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Amazon Pay India CEO Bats For MDR Regime For UPI Payments Call for MDR on UPI: Amazon Pay India CEO Vikas Bansal urges implementing merchant discount rates (MDR) for UPI transactions for fair value distribution. Equitable System: Bansal emphasizes a fair MDR regime to support smaller players without hindering digital payment adoption. Current MDR Issues: UPI lacks MDR, making it hard to monetize despite infrastructure costs, unlike credit cards which have a 1%-2% MDR. Government Support and Challenges: The government allocated INR 1,441 crore in FY24 for digital payment promotion but faced backlash over proposed UPI MDR charges. UPI Growth: UPI saw a 49% year-on-year transaction increase in June 2024, with NPCI aiming for 10,000 crore monthly transactions. Read the full article here - https://lnkd.in/gZnzyS8F #amazonpayindia #upi #trending #startupnewsfyi

SHOULD UPI TRANSACTIONS INCUR FEES? Stakeholders incurred ₹ 2 for processing a UPI transaction with a value of ₹ 800, RBI estimated in August 2022, apex bank suggested IMPS like charges for UPI payments. A merchant discount rate (MDR) or a transaction fee is currently not charged for almost all UPI payments (excluding payments through PPI or prepaid instruments) as it is seen as one of the major ways to enhance UPI’s coverage and minimise the resistance to technology among people. But the recent comments by Vikas Bansal, CEO of Amazon Pay India, the digital payments arm of e-commerce giant Amazon, that the implementation of a MDR for UPI transactions is necessary for smaller players to receive a fair share of value they add to the payments ecosystem has reignited the debate on whether such services should be charged.

Amazon Pay Secures Final Approval from RBI as Payment Aggregator #AmazonPay #DigitalPayments #Paymentaggregator #RBIApproval #Trending Amazon Pay secures final approval from the Reserve Bank of India (RBI) to operate as a payment aggregator, a major step forward for digital payments in India. This historic decision is a major turning point for the Indian fintech industry as well as for Amazon, opening the door for innovative ideas that will improve security https://lnkd.in/gAQHU7VT

Report: Paytm Gets OK to Invest in Payments Subsidiary Paytm has reportedly received government approval to invest $6 million in its crucial payments subsidiary. That green light came from a government panel overseeing investments tied to China, allowing embattled Paytm to invest $6 million in Paytm Payment Services, Reuters reported Tuesday (July 7), citing sources with knowledge of the matter. This approval, the report says, still needs to be vetted by India’s finance ministry. Assuming that body signs off, it will allow Paytm Payment Services to resume normal business operations. Reuters notes that this is one of the largest remaining parts of Paytm’s business, making up 25% of the company’s consolidated revenue in the financial year ended March 2023. Another Paytm business, Paytm Payments Bank, ceased operations earlier this year after India’s central bank found persistent compliance issues. According to Reuters, the government panel had been withholding approval over concerns about the 9.88% stake Paytm had in the Chinese company Ant Group. India has stepped up scrutiny of China-based businesses since a border skirmish between the two countries in 2020. The report says Paytm has waited two years for this approval, and would have had to shut down its payment services business without it. That unit was barred from taking on new customers in March 2023. Now, the company will be able to apply for a “payment aggregator” license from the Reserve Bank of India (RBI), the country’s central bank and banking regulator. PYMNTS has contacted Paytm for comment but has not yet gotten a reply. A Paytm spokesperson told Reuters the company does not comment on market speculation. Paytm has seen its share of the payments market in India dip in recent months, losing out to firms like Walmart-backed PhonePe and Google Pay in terms of traffic on India’s United Payments International (UPI) network. Companies like Paytm, Indian tech giant Adani, Google and PhonePe are all competing for consumer attention in a country that has been on a “digital payments journey” for the last 15 years, as PYMNTS wrote late last year. Research by PYMNTS Intelligence has shown that digital wallets are now the preferred method of payment for upwards of half of retail purchases in India, with 80% of digital wallet users opting for UPI. #NEWS #fintechnews #finance #financenews #fintech #cryptootc #otc

