Abhijit Chaudhary

As the July 1st deadline draws close for credit card bill payment through BBPS- Banks are not too perturbed as ~70% of credit card bill payments are made through interbank transfers and autodebit instructions. In fact only 8 out of 34 credit card issuers are enabled on BBPS. HDFC Bank, ICICI Bank, and Axis Bank which are among the largest issuers are yet to integrate. While an extension of the deadline has been requested by third party players like Phonepe who are already on BBPS- the RBI is yet to respond on the same. In the meanwhile if you are in the 70% who use interbank like me you can rest easy :-) . For the rest, you might need to figure out alternate methods for credit card billpayment after July 1st. https://lnkd.in/dR4fR-gx #payments #regulatory #fintech

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My debrief of Nacha #Payments2024 - It's a fun time to be a #paymentsgeek !!   The maturing of recent innovations - open banking, instant payments, AI, pay by bank, fraud behavior - is keeping our industry happily busy and energized. New regulations, including CFPB's 1033, Nacha's fraud monitoring, and privacy rules, are driving additional evolution and building a foundation for 2025 and beyond. Here are my top takeaways from Miami Beach 🏖 :    🌴 Open Banking >> A lot of discussion on the impact of CFPB's 1033 rule and how the requirements will impact FIs and fintechs alike. The industry is supportive of building a new foundation of rules for open banking, but data security and liability responsibilities remain unwavering concerns.   🌴 Pay by Bank >> The new "branding" of bank account payments has created a buzz as market leaders - Airbnb, Uber, Walmart, and Stripe - introduce bank payments in non-traditional checkout experiences. As PBB grows, we anticipate additional industry pressure for better education on dispute processes, clearing windows, and funds availability of ACH compared to card payments.    🌴 Fraud >> The growth of instant credit push payments is generating special interest to better identify mule and scam accounts. A new Nacha fraud monitoring rule - effective March 2026 - requires ODFIs to improve their housekeeping by identifying fraudulent accounts by implementing processes that detect these behaviors. Think of the rule as the WEB debit account validation rule, but for all ACH payments and less prescriptive.    🌴 Instant Payments >> Excitement continues around faster payments for new use cases that actively leveraging RTP/FedNow/Same Day ACH. Next-day micro deposits are being replaced with instant penny deposits via RTP/FedNow. With nearly 100M transactions per month, Same Day ACH is also supporting organizations moving to clear payments faster.   🌴 7/365 ACH Processing >> The pressure is mounting - and supported by Nacha - for the Fed to expand processing windows to the weekends and holidays. The growth of pay by bank will also exert additional external pressure to speed up the communication of return notifications and communications between financial institutions.   It was great to see my Nacha fam!! Stephanie Prebish, AAP, APRP, CTP Jane Larimer Jane Hennessy Peter Tapling, APRP Peter Davey Elizabeth Cronenweth Rick Fiorito Brian Dao, AAP Kevin Harrison Jeff Caton Andrew Meister Merlin Bise Michelle Ziolkowski Reed Luhtanen Stacy Nascimento, AAP Olivia Maciel, AAP, APRP Lindsey Richardson, AAP, APRP Irfan Ahmad Shehreyar Jamshed Chris Colson, MBA, CBP Kevin Hughes Chris Chazin Steve Gana Jason Carone Rob Pacifico Kimberly Keely, MS, PMP Charles Ellert Joe Hussey

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The payment gateway sector in India has experienced remarkable growth. In 2022, the market size for Indian payment gateways soared to an impressive $1,459.7 million. Looking ahead, the trajectory indicates even more substantial expansion, with projections estimating a market value of $2,897.6 million by 2028 with a Compound Annual Growth Rate (CAGR) of 11.6% during the period spanning from 2023 to 2028 A payment gateway acts as a secure online technology linking your customers' electronic payment methods to your bank, guaranteeing seamless and protected transactions. By ensuring secure digital transactions, prompt payments, and minimizing cash-on-delivery expenses for merchants, payment gateways play a vital role in facilitating smooth financial transactions. Payment gateways are four different types: ☑ Hosted Payment Gateway ☑ API-hosted Payment Gateway ☑ Self hosted Payment Gateway ☑ Local bank integration Payment Gateway Some of the major payment gateway providers in India are: PayU, PayTm, Razorpay, Mobikwik, Infibeam Avenues, CC Avenue, Billdesk, Instamojo Source ETBFSI BillDesk Razorpay MobiKwik PayU Paytm Infibeam Avenues Limited CC Avenue Instamojo

