CAMSPay, a Chennai-based payment solutions platform that focuses on the BFSI sector, last week received RBI’s in-principle approval to operate as a payment aggregator. In this interaction with businessline, CAMSPay CEO Vasanth Jeyapaul talks about the platform’s journey, growth plans and its focus areas going ahead. Edited excerpts: 

Q

What is CAMSPay all about?

Computer Age Management Services Ltd (CAMS) is India’s largest registrar and transfer agent (RTA) of mutual funds. As the country’s largest repository, CAMS serves over 70 per cent of the ₹40-lakh crore mutual fund (MF) industry. About 17 asset management companies (AMCs) and over 55,000 MF distributors run on our technology platform. Typically, a lot of pay-ins and pay-outs such as dividend payments, redemptions, recurring payments, SIPs happen on these MFs. CAMSPay, as a payments platform, partners with multiple banks to facilitate these transactions through instruments such as ACH, UPI, E-NACH, netbanking etc. 

Q

Does CAMSPay serve only the MF industry?

MF is a natural selection for us since CAMS is the largest player in that space. But we have expanded our payment solutions to insurance providers, non-banking finance companies and pension funds. Currently, MFs contribute over 50 per cent of the business while insurance and NBFC contribute 25 per cent each. Pension funds account for a small portion since CAMS became a pension repository only last year. 

Q

Which of these segments offer good growth potential?

CAMS is the second largest repository of pension funds. The AUM of pension funds is only ₹7-8 lakh crore at the moment. But this is set to grow exponentially given the huge size of our population and the need for simple saving instruments for the common man. Pension funds have the potential to grow to a size of ₹400-lakh crore in the long term and that offers a huge potential for us. The country’s biggest pension fund HDFC Pension fund uses CAMSPay as their payment option. Although, the volumes are currently small, we expect a huge growth in this space. 

Q

Which are the other focus areas for CAMSPay?

Insurance is another major focus area. CAMSPay is a very serious player in the insurance segment when it comes to payment processing. However, the insurance repository is not scaled up the way the MF has, but we see this changing with increasing focus on healthcare infrastructure, especially post Covid. When the healthcare system opens up, the insurance system also opens up. In all of these, there are payment opportunities.

Q

How many transactions do you process in a month and where do you see this going?

Currently, we process ₹5,000-6,000 crore of payment transactions per month. Every space we are into, including MFs, insurance, pension and payment aggregation, is projected to grow exponentially. So, this ₹5,000 crore can easily go up to ₹10,000 crore.