India stumped on how to cut PhonePe and Google dominance in payments India is facing a quandary successful enforcing long-delayed rules to curb the dominance of PhonePe and Google Pay successful the country’s booming integer UPI payments market. The National Payments Corporation of India (NPCI), a peculiar portion of the cardinal bank, wants to headdress marketplace stock of immoderate subordinate astatine 30% successful the Unified Payments Interface ecosystem. With Paytm, the 3rd starring subordinate connected the UPI charts, fighting for its survival, the NPCI faces a unsocial situation to get PhonePe and Google Pay to little their marketplace share: It doesn’t cognize however to. The NPCI officials judge determination is method obstruction to achieving the extremity and person sought manufacture players successful caller quarters for ideas, 2 sources acquainted with the concern said. The NPCI, which delayed enforcing the rules to 2024, declined to comment. Its dilemma has travel into absorption again aft a parliamentary sheet asked New Delhi past week to enactment home fintech firms to counter the dominance of PhonePe and Google Pay. This came aft the cardinal slope directed Paytm, the third-biggest player, to halt respective operations astatine Paytm Payments Bank. Brokerage steadfast Macquarie connected Tuesday dramatically chopped its 12-month terms people connected Paytm implicit concerns that its lending partners arsenic good arsenic customers whitethorn permission the platform. Macquarie, whose terms people implies a valuation of $2.1 cardinal for Paytm (taking into relationship that Paytm has a $1 cardinal successful currency balance), said the Noida-headquartered steadfast is “fighting for its survival.” Paytm’s further nonaccomplishment of marketplace stock would payment the apical two, manufacture executives cautioned. Citing authoritative data, the parliamentary sheet said PhonePe had 47% and Google Pay 36% marketplace stock during October-November 2023. Industry executives said the lone mode for PhonePe and Google Pay to comply with the 30% headdress is to halt adding caller users. In the meantime, PhonePe continues to walk connected selling to get much share. https://ift.tt/3wMRh7W

Conflict Over UPI Payment Charges: PhonePe, GPay vs. Govt - What's Next? #Googlepay #PhonePe #UPI #UPIPaymentCharges Currently, UPI payments in India remain free of charges. However, there has been recent discussion regarding the possibility of imposing charges on such transactions, which the government has previously rejected. Nevertheless, the issue has resurfaced, with PhonePe and Google Pay potentially benefiting from the restrictions imposed on Paytm Payment Bank. Consequently, these two UPI payment https://lnkd.in/gM6exAuC

The online payment habit has grabbed the attention post-demonetization and spiked post-pandemic, as it's a quick and contactless method. The Unified Payments Interface (UPI) transaction value reached INR 18.28 lakh crore in February 2024 with transactions per day increasing from 39.3 crore in January to 41.7 crore last month. This is despite the curbs put by RBI on Paytm, one of the top 3 platforms in the country for UPI transactions. The Financial technology (fintech) companies last week raised the contentious issue of implementing a merchant discount rate (MDR) for Unified Payment Interface (UPI) transactions during an open house session with Finance Minister Nirmala Sitharaman. MDR is the rate charged to a merchant for payment processing services on various payment instruments. In August 2022, the Reserve Bank of India (RBI) released a discussion paper proposing a tiered structure charge on UPI payments. Following the RBI discussion paper, the finance ministry clarified that there was no proposal to levy charges on UPI transactions. According to a survey conducted by LocalCircles, Only 23% UPI users are willing to bear a transaction fee on payments; 73% say they will stop using UPI if transaction fee is charged. 37% of UPI users surveyed claim that they have experienced a transaction fee being levied on their UPI payment once or more in the last 12 months. Even if a 0.1% transaction fee is imposed, Google Pay, PhonePe and Paytm will eventually end up minting additional income. This could be a big game changer for the industry and would incentivize the existing players to up their game and even help other companies enter the industry. Do let me know your thoughts on this 👇 #upipayments #googlepay #phonepe

𝗡𝗣𝗖𝗜 𝗖𝗼𝗻𝘁𝗲𝗺𝗽𝗹𝗮𝘁𝗲𝘀 𝗔𝗱𝗷𝘂𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝘁𝗼 𝗨𝗣𝗜'𝘀 𝟯𝟬% 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗮𝗽 𝗯𝘆 𝗬𝗲𝗮𝗿-𝗘𝗻𝗱 The NPCI is set to review its decision to limit market share for UPI services to 30% by December 2024, addressing concerns over market dominance by giants like PhonePe and Google Pay. This move aims to foster competition and adjust to market dynamics. Meanwhile, UPI transaction volumes continue to soar, with significant annual growth despite regulatory challenges. #finance #news #UPI #DigitalPayments #MarketShare Source:- https://lnkd.in/dMiXQXTP

The dominance of PhonePe and Google Pay in the UPI market has renewed the debate about charging fees on merchant transactions. While the government has previously denied plans for UPI fees. According to a report by The Economic Times , fintech companies are raising concerns about the lack of revenue in UPI despite customer acquisition costs. They argue that a system like credit cards, with merchant discount rates (MDRs), is needed for long-term sustainability. #upipayments #upi #fintech National Payments Corporation Of India (NPCI) https://lnkd.in/d34v6tce

India’s payments industry has changed significantly over time. A country that remained cash-dependant has quickly moved to digital payments, transforming how consumers carry out their day-to-day transactions. But how have the Indian consumers reacted to this change? Have these shifts in the payments ecosystem impacted the payment behaviour of Indian consumers? Explore these insights drawn from this detailed report on ‘How Urban India Pays’ published by Kearney India in association with Amazon Pay India. You can read the full report here: https://lnkd.in/gtCgS5ZK #AmazonPay #Kearney #DigitalPayments #Cash #Fintech #FinancialServices #TechFini