CAMS Share Price Gains After RBI Nod To Function As Online Payment Aggregator


by Sandip Das on 12 April 2024,  5 min read


Computer Age Management Services Limited (CAMS) share price gained 2 percent in its stock value on April 12, 2024. This comes after the announcement from the Reserve Bank of India (RBI) granting authorisation to CAMS to function as an Online Payment Aggregator. It marks a strategic milestone for CAMS, opening up new avenues for the company within the realm of digital payments.

CAMSPAY, the dedicated payment business unit of CAMS delivers secure, seamless, and innovative payment solutions tailored to the distinct requirements of various sectors, notably the banking, financial services, insurance (BFSI), and education technology (Ed-Tech) domains. One of its flagship offerings includes an enhanced UPI autopay feature, which has garnered widespread adoption across fintech channels and prominent third-party applications. This innovative approach underscores CAMS’ commitment to staying ahead of the curve in the rapidly evolving landscape of digital transactions.

With a diverse clientele encompassing Mutual Funds, Insurance Companies, Banks, and Non-Banking Finance Companies, CAMSPay has solidified its position as a trusted partner for entities seeking robust payment solutions. A testament to its growing influence in the online digital payments segment is the record-setting achievement of registering over 1.2 million mandates for UPI Autopay in March 2024, as reported in a filing with the Bombay Stock Exchange (BSE).

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A key driver behind CAMSPay’s success lies in its strategic collaborations with major banks across the country and its partnership with the National Payments Corporation of India (NPCI). These synergistic alliances bolster CAMS’ capabilities to deliver a comprehensive suite of payment services to the markets it serves. By leveraging the extensive network and infrastructure of established banking institutions and the technological prowess of NPCI, CAMS is poised to further enhance its offerings and reach a broader audience, thereby solidifying its position as a leading player in the digital payments landscape.

In addition to its recent authorization as an Online Payment Aggregator and its impressive strides in expanding its clientele and service offerings, CAMS has also demonstrated robust financial performance in recent quarters.

In the December quarter of the fiscal year, the company reported a noteworthy increase in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), with a growth of 18 percent to Rs 129 crore compared to Rs 109 crore in the previous fiscal period. This uptick in EBITDA is indicative of CAMS’ efficient operational management and its ability to capitalise on emerging opportunities in the market.

Furthermore, the company witnessed a commendable revenue growth of 19 percent year-on-year, reaching Rs 290 crore in the December quarter. This strong financial performance underscores CAMS’ resilience and adaptability in navigating dynamic market conditions while maintaining a trajectory of sustainable growth.

CAMS’ recent authorisation as an Online Payment Aggregator by the RBI, coupled with its robust financial performance and strategic initiatives, positions the company for continued success and expansion in the burgeoning digital payments landscape. With its focus on innovation, strategic partnerships, and customer-centric approach, CAMS is well-positioned to capitalize on emerging opportunities and consolidate its position as a market leader in the realm of digital payment solutions.

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Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.

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