NEW DELHI: Global fintech company Quatrro Processing Services (Quatrro) has signed a strategic alliance agreement with RS2, a Global Payments Software and Managed Service Provider to offer an end-to-end hosted credit card processing and acquiring technology platform, for the Banks and Financial Institutions in India.
As a result of this alliance, Quatrro will be positioned to usher in disruptive changes in the Indian Credit Cards/Unsecured lending spaces, Merchant Acquiring and will be able to fulfill the national objective of not only enhancing digital payments but also stimulating the economy and GDP by enhancing credit expansion, especially unsecured credit.
Credit cards have always played a major role in driving the economic growth of the world’s largest economies. With the steep rise in the adoption of digital payments, credit cards have emerged as the next frontier of growth for electronic payments. As per RBI data, in India, there are more than 30 million credit cards translating to a mere 3.5% of adult population. While several factors have contributed to the low penetration including lack of adequate credit history and conservative underwriting practices by banks, the major reason is expensive credit card technology and infrastructure which has been hitherto a forte of multinational companies. Additionally, the lack of optimal resources at Banks and Financial Institutions for Credit Card Product Management has severely limited the growth of the market.
Quatrro says that the company understands these challenges and has partnered with RS2 to bring-in an end-to-end ‘Pay-by-the-drink’ services model that will allow Banks and Financial Institutions to gain access to state-of-the-art payments processing capabilities without huge upfront investments.
Quatrro will play a pivotal role in aligning Fintech companies and Banks to launch innovative credit offerings (both card and non-card based) and products that will enhance penetration and adoption of digital payments. Further, this innovative solution will empower Banks and Financial Institutions to fulfill the desire of a large number of households and individuals looking at access to short term credit to manage mismatch in their cash inflows and outflows.
Expressing his opinion, Raman Roy, Chairman and Managing Director at Quatrro said, “Quatrro has been at the forefront in providing best-in-breed payments and transaction processing services to Banks in the United States. Through the partnership with RS2, Quatrro will be able to introduce its innovative “Payment-Processing-as-a-Service” model to the Indian banks and financial institutions at affordable price points. We are also delighted to contribute and play our part in promoting the Indian Government and NITI Aayog’s national mission of building a cashless economy by driving the growth of digital payments ecosystem across the country.”
Radi Abd El Haj, CEO & Executive Director at RS2 says, “We are delighted to partner with Quatrro for this digital transformational initiative of national importance. India is a huge market and there is a tremendous potential to enhance adoption of digital payments. RS2’s strategic partnership with Quatrro, the first-of-its-kind with any other payments processing company in the world, will enable us to gain entry into the strategically important Indian market and open up multitude of opportunities for us. Quatrro’s end-to-end processing capabilities and other value service proposition such as Data Analytics, Fraud and Risk Management will be utilized by RS2 to service its worldwide customer base within its Global Issuing and Acquiring business.”