Spice Money: Industry Monitoring 04 April 2019
- Priyanka Kanodia
- Apr 4, 2019
- 6 min read
Spice Money
Competitors
Industry News
How block chain helps move money internationally like you send emails
Publication- Livemint
Edition- Online
Date- 04 April, 2019
We want to move money around the world like information moves today. We should be able to send money the way we are able to send emails and WhatsApp messages. When I say money, I mean legal money which is fully authenticated, regulated and controlled," Navin Gupta, managing director of South Asia and the MENA (Middle East and North Africa) region for Ripple, a provider of leading enterprise blockchain solutions for payments, said at the Mint Digital Innovation Summit held in Bengaluru on 15 March. He was speaking on “Understanding Blockchain’s Impact on Payments".
It is estimated that today the world sends more than $155 trillion across borders. Yet, the underlying infrastructure is dated and flawed. This is where Ripple with its blockchain technology connects banks, payment providers and digital asset exchanges to provide a seamless experience to send money globally. More than 200 institutions are using the blockchain technology built by Ripple to transact daily, Gupta claims. “In India, banks like Axis and Yes Bank are using our technology to process their customers’ payments anywhere in the world. We live in 40 corridors and 6 continents, besides having offices in 8 countries," said Gupta.
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Google Pay leads in UPI transactions by value
Publication- The Times of India
Edition- Online
Date- 04 April, 2019
Google Pay has taken the pole position on the Unified Payments Interface (UPI) platform in terms of value of transactions by a margin of around 25%. The development comes even as rival Paytm continues to be a leader in terms of transaction volumes, closely followed by PhonePe and Google Pay. Google Pay clocked payments worth Rs 43,000-Rs 45,000 crore in March, ending the financial year on a high, according to two industry executives tracking the space. Both PhonePe and Paytm are said to have done transactions worth Rs 31,000- 32,000 crore each, with PhonePe being marginally ahead of Paytm.
In terms of volumes, Paytm continues to be ahead of PhonePe and Google Pay, but the gap is quite narrow. Google Pay, PhonePe and Paytm, which now process 80-90% of UPI transactions, clocked 221-225 million transactions each in March out of the total 800 million. PhonePe, Google Pay and Paytm did not offer a comment for the story. “Google has taken a strong lead of 20-25% over PhonePe and Paytm as they continue to heavily incentivise P2P (peer-to-peer) payments here. Paytm, due to its e-wallet business, still sees relatively smaller value of transactions among its users. With merchant acceptance growing further on UPI, the average transaction size and overall volumes will be an interesting mix that might see a change,” a person aware of the UPI transaction metrics said. UPI sees at least 80% of its transactions being P2P. The total value of transactions on UPI was Rs 1.3 lakh crore in March 2019. During the same period in 2018, UPI saw 178 million transactions worth over Rs 24,000 crore. UPI does not give a company specific break-up of transaction volumes or the value of it, yet.
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Fino Payments Bank looks to double merchant network base
Publication- The New Indian Express
Edition- Online
Date- 04 April, 2019
Fino Payments Bank, which had suffered setbacks last year in terms of adding new customers due to ban on Aadhaar as well as Reserve Bank of India’s fiat, is now looking forward to expand its footprint by doubling its merchant network base and also keep intact its transaction fee-based business model. The bank, which has around 95,000 merchants now, is adding 5,000 merchants every month, thereby aiming at around 2 lakh merchant points by the end of 2020, said Rishi Gupta, MD &CEO. While it is still awaiting a clear circular from the regulator on Aadhaar to restart E-KYC for onboarding customers, the bank has complied with regulations on not exceeding Rs 1 lakh in deposit in customer accounts by tying up with Suryoday Bank.
“NIM (net interest margin) for us is not that high. There is no real reason for me to push for more deposit acquisition. Our focus is on transaction, payment ecosystem. There is no inherent advantage we will get by building deposits,” Gupta said.
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Now Comes Payment Industry 2.0 : We Need More Than A Payment Gateway To Scale And Sustain
Publication- Express Computer
Edition- Online
Date- 04 April, 2019
The digital payments solutions are undergoing substantial changes with the integration of all payment application methods and use of technologies such as Artificial Intelligence (AI) and Machine Learning (ML). The possible benefits of automation in payments are creating new products and service offerings, empowering customers with digital technologies and boosting profitability. Companies coming in FinTech domain are startups established with the purpose of disrupting essential financial systems and corporations.
