Annual Report

2022-23
2
Table of Contents
Introduction ................................................................................... 5
Chairman’s Editorial ..................................................................... 6
CEO’s Editorial ................................................................................. 8
Digipay 2022-23 at a glance .................................................. 10
Fintech Ecosystem in Iran and the World ............................ 12
User Behaviour on Super Application .................................. 26
Credit Services ............................................................................. 34
User Behaviour on Instalment Purchase ............................... 46
Supply Chain finance (SCF) ....................................................... 56
Credit Scoring and KYC ............................................................ 60
Wealth Management and Insurtech ....................................... 62
Customer Service and Operation Center .............................. 64
Corporate Social Responsibility (CSR) ....................................... 66
Conclusion ...................................................................................... 71

3
4
Introduction
We are proud to present the 3rd annual report for Digipay at a time when the
importance of Fintech in promoting financial inclusion is more recognized than
ever. This report provides a detailed analysis of our performance from Farvardin
to Esfand, 1401 (i.e., from March 21, 2022, to March 20, 2023) and highlights our
success in achieving our financial inclusion goals as a Fintech startup.
Aligned with the principle of transparency, this report covers seven themes,
including Fintech’s global and regional status, user behavior in Digipay’s Fintech
services, credit and Instalment purchase services, and the impact of credit service,
repayment, credit record, and digital footprint on user behavior. Additionally,
we will examine the performance of newly launched Digipay services, customer
support operations, and social responsibility events.
Through analyzing user behavior, we hope to provide insights into the Iranian
Fintech ecosystem and promote transparency in our performance. We are
committed to continuously improving our services and promoting financial
inclusion for all.

All amounts in this report have been converted using the average exchange
rate of the Iranian Rial to the US Dollar in 2022 (1 USD = 400,000 IRR)

5
Chairman’s Editorial: Fintech - A Catalyst for E-Commerce
H. Mohammadi, Chairman

When Digipay was established in 2018 as a financial arm for Digikala Group, we costs, and providing new models and products that make e-commerce faster,
envisioned the powerful combination of Fintech and e-commerce leading to easier, and more secure. We believe that Fintech will continue to be a catalyst for
significant advancements in Iran’s digital economy. Despite the percentage of e-commerce growth, contributing significantly to Iran’s digital economy.
online trade increasing from less than 2% to over 4% in the past five years, it still
falls short of the global average of 16%. With estimates indicating that over 95% of
global transactions will occur online by 2040, it’s clear that we need to overcome
obstacles and accelerate our pace to keep up with the global trend. Fintech
capabilities are indispensable in achieving this goal.
One of Fintech’s key contributions to e-commerce is its ability to empower
buyers through inclusion-driven strategies. Inflationary economies require more
assurance for purchasing power, and Lendtech solutions such as Instalment
payments and Buy Now, Pay Later (BNPL) options provide micro-credit advantages
that enable more people to have greater purchasing power. Additionally, Fintech
solutions such as diverse payment options and credit lines provide end-user-type
services that appeal to organizational customers, opening up access to both B2B
and B2C markets.
Another Fintech solution that boosts e-commerce growth and development is
Supply Chain Finance (SCF). Early Settlement, a service currently offered only to
Digikala sellers, enables faster access to working capital, providing marketplace
suppliers and sellers with a vital financial lifeline.
Internationally, Fintech is playing an increasingly significant role in e-commerce,
with solutions such as currency micro-transactions being utilized to great effect.
Despite the challenges posed by sanctions and domestic limitations, Iran’s Fintech
industry is now poised to enter regional markets, leveraging its vast potential.
Fintech and e-commerce are now inextricably linked, with Fintech driving
innovation in the payment industry, simplifying processes, reducing operational

6
7
CEO's Editorial: Transparency is Key to Fintech Development
Houman Amini, Foundar & CEO

As the Founder and CEO of Digipay, I firmly believe that transparency is

essential for the development of the fintech industry. Our mission is to
promote financial inclusion and reduce fixed costs in the banking and finance
sector, and we believe that fintech is an effective solution to address the
economic challenges faced by our country.
Since our founding five years ago, Digipay has grown from a smart internet
payment gateway (IPG) to a provider of diverse fintech solutions that promote
fair distribution of economic opportunities. We are proud to offer a range
of financial services, including Instalment and credit purchase, insurance,
super-application service, credit scoring, and supply chain finance, to both
our organizational and individual users across the country.
One of our most successful products is microfinance for Instalment purchases,
which has helped increase e-commerce purchasing power, simplify and
accelerate processes, and provide equal purchasing opportunities for users.
We have faced many challenges along the way, including poor infrastructure,
internet limitations, immature laws and regulations, insufficient finance,
COVID-19, social and political unrest, and mounting sanctions. However, we
have overcome each of these challenges by developing our infrastructure,
upgrading our laws and regulations, negotiating to raise more funds, and
proactively interacting with industry players and stakeholders.
In 2020, just two years after our founding, we published our first annual
transparency report, which was met with interest and curiosity from our
audience. We have since continued to publish more detailed editions of this
report, recognizing that transparency is a core indicator of financial business
maturity. Enhanced transparency positively correlates with user confidence
and popularity of financial products, and we believe that ignoring or resisting

8
it would seriously undermine the thriving of the fintech industry.
We urge all fintech industry players and stakeholders to publish similar
reports to enhance transparency and boost popularity and trust in the
industry. Our 2022-23 transparency report reflects our true performance
across all business lines, and we hope that this approach will enable us to
identify our shortcomings and strengths and address them to the best of
our ability.
Looking ahead, we are committed to developing and streamlining
activities across the industry in 2023-24 to elevate the digital economy.
Transparency will remain a key component of our approach, and we believe
that it will be critical to the success of the fintech industry as a whole.

9
Digipay 2022-23 at a glance

1.3 million 4.3 million

average monthly transactions on super application average monthly transactions on UPG

+ 2.3 million 55 million USD* (22 thousand billion IRR)

micro-credit loans paid micro-credit loan paid

+ 2 million BNPL credits 25 million USD (10 thousand billion IRR)

devoted to 610 thousand unique users BNPL facility paid

37.5 million USD (15 thousand billion IRR) 10,600 thousand

transacted on e-wallet e-wallet transactions

60 million visits 2 million

to both website and application active installations (from all valid markets)

*We offer a range of financial solutions to our customers, including buy now, pay later (BNPL)
facilities, loans with repayment terms ranging from 12 to 24 months, and credit cards.

