Skip to main content

E- wallets out of unified payments system

By
E- wallet players have been kept out of the new Unified Payments Interface ( UPI) at the behest of banks. Banks felt including e- wallet services, which is set to make money transfer simpler, might not be in the interest of banks, said an official who is a part of the team working on UPI.
The Payments Council of India, which represents these wallet players, had communicated to the National Payments Corporation of India ( NPCI) that they would like to be part of the UPI system.
However, they have not been included so far.
These non- bank players have an edge in the mobile wallet space as first movers. They established themselves before the banks entered the space. These players had cashed in on the rise of smart phones and offered safe and simpler transactions to consumers.
Even though banks are late entrants to this space, they would be able to establish soon thanks to their customer base. Experts say the dynamics of the digital money transfer will change with banks getting avantage point in UPI.
This is because unlike a wallet, UPI is inter- operable across all the banks.
Wallet players believe with banks having the UPI advantage, the market will get tougher. Therefore, they have been looking at diversifying the business.
“We are still hopeful that we may be allowed to be a part of the UPI as we can also play acrucial role in reducing cash transactions. However, in the short- term, some players might face some problem and might have to look at adding another business line to see how they can reduce the impact,” said Naveen Surya, managing director, ItzCash.
Business Standard New Delhi,19th May 2016

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more