Easy Pay is the one
the first and the fast-growing embedded finance & neobanking platform for
MSMEs (Micro, Small, and Medium Enterprises) in India. It is amongst the
pioneering fintechs in the country, launched with the vision of financial
inclusion for the unorganized business sector. Here is our conversation with Mr.
Vaibhav Joshi, Co-Founder & CEO, EasyPay.
Tell us about Easy
Pay. How did it all begin?
Easy Pay is the one
the first and the fast growing embedded Neobank for MSMEs., in India. A study
of the fast-evolving domestic MSME market revealed a huge opportunity in
offering easy and secure financing to this sector due to the apathy of
prevalent financial institutions. As there were no MSME focused fintech players
then, we launched Easy Pay (in 2014) with a strong conviction of
“Organizing The Unorganized”. This is an offbeat platform that
supports & escalates the 2nd largest employer in India and exclusively
extends digital convenience for their requirement.
further aided the fintech sector because most small & medium businesses
quickly adopted an online presence and needed new-age fintech to assist them
with digital financial services. As more MSMEs, especially from non-metro
markets emerged onto the online platform, there was a pertinent need for a
focused and scalable financial service, especially for lending, to meet their
personal and business demands. We already have experience servicing the retail
sector and a pan-India presence across 18,000 plus pin codes. The goal is to
provide all banking services by creating an integrated financial ecosystem for
MSMEs. We are helping MSMEs to unleash their full potential, riding on domain
expertise, strong business acumen, and background in technology, banking,
advisory, finance, and strategy.
What is the new
business focus for Easy Pay?
The domestic MSME
sector is the 2nd largest employer and contributes to about 30% of India’s GDP.
However easy and timely credit access remains a big challenge for this sector,
especially for the players with no or limited credit data. Recognizing these
challenges faced by MSMEs and riding on the experience of serving the
unorganized retail sector, Easy Pay created an embedded finance Neobank,
offering a complete banking experience, rendered in a true-blue digital manner
within the regulatory framework, all at a finger’s touch. We have developed our
proprietary tools and engine framework to ensure safer underwriting, instant
verification, and quick disbursals of loans. This along with AI-based self-help
and an immersive customer experience makes us a user’s delight. As an embedded
finance Neobank for MSMEs, Easy Pay aims to be a one-stop shop for all their
financial needs, personal or business. Our product offering includes payments,
banking, lending, wealth creation, and investments as well as value-added
services like taxation, inventory management, and khaata amongst others. We aim
to be the #1 embedded finance Neobank in 2 years, with our core proposition being
Why choose the MSME
sector? Especially when the B2C digital loan lending space is thriving.
data showed that we have approximately 70Mn MSMEs employing over 110Mn
workforce. The digitally transforming India has led to the advent of many
entrepreneurial ventures from the non-metro markets, or what we call the real
Bharat, that accounts today for over 1150Mm and $1T GDP. Going by recent
industry reports, the total MSME credit gap in India stands at $375Bn and
nearly 95% of this addressable credit demand comes from micro and small
enterprises. However, only 14% of the total outstanding loan ($800Mn) is with
the MSME sector. Due to a lack of timely credit sources from traditional banks,
the MSMEs looked at fintech players for their monetary requirements. This
transformation of MSMEs is evident from the fact that now 72% of payments are
done digitally compared to 28% of cash transactions. Traditional banks usually
have a long processing time, document-heavy processes, and long gestations
period for loan disbursals. So, as more MSMEs emanate onto the digital
marketplace, there is immense potential for Fintechs to help grow this sector.
The growth of technology aided by improved infrastructure and conducive
government policies has created a favorable environment for Fintechs. So, we
built a disruptive embedded finance Neobank that provides all banking &
financial services customized for MSMEs.
What are the unique
offerings at Easy Pay?
