UPI - NewNerve

5 Reasons, Why Can’t UPI Be Used for Cross-Border Payments?

3Sep

By AnkitNo Comments

Payments

5 Reasons, Why Can’t UPI Be Used for Cross-Border Payments?

The Unified Payments Interface (UPI) has revolutionized digital payments in India, making transactions faster, cheaper, and more accessible. However, its application for cross-border payments is still in its infancy. This article explores the challenges that UPI faces in becoming a global payment system and the initiatives underway to facilitate its expansion into international markets. Current Challenges for UPI in Cross-Border Payments 1. Transaction Limits One of the primary limitations of UPI is its strict transaction limits. Currently, UPI caps most payments at INR 1 lakh (approximately $1,200). This restriction poses a significant challenge for larger international transactions, which often exceed this amount, particularly in business-to-business (B2B) scenarios. 2. Limited Curre...

Paytm’s Pivot: Job Cuts and a Focus on UPI to Navigate the Crisis

27May

By Ankit2 Comments

Fintech, Payments

Paytm’s Pivot: Job Cuts and a Focus on UPI to Navigate the Crisis

In the face of escalating losses, Paytm's parent company One97 Communications is taking decisive action to streamline its operations and chart a path towards recovery. In an effort to mitigate escalating losses, the company's parent, One97 Communications, is implementing significant cost-cutting measures. These include a potential reduction of 15-20% of its workforce, translating to a loss of 5,000-6,300 employees. This move aims to save approximately Rs 400-500 crore. The company's employee costs have risen considerably, with a 34% surge in FY23, reaching Rs 3,124 crore. This increase pushed the average cost per employee to Rs 10.6 lakh, up from Rs 7.87 lakh in the previous year. The cost-cutting initiative has already begun, with reports indicating that over 1,000 employees were...

Financial Viability of UPI Services: Seeking Regulatory Solutions

21May

By AnkitNo Comments

Blog, Payments, Review

Financial Viability of UPI Services: Seeking Regulatory Solutions

The impact of charging for UPI transactions in India is a topic of significant interest. Let’s explore this based on recent articles and reports: Unified Payment Interface (UPI) Revolution: The Unified Payment Interface (UPI), launched by the National Payments Corporation of India (NPCI) in 2016, has revolutionized digital payments in India. UPI enables citizens to transfer money from one bank account to another instantly. India leads globally in terms of real-time payment transactions, with 48.6 billion transactions processed in 2021. Since its inception in April 2016, UPI has saved the Indian economy approximately $67 billion. Notably, UPI transactions have seen tremendous growth, with 9.41 billion transactions, worth INR 14.89 lakh crore ($181 billion), processed in May 2023 alon...

UPI Duopoly: NPCI Faces Dilemma as Deadline Looms

8May

By Ankit1 Comment

Fintech, BFSI, Payments

UPI Duopoly: NPCI Faces Dilemma as Deadline Looms

The Unified Payments Interface (UPI) has revolutionized digital payments in India, but a UPI duopoly is emerging with PhonePe and Google Pay dominating the market. The National Payments Corporation of India (NPCI), the governing body of UPI, is considering extending the market cap deadline to address concerns about anti-competitive practices. UPI Duopoly Problem Currently, PhonePe and Google Pay account for over 80% of UPI transactions, leaving little room for other players. This raises concerns about reduced competition, innovation, and consumer choice. The NPCI's market cap deadline of 30% for third-party apps (TPAs) was intended to address this issue. Let's delve deeper into the issues and explore potential solutions: Challenges: Reduced Competition: The dominance of PhoneP...

6May

By Ankit1 Comment

BFSI, Blog, Fintech, Microfinance

Financial Inclusion Initiatives with Fintech Collaboration in India

The Indian government and regulators have actively collaborated with Fintech companies to promote financial inclusion, reaching underserved populations and providing access to essential financial services. Let's explore some specific initiatives: 1. PMJDY (Pradhan Mantri Jan Dhan Yojana): This government-led initiative aimed to provide universal access to banking services by opening bank accounts for the unbanked population. Fintech companies played a crucial role in enabling account opening through mobile wallets and online platforms, reaching remote areas and simplifying the process. 2. Aadhaar Enabled Payment System (AEPS): AEPS allows individuals to use their Aadhaar biometric authentication to access their bank accounts and make financial transactions. Fintech companies...

Hidden Fees and Deceptive Tactics: UPI Users Beware!

