even small scale business owners are going cashless.Companies like Paytm and Phonepay have already acquired a decent market share.
It is important to move hand in hand with the transforming world.India has already witnessed a major digital transformation in the financial sector after the advent of Neobanks. Therefore it became a necessity for banks to alter their traditional ways of working.
According to the statistics 87%of bank transactions are taking place digitally worldwide .In india 68 %consumers are using online banking.
Digital banking, the simple process that helps an individual to make cashless payments directly from a bank account, served as a major saviour amidst the pandemic.
A lot of Indian banks like HDFC,Axis and Kotak Mahindra are leveraging the benefits of AI through smart chatbots that can instantly resolve customer queries.
To stay in the league with the digital transformation ICICI bank has launched “Merchant Stack”a contactless digital banking platform for merchants.
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This service is aimed to simplify the business operations of retail merchants.It will allow retail merchants to receive payments without visiting the physical branch of the bank.
Anup Bagchi, Director of ICICI bank said, ”There are over 2 crore merchants in the country with approximately USD 780 billion in value of transactions in 2020 .
They are expected to grow rapidly in the coming years we are aiming to provide an entirely digital platform that will simplify the complex banking transactions”
Even in the past ICICI has always focused on providing the best solutions for merchants. Eazypay, an application launched by the former in the past,allowed the merchants to receive payments via debit card,credit card and net banking.
Merchant stack will provide a variety of banking solutions at one place,it will help the users to create new accounts which will be named as “Super Merchant Current Account”.
It will also provide overdraft and credit facilities to users .”Merchant Overdraft”and “Express Credit”features will focus on POS transactions.”Digital Store Management”will help merchants to take their business completely online.
It will also offer multiple value added services to help retailers in their business expansion.
According to ET, BFSI ICICI Bank offers “Express Credit”the feature which allows for immediate settlement of POS transactions .It provides an assistance to retailers for immediately accessing funds which usually takes a few days for credit transactions made at POS machines.