BFSI - NewNerve

$30 Billion Relief for Merchants?Understanding the Significance of the Settlement in addressing merchant fee concerns

28Mar

By Ankit2 Comments

Banking, Global BFSI, Payments

$30 Billion Relief for Merchants?Understanding the Significance of the Settlement in addressing merchant fee concerns

In a groundbreaking development, global payment giants Visa and Mastercard have agreed to a historic $30 billion settlement that is set to have a significant impact on merchant fees. The settlement, announced recently, aims to address long-standing concerns raised by merchants regarding the high transaction costs imposed by these payment networks. This article explores the key provisions of the settlement and examines how businesses can harness this newfound power to foster a more competitive landscape and deliver better value to consumers. Swipe Fee Reduction for Merchants: One of the significant changes resulting from the settlement is the reduction in swipe fees. Visa and Mastercard have agreed to lower the fees by four basis points, providing immediate relief to businesses. This redu...

Visa and Mastercard Agree on Landmark Settlement with U.S. Merchants Lowering Fees – Here’s What You Need to Know

28Mar

By AnkitNo Comments

Global BFSI, BFSI, Payments

Visa and Mastercard Agree on Landmark Settlement with U.S. Merchants Lowering Fees – Here’s What You Need to Know

Introduction In a groundbreaking development, Visa and Mastercard have recently reached a landmark settlement with U.S. merchants, fundamentally altering the landscape of credit card transactions. After nearly two decades of legal wrangling, this agreement promises significant benefits for businesses, particularly small enterprises. Let’s delve into the details of this historic settlement and understand its implications. The Long-Awaited Resolution For years, merchants across the United States have grappled with interchange fees – the charges imposed by credit card companies for processing transactions. These fees, often perceived as exorbitant, have been a point of contention between merchants and credit card giants. Finally, the settlement aims to address these conce...

Trust Fintech IPO Subscribed Over 11 Times on Day 2; GMP Surges, Last Day to Apply

28Mar

By AnkitNo Comments

Payments, Fintech

Trust Fintech IPO Subscribed Over 11 Times on Day 2; GMP Surges, Last Day to Apply

In a remarkable show of investor interest, the Trust Fintech IPO, a small and medium-sized enterprise (SME) offering, witnessed a subscription rate of over 11 times on the second day of the subscription period. With today marking the last day to apply, the IPO has garnered significant attention from the investing community. Impressive Retail Investor Participation Retail investors displayed tremendous enthusiasm for the Trust Fintech IPO, as the portion reserved for them was subscribed a remarkable 18.44 times on the first day of the subscription period. This strong participation signifies the confidence retail investors have in Trust Fintech's growth potential. Subscription Details and Allocation Breakdown The subscription data reveals a robust response from different investor categor...

Fintech’s Global Payment Domination Race, 2024

27Mar

By Ankit1 Comment

Fintech, Payments

Fintech’s Global Payment Domination Race, 2024

In the ever-evolving landscape of financial technology (fintech), global payments have emerged as a lucrative market. Startups and established players alike are vying for a slice of this pie, driven by the increasing demand for cross-border transactions. Let’s delve into how fintech companies are positioning themselves to tap into this opportunity. The Rush for PA-CB Licenses The Players: Domestic payment aggregators like Razorpay and Cashfree are leading the charge. Newer entrants such as PayGlocal and Skydo are also in the race. The Licence: To offer international payment services, both existing players and newcomers must apply for a payment aggregator-cross border (PA-CB) licence from the Reserve Bank of India (RBI). The deadline for applications is April 30. The Opportunity...

Safeguard Your Digital Transactions using 8 Simple Techniques

27Mar

By AnkitNo Comments

Banking, Fintech, Payments

Safeguard Your Digital Transactions using 8 Simple Techniques

Safer Ways to Conduct Digital Transactions In an increasingly digital world, secure online transactions are essential to protect your financial information and personal data. Whether you’re shopping online, paying bills, or transferring money, following best practices ensures a safer experience. Here are some crucial steps to enhance the security of your digital transactions: 1. Use Unique Passwords Why? A strong password is your first line of defense against unauthorized access. What to Do: Create unique passwords for each online account. Avoid using easily guessable information like birthdays or common words. Combine uppercase and lowercase letters, numbers, and special characters. Consider using a reliable password manager to securely store your passwords. ...

