Rahul Kanotra

🔒 Securing the Future of Digital Payments: How RBI’s New Guidelines Are Raising the Bar for Non-Bank Payment Operators 💳 Every time you send money to a friend or a merchant, you expect that transaction to be safe from hackers and cyber-attacks. Non-bank Payment System Operators (PSOs) like NPCI, Google Pay play a crucial role in this process, handling vast amounts of money and sensitive data daily.   The #RBI recently issued Master Directions on Cyber Resilience and Digital Payment Security Controls, emphasizing the need for a robust cybersecurity framework. As digital payments become the backbone of our economy, these guidelines ensure that non-bank PSOs are equipped to withstand cyber threats and protect customer data.   What does this mean for non-bank PSOs? They must now adhere to the same high standards of security, risk management, and governance that banks follow. This eliminates any regulatory loopholes, ensuring a level playing field and safeguarding the financial system from potential risks.   Key highlights from the RBI’s directions include: ▶ The Board of Directors at each PSO is now directly responsible for overseeing information security risks, including cyber resilience. ▶ Cyber Crisis Management Plan (CCMP): Every PSO must prepare a Board-approved CCMP to detect, contain, respond to, and recover from cyber threats. ▶ PSOs must conduct thorough cyber-risk assessments before launching new products or making significant changes to their existing systems. ▶ PSOs using cloud services must implement a robust cloud operation policy. ▶ Any cyber-attack, system outage, or internal fraud must be reported to the RBI within six hours. Cybersecurity incidents must also be reported to CERT-IN. ▶ Regular training programs on information security for employees and vendors are now mandatory. ▶ Real-time fraud monitoring solutions must be in place to detect and alert on suspicious activity. ▶ Online sessions on mobile applications must automatically terminate after a set period of inactivity, prompting customers to re-login for continued security. ▶ PSOs must implement a comprehensive data leak prevention policy to protect business and customer information. ▶ PSOs are required to develop a business continuity plan that considers various cyber threat scenarios, including extreme events. ▶ When sending SMS or email alerts, PSOs must ensure that confidential information, like bank account or card numbers, is redacted or masked to protect customer privacy.   These new standards reflect the RBI’s commitment to strengthening the digital payment ecosystem, ensuring that all transactions are not only efficient but secure. Non-bank PSOs now have the roadmap they need to build even more resilient and trustworthy platforms for their customers. #CyberSecurity #DigitalPayments #LIPostingChallengeIndia #LinkedInNewsIndia --- I write on Banking, Technology and Risk. You can consider following Durgesh P. Sharma for more such content.

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As I look back at the achievements that the PayU team showcased at the Global Fintech Fest, I couldn't be more proud of the hard work and dedication shown by all the Payuneers over the last few months. A big shout out to our partners who have supported us and collaborated with us throughout this journey. Here is a quick summary of what we announced in this GFF 1. Push Provisioning: We remain the first and so far the only player to support push provisioning across 4 major networks and have worked in banks for issuer tokens as well. - https://lnkd.in/gSPm9Naf 2. Subscription Suite: We launched the first truly interoperable subscription platform for the ecosystem in collaboration with Mastercard.  Read more about this here. With this solution the mandate creation and execution can happen through the normal payment rails. https://lnkd.in/gszYBzEu 3. PayU Flash Pay: So far we are the only aggregator who have taken the lead in launching a Multi factor authentication solution for payment processing based on the recent RBI guidelines The future of the cards payment is here. 4. We were also the launch partners for Mastercard’s passkey launch in India. https://lnkd.in/gPvPXQdm   5. Cross border issuer solution: So far no one has addressed the pain of the Indian card holders trying to shop on global merchants. PayU partnered with Mastercard to launch the first solution of its kind to help the consumers shop seamlessly. https://lnkd.in/gYhZnkcx 6. Our team partner with Amazon Pay Later to offer instant digital credit to online shoppers. https://lnkd.in/gZyh_tMz As our honourable PM urged Fintechs to focus on curbing fraud, PayU again stood out with its commitment to this cause 7. PayU Protect Plus that was unveiled on stage, is our new advanced fraud and risk management system for our partners that addresses a vast spectrum of fraud / abuse scenarios such as transaction fraud, chargeback risk, buyer protection and RTO abuse. 8. Keeping up with the risk theme, we also partnered with Mastercard to introduce their Brighterion AI fraud detection solution in India. https://lnkd.in/gcBRdEjy In our commitment to help our partners grow their business, we launched 3 products that help them acquire and retain users and takes care of the complexities that comes with the scale 9. PayU Prepaid Edge is the platform built on top of our PPI issuance stack that helps merchants acquire customers and build loyalty 10. PayU Maxmizer helps merchants seamlessly work with multiple payment aggregators and route traffic between them 11. ReconX products solves the operational headache of trying to reconcile data between multiple systems Given the vast scope of the work done here, it’s near impossible for me to individually tag and thank everyone who were instrumental in making it happen. Hence again expressing my gratitude to all Payuneers and our partners for their effort and support.

