A relatively unique game?
In its 23 year history, Pine Labs hasn’t really faced a direct challenge, despite competing with a variety of players in individual segments, such as the point-of-sale industry. . The combination of his wallet, however, has so far been unique.
Competition can now begin to emerge.
In January, Bajaj Finance Ltd. announced the establishment of a payment ecosystem called Bajaj Pay. This will allow Bajaj Finance clients to transact, borrow, invest and save on the same platform.
“We believe that Bajaj Finance and Pine Labs could be classified as“ enemies. ”Pine Labs acts as a partner of BAF to facilitate credit for its loyalty base (EMI cards), working closely with more than 30 banks and lending partners, ”Bernstein Research said in its memo.
Pine Labs’ strength lies in its largely urban business and merchant base, according to Bernstein Research. By comparison, Bajaj Finance has a larger network of merchants in smaller regions, including rural India, Bernstein noted.
Major lenders such as the State Bank of India and ICICI Bank Ltd. have also made large investments to capture a larger share of merchant payments.
Pine Labs says he’s not worried yet.
“A brand may think it has an option between Pine Labs and another actor. But when the brand really thinks about it, they see that it’s a platform with access to 35 credit issuers, 100 million pre-approved customers and leveraging credit at 150,000 outlets, I think the decision is clear that no one is operating on the scale we do, ”Asthana said.