Country Spotlight: Invest in Spain

 

Compared to other Western European countries, e-commerce in Spain has developed slowly. Held back by the challenges of recovering from the recession, digital investment has lagged within Spain and international merchants have overlooked the country. But today, Spain’s e-commerce market has grown to become the largest in Southern Europe and businesses expanding into Spain will find plenty of opportunities for further growth.

Spain is the fifth largest country in the EU by population and this country provides a key business market with an e-commerce sector recording the largest growth of any European country. The opportunities available for cross-border merchants to do business in Spain are due, in part, to the country’s underdeveloped domestic solutions. Three out of every five Spaniards regularly shop online and, most importantly, more than half of all online purchases made in Spain are made on e-commerce websites based outside of the country.

Unless otherwise noted, figures in this article are sourced from:
ecommercewiki.org/Global_Ecommerce_Figures/Europe/Spain
thepaypers.com/ecommerce-facts-and-figures/spain/8

Spanish Consumers
Total population: 47 million
Internet users: 32 million
Online shoppers: 17 million
E-commerce sales: EUR 18.2 billion
E-commerce annual growth rate: 11.6%

Post-SEPA, it’s simpler than ever to do business in Spain. The nation’s economic recovery in recent years has been impressive, with the GDP growth rate at 1.6 at its highest and the consumer confidence index reaching 90.6, so it’s a valuable market for online retailers to expand into no matter where they’re from. With an annual e-commerce turnover of more than €18 billion and double digit year-over-year growth, tens of millions of Spanish consumers are spending more online, averaging over €1,000 per year and growing.

Though the internet penetration is relatively low for a country in Western Europe, the proportion of internet users that shop online is quickly approaching 100% and at least half of those people shop using their phones. The Spaniards who spend the most online belongs to the 35-54 age group. Debit cards are the most popular online payment method, with 61% penetration, and the most popular e-commerce product category is Apparel and Footware. Holiday shopping contributes to roughly one quarter of each year’s e-commerce turnover and (like in Italy, the UK, the US and Canada) the biggest online shopping day is Cyber Monday.

Drivers and Barriers

Driver: Mobile
Spain is the leader in Europe in m-commerce, with half of all e-commerce shoppers in Spain having already made at least one purchase using their phone in 2017 (an increase of 15% compared to 2016). However, only 53% of online retailers in Spain are offering support for mobile payments, which gives a big opportunity for cross-border merchants to meet an unfulfilled demand in the Spanish market.
The popularity of direct carrier billing also contributes to so many Spanish consumers making purchases with their mobile devices. Direct carrier billing, which allows consumers to make a purchase using their mobile device and have the cost added to their phone bill, is seen as easier and more secure, which helps Spanish consumers feel more confident in m-commerce.

Barrier: Logistics
Though Spain is now a major e-commerce market, it was late to the game. One artifact of this delay is the country’s underdeveloped logistics industry. While this has a definite negative effect on local retailers, it can actually be seen as an advantage for cross-border merchants. Because of poor logistics, Spanish consumers are accustomed to longer delivery times, allowing international merchants to compete with domestic providers on convenience. On the other hand, consumers in Spain desire a strong, customer-centric returns policy, which can be costly for out-of-country retailers.

Driver: Language
After Mandarin, Spanish is the second most spoken language in the world. Savvy retailers can see the value of localizing their e-commerce website for the Spanish market because it also allows them to market to large Spanish-speaking populations in Latin America: a very populous and rapidly-emerging e-commerce market, and it can also increase the brand’s footprint with significant language minorities in USA, France and Portugal.

Barrier: Trust
Just because Spanish consumers want more options when they’re shopping online doesn’t mean that they’ll take anything they can get. Like in most European countries, recommendations from friends and colleagues significantly influence purchase decisions. Shopping cart abandonment is common in Spain – if retailers don’t provide enough detailed product information, a clear and flexible returns policy, and most importantly multiple payment options, they risk losing the sale. Offering Spanish-language customer service can also go a long way toward gaining trust and confidence from customers.