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Cross border is one of the few payment types with still a significant amount of untapped potential improvement. Interlinking central payment infrastructure is one of the alternative solutions to correspondent banking. “Interlinking payment systems with new common platforms can support payment infrastructure integration across borders. These are not new concepts, but recent advancements in technology may increase the efficiency and decrease the cost of such arrangements. .. Over the past two decades, through a combination of digital innovations in payments and evolving end user needs and preferences, the regional integration of payment infrastructures has been expanding. This has enabled cross-border transactions for financial market participants or their customers, often between countries within a region. In some cases, this integration has spread across regions and even globally. Payment infrastructure integration is not only the linking of payment systems from a technical standpoint. It is equally about defining a common operational framework for transacting, clearing and settling cross-border transactions, as well as a robust governance and oversight framework that upholds the high standards of safety and financial integrity. In view of this challenging task, not all payment integration projects have been (or will be) successful. Several fast payment systems (FPS) that have become operational face some challenges in attracting participants and/or volumes even at a domestic level. Adoption of fast payments tends to be more widespread when the central bank owns the FPS. Publicly owned FPS may be designed to prioritise a public good perspective, aiming for open, inclusive and competitive payment markets. A user-centric approach, addressing diverse needs such as domestic person-to-person (P2P) transactions, merchant payments and cross-border transactions is also important. The inclusion of non-bank providers may improve access for underserved customers. Cross-border functionalities can expand the utility of FPS beyond domestic transactions. Cheap and fast cross-border transactions can also broaden the access of firms to global markets. Keeping these features in mind may help build strong public infrastructures that are widely adopted and support policy goals. .. Ultimately, the level of fragmentation or integration will depend primarily on policy decisions rather than technology." Source: https://lnkd.in/dRiE_fQE #payments #rtp #ips #crossborderpayments #paymentsystems Nafis Alam Prasanna Lohar Panagiotis Kriaris Sudin Baraokar Nicolas Pinto Sam Boboev  

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A new form of biometric payment is emerging in the UAE called Palm Payment. Soon you'll be able to pay with a swipe of your hand at selected merchants. To use this method, you will need to register your palm on the palm scanner at the designated merchant store and link it to your credit card. The scanner will capture the lines on your palm and vein pattern. An algorithm will then associate a unique palm signature for you. Subsequently when you use your palm at a supporting merchant the POS will trigger an authorization using your card details. This technology joins other biometric payment methods we’ve seen so far like facial and fingerprint payments. Each uses a different authentication process and user interaction. The choice of payment will depend on user preference and merchant capabilities. In all cases, these biometric payments will improve efficiency and user experience. For people who worry about phone battery issues, or tend to forget their cards they won’t have to remember to bring their palm! #PalmPayment, #BiometricPayments

