LinkedIn and 3rd parties use essential and non-essential cookies to provide, secure, analyze and improve our Services, and to show you relevant ads (including professional and job ads) on and off LinkedIn. Learn more in our Cookie Policy.
Select Accept to consent or Reject to decline non-essential cookies for this use. You can update your choices at any time in your settings.
I hope all the bankers on this platform see this video. I am sure many wld not be knowing the margins, scale of operations & how the American public are using Visa & Master cards !!! The numbers in this video are just from US. Imagine what wld be the global operations scale. A perfect example of why monopoly is never good & What a monopoly can do. The Senator’s questions are spot on, and the representatives (surely they have the answers) but conveniently choose not to respond, to avoid embarrassment. This is precisely the reason why cards like Rupay in India must be encouraged so that the profits go to local operators / consumers / money staying within the economy than let these Corporations make such obscene profits. Apparently from the Q it appears that these Coprporations are against competition blocking new players entry, which is nothing short of a crime ! This is just a clipping & wld like to see the full arguments to understand more on the subject. Very interesting that in US these kind of Govt Panels question bringing in transparency that gives the larger public (not just limited to Americans but the global audience at large) a peek into such matters so that others cld also understand, learn & act as necessary. In my opinion, those countries (India already has) who have the financial & regulatory muscle Shld set up their own domestic network & deploy their national credit / debit cards to save their public & economies from being fleeced by such multinational players. Having seen this, I atleast hope we gradually shift to Rupay Cards keeping the Visa / Master / Diner / Amex for international use ONLY. Like India launched UPI ( Unified Payment Gateway Interface) that brought in a huge digitalization in the economy whereby usage of such expensive cards got reduced, with its expansion across 32 other countries who have signed up, these kind of measures wld further reduce the monopolisation. Indian banks to go full throttle on promoting Rupay replacing / reducing international cards for our own benefit. Let’s wake up to realities & take corrective action atleast now !
I mean, what's your profit margin, Miss Kirkpatrick? It's circa 50% Mr. Sheedy. Slightly higher, higher than 50% profit margin, slightly higher than MasterCard, Yes, yeah, that's incredible. 50% profit margin. I mean, that's absolutely unbelievable. What's the answer to the Walmart question, by the way, that Senator Welch posed to you? What? What, what's Walmarts interchange fee that you negotiate with them? I don't have it with me today. You don't have any idea whatsoever. Is it? Is it higher or lower than 2 1/2 percent? Walmart negotiates their rates based on the business that they do with us. They meaning they're they're big, they're really big. There's organics. So they get a better deal than Mr. Callahan or most small businesses in Missouri. Is that, is that what you're telling? Yes, Senator, we, we have volume discounts that we offer to some merchants. I suspect Walmart is one of them. And you know, I don't believe that it's commercially unreasonable to get an arrangement where in exchange for more volume merchant can qualify for lower rates. Well, I'm sure it's not commercially unreasonable for Walmart. Certainly it's in their financial interest and in yours, but I doubt it's in Mr. Callahan's financial interest. And my question to you, Mr. Callahan, is when you've got Walmart and other major competitors getting charged much less than you are. Why in the world would you stick with these guys? I mean, what? Why is it that small businesses continue to use Visa and MasterCard when they're getting, you're getting charged so much more? It's in my, in my opinion, it's a matter of convenience for the customer and customers matter to our business. Maybe is it because that Visa, MasterCard or effectively monopolies that control 80% of the market, certainly part of 80% of the market. I'm just having a hard time understanding Mr. Sheedy and Mr. Patrick, you have a business model you're making over 50% profit margin. You are able to give the shaft to small businesses. Estimated cost to Missouri businesses from these fees is 1 1/2 billion dollars. That's with AB billion dollars a year, a year. Why aren't all of these businesses running away from this model? Because they don't have a choice, because you control so much of the market. This is classic, classic monopolistic behavior. And yet your testimony here today is you don't want any competition. You have 80% of the market, you don't want anymore competition. I just, I'm having a hard time finding that position. Defensible, let alone sympathetic. I mean it, it's unbelievable the amount of money that you're making. It's unbelievable what you're charging small businesses and consumers and yet your testimony is places we can't possibly have any competition. I mean, let's talk about what you're doing to consumers who hold your cards. Last year, as I understand it, there were 726 million Visa and MasterCard issued MasterCard credit cards issued in United States. That's about two for every one person in the United States of America to either, you know, how much debt is owed. Your networks, Mr. Patrick. We're not the bank, so we don't have visibility into that information. We also don't generate revenue from interchange. OHK. OK, you have no idea, Mr. Shady. Do do you know? I don't know. Well, let me let me help you out. Let's have a look. It's $1.17 trillion. $1.17 trillion is what consumers now owe on your credit card networks. So either, you know, with the average interest rate is on your networks, there's Kirkpatric. Ohh, Senator, we're not the bank. We don't set the interchange. We don't set the rate from it. And you know, do you, do you know what it is? This is your business model. We don't we don't collect revenue from do you? Do you know? I don't, Senator. I mean, do either of you read the newspaper? Forbes magazine just estimated last week that the average average credit card APR in your networks is 28.75%. Average 29%, Let's call it 29%. It's nearly doubled in the last four years. That is astounding, absolutely astounding. And you just testified a second ago that you've got more than 50% profit margin and yet your testimony here today is you can't possibly survive if there's any competition. How can that be true? How can that be true? You've got debt like we've never seen before in American history. Your profit margins are as high or higher than they've ever been. You have 80% of the relevant market in the credit card interchange fees that we're talking about. And yet you you couldn't survive if there's any competition. What am I? What am I missing missing?
