Why payments aggregator 1Pay is betting on to grow into a logi-fintech major

July, the ‘Logi-fintech’ solutions provider received in-principal approval from the Reserve Bank of India (RBI) to operate as a payment aggregator. With that, 1Pay joined the list of RBI-approved payment aggregators including Razor pay, Stripe, and Pine Labs. But the little-known 1Pay is a young player with negligible revenues compared to the giants in the payment-aggregator space.

Union Road Transport and Highways Minister Nitin Gadkari informed the Lok Sabha in August that more than 96% of toll collection on national highways in FY22 was via FASTags.

Between March and May this year, more than INR4,000 crore worth of toll was collected via FASTags, which translates into an average transaction size of around INR153 per vehicle. The aggregate budget of the ministries related to the transportation sector amounted to INR3.47 lakh crore in FY23, up from INR2.52 lakh crore in FY22.

In India 2/3 of traffic happens by the road but the trucking sector is inefficient and deeply fragment. It has pushed all the national highways to quickly shift to digital payment whereas, cashless payment have become a norm . As of last financial year nearly 96% toll collection of national payments

For the two years that followed FY20, the movement of people and goods came to a grinding halt due to a series of countrywide lockdowns implemented to fight the pandemic. Add to it a sharp drop in demand and freight companies had to deal with one of the toughest times ever.

Providing further impetus to the increased adoption of FASTags, the number of toll plazas has also nearly doubled from 427 in FY17 to 816 in FY22, as per data shared by roads transport and highways ministry in Parliament in late March this year. As the size of opportunity grows with more roads being built and state highways being onboarded,

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