Cash card transactions are much higher in India. Why?

There are two types of e-commerce transactions on Internet. First, the consumer who makes the transaction on his behalf or family or for a friend and secondly an agent (ICT kiosks, Internet Cafes, etc) who completes the transaction on behalf of his customer.

Indian e-commerce industry minus IRCTC is almost like we are still in infancy stage. So it is clear that insights from IRCTC would help us in understanding the e-commerce trends. Fortunately, every month, IRCTC publishes actual statistics on transactions with complete details on its website.

If you observe statistics of any month, first thing is that you would wonder that cash card transactions are like 1/3 rd of total transactions (rest are credit or debit or netbanking). And in fact, cash card transactions growth rate is much higher than all other modes of payment. Then you start feeling like you have never heard of them anyone using it, but how come such large number of transactions?

Being an insider in this industry I would like to you give you a detailed story behind this wonder. First, let us see the business model of a cash-card company:

Platform: It is two sided. Cash-card companies just tie-up with numerous merchants/service providers (like telecom or ticketing etc). And later they start acquiring agents to use their technology platform. Typically these agents are: ICT Kiosks owners or Cyber cafes or computer education centers or the latest PCO/STD 2.0 etc.

Target Audience: Who all can’t goto a website and/or can't pay through credit or debit card for remote payments. This means, those agents become the middlemen between the remote customer and the service provider.

Commission: Most times, cash-card companies get discount from the service providers (usually 3% to 5%), a portion of which would be passed to their agents (for example air ticketing works in this manner!). Otherwise, customer is charged (for example, IRCTC don't give any commission to cash-card guys and so, agents would charge customers on top of the ticket cost).

Other revenues: Of course there could be a small percentage of direct consumers who would use the cash-card on web. But that is not what makes significant cash-flow for a cash-card company.

Future: So it is obvious that cash-card transactions would become much higher than credit or debit card transactions when cash card companies can acquire much more agents (in particular rural areas) along with more service providers (such as electricity/water distribution companies).

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Now comes the biggest disclosure: In fact, strength of any payment card system lies with the following three points.

1. They must tie up with as many merchants as possible.
2. Technology/process that makes the consumer to use the card for payment.
3. Card distribution should be efficient.
   

Now, how are the famous credit card companies (VISA or MasterCard) placed in the above points. Firstly they are accepted with innumerous merchants. Secondly consumer can use the card at merchant outlet or online or telephone or SMS or etc. Thirdly, Banks issue credit/debit cards to the consumers on behalf of VISA/Mastercard. Now coming to the costs of this ecosystem of digital payments is usually less than 5% of the value of the transactions (VISA, Banks, Merchants share this 5%). As the Mobile payments is getting matured, this value is getting closer to 3%.

Of course, companies involved in this payment ecosystem also have additional revenue through other value added services such as interest charged to the customer by providing them credit, etc.

Suggestions for Rediff, Sify, Indiatimes etc

For the past many years, I had some ideas regarding how to utilize e-mail service and offer various other services effectively. As I have weakness with my writing, I never put it down until last year. I wrote the following e-mail (November, 2007) to all top brass of Rediff.

I just would like to share few thoughts on Rediff's offerings to make it more competitive over other players like Google, Yahoo, Facebook etc.

The goal of any Internet company is make the users addicted to its services. Counting over 50 Million users, Rediff has great strategic advantage over its competitors having a specialized focus for Indian Internet users. Straight to the point, my observations are below:

1. Rediff should design a service similar to iGoogle where in, logged-in user would have all the offerings as widgets. This page should incorporate Web 2.0 features such as the following.

2. All widgets are available to the user on a single page(or multi-tabbed screens) and moreover he would have control over placing/ordering of those widgets.

3. When a user clicks on a widget for maximizing it, then the widget turns into a full-screened service (similar look of current offering). However on a specific corner, he would see more IMPORTANT STUFF of other services (I would explain this in the following notes).

4. By default, when a user logs into a particular service,say email, he would see the maximized screen of that particular widget (in the example scenario, it is email).

5. Each user would have a public profile and a private profile (this categorization can be increased to 3 or more, however let us stick to two types of profiles for the sake of explanation).