11Apr

By Ankit1 Comment

Fintech, Finance

Hidden Fees and Deceptive Tactics: UPI Users Beware!

Digital payments especially UPI have seamlessly integrated into the daily lives of millions of Indians. From paying street vendors to making local store purchases, recharging phones, and booking tickets, UPI (Unified Payments Interface) apps have become an integral part of our financial transactions. However, beneath the convenience lies a web of manipulative practices that exploit unsuspecting users. The Dark Patterns Unveiled : UPI payments The Central Consumer Protection Authority (CCPA) has identified 13 types of dark patterns employed by UPI payment apps. These patterns are designed to mislead users, violate consumer rights, and maximize profits for the platforms. Let’s delve into these deceptive tactics: False Urgency: Creating a sense of urgency to prompt hast...

India’s UPI Revolution: A Trillion-Rupee Success Story

10Apr

By Ankit1 Comment

Fintech

India’s UPI Revolution: A Trillion-Rupee Success Story

In an era where digital transactions are becoming the norm, India’s Unified Payments Interface has emerged as a giant, overshadowing other payment methods with a staggering transaction value of Rs 99.68 trillion in the third quarter, as per the latest report by Worldline. Also Read: Revolutionizing Digital Payments: RBI’s New Rule on UPI Payments from PPI Wallets via Third-Party Apps and the Impact on Payment Service Providers UPI: The Colossus of Digital Payments in India The ‘India Digital Payments Report’ for H2 2023 by Worldline paints a vivid picture of UPI’s dominance. The transaction volume has seen a monumental increase from 8.03 billion transactions in January 2023 to 12.02 billion by December 2023. This surge is mirrored in the transaction value, whi...

RBI Proposes UPI-Based Cash Deposit Facility: No ATM Card Needed

6Apr

By AnkitNo Comments

Fintech, Payments

RBI Proposes UPI-Based Cash Deposit Facility: No ATM Card Needed

The Reserve Bank of India (RBI) has taken a significant leap forward by announcing a UPI-based cash deposit facility that eliminates the need for ATM cards when depositing cash. This move aims to enhance customer convenience and streamline the currency handling process at banks. Key Details of UPI-based Facility: UPI-based Convenience: The Unified Payments Interface (UPI) has gained immense popularity in India due to its convenience, speed, and interoperability. It simplifies fund transfers between bank accounts on a mobile platform without requiring traditional banking details such as account numbers and IFSC codes. Cash Deposit Machines (CDMs): These are ATMs that allow direct cash deposits into bank accounts. With the new proposal, individuals can use their UPI instead of needi...

Revolutionizing Digital Payments: RBI’s New Rule on UPI Payments from PPI Wallets via Third-Party Apps and the Impact on Payment Service Providers

5Apr

By Ankit3 Comments

Banking, Fintech, Payments

Revolutionizing Digital Payments: RBI’s New Rule on UPI Payments from PPI Wallets via Third-Party Apps and the Impact on Payment Service Providers

A Boost for Paytm and Digital Payments? The Reserve Bank of India (RBI) has recently proposed a new policy that will allow Prepaid Payment Instruments (PPIs) to be linked through third-party UPI applications, enabling PPI wallet holders to make UPI payments more conveniently. This move is expected to enhance customer convenience and boost the adoption of digital payments for small value transactions. Currently, UPI payments from bank accounts can be made using a bank's UPI application or any third-party UPI application. However, PPI wallet holders can only make UPI transactions using the web or mobile application provided by the PPI issuer. By permitting the linking of PPIs through third-party UPI applications, the RBI aims to provide more flexibility to PPI wallet holders in...

UPI Transactions Surge: India Digital Payments Report H2 2023

3Apr

By Ankit2 Comments

Fintech, Payments

UPI Transactions Surge: India Digital Payments Report H2 2023

The digital payments landscape in India has witnessed significant shifts in the latter half of 2023. According to a recent report by global payment services leader Worldline, Unified Payments Interface (UPI) transactions have surged by an impressive 56% year-on-year (YoY) during the second half of last year (H2 2023). Let’s delve into the key findings: 1. UPI Transactions Surge: In H2 2023, the volume of UPI transactions reached 65.77 billion, a substantial increase from 42.09 billion in H2 2022. The value of UPI transactions also soared, rising by 44% from Rs 69.36 trillion to Rs 99.68 trillion during the same period. Notably, PhonePe, Google Pay, and Paytmemerged as dominant UPI app players, accounting for ...