Digital payments will account for a 71.7 % share of all transactions in India by 2025, said a report by ACI Worldwide, a provider of payment solutions to enterprises. The rest (28.3%) will be by cash and cheques. The report claimed that in 2020 India was ahead of China with 25.5 bn real-time payments transactions, compared to Beijing’s 15.7 bn. In 2020, instant payments accounted for 15.6 %, electronic payments 22.9 % and cash and cheques 61.4 %, the report said.
Stripe, a digital payments firm, has raised $600 mn funding at $95 bn valuations to become the most valuable private company Silicon Valley has ever produced. Investors in the decade-old company include Allianz SE, AXA SA, Baillie Gifford, Fidelity Management & Research, Sequoia Capital and Ireland’s NTMA. The fresh capital will be invested in European operations, expand Global Payments and Treasury Network. Stripe plans to expand in Japan, China and India.
Google Pay’s next update, likely to be live in a week, will provide users options to decide how their digital payment activity can be used to personalise features within the app. Google will ask users to choose to turn the control on or off when they upgrade to the new version of the pay app. For example, if a user recharges a mobile phone, he/ she will have the choice to choose the activity that can be used to offer him/ her rewards and promotional offers.
PayPal will hire 1,000 engineers in 2021 for its India Development Centers in Bangalore, Chennai and Hyderabad. The employees hired will focus on fields of software, product development, data science, risk analytics and business analytics streams. Guru Bhat, VP Omni Channel & Customer Success, GM – PayPal India said, the use of digital payment in India is on the rise and it has now become essential to invest and nurture tech talent to offer better services.
Facebook, Google, and Infibeam have partnered with Reliance Industry to introduce a digital payment network in India. To create a competition for NPCI, India’s central bank invited companies to set up new umbrella entities, to reduce concentration risks in the space. An Assocham-PWC India study said, there could be a rise to $135.2 bn in digital payments in 2023. The RBI extended the last date for proposal submission for NUE applications to March 31.
PayPal will shut down its India payments business from April 1. It will focus on its cross-border payments business, which means global customers will still be able to pay Indian merchants using PayPal. “From 1 April 2021, we will focus all our attention on enabling more international sales for Indian businesses, and shift focus away from our domestic products in India,” the company said. PayPal was a payments options on MakeMy Trip, BookMyShow, Swiggy.
UPI has recorded 2.3 bn transactions worth Rs 4.2 trillion in Jan 2021. UPI’s transactions value jumped 76.5 %YOY while transaction value jumped 100%. “Took UPI 3 years to cross 1 billion transactions a month. Next billion came in less than a year,” the NITI Aayog CEO tweeted. UPI facilitates inter-bank transactions on a mobile platform, with banking features, seamless transactions and allows to make payments as per. convenience.
Bill Gates has praised India’s policies for digital payments and said his foundation is working to roll out open-source tech modeled on the country’s implementation in other countries. He said those policies have reduced the cost and friction of distributing aid to the poor, especially during the pandemic. India, in the recent past, has built universal identification, world’s largest biometric database, and a system for sending rupees between banks or smartphone app.
Paytm announced that merchants can now receive unlimited payments through Paytm Wallet at 0% fee, along with UPI and Rupay Cards. The move will benefit over 17 mn merchants, claimed Paytm. It will also help merchants to save more with every transaction and transact without any limits. Paytm earlier had announced plans to provide collateral-free loans of up to ₹500,000 at a low-interest rate and unique daily EMI to micro-merchants.