10
11
 Fintech Ecosystem in Annual Report
Iran and the World

12
Digital Economy: Exploring its Past, Present, and Future

The digital economy refers to a global network of economic activities made Facebook occupying the top five highest-value spots. This trend is set to
possible by digital technologies and ICT-based professional arrangements. continue, with a joint study conducted by Huawei and Oxford Economics
The term was coined by Don Tapscott in 1995, and since then, it has predicting that by 2025, 25% of the world economy will be digital, valued
undergone a constant evolution in both scope and definition. Initially, at USD 23 trillion. In 2015, the percentage was only 15%, indicating a
the global GDP value was predominantly contributed by production and 10% growth rate over a decade. Furthermore, research undertaken by
service giants such as ExxonMobil, Walmart, General Motors, McDonalds, FUndera shows that by 2040, e-commerce will account for 95% of global
Total, and Shell. However, the digital economy has become increasingly transactions.
prominent over the past two decades, leading to a new era of economic In summary, the digital economy has come a long way since its inception,
growth. and it shows no signs of slowing down. As the world becomes increasingly
According to Clause M. Schwab, founder and chairman of the World reliant on digital technologies, it is clear that the future of the economy lies
Economic Forum (WEF), the current age is defined by the Fourth Industrial in the hands of those who can navigate this new landscape.
Revolution. This revolution is not solely focused on smart and connected
machines and systems but also encompasses a range of breakthroughs
in areas such as gene sequencing, nanotechnology, renewables, and
quantum computing. The fusion of these technologies and their interaction
across physical, digital, and biological domains makes the fourth industrial
revolution fundamentally different from previous ones.
Advanced technology has become increasingly inexpensive and
ubiquitous, with AI and sophisticated sensors now playing critical roles
in everyday life. The Fourth Industrial Revolution has created exclusive
needs and requirements that can only be addressed using smartphones
and the internet. However, the digital economy still generates a range
of controversies, both inside and outside of it, as it rapidly transforms
traditional economic arrangements into digital ones.
GDP breakdowns reveal a significant share of the global economy is now
digital, with companies such as Apple, Amazon, Google, Microsoft, and

13
The Digital Economy in MENA Region
The Middle East and North Africa (MENA) region has become a prime more than 50% of people use digital wallet services.
location for the growth and development of the digital economy due Fintech startups in MENA have been experiencing remarkable growth rates,
to its large market scale and the absence of well-established financial as evidenced by the Fintech market value in the first half of 2022, which hit
institutions. In fact, over 60% of the population in MENA is under 30 years USD 819 million – almost twice the figure recorded for the same period in
of age, compared to only a third in Europe. Moreover, the region has a the previous year. This trend highlights the potential and opportunities for
high level of receptiveness to digital technology, with 67% of the adult digital economy development in the MENA region.
population (136 million) lacking a bank account. In the UAE, for instance,

819 million USD

1 billion USD

800 million USD

600 million USD

2500 USD
400 million USD 100 - 250 USD
40 - 100 USD
15 - 40 USD
200 million USD
4 - 15 USD
1 - 4 USD
0 - 1 USD

First half 2020

First half 2022

First half 2018
First half 2016

First half 2019

First half 2021

First half 2017

Source: dealroom.co
Currently, MENA region is home to over 800 Fintech startups worth USD 15.5 billion

14
 Tunisia Lebanon Syria
Iraq
Iran
Palestine

MOROCO

Algeria LIBYA Egypt

Saudi Arabia
UAE
Oman

Yemen

MENA Map
15
Emerging Fintech Trends in MENA
Payment
The Middle East and North Africa (MENA) region has become a hotbed for Crypto currencies
innovative fintech startups, driven by the region’s young and tech-savvy Lendtech
population and the absence of well-established financial institutions. The
Weath management
fintech sector in the region has attracted significant capital, with payment
solutions being the most successful in securing funding, followed by Finance management solutions
crypto currency and Lendtech players. Since 2016, MENA-based payment Insurtech
solutions startups have secured an impressive $1.2 billion in investments,
while crypto and Lendtech companies have raised approximately $0.4 Banking
billion. Regtech (regulatory technology)
Among the trending fintech services in the region, Buy Now Pay Later
(BNPL) has been experiencing significant growth in the past two years.
According to a survey by Checkout.com, BNPL has a penetration rate of
24% more in the MENA region than in the UK and 23% more than in Europe.
Supply Chain Finance (SCF) is another emerging payment solution in the
region that enables individual recipients and small and medium businesses
(SMBs) to access their working capital more quickly.
The MENA region is home to a large immigrant community from India,
Pakistan, Bangladesh, Sri Lanka, and the Philippines, making it one of the
world’s largest money transfer corridors. Micro-currency transfer solutions
are, therefore, vital to the region’s fintech ecosystem.
Open banking is another crucial requirement for the MENA fintech
ecosystem to thrive. It allows traditional and fintech institutions to leverage USD 0.4 billion
technological infrastructure and Application Programming Interface (API) USD 0.4 billion
to offer innovative e-payment and lending services. USD 1.9 billion

Capital raised in Fintech lines - MENA region Source: dealroom.co

16
Main Global Fintech Trends in 2022
In 2022, the global Fintech industry investment rate had a 46-percent Fintech Investment Shrinkage in 2022
swoop down, compared to its previous year, to USD 75.2 billion. The budget he year 2022 saw investment shrinkage across almost the entire Fintech
secured by the industry for the last quarter of 2022 has been only USD lines
10.7 billion – the lowest since 2018. The shrink is also evident across other
Fintech indices. The annual mergers and acquisitions in 2022, for example,
experiencing a reduction by 8% compared to the previous year, have fallen
to 5048. Likewise, other 2022 statistics don’t look good for Fintech industry
as there is seen to be a sharp ebb (58%) in the number of unicorns born
(69), compared to 166 in the year 2021.