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💡𝗥𝗕𝗜 𝗔𝗱𝘃𝗼𝗰𝗮𝘁𝗲𝘀 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 𝗶𝗻 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗟𝗲𝗻𝗱𝗶𝗻𝗴 💰 📱 Lending Service Providers (LSPs like Paisabazaar, BankBazaar India) play a pivotal role by offering aggregation services for various loan products. However, it's essential to ensure clarity regarding lender identification, especially in scenarios involving multiple lenders. 🏦 To address this, Regulated Entities (REs like Banks, NBFCs) are now encouraged to implement the following measures: 1️⃣ 𝘛𝘳𝘢𝘯𝘴𝘱𝘢𝘳𝘦𝘯𝘵 𝘓𝘰𝘢𝘯 𝘖𝘧𝘧𝘦𝘳𝘪𝘯𝘨𝘴: LSPs should provide borrowers with a clear digital overview of all available loan offers from partnered lenders. 🔍 2️⃣ 𝘊𝘰𝘯𝘴𝘪𝘴𝘵𝘦𝘯𝘵 𝘌𝘷𝘢𝘭𝘶𝘢𝘵𝘪𝘰𝘯 𝘈𝘱𝘱𝘳𝘰𝘢𝘤𝘩: LSPs are urged to adopt a uniform mechanism to assess lender willingness, with this process transparently disclosed on their platforms. 🔄 3️⃣ 𝘐𝘯𝘧𝘰𝘳𝘮𝘦𝘥 𝘋𝘦𝘤𝘪𝘴𝘪𝘰𝘯-𝘮𝘢𝘬𝘪𝘯𝘨: The digital overview should encompass vital details such as RE identities, loan amounts, APR, and essential terms, enabling borrowers to make fair comparisons. Additionally, links to key facts statements (KFS) are mandated. 📚 4️⃣ 𝘐𝘮𝘱𝘢𝘳𝘵𝘪𝘢𝘭 𝘊𝘰𝘯𝘵𝘦𝘯𝘵: LSPs must ensure content neutrality, refraining from endorsing specific RE products through misleading practices. ⚖️ #DigitalLending #Transparency #FinTech source: https://lnkd.in/gyt5xrfz (views expressed are my own)

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APIs enable seamless communication between financial systems, making them essential for both instant and cross-border payments. In Instant Payments - APIs facilitate immediate payment initiation, validation, and confirmation. - They ensure secure, fast communication between banks and payment service providers (PSPs). - VoP In Cross-Border Payments - APIs handle real-time foreign exchange rates and currency conversion. - They offer real-time tracking, improving transparency for cross-border transactions. - APIs automate compliance with multiple regulatory frameworks. An example of this would be: "debtor": { "name": "Michael Brown", "account": { "IBAN": "DE89370400440532013000", "currency": "EUR" }, "address": { "streetName": "456 Elm St", "buildingNumber": "12", "postCode": "10115", "townName": "Berlin", "country": "DE" } }, "creditor": { "name": "Sophia Lopez", "account": { "IBAN": "ES9121000418450200051332", "currency": "EUR" }, "address": { "streetName": "789 Oak St", "buildingNumber": "9", "postCode": "28001", "townName": "Madrid", "country": "ES" } }, "interbankSettlementAmount": { "currency": "EUR", "amount": "1500.00" }, "interbankSettlementDate": "2024-10-23", "paymentPurpose": { "code": "TAXS", // Tax Payment "structuredPurpose": { "categoryPurposeCode": "GOVT", "categoryPurposeText": "Government Tax Payment" } }, "remittanceInformation": { "structured": { "reference": "INV-6789", "referenceIssuer": "Tax Office", "additionalInformation": "Quarterly Tax Payment" } } } https://lnkd.in/gKR7VEEi #payments #api #instantpayments #iso20022

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The courses architecture to take you from 0 to 1 in the payments domain. Do check it out and reach out if you have any question.