Spanish E-Commerce Facts
Largest e-commerce market in Southern Europe
Spanish consumers spend an average of €1,089 online per year.
55% of the e-commerce turnover is cross-border.
At least half of the online population shop with their smartphones.
The demographic that spends the most online is 35-54-year-olds.
Longer delivery times (3-5 days) are widely accepted.
Cyber Monday (the Monday after U.S. Thanksgiving) is the busiest online shopping day of the year.
The most popular payment method is debit cards, although credit cards, e-wallets and direct carrier billing are also popular.
The most popular product categories for online shoppers are Apparel & Footwear, followed by Food & Drink.

Spanish consumers are rapidly shedding their financial concerns, embracing impulse spending, and turning to their mobile devices for their online shopping. Building trust and organic brand awareness is key; while the market is far from crowded, for retailers to get the most out of Spain they must focus on customer experience and reputation. This becomes increasingly challenging the more saturated the market is, so if you’re looking to expand your e-commerce business, now is the time to enter one of the most attractive growing markets out there. Spain, with one of the most populous markets in Europe and who speaks the world’s second most common language, is hungry for cross-border e-commerce.

Expanding into a new cross-border market is always a challenge but can be very rewarding if done right. For the latest news and information about how to scale up your e-commerce enterprise into an international success, subscribe to the Payza Blog and follow us on Facebook and Twitter.

Top Technological Innovations in the Financial Industry

Today the most important buzzword that has caused an uproar in the Banking and Financial services industries is Disruption. This vertical is probably the most impacted by recent technological innovations such as blockchain, robotics, big data, machine learning and prescriptive and predictive analytics. These technologies are majorly impacting the way we manage and transact in the financial world. Most payments can now be done online and there is a growing space for better payment methods including the emergence of payment processing platforms using e-wallets and mobile payment apps using digital wallets. All this digital innovation has caused massive disruption in the world of finance – one of the most legacy system based and heavily regulated the industry with strict compliance and auditing needs.

Let us take a look at some of the key new technologies that are causing the shift towards digital transformation.

Blockchain

If you have heard of bitcoins then in all probability you are familiar with blockchains. However, block chain has applications way beyond bitcoins and tech savvy companies are increasingly beginning to leverage this technology. The blockchain is basically a digital public ledger that maintains a distributed record of transactions across a network of public computers. Digital currencies have been using blockchain for a long time now.

At the heart of the blockchain is the concept of a network performing the role of trusted intermediary as against the traditional middlemen. This innovative financial technology has found several use cases in the industry and has also proved to be a major disruption for banks and traditional payment methods. Thus it is not a surprise that fin-tech companies are racing against each other to see how they can best leverage this technology to improve their services.

Image Courtesy: Business Insider

Digital Wallets

Digital wallets are another innovative financial technology that is gaining increasing popularity with smart phone users. These mobile payment systems are basically smartphones apps that can be used to hold your payments and loyalty card information. Major players in the market such as Google and Apple have their own digital wallets. There are also other providers such as Lemon and Square wallet that are also very popular with users. Google’s wallet is based on near field communication technology also referred to as NFC. The idea is that instead of using your card at the check out counter, you only have to tap your smartphone on the machine or wave it for the payment to be made. You can also save loyalty card information and coupons in most wallets as well as save receipts for future reference. Apple’s wallet uses the concept of a barcode for making payments. Needless to say, security is a very important consideration for digital wallets and all key players have the basic security measures in place.

Almost every area of the finance industry is being disrupted by these new technologies, forcing the traditional banking sector to re-evaluate and invest in digital innovation and transformation. This has changed the way of doing online business as we know it and the trend is only expected to continue in the future.

A Challenger Appears: Ethereum Approaches Bitcoin Market Capitalization

At the start of 2017, the global cryptocurrency market cap, that is, the total value of all cryptocurrencies like Bitcoin and Litecoin, was just under $18 billion USD. This was already a very promising increase from just $7.1 billion the year before. Compared to what was about to come however, even that increase seems minuscule. As of mid-June 2017, cryptocurrencies have reached a global market cap of just over $115 billion. That’s a 533% increase in less than half a year!

Payza has been keeping a close eye on the exciting new cryptocurrency trends, and in 2014, became one of the first e-wallets to allow its members to load and withdraw from their accounts using Bitcoin.