Banks and fintech companies are using new technologies for easy API integrations, speedy transactions, encouraging digital payments and use of data are some of the upcoming trends that will push forward the adoption and acceptance of digital payments. The need for the payment industry is Payment as a Service – (PYaaS). Confidential computing which can be treated as an add-on to Blockchain helps banks and fintech to add more security on the transactions. Quantum Computing and other hardware innovation (AI chips or AI on chips) will take this to the next level. Currently a large compute power is required to process transactions and run the AI algorithms over massive amount of data which burns down lot of cost in the infrastructure (irrespective of physical or virtual).
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NPCI cuts UPI usage fees for small transactions from 25 paise to 10 paise
Publication- Medianama
Edition- Online
Date- 04 April, 2019
The National Payments Corporation of India (NPCI), which runs the Unified Payments Interface (UPI) network, has slashed usage fees for small transactions to encourage banks and payment service providers (PSPs) to adopt the system, the Economic Times reported. The report said NPCI has reduced:
Charges on transactions up to Rs 1,000 from 25 paise to 10 paise while keeping the charge for transactions above Rs 1,000 unchanged at 50 paise.
Incentive payments to a flat 10 paise per transaction. Earlier, these were charged at the same rate as normal transactions. Incentive payments are charges banks or PSPs pay NPCI when they credit the user’s bank account with cashbacks.
Merchant transactions to flat 10 paise plus a 0.04% levy that will be split between the acquiring bank and the issuing bank. Merchant transactions up to Rs 1,000 earlier attracted at 25 paise fee, while those above Rs 1,000 were charged at 50 paise.
Government withdrew UPI incentives last year
In a surprising development last July, the central government withdrew several incentives for merchants and customers using UPI. It completely dropped an initiative under which merchants got up to Rs 1,000 for accepting payments using UPI, and replaced another scheme that gave customers cashbacks of up to Rs 500 with one that gave rewards of up to Rs 150, only to users of its BHIM payments app.
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Paytm Payments Bank aims to open 10 crore savings account by March: Satish Gupta
Publication- Money Control
Edition- Online
Date- 04 April, 2019
Paytm Payments Bank launched its second branch on Wednesday, almost two years after setting up its first branch in May 2017. With over 4.4 crore savings account and Rs 2,000 crore in overall customer deposits, the company claims to be having 35-40 percent of the market share in the payments bank space. In an interaction with Moneycontrol, Satish Kumar Gupta, chief executive officer talks about the vision of the payments bank and the company's recent issues with the Reserve Bank of India.
Q. How many savings account are you targeting by March 2020?
Satish Gupta: We have a target of taking this 4.4 crore to 10 crore by March 2020. We also have 26 crore wallet customers. That will also go to somewhere around 40 crore.
Q. Out of 4.4 crore saving accounts, how many are zero balance accounts?
Satish Gupta: There may be a good number of them but it doesn’t actually mean that they are the zero balance accounts. They connected to the money and used the money. So most of these accounts are like that. So we cannot call them really zero balance accounts. There are good number of transactions happening on those accounts although balance may not be much. We believe more in transactions than in balance size.
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Google Pay leads in UPI transactions by value
Publication- Gadgets Now
Edition- Online
Date- 04 April, 2019
Google Pay has taken the pole position on the Unified Payments Interface ( ) platform in terms of value of transactions by a margin of around 25%. The development comes even as rival continues to be a leader in terms of transaction volumes, closely followed by and Google Pay. Google Pay clocked payments worth Rs 43,000-Rs 45,000 crore in March, ending the financial year on a high, according to two industry executives tracking the space. Both PhonePe and Paytm are said to have done transactions worth Rs 31,000-32,000 crore each, with PhonePe being marginally ahead of Paytm. In terms of volumes, Paytm continues to be ahead of PhonePe and Google Pay, but the gap is quite narrow.
Google Pay, PhonePe and Paytm, which now process 80- 90% of UPI transactions, clocked 221-225 million transactions each in March out of the total 800 million. PhonePe, Google Pay and Paytm did not offer a comment for the story. “Google has taken a strong lead of 20-25% G incentivise P2P (peer-to-peer) payments here. Paytm, due to its e-wallet business, still sees relatively smaller value of transactions among its users. With merchant acceptance growing further on UPI, the average transaction size and overall volumes will be an interesting mix that might see a change,” a person aware of the UPI transaction metrics said.
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