Fino PayTech Limited Unlisted Stocks

About the Company

  • The Company is a revolutionary FinTech company engaged in the business of providing technology solutions to various banks, insurance companies, government and non-government institutions and body corporates.
  • Fino-Paytech is an institutional driven system run by International and Indian Investors..
  • Incubated by ICICI Bank, Fino Paytech was formed in 2006 to drive financial inclusion in the country.
  • Since 2017, after RBI’s permission, Fino has turned into a payment bank.
  • In initial years, Fino used its network of 50,000 agents to reach the doorstep of the rural consumer with their handheld Aadhar based technology to open their bank accounts.
  • Fino Payments Bank has received the award for outstanding performance in digital payments for FY 2018-19 from Meity. Ranked 1st in digital transaction scorecard for the month of June ’19 amongst all banks
  • Fino received Best Emerging Payment Bank of the Year – ETBFSI Excellence Awards 2019.

Revenue Break-up of Fino Payments Bank

Fino Payments Bank Revenue Breakup

Fino Payments Bank, the subsidiary of Fino Paytech Limited, have majorly 6 revenue streams contributing to the Bank’s total revenue of INR 791 Cr for FY21.

Digital Payments Growth Vectors


Merchant Acquiring

  • The number of Point of Sales (POS) terminals had reached around 4.3 million in September 2019, compared to 3.3 million in 2018, an increase of 33%.
  • In order to boost digital payments, Finance Minister in the Union Budget announced that business establishments with a turnover of more than INR 50 Crores must offer low-cost digital payment methods and also mentioned that no Merchant Discount Rate (MDR) shall be imposed on customers as well as merchants.

UPI Transactions

  • UPI transactions have seen the highest growth rate of more than 300% in 2019 with transaction value nearing INR 4.6 trillion.
  • SEBI’s rule of making it mandatory for retail investors to apply to IPOs through ASBA mode to apply only through the UPI route shall further boost UPI transactions growth.

Card Transaction

  • Another innovation catching up is the fintech and payment banks offering co-branded credit cards with attractive cashback offers, which can be used for toll parking, small-value retail payments apart from normal transactions. Consumers can get cashback and other rewards from both banks and fintech companies.

Digital Payments Growth Factors


Mobile Wallets

  • Though all major banks, fintech companies and payment banks have introduced mobile wallets, the growth of mobile wallets transactions is tepid compared to UPI transactions.
  • The growth in mobile wallets transactions in 2019 was 18% at INR 480 billion compared to over 300% growth in UPI transactions.

National Electronic Toll Collection

  • NETC has been an important development in driving the digital payment ecosystem by developing a solution to meet all tolling requirements through an interoperable nationwide toll payment solution.
  • In future, NETC can gain significant momentum by adding more uses cases like parking, e-challan, payment for fuel charges etc., thus becoming a single stop solution for all vehicle-related payments.

Aadhar Enabled Payment System (AePS)

  • AePS is a bank-led model which allows interoperable financial transactions at POS or Micro ATM through the business correspondents of any bank by using Aadhaar identification. Customers only need the Aadhaar number, the customer’s bank name and the captured fingerprint during enrolment.
  • AePS is particularly useful in financial inclusion and popularising digital payments in rural areas, where penetration or usage of smartphones is limited.

Industry Overview- Opportunities


  • The primary driver for the Fino Paytech business model is a market opportunity for technology and services that enable financial institutions to realize the untapped potential to serve profitably the rural Indians who are currently under-served by or excluded from the formal financial system.
  • Indian digital payment industries growing fast at a CAGR of over 50% and are estimated to cross transaction value of $700 billion in the next few years.
  • Fino also has the potential to get the license for a small finance bank, which shall be a tremendous boost to its existing business model. The ability to accept low-cost deposits would be a game-changer for the company.
  • Having established a wide customer base and a network of digital and physical infrastructure, its lending and third-party product businesses can exponentially grow in future.
  • Nearly 85% of the equity is held by large financial institutions and marquee private equity investors thus ensuring high corporate governance.
  • Fino presents an opportunity to ride an exciting new age Indian digital growth story, with limited competition and vast business opportunity at a very reasonable price.
  • The PAT was INR 805.98 Lakhs as against loss incurred of INR 922.79 Lakhs in the previous year.



  • Fino Payment bank doesn’t have credit risk or credit cost on its balance sheet. The scale-up in operations, revenue sharing from MDR, cross-selling of products etc. promise a positive earnings outlook for the industry.
  • A key focus area is an under-penetrated rural market with limited internet and smartphone usage. The focus is on increasing USSD adoption, which can act as a last mile payment technology.
  • Bill payment service is an emerging trend for mobile payment service providers, wherein they act as a bridge between the utility service providers and the customers.
  • Central and State Government besides RBI has provided several incentives and subsidies to promote the industry.
  • Fino Payment Bank is actively working towards financial inclusion and DBT mechanisms. For MNREGA, it issues cards that function on a pan India basis. The cards can be used to make payments across 50,000+ villages in the country.
  • Many State Governments are using Fino’s architecture based on fingerprint usage as validation, across the country to deliver social security schemes to citizens.
  • Fino Payment Bank, a wholly-owned subsidiary of Fino Paytech Limited has reported a profit after tax of Rs 4.5 crore in the second quarter of FY 2021, up by 136 per cent from Rs 1.9 crore in the previous quarter.
  • Fino Payment Bank has set a target of creating a 10-lakh strong physical network in the country by 2023.