Until a few months ago, Bitcoin’s dominance, or the percentage of Bitcoin’s total value compared to the total combined cryptocurrency value, held steadily between 80% and 90%. Since March, however, there has been a tremendous rise in both awareness and value of Bitcoin alternatives, dubbed Altcoins. As a result, Bitcoin’s dominance has dropped significantly, making up just under 40% of total cryptocurrency value as of mid-June.

Trailing closely at 31% of the total cryptocurrency market cap, a challenger seems eager to take Bitcoin’s throne: Ether.

Ether

Built on the Ethereum computing platform, Ether (ETH) was released in May 2015 and has since gathered strong support from developers and investors alike, despite a hard fork in 2016 that prompted the creation of the Ethereum Classic (ETC). Following the success of the network and a growing market capitalization, multiple ventures are aiming to use Ethereum for projects related to finance, energy sourcing and pricing, sports betting, the internet-of-things, etc.

With an adoption rate that rivals that of Bitcoin, both experts and enthusiasts are becoming reluctant to use the term ‘altcoin’ when referring to Ether. There’s even speculation within the community that Ether will soon overtake the current leader, an event humorously named “The Flippening.”

The Enterprise Ethereum Alliance

With partners from multiple Fortune 500 companies (Microsoft, J.P. Morgan, Intel, etc.), research groups and blockchain startups, the nonprofit organization Enterprise Ethereum Alliance was established in March 2017 with a vision: to augment the Ethereum blockchain by creating a private version (currently known as EnEth 1.0), based on a reference architecture focusing on confidentiality, privacy, scalability and security. It will facilitate collaboration, as everything created will be open-source, making the EEA evolve alongside the public Ethereum community in harmony.

A Surge of ICOs

Part of the extraordinary increase in cryptocurrency value during the second quarter of 2017 is attributed to growing cryptocurrency awareness, the creation of the Enterprise Ethereum Alliance, but also to a multiplication of successful Initial Coin Offerings (ICOs), crowdfunding campaigns dedicated to projects that build upon the Blockchain to provide solutions to existing problems or to future-proof the technology. Among the top ten crowdfunding projects, six are cryptocurrency-related, all based on the Ethereum blockchain: Bancor, the DAO, AEternity, MobileGo, Basic Attention Token and Aragon.

These projects, which have raised just over $477m, show tremendous support for the Ethereum blockchain, which was itself crowdfunded in September 2014 for $18m, a figure that pales in comparison of recent investments.

Altcoins and Payza

Payza has kept a watchful eye over all cryptocurrency developments, not just developments related to Bitcoin. As such, we’ve already started exploring and developing new ways to incorporate Ether and other Altcoins into our global online payment platform.

As cryptocurrency and blockchain technology advances, it is becoming increasingly clear that these currencies will make up a meaningful part of the global e-commerce ecosystem. The only questions that remain are which coins will emerge as the market leaders, and how much of global e-commerce volume will cryptocurrency payments make up?

Need To Raise Funds For Your Business? Check Out Crowdfunding

The traditional approach to raise funds for starting a new business has been to draw up a business plan and run it through interested parties who have the funds and are looking for good investment opportunities. These interested parties could be venture capitalists, angel investors or banks. This has been the most common approach followed in the past for new business ventures. In contrast, crowdfunding is a relatively new idea that is rapidly gaining ground.

What Is Crowdfunding?
Crowdfunding is a method of fundraising through the collective contribution of individuals. These individuals could be your family, friends, customers or anyone who finds your idea interesting and is willing to invest. Thus, rather than focusing on a few wealthy individual investors, crowdfunding leverages the funds from a large pool of people. Individual contributions may be smaller but because of several contributors, this can raise big amounts. Funds are typically raised online via social media or crowdfunding platforms.

Benefits Of Online Crowdfunding
There are several benefits of using crowdfunding. Online crowdfunding platforms give you access to a huge number of accredited investors. Accredited investors are individuals whose net worth exceeds a certain amount and are able to legally invest in your venture. A good crowdfunding campaign is bound to include social media, email based newsletters, and other online marketing activities. You can track the status of your fundraising on crowdfunding platforms and see how far you have met your targets for business finance. Online platforms eliminate the need to follow up with each individual investor and you can also very quickly get feedback on your promotions and campaigns.