Global investment across Fintech lines in 2022

20.8 40.5 25.3 9.4 24.7 11.5 15.0 8.8 17.8 8.4 3.8 2.3

Payment Banking Lendtech Wealth management Insurtech Capital markets

Source: CB Insight’s 2022 report on global Fintech status

2022 (USD billion) 2021 (USD billion)

17
Fintech Investment Status in 2022
Global downtrend in Fintech

70

60

50

40

30

20

10

0
U.S. Canada Asia Europe Latin America Africa Australia
and the Caribbean

2021 (USD billion)

2022 (USD billion) The global reduction of investment in Fintech

18
Share Evaluation of BNPL Giants as a Result of 2021 Crisis

Company Pre-crisis value Post-crisis value

46 billion USD 6 billion USD

29 billion USD 14.76 billion USD

110 billion USD 41.47 billion USD

2.7 billion USD (merged with PayPal)

127.58 billion USD 94.55 billion USD

19
2022: A Year of Internet Limitations for Iran's Digital Economy

It is a well-known fact that digital economy is becoming increasingly crucial

to the overall economy, integrating social and economic systems. With its
chunky share in GDP and predictions estimating it to hold 95% of global
transactions by 2040, the Iranian digital economy must overcome all sorts
of impediments to move forward. The COVID-19 pandemic has accelerated
digitalization worldwide, including Iran. According to the latest report by the
National Office for Digital Economy, the digital share of the Iranian economy
almost tripled from 2012 to 2020. The digital economy share of GDP for
2022-23 was 7.4%. However, 2022 was also the year when Iran’s digital
economy faced severe shocks from a series of stringent internet limitations
that affected social commerce and tech-based businesses.

Although a thorough and transparent study on the incurred losses is yet

to be done, the Head of the Committee for Innovative Economy and Digital
Transformation in Tehran’s Chamber of Commerce stated that within only
one month after the introduction of the limitations, the consequent losses
had already been 875 million USD (350 thousand billion IRR) for the ICT
economy and 1.125 billion USD (450 thousand billion IRR) for businesses in
other areas of commerce. These preliminary figures speak to the magnitude
of the massive blow to Iran’s digital economy.

GDP Breakdown by Digital Economy layers

Core % IT % ICT %
Source: Iranian Digital Economy: Its Concept and Size- Ministry of ICT, 1399 (2020)
Second and third layers % Digital economy %

20
Top Economies with the Highest Digital Growth Momentum in 2020

According to research conducted by Tufts University, Iran ranks sixth

globally in terms of digital growth pace, out of 90 economies analyzed.
While Iran holds an average mark on digital evolution, its rapid progress in
digital growth is noteworthy.

China 85.51

Azerbaijan 65.28

Indonesia 64.03

India 62.95

Vietnam 62.37

Iran 62.26

Georgia 60.72

Ivory Coast 10 .60

Qatar 59.27

Russia 58.90 Source: Iranian Digital Economy Report – 1399 (2020)

21
Lendtech Solutions and Their Role in the Digital Economy
Lendtech solutions play a crucial part in paving the way for financial
inclusion. Lendtech platforms do so by interfacing between banking
system and clients either directly or via e-commerce platforms.

Total value of global facilities provided in 2020 6036 billion USD

Total value of online facilities provided in 2020 449 billion USD

Rate of global market size of online facilities to total 7.45%

Source: Mordor Intelligence

22
Growth categories by region

High

Medium

Low

23
Lendtech in Iran: Microfinance Facilities Paid in 2021

Service providing Potential service Share of service Digital economy Share of Total calculated Microfinance Total Total facilities
potential to providing providers in sales to Microfinance digital economy facilities microfinance paid
microfinance value in digital microfinance microfinance facilities sales in 1400 paid by service facilities paid
facilities economy facilities facilities in total providers
facilities paid

8.42% 40 0.014% 4.55% 42% 21.625 2-3 47.5 112.5

*values in billion USD

٪ 100
Percentages of facilities paid in 1400
٪ 100
The total value of microfinance facilities paid in 2021-22 has been estimated
based on the sales value of the first three quarters, which amounted to
925 million USD (370,000 thousand billion IRR).
The value of Iran’s digital economy has been calculated based on online
purchases made through the Shaparak system, excluding card-to-card
٪ 50
transactions.
٪ 42.22
While sales by instalment are used for financing in areas other than
microfinance, this report focuses primarily on microfinance and estimates
that such applications outside of microfinance would not significantly affect
the report’s validity. For instance, some applications may be for securing ٪ 8.42
raw materials and obtaining loans from the National Development Fund. ٪ 0.014
٪0
According to a 2020 report by Statistica, e-commerce sales via credit Source: Iranian Central Bank
Total facilities paid
methods have been over 185% higher than sales via debit cards.
Total microfinance facilities paid
Share of service providers in microfinance facilities
Service providing potential to microfinance facilities

24
The Digital Economy: An Underestimated
Savior for Iran

For the Iranian economy, the last decade of the twentieth century was
a nightmare of sanctions, isolation, recession, negative growth, and
currency devaluation. Despite these challenges, the digital economy has
shown unexpected growth, becoming a beacon of hope for the larger
national economy.
Several factors have contributed to the positive growth of Iran’s digital
share of GDP, including high penetration rates of smartphones and internet
access, and the growth of e-commerce and ICT, which was fueled in part by
the COVID-19 pandemic. Furthermore, the success of the digital economy
is even more notable considering the shrinking non-digital GDP.
Despite stagflation and other economic challenges, the domestic digital
economy has continued to grow, and this provides legitimate hope for the
salvation of the larger national economy. The digital economy is a savior
that we have underestimated, and it has the potential to lead Iran towards
a brighter economic future.