6. Public profile of an user contains all the widgets containing the services those he would like to share. This could be his personal photos, personal videos, Blogs, personal notes etc. Also remember, this includes the favorite stuff such as photos, videos, bookmarks, blogs etc all those but of others (content).

7. Common Private profile contains the stuff which the user would like to share exclusively with his personal friends.

8. Public profile content across all the services is searchable.

9. In any service, user has options to share with others. For example, while watching a video (ishare) he may would like to inform his friends as the video content is good and this should be through a "note from friend".

10. Also each widget can be customized by the user about its position/placing or other settings such as shared/unshared with a specific user.

11. On the usual e-mail screen, when the user moves the cursor over any email id (or on right click menu) he would be able to get many social network options such as "Add as my friend to profile, Scrap him, See his profile etc".

12. "Important stuff" which appear when the screen is maximized to a specific service are basically from the other services are: Scraps, Birthday Reminders, Updates on Friends private profiles, etc. "Notes from friends" could also be included here. This is the minimal line of
the total widgets page. Also these notes includes, chat applet and this could be a default option unless the user opts it out for a period.

13. Subscription to a particular service is by adding a widget. This procedure of addition is similar to iGoogle/Google Desktop gadgets.

14. Ads do appear in a particular fixed location of the screen.

15. When Rediff goes mobile, you can place the widgets as a linear list.

The goal of this is make all your services are interlinked with each other and the best, you would have at least 60 million user base for each of your offering. I believe that Google is having similar plans in mind in launching iGoogle. I came across a news that even yahoo has similar plans in this direction. However, specialized focus on Indian content would make Rediff to compete with global majors.

Surprisingly there was no reply from anyone of the top management at Rediff. Please wake up, don't be dumb!

Developing countries are better prospect in this knowledge based revolution

Innovation, Enterpreneurship are the key things for development in a knowledge based society. Here I argue that people who live in developing countries are better prospects compared to the citizens of developed countries.

Innovation:
Necessity makes the people to be more creative and innovative (compared to the people who have just passion). And also problems familiarity makes them more accessible for innovations at basic level which may revolutionalise the world.

Enterpreneurship:
Risk taking is the key skill required for enterpreneurship. People who live in difficulties they are already seen difficulties in life and so for them risk taking ability would be easier (because by taking risk they may experience the state which already they tasted) and on the other hand risk taking would be very difficult for the people who never have experienced the downside of the risk. So enterpreneurship is better cultivated in third world countries than so called developed countries.

Traditionally suppressed people would have more zeal to come up in life. This causes much better activity than people who live in developed countries.

Googling for someone : a routine activity in life??

Last year I wrote on life partner selection that depends on "googling". Here is an another article that employers google their prospects. Today when I am discussing with N. Nagaraj of Business Line, he mentioned that googling of a person whom you are going to meet is also a common. Now I want to have a more closer look.

Whom are you googling for:

1. for Celebrities
2. When new friend introduced (likely thro online)
3. person whom you are about to meet/talk
4. Employers for potential hires
5. Police searching for criminals
6. for old classmates/pals
7. Ego-surfing or Self-Googling
8. Matrimonial/dating Search
9. for professionals (like architects, doctors, etc)

But then you must be careful, if not, you may get mistaken with the same/similar names. In this large world, there may be many people with same names/nicknames who confuse while you are researching.

Where to look for?
websites, blogs, comments in blogs, comments in web-news, comments in websites, guest-books, orkut or Myspace or ryze type of communities, blogeverywhere comments etc

Are there clues to search?
Ofcourse there are .. but then, you need to wait for my book.

Latest in the block : Engineering process outsourcing

After BPO, KPO, LPO, now look at EPO numbers. It is expected that, in the next two years, India's export will be $10 billion. Engineering Export promotion council is much helpful in this regard. Are you there to take it up?

Nanotech : the next big thing?

According to this news:

Nobel Laureate Sir Harry Kroto said, "The world must look at nanotechnology, which is akin to coming close to how nature works.”

