Fintech firm PhiCommerce aims to double its SaaS-based revenue share to 40% in 18 months by providing payment infrastructure to smaller banks. This strategy allows mid-sized lenders to manage their own merchant relationships independently, reducing dependence on larger financial institutions for transaction processing.
PhiCommerce is shifting its business focus toward equipping small and mid-sized banks with independent payment infrastructure. By providing its software-as-a-service or SaaS platforms for card issuing and merchant acquiring, the fintech company expects to grow this segment to 40% of its total revenue within the next 18 months. This is a significant increase from its current 20% contribution, with the rest of the business continuing to be driven by its established payment aggregation services.
Enabling Independent Banking Infrastructure
The strategic shift addresses a common challenge for smaller financial institutions, which often rely on larger banks to process merchant transactions. By utilizing PhiCommerce’s technology stack, these smaller banks can gain direct control over their payment systems and merchant relationships. This ownership allows them to keep transaction data internal and maintain closer ties with their corporate clients. According to company co-founder Rajesh Londhe, the firm maintains a strict separation between its aggregation business and its SaaS operations to ensure data security, which is a critical requirement for banking partners operating under Reserve Bank of India, or RBI, guidelines.
Growth Strategy and Market Expansion
PhiCommerce, which holds RBI licenses for both online and offline payment aggregation, is actively expanding its client base. The company expects to integrate two to three additional banks onto its infrastructure platform by the end of the current 2026-27 financial year. Discussions are reportedly in progress with several other potential banking partners. While the firm focuses on domestic bank partnerships, it is also pursuing international expansion with plans to enter markets in Japan and Peru.
Investor Monitorables
For investors and industry observers, the core monitorable is the pace of adoption among smaller banks, as the revenue target depends on successfully onboarding new institutional clients. The company’s ability to manage the operational risks associated with such implementations and maintain profitability while transitioning its revenue mix will be essential to track. Additionally, the success of its international expansion in competitive markets like Japan and Peru remains a key long-term indicator for the company's growth beyond the Indian financial ecosystem.