25
 User Behaviour on Annual Report
Super Application

26
Reflecting on 2022-23:
A Year of Challenges and Triumphs

Perseverance and hope in a hard year

Despite the numerous difficulties and obstacles that we faced in 2022-23,
our perseverance and hope enabled us to achieve significant successes.
One of the most notable achievements was our strategic partnership
with Mellat and Tejarat, two of Iran’s most reputable banks, through which
Techno Tejarat innovation center made the largest fintech investment in
Digipay. This investment, along with other initiatives, allowed us to diversify
our partners and foster greater synergy between the fintech ecosystem
and the banking system, thereby promoting financial inclusion.
In addition, we launched several products in 2022-23, including BNPL,
Insuretech, Wealthtech, and SCF, each of which was the result of hundreds
of man-hours of technical research and development. This year was
characterized by fundamental actions and a deep understanding of the
industry and the potential of the digital economy. We will share a roundup
of our most significant accomplishments in the following sections.

27
 The Digipay Super Application: Offering a
Wide Range of Financial Services
The Digipay Super Application provides users with a wide variety of financial
services. Currently, users can access a range of products, including
card-to-card payments, purchasing internet and mobile top-ups, bill
payment, toll payment, charity donations, fare payment, and fine queries.
In this section, we will take a closer look at user behavior on the Digipay
Super Application in 2022-23.

28
Values Transacted in Some Most Popular Digipay Services

Total value transacted on Digipay super application the most transactions made by a single user in a year

155 million USD (62 thousand billion IRR) 4792 transactions

Card-to-card transactions Mobile top-ups

102.5 million USD (41 thousand billion IRR) +1.04 million USD (+416 billion IRR)

Traffic fines paid Charity donations

+37,500 USD (+15 billion IRR) +120,000 USD (+48 billion IRR)

Bill payment Internet top-ups

+5.05 million USD (+2,020 billion IRR) +875,000 USD (+350 billion IRR)

29
 %52 %11.4
%76

%5
%19.2

%24

%12.4

Operating systems and browsers Users’ sex distribution

30
Devices used Users’ age groups

31
User Feedback
How much do users recommend Digipay to others?

Have Digipay’s users been satisfied with the super application in 2022? To
find out, we conducted over 2.2 million user surveys, receiving responses
from 3% of our user population. The results of the satisfaction survey can be
seen on the next page. We value user feedback and strive to continuously
improve our services based on their suggestions and concerns.

Top Reasons for User Dissatisfaction with the Main reasons for dissatisfaction among Instalment
Super Application purchasers:
Based on user feedback collected in 2022, the following are the main • Cumbersome and time-consuming process, from registration to
reasons for user dissatisfaction with Digipay’s super application: payment of operational fees
• Errors and malfunctions (such as failed transactions, unreachable • Lack of clarity on chargeable interest rates and advance payment
services, etc.) requirements
• Slow operation (such as late bill settlement, delayed arrival of • Poor customer support
dynamic CVV2 codes, etc.) • Ambiguity in the instructions for completing the required
• Poor customer support documentation or writing a check
• Issues with e-wallet functionality • Difficulties with using credit services for returned or cancelled
• Inconvenient user experience or unappealing appearance of the goods
super application.

32
Ranked Percentages of User Satisfaction
with Super Application Services

Mobile/ Internet top-ups

Charity/fare/insurance payments
Card-to-card payments
Bill payments
Automobile fine/toll/congestion charge payments
E-wallet
Customer support
Instalment purchase

33
 Credit Services Digipay Annual Report

34
Instalment purchase: A Credit Solution for All
In pursuit of its financial inclusion mission, Digipay launched the Main Modifications to the Instalment Purchase Service in 2022:
instalment purchase service in 2020, which has had a significant impact on • Increased focus on financial inclusion In 2022-23: Digipay launched a
microfinance availability and accessibility. Before the advent of Lendtech range of credit products with an added emphasis on inclusion, categorizing
solutions, microfinance was difficult and sometimes impossible for many these products into groups such as «end-users,» «employees», «BNPL»,
users to obtain. However, Digipay’s three years of striving for financial and «small businesses».
inclusion have contributed significantly to the Iranian digital economy, • Enhanced interaction with the banking system: Through partnerships
making 35 trillion IRR in microfinance available to users of the nation’s with reputable Iranian banks such as Tejarat and Mellat, Digipay increased
e-commerce ecosystem. its diversity of credit resources to provide users with easier and faster
Transparency in credit resource utilization, education on establishing access to instalment purchases.
a digital footprint, credit records, reduced fixed costs in microfinance, • Increased number of recipients Digipay’s constantly satisfactory
and overdue payment rates have all contributed to the development of performance in providing Fintech services to the Digikala Group led to an
a «digital society» and «digital citizenship.» These are among Digipay’s increase in the number of recipients beyond the Digikala network.
fundamental achievements in support of the national economy. • On track for full digitalization The introduction of electronic promissory
In 2022-23, the instalment purchase service underwent significant notes (eNotes) in 2022 guarantees credit and enables the entire instalment
modifications to improve the user experience. purchase process to go digital, with credit available to users within 15
minutes - almost in real-time.

35
Diversity of Instalment Purchase Service
%75

%8

250 to 300 million IRR

200 to 250 million IRR
150 to 200 million IRR
100 to 150 million IRR
50 to 100 million IRR
%6

%11

%0

Microfinance paid Requested credit value

30 million USD +750 million USD Number of filed requests
(12 thousand billion IRR) (+300 thousand billion IRR) +2 million

36
Instalment Purchase by Age Groups

30%

20%

10%

0%
18-20 20-25 25-30 30-35 35-40 40-45 45-50 50-55 55-60 60-65 65-70 70-75

User Sex Distribution for Instalment Purchase

Male %83 female %17

37
 Density of Instalment Purchase Credit Users Province Wise

Tehran
Alborz
Khorasan Razavi
Esfahan
High density

East Azarbaijan
Fars
Mazandaran
Khouzestan
West Azarbaijan
Gilan
Kermanshah
Ghazvin
Kerman
Markazi
Hamedan
Qom
Zanjan
Hormozgan
Ardabil
Yazd
Golestan
Lorestan
Sistan & Balouchestan
Kordestan
Low density

Boushehr
Semnan
Charmahal & Bakhtiari
Northern Khorasan
Kohkilouyeh & Boirahmad
Southern Khorasan
Ilam