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Digital Lending in India, Sri Lanka, Indonesia, and Malaysia Digital lending has become a significant part of the financial ecosystem in India, Sri Lanka, Indonesia, and Malaysia. Here’s an overview of the popular digital lending products and the ecosystem in these countries: India Popular Products: Personal Loans: Quick, unsecured loans for personal use. SME Loans: Loans tailored for small and medium enterprises. Buy Now, Pay Later (BNPL): Short-term financing allowing consumers to make purchases and pay for them over time. Peer-to-Peer (P2P) Lending: Platforms connecting borrowers directly with individual lenders. Ecosystem: Fintech Growth: India has a robust fintech ecosystem driven by regulatory support and high smartphone penetration. Financial Inclusion: Digital lending has significantly improved access to credit for underserved populations. Sri Lanka Popular Products: Microfinance Loans: Small loans aimed at low-income individuals and small businesses. Personal Loans: Similar to India, these are quick, unsecured loans for personal use. Agricultural Loans: Loans specifically designed for farmers and agricultural businesses. Ecosystem: Regulatory Support: The Central Bank of Sri Lanka has been promoting digital financial services to enhance financial inclusion. Fintech Innovations: Increasing adoption of fintech solutions to streamline lending processes. Indonesia Popular Products: Sharia-based Lending: Compliant with Islamic law, catering to the Muslim population. Microloans: Small loans for personal or business use, often facilitated by fintech platforms. P2P Lending: Connecting borrowers with individual lenders through online platforms. Ecosystem: Fintech Boom: Rapid growth in fintech startups, supported by young, tech-savvy populations. Regulatory Framework: The Financial Services Authority (OJK) regulates digital lending to ensure consumer protection and market stability. Malaysia Popular Products: Personal Loans: Unsecured loans for various personal needs. SME Loans: Financing options for small and medium enterprises. BNPL: Increasingly popular among younger consumers for flexible payment options. Ecosystem: Government Initiatives: The Malaysian government supports digital financial services through various initiatives and regulatory frameworks. Fintech Ecosystem: A growing number of fintech companies are driving innovation in digital lending.

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Do you know that every time you swipe your card or click 'pay now' online, there's a complex process happening behind the scenes to make sure the merchant gets paid? It's called settlement, and it's the final step in the payment processing journey. Without settlement, merchants wouldn't receive the funds they're owed, and businesses would grind to a halt. So, what exactly is settlement in payment processing, and how does it work? In simple terms, settlement is the process of transferring funds from the customer's bank to the merchant's bank. But here's the thing: settlement isn't as straightforward as it sounds. There are multiple players involved, including payment gateways, acquiring banks, processors, payment aggregators, card networks, and issuing banks. Each player has a role to play in ensuring the payment is processed correctly and securely. Let's break it down step by step. When you make a payment using the PoS payment channel in Nigeria. The payment gateway sends the transaction details to the acquiring bank who then forwards it to either the payment aggregator/processor. The payment aggregator/processor usually works with the card network (like Visa, Interswitch, Afrigo or Mastercard) to verify the details and check for fraud. The processor then sends the transaction to the issuing bank (the customer's bank), which verifies the customer's account details and checks for sufficient funds and potential fraud. If approved, the issuing bank sends an authorization back through the processor/card network, which then sends the funds to the acquiring bank. The acquiring bank then deposits the funds into the merchant's bank account. This is settlement! But settlement doesn't happen in real-time. There are delays, known as settlement cycles, which can range from a few hours to several days. This is why merchants often don't receive funds immediately after a sale. Now, you might be wondering why settlement is important. Well, without settlement, merchants wouldn't be able to operate their businesses. Settlement ensures that merchants receive the funds they need to pay their bills, invest in their businesses, and grow their operations. Did you find this helpful? Let me know in the comments section. Also, stay tuned for my subsequent posts, where I will delve into more related topics. #paymentprocessing #settlement #solaafolabi #accessbank

