Spice Money: Industry Monitoring 03 January 2019
- Priyanka Kanodia
- Jan 3, 2019
- 3 min read
Spice Money
Competitors
You’ll soon get to make card payments through mwallets
Publication- The Economic Times
Edition- Online
Mobile wallet companies in India have received briefing from major card networks on the integration process for interoperability, according to people aware of the development, moving a step closer to offering customers the facility of card payment through mobile wallets. The persons cited earlier told ET that Visa, MasterCard and RuPay had held meetings with the prepaid payment instruments (PPI) licence holders in the middle of December on the integration process and the technological and other requirements for issue of interoperable payment instruments. Implementation of ‘interoperability’ requires technical compatibility to enable a payment system to be used in conjunction with other payment systems. While the timeline for its rollout is yet to be decided, industry executives have said that it will take at least six months.
Mobile wallets companies, which till recently were allowed to issue prepaid cards only in partnership with banks, will be able to issue their own branded prepaid cards after interoperability is enabled on their systems. Consumers will be able to use these cards at merchant outlets and for online shopping. They will not be able to use them to withdraw cash or for international transactions, though. “We have already had preliminary discussions with the card schemes on how to take the integration forward, but these are still early days. We are yet to decide on the partner,” said Abhishek Sinha, founder of Delhi-based wallet company Eko India Financial Services, which offers domestic remittance services.
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Paytm Payments Bank resumes KYC for bank, wallet customers
Publication- BGR
Edition- Online
Date- 03 January, 2019
Paytm Payments Bank Ltd (PPBL) has said it has resumed Know Your Customer (KYC) process as well as onboarding new customers after receiving a formal nod from the Reserve Bank of India (RBI). PPBL in June last year was asked to stop adding new customers after an audit by the RBI that made some observations about the bank’s KYC processes.
In July last year, its then Chief Executive Officer (CEO) Renu Satti resigned from her position and took on the mandate of heading Paytm’s retail initiative. The bank had roped in veteran banker Satish Gupta as its managing director and CEO in October.
Paytm commenced its payments bank operations in 2017. Paytm founder Vijay Shekhar Sharma holds the majority share in PPBL, with the rest being held by Alibaba-backed One97 Communications. However, the Chinese entity does not have a direct shareholding in the payments bank.
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Industry News
PayPal reports twelve-fold jump in revenue in India
Publication- ET Tech
Edition- Online
Date- 03 January, 2019
United States-headquartered digital payments company PayPal has reported an over twelve-fold jump in revenue generated by its Indian payments subsidiary to Rs 260 crore in financial year 2018 from Rs 21 crore in the previous year, as per data sourced from the corporate affairs ministry. The surge can be attributed to the opening of the domestic payments business by the company which had engaged only in cross-border transactions until November 2017.Net profit grew at a relatively modest pace, up to Rs 2 crore from Rs 1.4 crore during this period.
PayPal declined to comment on the filings, but a person privy to the information told ET on condition of anonymity that with revenues going up the company had increased investments in India across heads including technology augmentation, expansion of headcount in India and a new office in Mumbai.
PayU India, which runs Citrus Pay platform, reported consolidated revenue of Rs 670 crore for 2018. The Naspers-owned entity is expanding its services to lending as well through its product LazyPay and hopes to see an increase in revenue in the coming years.
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India's Love Affair With UPI Grows, As 62 Crore Payments & Over 1 Lakh Crore Spent In
Publication- India Times
Edition- Online
Date- 03 January, 2019
The Indian government under Prime Minister Narendra Modi has been hell bent on pushing India towards a digital payments future. To that end, demonetization was, by most accounts, an unmitigated disaster. The Unified Payments Interface has brought online transactions to a huge number of people previously unable to access them. It provides each person with a unique identification number, allowing safe and authenticated transactions. Clearly it's been working too, based on statistics from the latest National Payments Corporation of India (NPCI) report According to the NPCI, the number of monthly UPI payments have steadily grown since it was introduced in August 2016. However, the largest jumps seem to have occurred in the second half of 2018. In just December there were approximately 620.17 million transactions worth a total of Rs 1, 02,595 crore, the highest number ever since the technology's inception.
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