38
The Most Popular Commodity Items Purchased on Instalment Credit

Mobile phone iPhone 13 CH

Dual SIM, Capacity 128 GB, RAM 4 GB

Samsung smartphone, Galaxy A32

Samsung smartphone, Galaxy A73 (5G)

Samsung smartphone, Galaxy S21 FE (5G)

Samsung smartphone, Galaxy A53 (5G)

Xiaomi smartphone, POCO X4 PRO (5G)

Xiaomi smartphone, Redmi Note 11

iPhone smartphone, 13 Pro Max

Samsung smartphone, Galaxy A73 5G SM-A736B/DS

Samsung smartphone, Galaxy A13

Samsung smartphone, Galaxy A13 SM-A137F/DS

39
 Most Popular Items in Instalment
Purchase Baskets for 2022 and 2021

40
Buy Now, Pay Later (BNPL)

Digipay added BNPL to its credit services in the last quarter of 2021-22 to organization’s limit, which is typically based on their monthly salary and
address individual users’ needs for affordable short-term loans. By 2022, repayment ability. The credit claim process for organizational users is the
the service had matured enough to expand to include organizational users. same as that for end users.
BNPL offers interest-free short-term loans to users and helps those who
have not yet established a credit history to create a credit record and
improve their credit scores in the Iranian banking system.
Digipay has customized various BNPL products based on users’ financial
abilities to help them avoid incurring debts that are too large to repay.
BNPL for End Users
End users who have completed the registration and credit scoring process
(which typically takes less than a minute) may claim their credit. The
credit amount starts at 3,000,000 IRR and can be as high as 10 million IRR,
depending on the user’s credit score status. Users must use the credit by
the end of the current month and have five days, from the first to the fifth +2 million credits paid to
of the following month, to repay the interest-free debt. After repayment, 610 thousand unique users
users may instantly apply for another credit. Late repayments incur a fine
calculated on a day-count basis, which will be charged to the user’s bill.
BNPL for Organizational Users BNPL credits paid
Organizational users have access to a secured version of BNPL provided 25 million USD (10 thousand billion IRR)
by their employers. Each employee is given credit according to their

41
 BNPL Users Percentage by Age Group

Most purchased items by BNPL Users

Beauty and health •

Digital goods •

Cars, industrial equipment •

Books and stationery •

Fashion and garments •

)Fast moving consumer goods (FMCGs •

42
 Men show more interest in credit purchase!

30%

70%
Male
Bluetooth Handsfree Headset, the
Female Most Popular BNPL Purchase

43
The Most Utilized BNPL Service in 2022
In 2022, one user stood out for the record utilization of Digipay’s BNPL
service. This user purchased 94 credit baskets worth a total of 1060 million
IRR. Based on the items purchased, it is likely that this user is a stylish tech-
nician who has a passion for playing the guitar.

Edu perfume Smart digital Smart LED lamp Glasses strap Laptop (15.6 Laptop (15.6
(men’s) scale (men’s) Inch) Inch)

Microwave set Screws and wall nails hammer Pliers Rechargeable

plugs screwdriver

Bolts and nuts Trousers VGA cable Espresso French coffee Guitar holder
(men’s) coffee

44
What days of the month is BNPL used more?
Weekly BNPL Usage Percentages in a Month
%5

%18

%24

%30

%23

Weekly
BNPL Usage
Percentages in a
Month

WEEK ONE

WEEK TWO

WEEK THREE

WEEK FOUR

WEEK FIVE (SOME MONTHS)

45
 User behaviour on Digipay Annual Report
Instalment Purchase

46
BNPL page visits commodity wise

ion views
m il l
8

+
Non-digital items

%58 %42

Digital items

47
Timely Repayment of BNPL Credits
in Various Locations Across Iran The Caspian
In 2022, Digipay provided BNPL credits to users in over 300 urban Sea
and rural areas across Iran. It is worth noting that in 180 of these
areas, listed below, there was a zero rate of overdue repayments.

Parsabad Lordegan Neiriz Savadkooh Kamyaran

Tonekabon Langroud Makou Shoush Barkhar
Iranshahr Bam Asfarayen Ardakan Joqtai
Sari Khodabandeh Shirvan Azadshahr Marivan
Torkaman Sarab Aq qala Sepidan
Nour Damqan Qeshm Sarpol Zahab Mehr
Bastak Bandar Anzali Chaldran siboSouran Avaj
Ghaemshahr Khansar Chadegan Khamir Dehgolan
Omidiyeh Ramsar Chardavel Mehdishahr Mehriz
Mahallat Fouman Shut Darab Jouibar
Chenaran Andimeshk Farsan Fasa Tabas
Maraqeh Aligoudarz Bijar Gilan Gharb Konarak
Ferdows Takstan Genaveh Mahneshan Khoushab
Khomein Abyek Khalilabad Ardestan Bostanabad
Sirjan Abbasabad Salmas Miandoroud Lalei
Boukan Divandarreh Paveh Varzaqan Firouzeh
Golpaygan Syahkal Sarvestan Kelardasht Shoushtar
Roudbar Fariman Farahan Gatvand Tiran va Koron
Khorramdarreh Qouchan Lamard Dasht Azadegan Oshnaviyeh
Saveh Germi Meiami Saman Bovanat
Zarand Mianeh Larestan Delijan Qiro Karzin
Bouinzahra Shahreza Astara Azna Gonabad
Marand Gonbad Kavous Daregaz Zirkouh Sarbaz
Eslamabad Qarb Jam Firouzabad Firouzkooh Kangavar
Asalouyeh Tuyserkan Eshtehard Abadeh Baneh
Zabol Marvdasht Jahrom Shadegan Rezvanshahr
Khomeinishahr Rafsanjan Farashband Natanz Mah va Lat
Meshginshahr Amlash Soltaniyeh Arano Bidgol Tangestan
Kouhdasht
Oqlid
Meibod
Kangan
Dena
Dashtestan
Badreh
Behbahan
Gachsaran
Zarrindasht
The Persian
Jiroft Mahmoudabad Jovin Fereidun Kenar Malekshahi Gulf
Varamin Piranshahr Malekan Shaft Sahneh
Sonqor Mobarakeh Farouj Hourand Some’esara
Roudbar Jonoub Roudsar Khavaf Bileh Savar
Khalkhal Bojnourd Nikshahr Estehban
Lanjan Poldokhtar Asadabad Qasre Shirin
Delfan Bakharz Aliabad Bavi The Oman Sea

48
Provinces of Best Repayers
The provinces of Qazvin, Sistan & Balouchestan, and Alborz
have demonstrated exceptional repayment behavior, making
them the top-performing provinces. The report provides further
information on other provinces with consistent repayment
behavior.