"It is in India that the most exciting innovation has taken place. Unified Payments Interface (#UPI) started operating in 2016. By March 2023, it was processing transactions valued at some 139trn rupees ($1.7trn, or 50% of GDP) over the previous 12 months. UPI now accounts for more than three-quarters of India's digital retail payments".
India joined the Better Than Cash Alliance in 2015. Since then, many have been the joint efforts to support the Government of India's Digital India vision. Key pillars of our collaboration include advancing women and merchant digitization, co-organizing global learning exchanges with governments from Asia, Africa, and Latin America, and bringing in new members on board: India's Self-Employment Women's Association (SEWA Bharat) and the FICCI of Commerce and Industry.
Now, UPI is going global. It is linked to payment systems in #SriLanka, the #UnitedArabEmirates, #Singapore, #Mauritius, and #Bhutan. In February, the international arm of the National Payments Corporation Of India (NPCI), a state-backed nonprofit that manages the platform, announced its expansion into #France. The Times of India reports that #NPCI has signed agreements to allow QR-based #UPI payments in #Malaysia, #Thailand, the #Philippines, #Vietnam, #Cambodia, #SouthKorea, #Japan, #Taiwan, and #HongKong.
The Reserve Bank of India (#RBI) has taken a transformative step by easing cross-border #payment processes, a move that could mark a pivotal moment for India’s #global financial landscape. Much like how UPI revolutionized #domestic payments by offering unparalleled speed and #convenience, these new regulations aim to simplify #international transactions. This shift not only holds immense potential for the country but also paves the way for #India to emerge as a leader in #crossborder financial solutions.
At the heart of these #regulations is the focus on simplification. By harmonizing rules and protocols, the RBI seeks to create a system that mirrors #UPI’s user-friendly nature, making cross-border payments fast, convenient, and accessible to a broader range of users. This ease of #transaction, paired with the regulatory clarity, could boost confidence among #businesses and individuals alike, encouraging greater adoption of #digital solutions for international payments.
The role of #fintech companies is critical in this transformation. The new framework opens doors for fintech players to act as cross-border payment aggregators, allowing them to #innovate and compete in a global #marketplace. These companies are now empowered to develop cutting-edge solutions, from low-cost remittances to seamless international #business payments, which could reshape the global #financial#ecosystem much like UPI did for domestic payments.
Another exciting prospect is the internationalization of UPI. The RBI is exploring ways to expand UPI beyond Indian borders, potentially enabling #consumers and businesses to make cross-border payments through a familiar interface. If executed successfully, this could elevate UPI from a national #success to a global standard in digital payments, bridging the gap between domestic and international transactions in an effortless manner.
Despite the promising outlook, #challenges remain. Regulatory complexities across different jurisdictions could slow down the process of creating a truly unified cross-border payment #system. Furthermore, ensuring robust #cybersecurity measures will be paramount to mitigate fraud risks and build trust in this evolving #ecosystem. However, with a clear regulatory roadmap and a strong push from fintech innovators, #India is poised to achieve another #groundbreaking moment in the #world of payments.
"The RBI’s move to ease cross-border payment processes signals a new era of financial connectivity for India. Just as UPI redefined how we transact domestically, these new regulations provide the foundation for fintechs to revolutionize international payments. The potential for growth is immense, but success will depend on the ability to harmonize regulations globally and ensure cybersecurity. As fintech leaders, we are excited about the opportunities to innovate and offer faster, cheaper, and more secure cross-border payment solutions."
Sachin Salunkhe
Chairman, Blackhat Syndicus.
A concerted effort from the government, financial institutions, and the general public is essential to create a robust digital infrastructure, educate citizens about digital payment methods, and instill confidence in the security of online transactions.
#DigitalIndia#CashlessIndiaDigital India ProgrammeDigital India Corporation
As nations like France and Singapore look to enhance their digital payments framework, India's digital payment ecosystem emerges as a stellar model.