Types Of Crowdfunding
There are different types of crowdfunding and the one you choose depends on your business venture.

  • Rewards-Based Crowdfunding
    In this type of fundraising, people invest in your business venture with the promise of a reward in return. This could possibly be the use of your products or services. This is a popular method as there is no financial benefit or ownership to be provided to the investors.
  • Equity-Based Crowdfunding
    In this type of funding, investors receive your equity shares in return of investment thus becoming part owners of your business venture. Thus investors not only get some ownership but also are entitled to a share of your profits.
  • Donation-Based Crowdfunding
    In this type of funding, there are no returns provided to the investors. This is usually used for non-profit activities and charity based work.

Reasons for More Banks to Team Up with Fintech Industry

Fintech being the latest buzzword in the finance industry, more or less many people have already come to know about it. For those who are still in the dark and are finding this term totally unfamiliar, Fintech is a whole new industry offering financial benefits to various organizations.

The fintech industry is made of different companies that offer innovative and latest financial technologies for the betterment of financial services. With the growing competition in the market, more and more banks are opting for a partnership with this latest industry.

Here are the main reasons for why most banks are thinking about teaming up with it:

Allowing Latest Payment Methods
Providing innovative technological ideas for easy online transactions, the fintech is providing the banks with excellent financial services. Banks have suffered a serious loss in popularity, over the past few years due to their not-so-updated financial methods of proceeding with transactions online. The financial crisis is acting as an eye-opener, so the banks are now relying on Fintech.

Presenting the Refreshed Version of Brands
Around 83% of respondents are referring to fintech as the main factor in enabling them to refresh their brandings. Fintech is helping the banks to improve their relationship with the customers in the best possible way.

It’s also allowing banks to introduce the latest offers and services to the customers in the fastest way possible. It is simply providing opportunities for various financial organizations of repositioning themselves in the market through its cutting edge technologies.

Banks Are Able to Cut On Costs Significantly
It has been seen in the records that 87%of the total participants have been able to cut the costs successfully. The fintech sector’s total amount of transaction value is expected to grow up to $ 1.57 trillion by the year 2020.

So, there’s no doubt about the effectiveness of it in cutting up the costs. The reasons for these huge amounts of savings are the agile and flexible structure of Fintech, as well as the lesser requirement for developing the services offered to the customers at the end of the incumbents.

Increased and Boosted Revenues
In the recently conducted survey, it has been seen that almost 54% of the incumbents have experienced a certain increase in their revenues. With the passage of time, it is expected that the number of profits will be boosted more than now or ever. For enjoying the benefits of the partnership with Fintech, specific areas and strategies must be formed and decided by the banks.

Letting the banks in on the latest trends of financial service technologies, it is helping banks to transform and embrace digitalization. It is by joining forces with Fintech, that banks would be able to stay updated in the dramatically and drastically changed online payment landscape.

Beyond Bitcoin – Cryptocurrencies and Altcoins to Watch in 2017

It’s telling that one of the most popular colloquial terms for a cryptocurrency is “altcoin”, a portmanteau of “alternative” and “bitcoin”. Bitcoin, the original cryptocurrency, has become so ubiquitous that it is the definition of its own category. But the future of Bitcoin is currently in question and, because of this uncertainty, many traders are switching to other cryptocurrencies.

On March 10, Bitcoin hit an all-time high trading value of $1,325 as investors banked on a US proposal for a bitcoin-backed exchange-traded fund (ETF). However, the proposal was rejected by US authorities, which happened to coincide with a crackdown on bitcoin exchanges by Chinese regulators. Together, these two events caused Bitcoin’s value to drop by over $300.

The root of the problem putting the future of Bitcoin in question is scaling: Bitcoin is becoming too popular for its own infrastructure. The number of Bitcoin transactions that can take place at any given time is limited, which is causing a backlog of transactions in queue for processing, slowing down the whole system. This is because of the limited computing power of the blockchain, a distributed database that records all transactions and serves as a public ledger. In some cases, the backlog becomes so great that some Bitcoin transactions are not confirmed for hours or even days, and in some cases, the bitcoins being sent never reach their intended destination.

