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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

L&T Finance Limited, an Indian NBFC, has formed a strategic agreement with Amazon Finance India to develop innovative financing solutions aimed at improving affordability for eligible Amazon customers and merchants. The collaboration was announced at RAISE 2024, India's flagship AI-focused event for the banking, financial services, and insurance (BFSI) industry, which was hosted by LTF in Mumbai. This fintech alliance intends to diversify #LTF's product offerings while also improving consumers' access to loans in a simple and effective manner. Sudipta Roy, Managing Director & CEO of LTF, emphasized the strategic significance of the relationship, saying, "We are delighted to collaborate with Amazon, marking a significant milestone in our commitment to provide innovative financial services across India.  

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

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

Interesting times ahead in lending

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

Exciting News in the Payments Industry! Amazon Pay, Adyen, and BillDesk have obtained the Reserve Bank of India's cross-border payment aggregator license, joining the ranks of Cashfree. This pivotal move opens up immense opportunities in India’s thriving market for international remittances and global freelancers. 🌍💸 Here's a quick breakdown: 1. Cashfree: Acquired the license on July 22 2. Amazon Pay & Adyen: Secured the license on July 25 3. BillDesk: Received the license on July 29 With the Economic Survey 2024 projecting India to receive $129 billion in remittances by 2025, these companies are now well-positioned to facilitate international currency transactions for Indian exporters and assist global brands in tapping into the Indian market using popular local payment methods. 📈 All four companies also hold domestic payment aggregator licenses, enabling them to offer comprehensive merchant payment services both within India and internationally, further expanding their service offerings and market reach. 🌐 Company Highlights: 1. BillDesk: One of India’s largest bill processing entities. 2. Amazon Pay: Offers mobile wallet payments, UPI transactions, and bill payments. 3. Adyen: Netherlands-headquartered, processed nearly 300 billion euros in transactions in Q1 2024, with a net revenue of 438 million euros. Kudos to these companies for their continuous innovation and contribution to the digital payments landscape! 👏 #DigitalPayments #Fintech #CrossBorderPayments #RBI #AmazonPay #Adyen #BillDesk #Cashfree #India #GlobalBusiness #Remittances

How Will the New 18% GST on Payment Aggregators Impact India’s Booming UPI Growth?" India’s UPI growth has been nothing short of extraordinary, with an 81% year-on-year increase in transactions in 2023. 🚀 However, the latest news of an 18% GST proposal on payment aggregators for transactions under ₹2,000 has raised concerns across the industry. Key Takeaways: 1. UPI growth continues to be driven by PhonePe, Google Pay, and Paytm, which control 93% of the market. 📊 2. PhonePe alone processed ₹10.28 trillion in transactions last month. 💸 3. The new 18% tax could impact consumers who rely on UPI for small payments and small merchants with tight profit margins. 😬 As a professional deeply involved in the retail and fintech landscape, I’m curious to see how businesses and consumers will adapt. Will this tax stifle India’s digital payment revolution, or will the market innovate to absorb the costs? My Question for You: How do you think this 18% GST will reshape the way we use UPI? Will businesses absorb the cost, or will it trickle down to consumers? 💡 Let me know your thoughts! #UPI #GST #DigitalPayments #FinTech #IndiaGrowth #PhonePe #GooglePay #Paytm

Amazon Pay, Adyen, Bill Desk secure cross-border payment license from RBI. The PA-CB license allows payment companies to offer payment services in the export-import space. With India being a massive market for international remittances and freelancers who work for global companies sitting out of India, there is a large opportunity to be tapped by these cross-border payment aggregators. According to the recently released Economic Survey 2024, India is expected to receive $129 billion worth of remittances by 2025. These businesses can work with Indian exporters helping them accept payments in international currencies. They can also help global brands sell in India and accept popular local payment methods in lieu of goods and services. All five players are also payment aggregator license holders which enables them to offer merchant payment services in the domestic market too. #techytuesday #ITMBusinessSchool #ESMEducation #PS2024

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