Versatile and adaptable, India's digital payment solutions cater to diverse economic landscapes, from urban hubs to rural areas, these methods bridge financial gaps, ensuring inclusivity for the unbanked.
Discover how India's success story is echoing across borders in The Star: https://buff.ly/48B5Z4A#digitalpayments#financialinclusion
𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗘𝗰𝗼𝗻𝗼𝗺𝘆: 𝗧𝗮𝗰𝗸𝗹𝗶𝗻𝗴 𝗧𝗮𝘅 𝗘𝘃𝗮𝘀𝗶𝗼𝗻
As digital payments continue to surge, so does the scrutiny of merchants operating in this space. The Directorate General of Goods and Service Tax Intelligence (DGGI) is ramping up efforts to ensure compliance and crack down on tax evasion.
- In particular, the focus is on merchants who exploit the system by registering as sellers of low-GST items like laundry services, only to later switch to high-GST activities such as betting or gaming services. This deceptive practice not only undermines the integrity of our tax system but also creates unfair competition.
- Authorities are now collaborating closely with startups, payment aggregators, and gateways to monitor and identify such practices. The Reserve Bank of India (RBI) has also joined the effort, urging payment platforms to tighten their vigilance.
In a world where digital transactions are becoming the norm, ensuring transparency and fairness is more important than ever. Kudos to the DGGI and RBI for taking decisive steps to uphold the integrity of our financial ecosystem.
#TaxEvasion#DigitalPayments#GST#Compliance#FinTech#Transparency
This article by Giesecke+Devrient explores India's rapid shift towards digital payments, driven by initiatives like UPI and supported by government regulations. Despite cash's continued relevance, digital transactions, especially via QR codes, are revolutionizing India's financial landscape, enhancing convenience and security. Tap below for more.
#ThisWeekInConsulting#TWIC#DigitalPayments#GieseckeDevrient
A Deep Dive into the latest advancements bolstering India’s Fintech Sector
Amidst the waning funding constraints, heightened global interest rates, government initiatives, and active participation by regulators, 2024 ushers a new world of opportunities for India’s Fintech Sector.
In this trajectory, followings are the landslide change-makers:
1. 45-Day MSME Payment Rule
WEF April 1, 2024 with the hold on Visa/MC credit cards for use in B2B payments, the 45-day MSME payment rule addresses delayed payments hurting businesses. Still the concerns are regarding clarity for large companies amidst reports of order-cancellations due to non-compliance fears.
2. PA-CB Regulations
Previously FinTech entities required due diligence only from AD Banks but with the introductions of the regulations by the RBI on 31st Oct, 2023, they now will face scrutiny directly from RBI.
As per the new regulations, the non-bank PA-CB applying for RBI authorization will need a minimum net worth of INR 15 crore, certified by a statutory auditor, and shall attain a net worth of INR 25 crore by the end of 3rd FY of authorization.
3. Global Standing and Interest Rates
2023 witnessed India's Fintech market surge past $80 billion and is anticipated to soar to a staggering $1 trillion by 2030. Propelled by the rapid embrace of digital finance services India has maintained its funding position as the fourth highest globally and second highest in the Asia-Pacific region. In the first quarter of 2024, the fintech sector funding alone was up by 59% compared to last quarter.
The 2024 Vision
The regulatory and interest rate landscape have the most sway over India’s fintech sector and there is a clear push towards better collaboration among fintech firms, financial institutions, and regulatory bodies for monitoring operations & business models for better risk management.
Given its role in promoting accessibility to formal finance across the nation and globally, the prospects are purely positive about the sector’s growth.
.
.
.
#fintech#finance#globalfinance#technology
An article authored by Srishty Anand, a student at Amity University, Noida, titled "Digital Payments Regulatory Landscape in India" has been published in the Indian Journal of Legal Research and Review (IJLRR), Volume II, Issue II.
delves into the transformative impact of digital payment platforms such as UPI, mobile wallets, and online banking on India's financial landscape, steering it towards a cashless economy.
The research meticulously analyzes the intricate legal frameworks governing digital payments in India, addressing crucial dimensions including regulatory compliance, data privacy, consumer protection, anti-money laundering measures, and taxation. By examining existing laws and regulations, along with emerging issues due to fintech innovations, the study identifies limitations, challenges, and potential threats associated with the increasing digitization of payments.
With a focus on modernizing outdated regulations, enhancing consumer safeguards, and balancing innovation with risk management, the research aims to provide insightful recommendations for fostering safe, inclusive, and innovative digital payment ecosystems aligned with global best practices. It underscores the importance of bridging regulatory gaps to strengthen India's rapidly growing digital payment system.
Please visit ijlrr.com to access the publication.
#DigitalPayments#RegulatoryLandscape#LegalResearch#ConsumerProtection#FinancialInclusion#cpf
--
6dGood insight