[.........] The market for nano technology products is estimated at $1 trillion in a decade or so. Nanotechnology’s spread into the mainstream, replacing traditional materials like silicon, will be much like the advent of plastics that reformed businesses in the last century. Says Sir Kroto, “Next generation scientists will have exciting times in reproducing natural engines and in understanding how nature works. The atomic and molecular perspective is coming to engineers and that holds a lot of promise for nanotech.”

Which courses/subjects will be hot in the future (year 2020)??

Recently I have written the following article on my Education related blog. I am almost copying it here just to get more circulation (but with some modifications).

As I believe, similar to the case of statistics & computer science broke-out from the Mathematics (or rather Applied Mathematics), there will be many new sciences will be leading from computer science. This thought appeared in my mind when I was looking at recent issue of Nature magazine. I started to think, which courses (in future) will be good for a career span. Clearly Statistics is going to be a key subject of the future as more and more as data related jobs will be created. Then Biology, Nano, Alternative Energy systems related courses will possibly become the hot courses of the future. Space exploration, Nuclear science will possibly become a usual academic course like Statistics today. You may guess this change happens due to capital investments by large private corporations of the world. Wireless will continue to be one of hottest subject like now. Mathematics will hold a key then as well. Most interdesciplinary courses of today will lead the future of education.

So your future choice of course is for Bachelor degree is not in Mechanical or civil engineering but in:

• BS in Data Engineering
  
• BS in Re-engineering
• BS in Space Exploration Science & Engineering
• BS in Gravitational Force Engineering & Tidal Power Systems
• BS in Nuclear Engineering & Technology
• BS in DNA Computing Systems
  
• BS in Lightning and Atmospheric Electricity Technology
• BS in Satellite Navigation Systems & Engineering
• BS in Information Organisation & Analysis
  
• BS in Space and Aviation Control Systems & Engineering
• BS in Brain Engineering
  
• BS in Solar systems & Technology
• BS in Quantum software systems
  
• Diploma in Repairing Industrial/Home Robomaids
  
• MS in Mobile Systems Frauds and Social Engineering
• MS in Brain Simulation science
• MS in MARS Surface Engineering
• PhD in Persistent Alternate Happiness Models
  
• PhD in Ethical issues in Redesigning Humans
• etc...

Any thoughts in this direction, please do comment me.

Navigational product services : Wonderful business oppertunity

SATNAV Technologies, an India based GIS products company has released a product in-vehicle navigation device for Rs. 38K ($875).

If this facility can be offered on a mobile for a low price, aiming 100 million users, then that will make another Indian Google company. Note that Google may enter into this area with its offering Google Local/Maps on mobile. If any Indian company comes out prior to Google entry, then Google may try to buyout that company.

Because this facility can be thought as yellowpages on move. Business model: targeting advertisements of shops, restaurents, hotels, movie halls, business houses, ATMs etc. Regular revenue can also be possible by making user as a subscriber.

Are you ready to take it off?

Sling Media Mobile : Personal TVs in the offing

According to this press release:

SlingPlayer Mobile is a new software package that gives Slingbox owners the ability to watch and control their home TV from any network-enabled mobile phone or handheld computer (PDA) powered by Windows Mobile. The SlingPlayer Mobile software available today is compatible with devices that run Windows Mobile Pocket PC 5.0 and 2003 Second Edition. Sling Media will also deliver a version for non-touchscreen devices based on Windows Mobile Smartphone within the next month.

A trial version of SlingPlayer Mobile is available today as a free download from Sling Media's web site, www.slingmedia.com, as part of the public beta program. Beginning April 26th, SlingPlayer Mobile will be available for $29.99 and includes a free 30-day trial. Slingbox owners who purchase and register their Slingbox prior to April 26th will receive a free license for SlingPlayer Mobile. There are no monthly or recurring charges for the use of the software.

Background verificaion : Booming Industry

Can you guess how much is the fee for background check of a person on his qualification? It is anywhere between 3K-5K Rupees (quoted by an industry insider). This industry is booming because of Indians moving to many other countries and so their background checks are outsourced. I fear whether this increases the appetite of corrupted police because they are one of the major source in these checks.

