Financial Software and Systems, a global payment processor and payment product provider in India, and Airpay, an omnichannel financial services platform, also in India, have formed a strategic partnership to build an inclusive digital payment services system for the micro-small-medium business enterprise segment.
MSMEs represent 90% of businesses in India and play a crucial role in the country’s economy, contributing 30% to the country’s total GDP and employing approximately 28% of the country’s workforce, according to a press release.
Access to cost-efficient digital payments is key for MSMEs, but the business segment has been underserved due to the low profitability in acquiring and servicing these merchants.
Through the partnership, Airpay will be responsible for acquiring, onboarding, technology enablement and providing ongoing support to MSMEs, while FSS, through its B2B omnichannel acquiring service, FSS Embark, will be responsible for single window transaction processing.
“The COVID-19 pandemic has made digital the ‘new normal’ and the ability to participate in digital commerce is crucial for MSME survival and growth,” Krishnan Srinivasan, global CRO, FSS, said in the release. “We are excited to partner with Airpay and for FSS Embark to bring reliable digital payment services to MSMEs.”
“MSMEs are at the heart of India’s economy and are the hardest hit by the pandemic, as they lack technology and tools that will help them sell in the digital marketplace,” Kunal Jhunjhunwala, CEO, Airpay, said in the release. “Our partnership with FSS helps make the entire transaction processing more reliable and efficient. It will enable us to expand services to a large base of merchants by offering them a range of innovative digital payment acceptance services, online, in-store and on mobile, and to participate and compete in a digital-first economy.”