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Fintech News 🚨: Zing launches automatic and one tap top-ups for all members The new features will be available for all members thanks to Visa’s open banking platform, Tink. Members can now link their banking app directly to their Zing wallet for fast and automatic top-ups without the need for reconnection every 30 days. The addition of this technology will continue to accelerate Zing’s rapid growth, having launched in the UK in January 2024. Its growing tech stack enables members to hold 20+ currencies seamlessly, send 30+ currencies, and spend in 200+ countries and territories with a single app and card while knowing their funds are safeguarded and enjoying 24/7 human customer support.   One tap top-ups will utilise linked accounts to enable users to select the amount they want to credit their wallet and do so with just one tap, without manually inputting details or leaving the Zing app, thanks to open banking account linking. By setting a pre-approved monthly limit, each top-up no longer needs to be approved by the user's bank each time a transfer is made. Automatic top-ups will use the same account linking technology; however, it will enable users to set a minimum balance limit and a maximum automatic top-up value. Once the member's wallet falls below the minimum limit, Zing will automatically top up the wallet by the predetermined value, e.g., ‘When my balance falls below £50, top up £100’.  Both features are available for all members and will work with most of the UK’s major banks, including HSBC, Barclays, Lloyds, Nationwide Bank, NatWest, and Santander. James Allan 安志明, Founder and CEO of Zing,commented: “Our members shared their fears of having their card declined due to insufficient funds when making payments while travelling, holding up the queue as you try to top-up your account. “With automatic top-ups, members can keep their accounts ready for anything without having to think about topping up, making international money truly worry-free. “Tink has done an incredible job of enabling us to make our members’ payment experience more streamlined, and we’re looking forward to what we can do next.” Jack Spiers, Sales Director, Issuing Solutions at Visa, added: “Our partnership with Zing showcases how open banking can reduce complexity for consumers, enabling Zing to offer its members an even more seamless service. It is great to see the traction and impact Variable Recurring Payments now have in the market, moving open banking-powered payments further towards mass-market adoption.” 👉 Subscribe for more insights https://lnkd.in/d94JgWBU #fintech #payment #openbanking

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Fintech News 🚨: Zing launches automatic and one tap top-ups for all members The new features will be available for all members thanks to Visa’s open banking platform, Tink. Members can now link their banking app directly to their Zing wallet for fast and automatic top-ups without the need for reconnection every 30 days. The addition of this technology will continue to accelerate Zing’s rapid growth, having launched in the UK in January 2024. Its growing tech stack enables members to hold 20+ currencies seamlessly, send 30+ currencies, and spend in 200+ countries and territories with a single app and card while knowing their funds are safeguarded and enjoying 24/7 human customer support.   One tap top-ups will utilise linked accounts to enable users to select the amount they want to credit their wallet and do so with just one tap, without manually inputting details or leaving the Zing app, thanks to open banking account linking. By setting a pre-approved monthly limit, each top-up no longer needs to be approved by the user's bank each time a transfer is made. Automatic top-ups will use the same account linking technology; however, it will enable users to set a minimum balance limit and a maximum automatic top-up value. Once the member's wallet falls below the minimum limit, Zing will automatically top up the wallet by the predetermined value, e.g., ‘When my balance falls below £50, top up £100’.  Both features are available for all members and will work with most of the UK’s major banks, including HSBC, Barclays, Lloyds, Nationwide Bank, NatWest, and Santander. James Allan 安志明, Founder and CEO of Zing,commented: “Our members shared their fears of having their card declined due to insufficient funds when making payments while travelling, holding up the queue as you try to top-up your account. “With automatic top-ups, members can keep their accounts ready for anything without having to think about topping up, making international money truly worry-free. “Tink has done an incredible job of enabling us to make our members’ payment experience more streamlined, and we’re looking forward to what we can do next.” Jack Spiers, Sales Director, Issuing Solutions at Visa, added: “Our partnership with Zing showcases how open banking can reduce complexity for consumers, enabling Zing to offer its members an even more seamless service. It is great to see the traction and impact Variable Recurring Payments now have in the market, moving open banking-powered payments further towards mass-market adoption.” 👉 Subscribe for more news https://lnkd.in/d94JgWBU #fintech #payment #openbanking