Indian Youth's Voice : calling action

70 percent of Indian population is below 35 years of age. So they are no more wanting to stay in bushes like in 1970's. They want to see the changing scenario. They wish to act against the problems of the Nation.

This has been recognised by few film directors : So why the following movies went on with resounding success (particularly 3rd one is to be noted : movie is very badly shot).

1) Ashutosh Gowariker (Swadesh)
2) Rakeysh Omprakash Mehra (Rang de Basanti)
3) Shankar (Anniyan/Aparichitudu)

These movies success lets us know about the Indian Youth would like to watch the rebels fighting the cause & feel as it themselves in the process.

Why I am writing this is to let you know (& observe) the changing mindset. An appropriate note to be taken while jumping into elections.

Raja

Bombay, Bangalore infrastructural problem and solution

I usually find Mumbai being digged out again and again repeatedly by number of different ISPs. Due to this, traffic becomes a huge problem. Instead of these companies digging out, why dont BMC consider one time act of becoming wireless like Arizona.

Raja
OSP India Information Security Private Limited (OSP Global, LLC)

Google Analytics : Strategic advantage to both Google & website owners

As usual, Google has released another 'unexpected' new service "Google Analytics".

Ofcourse Google has huge amount of database of keywords connected to the sites. But Google's brilliant idea (rather Urchin's, the company bought out by Google) is that they wish to connect the websites with keywords which were through by other websites like Yahoo, MSN, etc.

Once again, Google's game is : provide service for the benifit of user and in a way benifitting itself. Using the same model it has defeated every player in its core business that is 'search'. As a Googler, I once again hope that Google continue to provide such services to benifit 'me' (user).

Raja
OSP India Information Security Private Limited

Future of Matrimonial search process

Past few months, whenever I start to think of my marriage, I had to think about how will I get a girl of my choice (that is, rural development minded, however my requirement is irrelevant here). I have started to understand the merits and demerits of current system. First I will discuss how things are happening right now and later we will see how there will be a paradigm shift from the current scenario.

Indian traditional system surely not applicable in this IT age because these days people do stay away from their parents (far distant locations). Telecon, Chatting, e-mails will be of little help in continuing this centuries old system. So why ..

There is a phenomenal rise of Matrimonial sites in India (they were even successful during dot-com bust). They are just a replica of Indian traditional system of marriage brokers in this electronic arena. Important thing to note here is, they are just helpful to dig out a girl based on age, caste, religion, education, profession. However observe that this is only initial elimination process.

Actual process starts when communication happens. Demerit of this is that one cant decide a life partner just by asking some questions or qualifications or expertise over telecon or chatting. To have a lifetime relationship, critical thing is to understand the background (history) of the partner in regards of interests, relations, interactions, beliefs, etc.

So now the question is that, what is the media that allows a person to get the background of another, before making the crucial decision of ones own life. Yes, you must have understood by now. This blog-site of mine covers a very restricted domain. This particular blog also fits into it, very perfectly. It is "Googling" of that person. It really helps us get to know the more closer details. Future of matrimonial process is in googling (or researching) the partner.

One can understand the other persons feelings by reading his/her blogs. Then next is to check for comments that (s)he makes in communities such as orkut or gazzag. However, one should not fall by profile information. Profiles are usually to express positive things of a person but never reveals negative aspect of a person. This is crucial when in building a relation without a break (be aware that gone are the days, when divorces are so rare).

One must evaluate from the discussion point of view how well (s)he truly represent her/his profile. In this regard, blogs, comments in blogs, comments in web-news, comments in websites, issues raised in orkut type of communities, the kind of social network, etc are to be analysed in comparison with profiles in business networking sites, personal website, social networking websites, etc.

and then, if everything goes well, after getting married, I personally believe that they must exchange their mail ids (reveal the passwords) to let each other know more closer.

However there is a negative shade of this. Before being googled by the other, one can do auto-googling and eliminate/ modify any controversial topics discussed by him/her. But then, not all can be deleted. This is where the searcher has to put his brain at work.

Although I vaguely expressed my view points here, but I will discuss in detail some other point of time. Probably when I am successful in my own search, I will disclose all of my strategies that I have applied :-) .

Raja
OSP India Information Security Private Limited