Fuelled by the Govt. push for digital economy and entry of various global giants, digital payments (P2M) are witnessing the emergence of multiple form factors. New generation banks, fintech companies and payment aggregators are keeping this space evolving every day to create value for all stakeholders i.e. Acquirers, merchants and customers.
In order to create state-of-the-art technology platform within SBI Payments, build domain expertise, imbibe industry best practices and to be future ready Hitachi Payment Services Pvt Ltd., an indirect wholly owned subsidiary of Hitachi Ltd. Japan, has been inducted in your Company. Your company has issued shares to HPY to form a Joint Venture (JV) wherein SBI and HPY are having a shareholding of 74% and 26% respectively.
JV is set to leverage the strengths of both organisations i.e. unparallel trust and distribution network of SBI and technological capabilities and domain expertise of Hitachi to achieve business growth in all market segments and create value for shareholders.
Building of inhouse technology platform will help in delivery of Value-added Services (VAS) and generate new revenue streams for SBI Payments. JV is all set to expand the digital payment acceptance infrastructure in all parts of the country to contribute to the digital India objective of Govt of India.
Strategy of your Company will focus mainly on Business model for conducting the MAB in an efficient and profitable manner. The touch points and specific type of payment acceptance solutions will be deployed in next 2-3 years to suite the requirement of merchants. Customised payment products bundled with VAS will be offered to merchants to generate new revenue streams e.g. Business analytics, merchant lending, interactive dashboards, loyalty management, merchants campaign management etc.
Transfer of full-blown business to new entity has its own challenges. We need to create the in-house resource capabilities, structures and systems and processes in the JV to exploit the potential available. While we have constituted various Board and Management level committees, the Management Consultant, PWC managing the Project Management Office is likely to submit its deliverables by end of September 2019.
I thank the shareholders for reposing their confidence in the capabilities of the team and extending support in formation and setting up of the Joint Venture. We will continue with our focus towards creating long term value for our stakeholders by adhering to highest standards of transparency, commitment and promoting Innovation. I am also thankful to our employees for their tireless efforts towards achieving the goals.