49
Middle-aged Users Exhibit the Best Repayment Behavior!
The graphs below show the breakdown of received credit facilities and
overdue repayment percentages by users’ age groups. Interestingly, users
between 30 to 50 years of age constitute the largest group of recipients,
while simultaneously exhibiting the lowest overdue repayment rates.

Overdue repayment of instalment purchase by age groups Overdue repayment of BNPL credits by age groups

50
51
52
One month earlier

15 to 30 days earlier

Up to 15 days earlier

On the due date

15 to 30 days later

BNPL credit repayments

Users’ Repayment Behaviours

30 to 40 days later

45 to 60 days later

+ 60 days later

+ one month earlier

15 to 30 days earlier

Up to 15 days earlier

On the due date

15 to 30 days later

30 to 40 days later
Instalment credit repayments

45 to 60 days later

+ 60 days later
 1st - 5th

5th - 10th

10th - 15th

15th - 20th

20th - 25th

Instalment purchase
25th – 31st
Repayment by Days of the Month

1st - 5th

5th - 10th

10th - 15th

15th - 20th
BNPL credits

20th - 25th

25th – 31st
53
Repayment of Instalment Purchase Credits by Months of the Year

Mar.- Apr. Apr. – May May – Jun. Jun. – Jul. Jul.- Aug. Aug. –Sep. Sep. – Oct. Oct. – Nov. Nov. - Dec. Dec. – Jan. Jan. – Feb. Feb. – Mar.

Late payments
Timely and early payments

54
BNPL Monthly Repayments

Mar.- Apr. Apr. – May May – Jun. Jun. – Jul. Jul.- Aug. Aug. –Sep. Sep. – Oct. Oct. – Nov. Nov. - Dec. Dec. – Jan. Jan. – Feb. Feb. – Mar.

Late payments
Timely and early payments

55
 Supply Chain Finance (SCF) Digipay Annual Report

56
 SCF in 2022-23
In order to fuel economic growth and promote digital economy, it is crucial enhancing entrepreneurship, flexibility, and efficiency in the supply chain.
to ensure that small and medium enterprises - the key players in the supply In line with this objective, Digipay has focused on SCF in 2022-23 and has
chain - have timely access to capital funds. Supply chain finance (SCF) is a successfully accelerated the circulation of working capital for numerous
creative solution in the e-commerce ecosystem that provides marketplace sellers and suppliers on Digikala.
sellers and suppliers with quicker access to their working capital, thereby

180.000.000.000

160.000.000.000

140.000.000.000

120.000.000.000
SCF paid (IRR)

100.000.000.000

80.000.000.000
SCF receivers
60.000.000.000
+ 3000
40.000.000.000

SCF paid
+2.75 million USD
20.000.000.000

(+1100 billion IRR)

0

57
E-Payment Solutions:
Digipay Unified Payment Gateway (UPG) and E-Wallet Services in 23-2022

UPG E-Wallet
Digipay’s UPG is a comprehensive solution that includes Smart Internet In 2022-23, Digipay also unveiled an enhanced
Payment Gateway (Smart IPG), Bank Payment Gateway (BPG), Card version of its e-wallet product with new features,
Payment Gateway (CPG), and E-Wallet services. This innovative solution including:
was launched in 2022-23 to provide users with higher security for their
payment transactions.
When using any payment service of the solution, UPG implementation
takes place simultaneously at the moment of the transaction, with minimal
• Customization with minimal implementation requirements
modifications required from the recipient. The key merits of Digipay UPG
• Refund and Instalment purchase options
include:
• Multiplatform capability for accounts of agent banks (e-wallet service)
Main merits of Digipay UPG • «Multi-wallet» feature that enables the user to have different types of
• Multiple payment gateways integration for a single service cash, credit, and gift wallets
• Refund option for users cancelling their orders • Customer support levels in proportion to the user’s KYC record
• Easy service implementation for the recipient • Usability outside Digikala network
• High service quality due to partnerships with the nation’s top PSPs • Higher security and compliance with the National Fee Regulations
• Provision of payment gateway terminal within a single day • User financial incentives and easier tracking of transactions
• Faster and cheaper money transfer
• More generous maximum for e-wallet deposits and withdrawals
• Digipay’s UPG and e-wallet services are aimed at providing users with a
seamless, secure, and convenient payment experience.

58
UPG and E-Wallet

37.5 million USD (15 thousand billion IRR) + 10 million + 52 million

E-wallet transaction E-wallet transactions* UPG transactions

+ 1 million +10 million USD (+ 4000 billion IRR) 1.8 million

Cash-out transactions Cash-in transaction Cash-in transactions

+225,000 USD (+90 billion IRR) +131 thousand 8.575 million USD (3430 billion IRR)
Wallet-to-wallet transaction Wallet-to-wallet transactions Cash-out transactions

* Close to 20 percent of transactions have been via wallet service

59
 Credit Scoring and KYC Digipay Annual Report

60
Credit scoring is an important step in the credit and Instalment purchase
application process. Applicants are required to complete this stage, and
those who score as eligible are allowed to apply for credit services.