The Rise of Cryptocurrencies

Blockchains, invented in 2009 by the anonymous developer of Bitcoin, would prove to be a core technology of all cryptocurrencies. Blockchains are the key software that allows digital currencies to break the double spending problem by timestamping transactions into a public ledger on a peer-to-peer network. Without this solution, double spending represented a flaw in which the same digital token can be spent twice, rendering it useless as a currency. This technology allowed bitcoin and other digital currencies to be decentralized.

Cryptocurrencies are a subset of digital currencies, distinct in that they are decentralized: they are not tied to any real-world assets, not backed by any government or central bank, and no one is required to accept them as valid forms of payment or exchange them for any real-world currencies. Nonetheless, Bitcoin became so successful that it is now accepted by major companies such as Microsoft and Dell. You can even use Bitcoin at some brick-and-mortar stores and coffee shops around the world. In fact, there’s a coffee shop in Prague that only accepts payment by Bitcoin!

Naturally, Bitcoin’s success inspired imitation. Many copycat coins failed, but those that refined and built upon Bitcoin’s model attracted investors looking to capitalize on the technological innovation promised by these new altcoins. While some digital currencies like Litecoin and Dogecoin may have already hit their high water mark, there are still lots of intriguing cryptocurrencies that have something new to offer.

Here are the up-and-coming Bitcoin alternatives to keep an eye on in 2017.

Today’s Top Altcoins
Ether (founded 2015)

Shortly after Bitcoin’s crash in mid-March, Ether, the cryptocurrency that powers the Ethereum network, reached an all-time high trading value, surpassing $55 on March 16. Ethereum is an interesting case, as 2016 saw its value rise and fall erratically due to the same scaling problem Bitcoin is currently facing. To solve it, Ethereum split their blockchain into two parallel streams, a solution bitcoin has sought to avoid.

Known as Ethereum and Etherium Classic, these two cryptocurrencies both trade in Ethers, but they can have two different values depending on which stream they belong to, which can rise and fall independently of each other. Microsoft, the Royal Bank of Scotland, and J.P. Morgan Chase are all investing in proprietary software built on top of the Ethereum blockchain, lending credence to Ether’s reputation as a preferred network for digital software applications.

Zcash (founded 2016)
Zcash is one of the highest-valued cryprocurrencies today, currently trading around the $65 mark. The success of Zcash in what is now a very competitive landscape is due to its revolutionary, totally anonymous blockchain. The public ledger reveals no information about the parties involved or the amounts transacted; no other cryptocurrency provides complete privacy and anonymity.

Dash (founded 2014)
The third most valuable cryptocurrency by market capitalization behind Bitcoin and Ethereum, Dash hit an all-time high of $108.32 on March 20. This is a huge leap in value from its 2016 peak of $14.42.
After two different name changes, it appears Dash has finally taken off, driven by its proprietary InstantSend technology that allows transactions to be verified without the longer confirmation times of Bitcoin and other altcoins.

Monero (founded 2014)
From the beginning, Monero set itself apart from other cryptocurrencies in a way that is proving very important: scalability. Unlike Bitcoin and most altcoins, Monero has no hard-coded limit on its block size, meaning that it will never face the slowdowns that provoked Ether to split its blockchain and that are causing Bitcoin’s current existential crisis.

This scalability is key because the popularity of cryptocurrencies has now reached epic proportions. Bitcoin’s inability to handle its own popularity has led one of its key developers, Mike Hearn, to state that bitcoin is a failure as more altcoins rush in to take its place.

Nothing is certain in this crowded, complex market, and cryptocurrencies should still be seen as experimental and high risk in terms of an investment, but their potential power within the digital economy cannot be understated. More and more people are investing their real-world money in Bitcoin and altcoins, while businesses of all sizes have begun to accept cryptocurrencies in exchange for goods and services both online and in-store. If you’re curious about digital currency, now might be the time to start trading, and it’s still possible to find coins that have not reached their full potential yet and still have room to rise in value.

We’ve only skimmed the surface of the history, complexity, and capability of cryprocurrencies, but this is a subject we at Payza will be following closely in 2017. Subscribe to the Payza Blog to get email notifications about more in-depth articles about this and other FinTech disruptors, and follow us on Twitter and Facebook for even more e-commerce news from around the web.

