In a world that’s rapidly digitizing, cash is no longer king. Instead, there’s a new player in town, and it goes by the name of “Cashfree”. Cashfree aims to eliminate the reliance on physical cash and traditional payment methods by providing convenient, and secure digital payments. But how exactly the Cashfree business model works, and how it makes money to run its business.
Imagine a world where you can leave your wallet at home, pay your bills with a simple wave, and make transactions without ever touching paper money. It’s not science fiction, it’s the exciting reality of a cash-free future.
Cashfree Company Profile
Cashfree is a leading fintech company that has emerged as a game-changer in the world of digital payments. Established in 2015. The company offers a range of services and products to facilitate digital transactions for individuals, businesses, and organizations.
Cashfree has rapidly evolved to become a trusted name in the financial technology sector. Cashfree’s mission is to simplify and enhance financial transactions by providing secure, seamless, and innovative digital payment solutions. The company aims to empower individuals and businesses to transact digitally with confidence, convenience, and efficiency.
|Name of the company||Cashfree|
|Founders||Reeju Datta & Akash Sinha|
|Headquartered in||Bengaluru, Karnataka, India|
|Industry serves in||Fintech, Banking, & Digital Payments|
|Serves in||Apart from India, serves in 8 other countries including USA, Canada & UAE.|
|Valuation (2021)||$200 million|
|Funding (2021)||$44 million|
|Revenue (2021)||$228 million|
Payment Gateway – Cashfree provides a robust payment gateway solution that enables online businesses to accept payments easily, securely, and efficiently. It supports payment methods, including credit/debit cards, net banking, UPI (Unified Payments Interface), and more.
Digital Wallets – The company offers digital wallet services, allowing users to store funds digitally and make quick and hassle-free transactions.
Bulk Payouts – Cashfree’s bulk payout platform simplifies mass payments, making it convenient for businesses to disburse salaries, refunds, and incentives to employees, vendors, and partners.
Payment Links – Cashfree’s payment links feature enables businesses and individuals to create and share payment links, making it simple to request payments from customers or friends.
Note: We also have a detailed article on the Global UPI Story. To know more about it, visit it once!
Cashfree Business Model
The Cashfree business model is a dynamic and innovative approach to financial transactions in the digital age. At its core, Cashfree aims to eliminate the reliance on physical cash and traditional payment methods by providing convenient, efficient, and secure digital alternatives.
Cashfree primarily operates on both D2C (Direct-to-Customers) & B2B (Business-to-Business) model and e-commerce ventures in India.
Apart from providing convenient facility of cashless transactions to its customers, Cashfree also provides its services and facilities that revolves around businesses. By providing digital payment solutions and financial services to other businesses.
Key points of Cashfree Business Model
Payment and Disbursements – Cashfree enables businesses to disburse funds to their customers, vendors, and employees efficiently. This includes salary disbursements, vendor payments, and refunds. Cashfree charges a fee for facilitating these transactions.
Subscription- Based Plans – Cashfree offers subscription based plans tailored to the specific needs of businesses. These plans often include features like customized payment pages, advanced analytics, and priority customer support. Subscribers pay a recurring fee based on their chosen plan.
APIs and Developer Tools – Cashfree provides APIs (Application Programming Interfaces) and developer tools that allow businesses to integrate its payment solutions into their websites and mobile applications. Developers are often charged based on API usage or a licensing fee.
Digital Banking – Cashfree has ventured into digital banking services, offering features such as virtual banking services, automated reconciliation, and bulk payout processing. These services come with associated fees or subscription charges.
Partnerships – Cashfree collaborates with banks, financial institutions, and other technology providers to expand its service offerings. These partnerships may lead to revenue-sharing arrangements or referral fees.
Marketplace and E-commerce integration – Cashfree caters to e-commerce businesses and online marketplaces by providing payment solutions designed to streamline transactions within these platforms. Fees are typically based on transaction volumes.
How Does Cashfree Make Money?
Cashfree generates revenue through various channels and services. It offers to businesses and individuals. Cashfree charges fees on each transaction.
- It charges fees around 1.7% to 3% on each transaction.
- Around 2.2% of transaction fees is charged on pay later option.
- For international cards it charges transaction fees of 3.5%+Rs.7.
Transaction Fees – Cashfree charges businesses a fee for each transaction processed through its payment gateway. This fee is typically a percentage of the transaction amount and may vary depending on factors such as the payment method used and the volume of transactions. This is a primary source of revenue for Cashfree.
Subscription Plans – Cashfree offers subscription-based plans to businesses, which often include features like custom payments pages, advanced analytics, and priority customer support.
Value-Added Services – Cashfree provides various value-added services to businesses, such as payment links, payment pages, and pre-authorization for recurring payments. These services often come with associated fees, allowing Cashfree to generate additional revenue.
Compliance and Security Services – Cashfree invests in compliance and security measures to ensure the safety and reliability of its payment systems.
Social Media Marketing – Utilizing platforms like LinkedIn, Twitter, and Facebook to share on their platforms and target the audience and make their social media presence.
Partnerships and Alliances – Partnering with banks, e-commerce platforms, and other businesses can help expand their reach and offer integrated solutions.
User Friendly Interface – Ensuring a seamless user experience on their platform is a form of marketing in itself. Happy customers are more likely to recommend the service.
Advertising – Cashfree launches events and campaigns with influencers and celebrities to target audience and reach masses. It can also consider methods such as print ads, billboards, or participation in conferences or events.
The Cashfree business model might seem counterintuitive, but it thrives on the efficiency, convenience, and data it generates. By capitalizing on transaction fees, data analytics, subscriptions, investments, and strategic selling, cashless companies are not only revolutionizing the way we pay but also redefining how they make money in the process.
The Cashfree revolution is here to stay, and its financial ingenuity is undeniable. Cashfree businesses are reshaping the way we handle money in a digital world.