115,619 Completed credit scorings 90,389 applicants in process of instalment purchase

538,540 Completed credit scoring processes 25,230 applicants in “purchase” stage of BNPL process

ineligible credit score

eligible credit score

61
 Wealth Management and Insurtech Digipay Annual Report

62
Wealth Management
Digipay launched its wealth management service in September 2022, marketplace investment, and offers a wide range of customization
in collaboration with Farabi Financial Group, to offer micro-investment options and smart advisory services to meet the investment requirements
opportunities to super app users. Initially, the service provided plans for of almost any customer. In the first six months since its test launch, the
capital markets, including a fixed-income fund (Exir Dovom) and a stock service has achieved significant milestones.
fund (Exir Aval), catering to different risk and need levels. The service
is designed to align with the overall Digikala Group policy, focusing on

25,474 70,161 14,980+ 29,030 667

advisory requests filed applicants Transactions users of risk assessment advisory cases in portfolio
service management

Insurtech
In 2022-23, Digipay expanded its services to include Insurtech solutions, terms such as «insurance» and «insurance policy.»
with the goal of creating value and offering peace of mind to insurance On the other hand, there are other stakeholders in the insurance industry,
stakeholders. The focus was on designing and launching products that such as insurance companies and agents, who have their own legitimate
would be accessible to a wide range of people, particularly the middle concerns regarding cash flow, portfolio profitability, loss ratio, and fair
class, who are the primary users of insurance. Until then, only the elite access to online insurance markets, particularly for digital citizens.
class of society had access to comprehensive and reliable insurance By tapping into existing know-how, technology, and well-researched
packages powered by smart services. Despite this, research has shown business models, Digipay plays a crucial role in strengthening the value
that many users view insurance as a useless expense that provides no cycle of the insurance industry, and thus in creating better value across
trustworthy guarantees, expressing some degree of reluctance towards the insurance market. The Electronics and Digital Equipment Insurance,
offered to Digikala users, and the Instalment Purchase Credit Insurance,
available to Digipay instalment purchasers, were two highly popular

123,069 150,000 USD (60 billion IRR) Insurtech products in 2022-23.

Insurance policies issued Insurance underwritten.

63
 Customer Service and Operation Center Digipay Annual Report

64
Customer Service and Operations Center social media:

In 2022-23, Digipay’s customer support and operation center faced several In 2022-23, domestic social media network has seen word “Digipay”
challenges, including frequent internet failures that made online support circulate over 90 thousand times – 300 times as many as in 2021-22.
difficult and an influx of new demands due to the launch of multiple Digipay Furthermore, Digipay online support team have replied 100% of direct
services. These factors led to a sharp increase in the number of incoming queries on Twitter and covered 37% of tweets containing word “Digipay”**.
calls and inquiries. However, our dedicated customer support team worked
tirelessly to expand our call-taking capacity, providing round-the-clock
support from 8 am to 24, seven days a week throughout the year. Despite 2,321,955 Impressions across Digipay’s official
social media accounts
the challenges, we remained committed to providing our customers with
the best possible service and support.
+ 9000 Digipay news & content items on
social media

4.2 of 5 + 500 thousand

Average user score assigned to
customer support service* Call-ins

2 minutes and 14 seconds + 400 thousand

Average user call wait Online chats and messages

* The score doesn’t represent the entire Digipay users’ population * * A significant number of tweets containing the word “Digipay” have been in
the contents other than queries, complaints, and customer support. population

65
 Corporate Social Responsibility (CSR) Digipay Annual Report

66
 Digipay Academy
Digipay Academy was established in May 2022 as part of the company’s corporate
social responsibility efforts. The goal of the academy is to attract young fintech
talent and provide them with fintech and finance education, as well as hold
bootcamps and specialized forums covering topics such as fintech behavioral
skills, quant analysis, Java programming, business development mid-term
courses, DevOps software development, test engineering, financial systems, and
front-end programming, totaling 12,300 man-hours. The academy’s senior experts,
who possess valuable theoretical and practical experience, serve as instructors.
Trainees who passed the assessments and tests were offered employment oppor-
tunities at Digipay.
Digipay also attended the 9th Exhibition on E-banking and Digital Transformation
on February 20 and 21, 2022, which was held at the initiative of the Iranian Central
Bank. Other payment and banking players attended the event, which was a forum
for discussing and exchanging views on e-payment methods. The event provided
Digipay with an opportunity to interact with industry players and learn about
customers’ needs and requirements.

Raising capital from Bank Tejarat

Digipay also attended the 9th Exhibition on E-banking and Digital Transformation
on February 20 and 21, 2022, which was held at the initiative of the Iranian Central
Bank. Other payment and banking players attended the event, which was a forum
for discussing and exchanging views on e-payment methods. The event provided
Digipay with an opportunity to interact with industry players and learn about
customers’ needs and requirements.

67
Raising capital from Bank Tejarat

In October 2022, Digipay secured one of the biggest Lendtech investments ever
by selling 20% of its shares to Bank Tejarat through the bank’s subsidiary, Techno
Tejarat. The investment is aimed at creating credit lines for organizational users
and leveraging the technical and intellectual capacities of startups, as well as the
financial and practical capacities of banks, to develop innovative Fintech services.
The partnership is also expected to contribute to achieving nationwide digital
banking and promoting financial inclusion.

Partnership with Bank Mellat

Another significant development in Digipay’s growth was the official partnership

with Bank Mellat in July 2022, which raised finance to offer instalment purchase
services to users. This partnership is strategically important in terms of closer
interaction with the national banking system and taking advantage of Fintech and
Lendtech in the national economy to promote financial inclusion.

68
Finup Event on BNPL and Financial Inclusion In August 2022 7,425,000 USD (2970 Billion IRR) Monthly Record
on Instalment Purchase!
Digipay sponsored the 17th edition of the Finup event which focused on Buy Now In February 2023, Digipay broke a monthly record in credit purchase with a
Pay Later (BNPL) and Financial Inclusion. The event aimed to promote interaction staggering amount of 2970 billion IRR. This impressive achievement is only 330
and synergy among players in the emerging Lendtech industry, with a focus on billion IRR short of the entire instalment purchase value for the year 2020.
reinforcing the role of BNPL in achieving greater financial inclusion. Digipay shared
valuable information and resources on the topic, including the global status of
BNPL and models that are well-suited for Iranian users.

