Spice Money: Industry Monitoring 25 April 2019
- Priyanka Kanodia
- Apr 30, 2019
- 3 min read
Spice Money
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UPI scores 87% transaction success rate this March
Publication- The Economic Times
Edition- Online
Date- 25 April, 2019
Transaction success rates on the Unified Payments Interface (UPI), an instant payment mode between bank accounts, touched around 87% in March compared with around 78% in April last year, data sourced by ET show. The National Payments Corporation of India (NPCI), which manages the UPI railroad, does not make this data public, but ET has sourced it from bankers in the know of the matter. The percentage of transactions that have been declined on the UPI has gone down to around 2% compared with more than 3.5% in the same time period, the data show. This is a pointer to the fact that transaction declines due to technology challenges have decreased due to improvement in connectivity and enhancement of bank server capacity.
At the same time, errors induced by people have reduced to around 10% from more than 18% last year. “It has been a focus for NPCI and all participants to give the customer a high success rate experience on UPI and it has seen considerable enhancement and is in the mid-80s with technical declines at sub 3%,” said Praveena Rai, chief operating officer of NPCI. “This can be attributed to the steps taken by the entire ecosystem such as infrastructure-level enhancements and system fine-tuning, among others.”
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RBI panel for making all public payments digital
Publication- Livemint
Edition- Online
Date- 25 April, 2019
A Reserve Bank of India (RBI) committee may recommend that all government payments to citizens should be made digitally, one person aware of the matter said, requesting anonymity. The move seeks to ensure higher adoption of digital payments among the masses. The five-member panel called Committee on Deepening of Digital Payments led by former Unique Identification Authority of India chairman Nandan Nilekani was formed in January, and is expected to submit its report in May, the person added.
The panel will recommend ways to encourage digitization of payments and enhance financial inclusion. “Certain states have still not completely adopted digital payments. They continue to use cash or cheques. This has to change," the person mentioned above said. Currently, 80% of government payments to citizens are made digitally, including salaries, pensions and social security payments. Bringing the rest under the digital mode will enhance transparency and accountability, he added.
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SoftBank bets $1 billion on battered payments firm Wirecard
Publication- Livemint
Edition- Online
Date- 25 April, 2019
SoftBank Group Corp.’s $1 billion bet on Wirecard AG is a boon for the battered German fintech firm and secures a major European partner for the Japanese tech conglomerate that’s bulking up in mobile payments. For SoftBank, the agreement furthers its transformation from a telecommunications operator into a technology investor under founder Masayoshi Son. For Wirecard, the investment means easier access to markets in Asia and a vote of confidence after months of whipsawing shares following allegations of accounting misdeeds at its Singapore unit.
The deal involves a strategic partnership and a potential 5.6% stake at a price that’s 27% below Wirecard’s peak. The transaction, backed by convertible bonds, could make SoftBank Wirecard’s second-largest shareholder after chief executive officer Markus Braun. The deal is a “clear positive" for Wirecard, Knut Woller, an analyst with Baader Bank AG, said in a note. It will enable the company, based near Munich, to better sell its products in Japan and South Korea, which were still white spots in Wirecard’s regional footprint, he said.
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B2B Payments Startup EnKash Raises $3 Mn in Series A from Mayfield India and Axilor Ventures
Publication- Indian Web 2
Edition- Online
Date- 25 April, 2019
Mumbai-based Nehat Tech Solutions Pvt. Ltd., which owns and operates b2b payments platform EnKash, has raised $3 million in a Series A round from venture capital firms Mayfield India and Axilor Ventures. The startup will use the funds raised in hiring top executives and to expand its technology and sales teams. Vikram Godse, managing partner, Mayfield, will join Enkash’s board of directors, the company said. Over the last three years, Mayfield India has also invested in other fintech companies such as LendingKart, Upwards Fintech, and M1 Exchange.
EnKash was founded in 2016 by Yadvendra Tyagi, who was founding member of CitrusPay, a mobile and digital payments firm acquired by PayU in 2016. EnKash partners with businesses in their financial supply chain and committed to automate & digitise the entire Procure-to-Pay process. The solutions offered by the startup not only reduce operational & manpower costs, but it also provide interesting insights to help businesses to grow faster. EnKash work closely with their customers to serve them for an extra mile.
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