Cross-Border eCommerce & FinTech Startups is the Right Way Forward

jan 6

In 2015, eCommerce was easily one of the hottest spaces in the digital ecosystem of the country. The growth potential was tapped and new innovations and startups emerged to share their gains out of the vast spectrum. The web will be the major medium of shopping in the coming years. And, cross-border eCommerce & emergence of FinTech startups will drive the growth.

Yes, eCommerce startups were the cynosure of all eyes (the venture capitalists & private equity firms). However, the last year’s trends are now waiting to be replaced by the upcoming trends of 2016. One of the newest trends to focus on would be cross-border eCommerce. Already, many eCommerce companies have unveiled their plans to go international. The process will further gather pace in the coming months. The process of globalization has never been lighter on the pocket & it never will be. Many venture capitalists and private equity firms would now look to turn their eyes towards other lucrative verticals. This would pave the path for FinTech startups looking to grab their share of the eCommerce and startup ecosystem. How many new startups would see the light of the day in terms of huge investment remains to be seen! This brings me to the next point, the influx of FinTech startups. The FinTech startups will continue to emerge increasingly in the lending and credit-rating areas. One might say that the FinTech startup sector is still in the nascent stage. However, the grass is looking greener in the near future. At the cusp of 2016-17, these startups will possess the power to create a major stir in the financial system in the country. Yes, the stir might be small one, but, it will create a disruption. With financial inclusion being a hot topic in the country & the growth around smartphones being a head turner of sorts, a new era of financial technology will usher in the coming months of 2016.

Going back a couple of years, the cross-border estimates were looking a bit bleak. However, the trends are changing. Out of the 10 Million online shoppers in India, nearly 40 percent shop across the borders. Retailers would be encouraged by this fact and will be looking to enhance their online presence to be a global player. However, the road ahead does not seem so smooth. There are various issues and challenges that need to be addressed to encourage the growth of cross-border eCommerce. One would say that the biggest challenge would be the regulatory issues. However, towards the end of 2015, the government did shed some positive light on solving the regulatory issues. With the government looking to churn out a proper definition of an online marketplace and segregate the retail and wholesale sectors, one can expect a green light ahead. This can prove to be a defining move in the cross-border eCommerce sector. As financial lending and peer-peer lending stays under pressure, FinTech startups would be looking tap the opportunity to grow. New innovations and algorithms will evolve in 2016 to cater to the cause. The simplification of payment methods & the support of more FinTech startups, the cross-border eCommerce sector would be the one to watch out for in the coming months.


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“Thinking Aloud” reflects the emerging trends and varied outlook of the rapidly evolving internet and communication sector. An IAMAI publication, this is a part of the market education initiative of the association.

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