As part of Digipay’s corporate social responsibility, the company outsourced some

of the print expenses for its annual report to the Women and Youth Entrepreneurial
Development Fund (WYEDF). WYEDF is a non-governmental and non-profit fund
Iranian Transaction Exhibition
established in 2005 to support business development and organization among
youth and local NGOs, with a focus on underdeveloped areas such as Sistan &
In December 2022, the 8th edition of the Iranian Transaction Exhibition was held,
Balouchestan, Khouzestan, and South Khorasan. If you find this report helpful, you
featuring a variety of specialized panels. Digipay, along with other Lendtech and
may wish to donate to WYEDF by scanning the following QR code.
Fintech players, attended two of these panels: «BNPL Mechanisms» and «Supply
Chain Finance (SCF).» The panels provided a platform for sharing views and
experiences on these topics.

69
 ‫رکورد ‪ 297‬میلیارد تومان اعتبار خرید اقساطی‪ ،‬در یک ماه‬ ‫رویداد فیناپ با موضوع ‪BNPL‬‬

‫در مــاه اســفند ‪ ،۱۴۰۱‬دیجی‌پــی در رکــوردی بی‌ســابقه موفــق شــد ‪ ۲۹۷‬میلیــارد تومــان اعتبــار بــرای خریــد‬ ‫هفدهمیــن رویــداد فینــاپ بــا حمایــت دیجی‌پــی و بــا موضــوع ‪ BNPL‬در مــرداد ‪ ۱۴۰۱‬برگــزار شــد‪ .‬دیجی‌پــی‬
‫اقســاطی بــه کاربــران درخواس ـت‌کننده‌ اختصــاص دهــد‪ .‬ایــن میــزان اعتبــار بــا اعتبــاری کــه در کل ســال‬ ‫در ایــن رویــداد بــا ارائــه یــک ســخنرانی بــا موضــوع «سرنوشــت ‪ ،BNPL‬در فراگیــری مالــی‪ ،‬تاریــخ یــا خاطــره»‬
‫‪ ۱۳۹۹‬بــه کاربــران متقاضــی خریــد اقســاطی اعطــا شــده اســت‪ ،‬تنهــا ‪ ۳۳‬میلیــارد تومــان فاصلــه دارد‪.‬‬ ‫حضــور یافــت‪ .‬عمــده اطالعاتــی کــه در ایــن رویــداد از ســوی دیجی‌پــی بــه اشــتراک گذاشــته شــد‪ ،‬شــامل‬
‫بررســی موقعیــت ‪ BNPL‬در ایــران و جهــان و مــرور مدل‌هــای ویــژه بــرای کاربــران ایرانــی بــود‪.‬‬
‫هــدف از حمایــت و حضــور در ایــن رویــداد‪ ،‬هم‌افزایــی بــا فعــاالن اکوسیســتم نوپــای لندتــک بــرای‬
‫تاریخ‌ســازی در سرنوشــت ‪ BNPL‬در فراگیــری مالــی بــود و دیجی‌پــی تــاش کــرد برخــی از مهم‌تریــن‬
‫پیش‌نیازهــا بــرای دسـت‌یابی بــه یــک همــکاری موثــر میــان لندتک‌هــا را در ایــن مجــال بــه اشــتراک بگــذارد‪.‬‬

‫بخشــی از هزینه‌هــای چــاپ گــزارش ســاالنه دیجی‌پــی‪ ،‬ه ـم‌گام بــا مســئولیت‌های اجتماعــی دیجی‌پــی‬
‫بــه بنیــاد توســعه کارآفرینــی زنــان و جوانــان اهــدا شــده اســت‪ .‬بنیــاد توســعه کارآفرینــی زنــان و جوانــان‬
‫ســازمانی مردم‌نهــاد و غیرانتفاعــی اســت کــه از ســال ‪ ۱۳۸۴‬بــا هــدف ترویــج و توســعه کســب‌وکار و‬
‫کارآفرینــی در بیــن زنــان‪ ،‬جوانــان‪ ،‬نوجوانــان و ســازمان‌های مردم‌نهــاد محلــی‪ ،‬همچنیــن نهادســازی در‬
‫گســتره جغرافیایــی ایــران بــا اولویــت ترجیحــی مناطــق کم‌برخــوردار (بــه خصــوص سیســتان و بلوچســتان‪،‬‬ ‫نمایشگاه تراکنش ایران‬
‫خوزســتان‪ ،‬و خراســان جنوبــی) فعالیــت می‌کند‪.‬اگــر گــزارش ســال ‪ ۱۴۰۱‬دیجی‌پــی را حــاوی اطالعــات‬ ‫هشــتمین نمایشــگاه تراکنــش ایــران در دی‌مــاه ‪ ۱۴۰۱‬برگــزار شــد و دیجی‌پــی بــا حضــور در دو نشســت‬
‫ســودمند و جــذاب می‌دانیــد و از مطالعــه ایــن گــزارش رضایــت داشــته‌اید‪ ،‬شــما هــم می‌توانیــد بــا‬ ‫از نشســت‌های تخصصــی ایــن رویــداد‪ ،‬داده‌هــا و تجربه‌هــای چندیــن ســاله در حــوزه «مکانیزم‌هــای‬
‫اســکن کــردن ‪ QR‬کــد زیــر بــه ایــن بنیــاد کمــک کنیــد‪.‬‬ ‫اعتباردهــی در ‪ »BNPL‬و «تامیــن مالــی زنجیــره تامیــن» را بــا فعــاالن صنعــت لندتــک و فین‌تــک کشــور بــه‬
‫اشــتراک گذاشــت‪.‬‬

‫‪70‬‬
 Conclusion
We are proud to present the 3rd edition of the Digipay Annual Report, which highlights the
challenges and successes of the past year. Despite the difficulties faced by the business
economy, particularly the digital business ecosystem, we remained transparent throughout,
prioritizing the trust of our audience.
The year 2022-23 was full of valuable lessons, and we were able to overcome each crisis
by understanding the situation, employing the right strategies, and maintaining constant
communication with our colleagues and audience. Our tireless efforts paid off, and we were able
to achieve most of our plans and goals.
However, we recognize that there is still much work to be done to achieve our strategic objectives.
With our dedicated team of experts, we are confident that these ambitious goals are within our
reach. Thank you for your continued support, and we look forward to another successful year.

71
No. 2, Third floor, Saba Gharbi Boulevard, Nelson Mandela Boulevard, Tehran-Iran
www.mydigipay.com