Executive Summary 

Our client, Pine Labs, partnered with Redseer, India’s leading strategy consulting firm, to analyse and develop a robust payments-sizing model in the digital payments market for its DRHP filing for IPO. 

About the Client 

Pine Labs is a prominent technology company focussed on digitizing commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions. Through its tech integration and reach among a wide range of merchants, the client processes ₹ trillions in GTV annually. 

The Strategic Imperative

• Analyse the historical digital payments market trends and build an in-depth sizing model for future growth potential across multiple international markets that lack publicly available data

• Build a robust sizing model in India’s data-deficient digital payment market segments
• To incorporate national policy and regulatory changes from select international markets to inform comprehensive industry analysis, innovation mapping, and future growth projections
• To identify the fastest-growing digital P2M payments segments in the market – in-store vs. online payments

Outcomes & Impact 

• Identified the key macro and micro trends and innovations driving the shift in India’s digital payments market
• Comprehended the nuanced digital payment consumer behavior across geographies of India, SEA, MEA, Australia, USA, and others, through integrated research, and built an in-depth digital payment sizing model
• Analysed the digital penetration and the usage of various digital payment systems acceptance among India’s merchants
• Mapped a tailored payment solution requirement across the different cohorts of merchants – Large, mid-market, and SMEs in India’s payment ecosystem, highlighting future growth opportunities
• Emphasized the benefits of integrating digital P2M payments capabilities with issuing solutions
• Built a supply-side model for Affordability solutions and validated it using a bottom-up model as well 
• Defined the right to win in the digital P2M payments market and identified the client’s competitive positioning among peers 

What This Means for the Industry 

India’s digital P2M payments industry has witnessed rapid growth, with government-backed UPI becoming the largest payment method across the globe. With the growing digital adoption among merchants, even in the Tier 2+ cities, further strengthened by government initiatives supporting non-cash transactions, India is set to evolve into a digital economy. Platforms that leverage the integrated tech payment solutions and offer innovative products to merchants will be best suited to capture a higher share in the growing digital payments market.

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