How can transport aggregators and payment banks cause a grassroots economic revolution?

I was on a tour of Delhi, National Capital Region, Uttar Pradesh, Rajasthan, Punjab and Haryana during the last 10 days. I had a kaleidoscope of experiences. I plan to publish those in a series of posts. I also intend to write on my concerns about payment banks, but that's a separate topic. Disclaimer: I do not hold any financial interest either directly or indirectly in any of the payment banks or in transport aggregators.

Here is the first and hope you like.

What is the connection between transport aggregators and payment banks? They are closely related and we will find out how.

I decided to use Uber to move around in Delhi. I noticed that Uber allows booking of auto-rickshaws for moving around locally. Ola, mGaadi (co-founded by my former manager Vishy Kuruganti) and others offer similar auto-rickshaw aggregation services in Bangalore and elsewhere. The passenger has the option to pay the car aggregation services by card or by an electronic wallet. However, when it comes to auto-rickshaws, Uber alerted that the passenger has to pay cash to auto-rickshaw drivers. I suppose that the other aggregators too follow suit. From a business perspective, when payment is made offline, the financial and market risks increase for the aggregator. It is always important for any E-business to be a node on the path of the money flow, take its cut and transfer the rest later.

Payment banks like Bandhan, IDFC, NSDL and others have begun with the goal of profitably providing banking services to the hitherto financially excluded, i.e., "non-banked" masses. The government's goal is to improve banking coverage, financial inclusion and increase formal economy. Clearly, auto-rickshaw drivers and even more so, tricycle (manual driven cycle rickshaw) drivers figure heavily among the non-banked masses.

So the first connection between transport aggregators and payment banks is the common audience. For transport aggregators, the drivers are merchants; for payment banks, they are customers / depositors. The target audience is large! 

What if the transport aggregators and payment banks join hands, co-market and make profits, simultaneously do good for the society?

Prima facie, making profits and doing good may not seem to go hand in hand. However, there is a different dimension!

Most people in the lower strata of the society are prone to become victims of alcoholism. By looking at the yellowish / reddish eyes of many auto-rickshaw, car drivers, anyone can conclude that they are habitual drinkers. Cash is a dope per-se. Cash in hand at the end of the day leads these drivers straight to the local liquor shops. Many, even begin the day, drunk. Only a part of their hard-earned money reaches their needy families.

If only payment banks and transport aggregators join hands and market together - by enrolling the drivers (for aggregation), with an instantly-opened bank account, then the cash component can reduce and the money goes directly to the bank account of these drivers. With proper alliances, the co-marketing cost can be lower. Payment banks and transport aggregators can find innovative ways of incentivizing the drivers / depositors. For example, the incentives can be quarterly health check-ups, for those that spend lower percentage of their earnings. This will safeguard passengers also.

For the drivers, the lesser the cash in hand, the farther the liquor store is! Their families will become and remain grateful to these businesses.

Transport aggregators and payment banks, are you game?