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This Visa Payment Forum is like an Apple or Google developer day for Fintech Massive announcements 👇 👉 Any device is a POS device 👉 Tap to Confirm: Authenticates identity shopping online 👉 Tap to Add Card to wallet: Adds security 👉 Tap to P2P (person-to-person) 👉 Choose credit, debit or BNPL at the swipe / point of sale Everything else 👉 Passkey support to use device / biometric Auth for payments (e.g. click to pay, then instantly trigger a face ID) 👉 Launching A2A (pay by bank in the USA) 👉 Launching fraud prevention for pay by bank 👉 Visa data tokens (user permissioned data sharing with merchants for loyalty) Each one of these is a blog post but here's my one sentence summaries 🧠 Any device can accept payments, this makes everyone a seller, enabling a new generation of Square / Shopify like experienced 🧠 Tap to confirm is the Auth layer e-commerce was missing. This lived in Apple Pay but belongs at network level. Will reduce fraud and remove friction. 🧠 Tap to add card will remove friction, prove your address (because the card was sent to your address and device is there) and add security all in one. (Instead of texting "hiramp" etc). Will increase onboarding conversion. PS. Monzo did this in 2016 🧠 Choose how to pay at POS can now become a default feature. Chase and Monzo have done this well, but now everyone can have it. 🧠 Passkeys and and data tokens radically change e-commerce and loyalty. Everything will be a token and biometrics will be how you login, pay, and share data with one Face ID moment. 🧠 Don't sleep on Visa doing pay by bank. Stripe is the current leader IMO, but the network effects, standardization and fraud reduction will be a huge boon for adoption. I could write essays about each of these. Your move MasterCard #payments #fintech #banking

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How do "pin and pay," "tap and pay," and other payment methods differ? In a card payment system, the process operates on a four-party model. This model involves 4 key players: the issuing bank, the acquiring bank, the customer, and the merchant. → Issuing Bank: This is the bank that provides the payment instrument (like a credit or debit card) to the customer. → Acquiring Bank: This bank processes the transaction on behalf of the merchant. Additionally, there's a scheme (such as Visa or Mastercard) that sets the framework and rules for transactions. The message flow between the acquiring bank and the issuing bank can occur in various ways. For example, when a customer swipes their card, taps it for a contactless payment, or enters a PIN, the acquiring bank sends a message to the issuing bank to verify the transaction through the respective scheme. These methods, known as "pin and pay," "tap and pay," and others, are different technologies for transmitting transaction data. The core principle remains the same: ensuring the correct and secure transmission of data and execution of the transaction.

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Understanding interchange -- and more specifically "how can I make money on interchange?" -- has always been one of the more mind-bending concepts in Fintech. For some reason the use of Squigglevision(tm) here made my brain happy. At Upwardli, this is how our card products can make your company more money. If you are building in the gig economy or serving "new to credit" consumers, DM me and I will show you how! #fintech #startups #interchange

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"Bridge the gap between UPI payments and USDT processing with Nexus Wallet! Seamlessly enable crypto transactions in USDT while leveraging the convenience of UPI. Fast, secure, and efficient payment solutions for the modern business. " About Nexus Wallet: Nexus Wallet positions itself as an innovative payment solution for industries like iGaming, Forex, and adult entertainment, which face unique challenges with traditional banking and payment processors. By offering multi-currency support, enhanced security, and privacy features, Nexus Wallet is well-suited to meet the financial needs of these high-risk sectors, ensuring smoother, faster, and more compliant transactions. Key Benefits of UPI Solution USDT Payment Processing Powered by Nexus Wallet: 1.Seamless Integration of UPI & USDT: Nexus Wallet bridges traditional UPI payments with the power of USDT (Tether), offering both fiat and crypto options in one platform. 2.Instant Transactions: Enable real-time payments with UPI and crypto settlements in USDT, providing a smooth, fast user experience for businesses and consumers alike. 3.Low Transaction Costs: Minimize fees typically associated with currency conversions and cross-border payments by utilizing UPI for local transactions and USDT for international payments. 4.Enhanced Security: Blockchain technology provides enhanced protection against fraud and unauthorized transactions, ensuring safe and reliable payments. 5.Global Reach: By enabling USDT payments, businesses can cater to a global audience while still offering UPI for local customers, expanding market opportunities. Nexus Wallet empowers businesses with a modern payment solution, combining UPI’s convenience with USDT’s global reach and stability. Hence stay connected with Skype and LinkedIn:https://lnkd.in/gfvKUyh8 , https://lnkd.in/gbzdNKXP #UPIPayments #USDT #CryptoPayments #NexusWallet #Fintech #SecureTransactions #Blockchain #PaymentSolutions"

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