Is Affiliate Marketing Right for You?

In most industries today, small business owners will find that e-commerce is the only true route to success. If you’ve already built your online business and are now struggling to turn a small but devoted customer base into a large and vocal fandom, maybe it’s time to recruit your customers to sell your product for you. If you’ve already come this far, maybe it’s time to look into affiliate marketing.

Affiliate marketing is often confused with multi-level marketing (MLM). In light of the recent Herbalife settlement, people are once again thinking of MLM as a bad word – just Google “MLM” and you’ll see that one of the first results is “Is multi-level marketing a pyramid scheme?” But that’s missing the point of the settlement, which we believe is actually a good thing for the industry.

In 2012 Bill Ackman, founder of Pershing Square Capital, a hedge fund, began a campaign against Herbalife, accusing the 35-year-old dieting supplement company of being a pyramid scheme. After a lengthy investigation, the company agreed to establish a $200M fund to reimburse distributors for lost wages and the Federal Trade Commission (FTC) found that Herbalife was operating legally.

This settlement is meaningful because, despite the fine, it reinforces that MLM is a fair and legitimate business model. In the words of Herbalife CEO Michael Johnson: “The settlements are an acknowledgement that our business model is sound and underscores our confidence in our ability to more forward successfully.”

While it shares superficial similarities with MLM, affiliate marketing is itself a distinct business model from both multi-level marketers and illegal pyramid schemes:

Pyramid schemes require that people pay to participate in the scheme and only profit when they recruit others to participate. The “product” is only redistribution of money pumped into the scheme: the business is built on recruitment. It’s a closed system and the money flows overwhelmingly toward the top. With no incentive to actually sell a product, those at the bottom of the pyramid eventually run out of new recruits and the pyramid collapses.

Multi-level marketing companies rely on the sale of real products for their cash flow. New recruits are brought on board and the company incentivises recruiters, but the profits at all levels still come from actual sales. Rather than profiting off fees charged to recruits, the company rewards recruiters with a percentage of profits based on sales. In other words, the product is everything.

Affiliate marketing is a single-tier system which rewards affiliates for each visitor or customer the affiliate directs to the business. The affiliate is not selling the product but is instead marketing the business and directing traffic to the company’s website.

Affiliate marketing is often overlooked by digital marketers. Though the methods are more or less identical – SEO, SEM, PPC, email campaigns, etc. – instead of coming from the business directly, the content is actually being promoted by a third-party “publisher” (the affiliate). This is a powerful tool for building trust in a brand; when somebody else speaks up for your product, it makes a greater impression on consumers than hearing it directly from the merchant.

The product is still everything, however. Some people get into affiliate marketing or MLMs because they seem like a solid, profitable business model, and then figure out what the “product” is later. But the medium is not the message. There is no product that is a poor fit for affiliate marketing as long as you’re doing it for the right reasons. Get your product right first – the best time to introduce affiliate marketing to your business is once you have a small but growing customer base, a group of potential brand ambassadors who can prove to you and others that you have a great product.

Affiliate marketing is not a “get-rich-quick scheme” and it’s certainly not a scam. It’s good business. If you know you have a great product and a great online business, affiliate marketing is right for you.
From the start, our mission has always been to provide freelancers, self-employed professionals, entrepreneurs and small business owners with convenient and affordable tools for growing their business. We believe in small business and want to do what we can to help improve the lives of your customers – check back often with the Payza blog for the latest tips and tricks on growing your online business, and be sure to follow us on: Facebook and Twitter

Disappearing Banknotes in India: Understanding the Terms Surrounding Digital Payments

Don’t know what are UPI, NPCI, IMPS, NEFT, or RTGS? Don’t worry, we can help!

The people of India are still adapting to the sudden demonetization of the 500 and 1000 rupee banknotes. Emerging from what experts have described as a “debacle” and utter “fiasco” in monetary policy, many Indians are frustrated by media reports that offer confusing information about India’s financial system.
To help bring some clarity to the situation, we wanted to go over some of the unclear terms in finance and digital payments that are common in media reports about demonetization.

What is UPI?

