Executive director Anup Bagchi said the bank is targeting income from “fee, credit and savings due to use of technology” by offering these services to these large and small establishments spread across the country.
“As per RBI data the market for merchant services is Rs 2.32 lakh crore or about Rs 24 lakh to Rs 25 lakh crore in fiscal 2020 and is expected to increase 45% to Rs 31 lakh crore by fiscal 2022,” Bagchi said.
The so called merchant stack will provide “seamless banking services” to over 2 crore retail merchants in the country,
The bank also expects to extend other services like short term loans of tenure between six months to 1 year.
These merchants can avail of these facilities instantly, on InstaBIZ, the Bank’s mobile banking application for businesses.
The services bundled include a current account, two instant credit facilities called ‘Merchant Overdraft’ and ‘Express Credit which will be based on the point of sale transactions at these businesses. The bank will also help the businesses digitise their cash flow statements. It will also provide support for ecommerce and marketing.
“All these services are based on artificial intelligence and application programming interface (API) to analyse cash flows which we did not have two years ago. The information which was static is not dynamic allowing us to offer facilities like a instant credit to these merchants,” Bagchi said.
The money processed will be transferred immediately to the merchant’s linked ICICI Bank current account, 24×7, on all days including weekends and bank holidays, the bank said.