International Transactions on Credit Card: 2 simple ways to Disable it

27Mar

By Ankit2 Comments

Banking, Payments

International Transactions on Credit Card: 2 simple ways to Disable it

In today’s interconnected world, credit cards and digital transactions have become an essential part of our financial lives. They offer convenience, security, and flexibility. However, with the increasing prevalence of online transactions and global travel, it’s crucial to understand the risks associated with international credit card usage. In this article, we’ll delve into why international transactions pose a higher risk and explore steps to safeguard your finances by disabling them. Why Is the Risk Higher on International Transactions? Lack of 2-Factor Authentication (2FA): In India, domestic credit card transactions require 2-factor authentication (2FA). This means that both a PIN (for point-of-sale transactions) and an OTP (for online transactions) are necessary for adde...

Bajaj Housing Finance Initiates IPO Preparation, Aims for $9-10 Billion Valuation

27Mar

By AnkitNo Comments

NBFC, Wealthtech

Bajaj Housing Finance Initiates IPO Preparation, Aims for $9-10 Billion Valuation

Bajaj Housing Finance Gears Up for IPO, Targets Multi-Billion Dollar Valuation Bajaj Housing Finance, a subsidiary of Bajaj Finance Ltd, has commenced preparations for an initial public offering (IPO) with the goal of achieving a valuation between $9 billion and $10 billion. The move comes as a result of regulatory requirements imposed by the Reserve Bank of India (RBI) on "upper layer" non-banking financial companies (NBFCs) to list within three years of identification. Let's delve into the details of this upcoming IPO. Preparations for IPO: Bajaj Housing Finance has reportedly entered into preliminary discussions with various investment banks regarding the potential IPO. The company aims to raise approximately $900 million to $1 billion through the IPO, considering the minimum dilutio...

Axis Bank Credit Card Fraud: 5 Actions to Take Immediately

27Mar

By Ankit1 Comment

Payments, Banking

Axis Bank Credit Card Fraud: 5 Actions to Take Immediately

The recent Axis Bank credit card fraud fiasco has left many customers in India concerned and vulnerable to fraudulent international transactions. It is crucial for affected individuals to take immediate action to safeguard their financial interests and protect themselves from further harm. This article aims to provide an overview of the situation and offer guidance on the necessary steps to mitigate the risks associated with this incident. Understanding the Axis Bank Credit Card Fraud: Axis Bank, one of India's leading financial institutions, recently faced a significant security breach resulting in fraudulent international transactions on some of its customers' credit cards. This incident has raised concerns among the affected individuals, as unauthorized transactions can have severe fi...

CBDC’s Programmability: Revolutionizing Digital Transactions and Governance

27Mar

By Ankit2 Comments

Payments

CBDC’s Programmability: Revolutionizing Digital Transactions and Governance

Central Bank Digital Currency (CBDC) has emerged as a transformative force in the financial landscape, with experts predicting that its programmability feature will turbocharge its impact. In a recent episode of FinTech Diary, industry leaders discussed the potential of CBDC, its current initiatives, and the journey of India's CBDC pilot projects. This article explores the key insights shared by these experts and highlights the significance of CBDC's programmability in revolutionizing the way we transact and govern financial transactions. Exploring CBDC's Potential and Scope: CBDC, often referred to as digital cash, operates outside traditional bank accounts and instead resides in digital wallets. Ajay Rajan, Country Head at Yes Bank, emphasizes that CBDC's programmability, offline mode,...

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

27Mar

By Ankit2 Comments

Digital Lending, NBFC

RBI’s Risk Weight Hike: Implications for Incremental Bank Lending to NBFCs

The Reserve Bank of India (RBI) recently implemented a significant increase in risk weight for bank exposures to Non-Banking Financial Companies (NBFCs). This move is expected to have a notable impact on incremental bank lending to the NBFC sector. In this article, we will explore the implications of the RBI's decision and discuss the potential consequences for the lending landscape. Key Points: Decrease in Bank Loans to NBFCs: As of January 2024, outstanding bank loans to NBFCs stood at Rs 15.03 trillion. However, in FY23, banks extended only Rs 3.08 trillion to finance companies, a significant decline compared to the previous year's Rs 73,831 crore. This downward trend can be attributed to various factors, including the tightening of risk weights by the RBI. Projections for FY25: ...