RS Software is engaged in strengthening its business around business profitability and sustainability and continues to demonstrate the principles of ‘invest, perform and create’
Digital payments are today the priority for each country globally, and regulators across the world are focused on achieving financial inclusion thru the power of digital payments.
RS Software envisions a world where we can enable transactions that occur as fast as you think it. We make payments frictionless and seamless.
Opportunities continue to grow: As the world is going digital, the way we live and pay for what we need is going thru major transformation and hence the demand for digital payments. As an example, Ecommerce is perhaps one of the most visible success stories of the digital age in every part of the world, including India. But even today Ecommerce represents no more than 10-12% of the $ 15 trillion retail industry globally. Clearly we have seen only tip of the iceberg. Regulators are constantly bringing about changes to help achieve inclusion in digital payments, such that it spreads to all sections of the society. Faster payments/Real time payments are becoming more user friendly. Large global technology players like Apple, Amazon, Facebook, Google and investor community in general is accelerating investments in digital payments. As a result the growth in digital payments is now a secular trend, creating ongoing opportunities for companies like RS Software. There are approximately 400 billion electronic/digital payment transactions that happen today globally, and this is likely to reach 1000 Billion within the next 3 years. Research companies and leaders like Mckinsey are observing that the pace of growth is higher than forecasted in several markets in the world. Research dollars are pouring into Authentication methods to reduce fraud. Acceptance infrastructure needs to expand to accommodate the demand of consumers and businesses and that of government. Later in this report we have included RS Software’s approach and efforts in these two areas. Strategic clarity and coherence: The execution of the last three years at the company has brought about significant learning which is bringing strategic clarity to our market facing direction in particular and coherence across all business functions. Companies that do three things together are better positioned for a sustainable course of high performance, and starting with 2018-19 the company continues to be focused on achieving this objective. First, they create clarity and coherence in their strategy, articulating the differentiating capabilities that they will need to win in the marketplace. Second, they put in place an optimized cost structure and approach to capital allocation, with continual investment in the capabilities critical to success, while proactively cutting costs in less-critical areas to fund these investments. Third, they build supportive organizations. They redesign their structures, incentives, decision rights, skill sets, and other organizational and cultural elements to more closely align their behavior to their strategy, and to harness the collective actions of their people.
Gamechangers: The company has demonstrated success in building payment platforms that are gamechangers both for RS Software and for India as a country. Even as the company is marching towards revenue level growth that it is capable of executing, there is a huge validation and reinforcement achieved in fulfilment excellence, which has strengthened the MOAT of the company forever.
Our commitment: Turnaround -> strengthening -> growth acceleration
At RS Software we are engaged in strengthening our business around business profitability and sustainability. The company continues to demonstrate the principles of ‘invest, perform and create’. These principles reinforce our commitment to be an investment of choice.