We are creating a
financial ecosystem on one app that can support MSMEs at every stage of their
growth journey. We have an in-house built Credit AI Engine that enables us to
offer pre-approved loans to all our merchants irrespective of their credit
score. This complete digital journey from lead to disbursal is completed within
2 hours. This credit AI also helps to make credit data-backed decisions by
looking at alternate data as well as transactional data allowing Easy Pay to
understand customers’ creditworthiness and intent to repay. This helps us to
reduce the risk of delinquency, thus making us the preferred partner of choice
for NBFCs and Banks. We did a POC and have disbursed over 1800 loans with 90%
of borrowers being new to credit and maintained a delinquency rate of 0% thanks
to the Credit AI engine. Additionally; we offer intelligent notifications for
timely bill payments, and bill clearance, and make business estimates based on
your current transactions, assisting organizations in planning and
strategically speeding up their growth. Easy Pay thus offers, 24×7 frictionless
digital banking, a sleek & hassle-free experience, and zero wait servicing
with an extremely high level of focus on engagement & retention. All these
features and a host of others applications in the pipeline continue to make us
a user’s delight, which is the testimonial ranking of 4.3 on the Play Store.
Tell us about Tech
@ Easy Pay?
We are constantly
leveraging technology to not only enhance our services but also help us make
data-backed decisions, which eventually helps in providing a delightful user
experience. We have quick onboarding, instant verification, a seamless user
journey from lead to retention and AI-based self-help, to have an immersive
We also deploy
technology for self-service and assisted services – like Chat Bots and the
virtual relationship manager. Additionally, as an embedded finance Neobank, a
robust security interface is a high priority so we work with the best in the
class, through AWS Security Services who have vastly improved our crisis mitigation
and crisis response time. In addition to the industry and regulatory
standpoint, we have also developed our compliance matrix to check and
streamline our data compliances, which help is keeping high standards of
compliance and mitigate the risk of fraudulent and dubious interferences. To
enhance the app performance, it is architected in such a way that the load on
the server is minimal for a given request. Each request is categorized into
either an HTML page request or a data request. This ensures that the server
responds to each of these requests individually, thereby reducing the load and
block time on itself. So the data fetch takes minimal time and at the same
time, barring network latency, it provides the results in sub-second. This
ability to distribute the system at a granular level using Spring technologies
to ensure that specific functionalities with higher load can later be moved to
more sophisticated infrastructure and thereby provide results faster.
We are ISO 27001
certified company and under that we have defined the requirement of an ISMS –
Information Security Management System. Besides the industry and regulatory
standpoint, we have also developed our compliance matrix to check and
streamline our data compliances. Technology and innovation thus have enabled us
to add additional features to our existing product stack to ensure convenience
and a delightful user experience, along with robust security.
What are the
immediate plans for the brand?
We aim to be the
trusted friend of the MSMEs and are committed to their growth by providing
financial inclusion. On the business front, we aim to be the #1 choice with 1
Mn active merchants in 12 months. Apart from credit access we also want to
partner with these MSMEs for all their financial needs to be part of their
growth journey as a One Stop Shop for all their banking & business needs.
How is life #Easy
Life at Easy Pay is
a hustle but equally fun because we are always finding ways to do better! So
routine or ‘standard way to do things are not the norm at Easy Pay – we like
disruption and innovation. When teams work together – there is no delegation,
we encourage ownership and teamwork I know most of my employees by their name,
and I look forward to meeting the new joinees, and interacting with these young
minds. We have many workshops, incentive programs, and recreational activities
like chess, Zumba, or Carrom, to help create a sense of teamwork and trust
among employees. We are always looking for intangible assets in a person say
like – Commitment, perseverance, and passion to learn more.
Tell us as New CEO
what are your responsibility and key focus?
In my role as
Co-Founder & CEO, I aim to leverage Easy Pay by unlocking the potential of
Connected Banking which will revolutionize the accessibility to banking for
over 70+ million MSMEs in the country. My vision is to drive stellar business
growth and also make Easy Pay the largest and the fastest-growing MSME embedded
finance Neo bank in the country. The Fintech sector is at a very exciting
juncture driving the digital transformation of the financial sector in the
country and with Easy Pay, we march on this growth journey aligned to the
vision of Digital India and the economic progress of the retail sector which in
turn is financially empowering the nation.