India and Singapore are working to link both the countries’ national payment systems, to enable cross-border payments of funds. The linking of the “PayNow” interface of Singapore, and the “Unified Payments Interface” of India is to be completed by July 2022 and would enable residents to easily transfer small funds to each other even through mobile numbers. In April 2021, Singapore inked a similar pact with Thailand’s PromptPay.
UPI Autopay service, launched by The National Payments Corporation of India is being increasingly adopted, with giants like Netflix and Hotstar signing up for its auto-pay feature. PhonePe and GPay are also in various stages of rollout and testing. Upto 100 other merchants across various businesses are also in different stages of rollout. Autopay will allow users to make recurring transactions below ₹5000 with much more ease, through UPI apps.
Source: India Today
Amazon Pay has announced that it now has over five crore customers using its payment platform in India. To celebrate this, Amazon Pay is offering rewards to its users across Sept. Over 75% of its customers were using Amazon Pay UPI in Tier 2 and Tier 3 cities, the company claimed, highlighting the ever-growing reach of UPI and digital money. Amazon Pay can now be used in recharging DTH, phone, etc. besides in regular payments.
Apple, according to a media report, is now accepting other forms of payments such as Rupay and UPI in India. The move by Apple enables customers to transfer funds to their Apple ID using domestic systems of payment. As Apple’s consumer base in India expands, the decision can lead to more profits for the company in the country. Consumer spending on the App Store rose by 22.1% in the last quarter.
Digital payment app PhonePe announced partnering up with e-commerce giant Flipkart to enable a pay-on-delivery service. Customers who opt for the COD option will be able to pay digitally through any UPI app. PhonePe’s dynamic QR code solution will enable customers to do so. In December 2020, Flipkart announced a spin-off with PhonePe. The payments app had raised $700 mn funding valuing it at $5.5bn. This project aims to reduce contact and increase digitisation of the country.
The RBI has warned that letting the big tech firms enter the financial services could lead to regulators facing difficulties in maintaining adequate stability and governance of the ecosystem. RBI suggests setting down an international standard based on the coordination of rules to supervise the big techs. It also advises the use of an entity-based prudential regulation approach. The NPCI had introduced a market share-capping rule for third-party apps on UPI.
As India is recovering from the second wave of Covid-19, UPI payments hit an all-time high in June. Almost 2.8 bn transactions amounting to Rs 5,47,373 cr were recorded during the month. It was a rise of 10.6% jump in volume and 11.56% in value compared to May. NPCI’s other digital payment channels also recorded a record monthly growth in June. BBPS grew 16% to 45.47 mn transactions, Fastag at 35.34% to 157 mn, IMPS grew to 303.7 mn.
Amazon Pay India has received incentives of Rs.225 cr from the parent. This makes it a total infusion of Rs.450 cr this year to expand its UPI-based digital payment app in India, which offers faster refunds and incentives to its users. It also partners with third-party apps like Swiggy to provide a UPI tool. Amazon pay offers co-branded credit cards and buy-now-pay-later options to Indian buyers. Amazon has, so far, invested a total of Rs.2,055 cr in its Indian payment app.
PhonePe is set to enter the stockbroking business. The fintech startup has applied for the license from the SEBI and is waiting for the mandatory approvals. PhonePe aims to tap its existing user base to foray into the broking business by encouraging them to invest a part of the unutilised funds in wallets in stocks. PhonePe, in March, processed 1.19 bn UPI transactions to the tune of Rs 2.31 lakh cr to grab 44% of the UPI market share.