Bitcoin is an example of Algorithm based Circulation, where algorithms are circulating amongst peers, in this example peers who are mining bitcoins are actually playing role of 'servers' for these algorithms. It is an interesting game if you look at it carefully.
Similarly telecom service providers offer their own version of Algorithm based Circulation. Let me explain further, for example a telecom operator who receives subscriber paying for Call Credits, which can either be used for Call Credits or say make modest payments. In the background such service providers have their own applications running algorithms to account for how credits are being used, at the same time telecom service provider have mechanism of collecting cash from their service agents.
Expanding this concept further we see Retail Stores also offer some version of Algorithm based Circulation. For example, stores allow consumer with good credit or proof of income to open an account with the store and thus make payments in installments electronically.
Though in India there are such Financing Service providers, but the market maturity for such product is limited to Metros, Tier 1 and 2 cities. The reason behind this modest growth is that Financing is a Service, which requires appropriate investment on the part of companies in their customer service mechanisms.
For telecom service provider its an extension and complimentary to their existing service, where as for retailers its more of allowing consumer to buy more from their store, while taking on modest risk.
Considering need for financing in a country like India is huge as Capital remains limited and Cost of Capital remains all time high compared to Global markets, thus there remains a huge potential in Indian market for such Financing Services.
Expanding this concept further we see Retail Stores also offer some version of Algorithm based Circulation. For example, stores allow consumer with good credit or proof of income to open an account with the store and thus make payments in installments electronically.
Though in India there are such Financing Service providers, but the market maturity for such product is limited to Metros, Tier 1 and 2 cities. The reason behind this modest growth is that Financing is a Service, which requires appropriate investment on the part of companies in their customer service mechanisms.
For telecom service provider its an extension and complimentary to their existing service, where as for retailers its more of allowing consumer to buy more from their store, while taking on modest risk.
Considering need for financing in a country like India is huge as Capital remains limited and Cost of Capital remains all time high compared to Global markets, thus there remains a huge potential in Indian market for such Financing Services.