Unified Payments Interface (UPI) is a digital payment system network. Using an app on a smartphone, the UPI enables citizens to transfer money between bank accounts of 19 major Indian banks. In addition to simplifying and increasing access to many basic banking services, the UPI app lets a customer to transfer funds to the bank account of a merchant to make payments without the need to share private financial information.

The National Payments Corporation of India along with The Reserve Bank of India developed the app to encourage Indians to replace cash transactions with digital payments.

For more information, see this article about UPI and the related app in The Hindu: What is Unified Payment Interface?

What is IMPS?

Immediate Payment Service (IMPS) is a digital payment system network. IMPS enables the instant, digital transfer of funds between major banks.

Like the UPI, the IMPS platform makes it easy to digitally transfer funds between banks using mobile phones. Using this service, citizens can transfer funds whenever they please, even during off-hours and bank holidays.
The IMPS platform is managed by the National Payments Corporation of India and operates using the National Financial Switch network.

What is NEFT?

National Electronic Funds Transfer (NEFT) is the most extensive banking network in India to transfer funds digitally. This network provides a simple and cost-effective means to transfer funds throughout India and is popular for settling retail remittances. This banking service is available during business hours and closes for bank holidays.

What is NPCI?

National Payments Corporation of India (NPCI) is a non-profit organization that oversees all retail payment systems in India. The organization aims to offer all Indian citizens unrestricted access to digital payment services. Endorsed by the Reserve Bank of India, the NPCI is a leader in advancing India’s “cashless society” initiative.

What is RTGS?

Real-time gross settlement (RTGS) is a money transfer system within a country that enables the transfer of a high volume of funds between banks. Finance companies use this system to transfer money or securities instantly, where the funds are sent individually rather than bundles or batches that are mixed with other securities. The RTGS provides essential financial infrastructure for a country’s Central Bank and monetary system.

Do you know of other banking and finance terms we should add to our list? Would you like for us to explain the details of a digital payment system? Tell us in the comments section below.

Managing Corporate Culture Is the Secret to Attaining Top Performance

Companies that are rated as top performers financially have also been found to foster good corporate culture. In fact, a study by Boston Computing Group reported that leadership and task management performance are directly related to financial performance. What’s more, according to one statistic, companies that build strong leadership and talent management capabilities increase revenue 2.2 times faster than those without it.

Developing a healthy corporate culture should be one of the top priorities for every company. Corporate culture represents the company’s overall style of functioning – this includes beliefs, ethics, and values of the company, method of working and work environment, the extent of social management, the well-being of employees, the extent of teamwork, quality of customer service and also dress code. Every organization should strive to cultivate a healthy corporate culture that sets its management and employees on a path to success. The following are some of the key benefits derived from a healthy business organizational culture:

Motivation

Studies have shown that when employees can relate to a company’s values and goals or are able to achieve their own professional goals, their performance far exceeds the average threshold. Hence it is very important to find a good fit between the company’s beliefs and the people it employs. Also, a company’s culture must be consistent. Employees feel motivated when they are kept informed, engaged in decision making, encouraged to work as a team and experience a high degree of job satisfaction in terms of their personal growth and achievements. Hence recruiting the right talent and constantly engaging them is a very important part of managing corporate culture.

Customer Satisfaction

This is simple logic. If your employees are engaged in their work and believe in you, then naturally they understand the importance of keeping your customers satisfied. High employee motivation always comes across and is evident to your customers. Most top performing organizations recognize this distinct link between customer satisfaction and corporate culture.

Attracting And Retaining Top Talent

When choosing a company to work for, corporate culture is a very important consideration. Top talent in the industry usually looks for more that just pay. When questioned, many candidates stated that they prefer to work for companies with a vibrant work culture and that provided services with a meaningful impact on customers over pay scale. This also means that if employees can connect with the company, then they are less likely to leave. Thus helping you keep attrition rates in check.

Company Image

Overall a good corporate culture helps in creating a positive brand image for the organization. Your employees are more likely to recommend you to their buddies, allowing you to stay at the top of the game in attracting talent.

Growth

As the company grows it is important to understand and sustain what is important for you. Corporate culture can do the job of setting direction and will ensure your expansion is in alignment with your values. Companies that proactively manage corporate culture have the ability to focus on sustainable long-term growth.

1 2