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To the likely surprise of providers of buy now, pay later (BNPL) financing, the #CFPB recently issued an interpretative rule stating that BNPL products are actually "credit cards" under the Truth in Lending Act and BNPL providers are "card issuers" and therefore "creditors" under, and subject to, Regulation Z. Scott Pearson, Bryan Schneider and Eric Knight explain the significance here:

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In 2022, Wells launched a credit card with Bilt Technologies, a fintech startup. But ...losing as much as $10 million every month..the program has also been hit by fraud. The partnership also poses money-laundering risk. Khwaja's Reflections from Board Oversight Standpoint: Wells Fargo has been making some (good) progress on the corporate governance front. Some of the forward-thinking areas include: ✅ Enhancing disclosures regarding board oversight of human capital management and risks, culture and ethics, and framework for workplace harassment and discrimination.  ✅ Technology and Innovation as one of five strategic pillars. More can be done. Here is My Take: ✅ There is a misalignment or lack of interlock between tech/innovation and risk oversight. ✅ I recommend the lead director establish a standing technology/innovation and cybersecurity committee. ✅ Make the pie bigger for value creation and don't delegate innovation/technology agendas to other committees such as audit or risk. ✅ Per proxy report, 38% of Director nominees only have technology/innovation/cybersecurity expertise while 92% have risk management expertise. Get more innovation/technology/Cybersecurity expertise. ✅ Get the right incentives aligned to take the lead in the innovation game. What do you think? *********Subscribe here to get all my 🔥 takes on the Board and C-suite effectiveness. 👉🏿 https://bit.ly/3VCkqyV ******** #CEO #KSgems #TheVentureMindset #Startup #Technology #Innovation #BoardOversight Manuj Aggarwal Nitin Gaur Christopher Hetner Ilya Strebulaev Alex Dang https://lnkd.in/euXAN-9b

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🔵US Open Banking 2024 reviews the history of consumer financial data-sharing in the US, the open banking rule’s implications for how consumers access their financial data, compliance challenges for FIs, and the industry’s way forward. This report’s goal is to help FIs’ senior leadership understand the key elements of the rule, how it could push them to think of themselves as custodians of customers’ data rather than owners, and how it could change their technology and vendor strategies. It also points to how FIs could adapt to thrive in this evolving landscape and what they should expect in the future. #openbanking #usa #fintech

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FIs look to advanced technologies to protect faster payments Survey shows 50% US consumers who receive disbursements would prefer instant payment rails, as faster payments offer convenience, cash flow transparency, and better money management. Over 170 million received at least one within the past year. Faster payments offer convenience but often lead to fraud, making prevention crucial as funds lost are difficult to recover compared to slower methods. Numerous financial institutions (FIs) struggle to implement AI and ML-based fraud solutions for lack of technical staff, leading them to consider external providers for advanced technology implementation. Read more at 👇 https://okt.to/2L4d1X #Payments #Fintech #Banking #technology #Digital

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Instant payments: FIS is leading the change! FIS can enable your organization to go live with Instant Payments within just a few months. As a leading provider of real-time payment solutions, FIS sets new standards by enabling 24/7 availability and improved customer experiences. With FIS, banks can modernize their systems to remain competitive and create new revenue streams. Reach out to me to discuss how FIS can help your institution remain a leader in this fast-moving market. #InstantPayments #FIS #DigitalBanking #Fintech #Banking #ISO20022 #EuropeanUnion #Payments

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Excited to see the implementation of real-time payments in the U.S. is making significant strides in real-time payments adoption. This is a hot topic I have been interested in recently, and the ACI's report shows a promising surge ahead, fueled by FedNow's launch and merchant demand for cost-cutting solutions. #RealTimePayments #USFinance #InstantTransactions

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Great #Payments2024 keynote session on faster payments, focusing on both same-day ACH and #instantpayments with insights from U.S. Faster Payments Council members David Watson of The Clearing House, Mark Gould of Federal Reserve Financial Services, Jane Larimer of Nacha and moderated by David Stewart. The group talked about the growth of instant payments and same-day ACH, interoperability between #FedNow and #RTP, #ISO20022, and #fraud

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Introducing the third musketeer of payments tech — drumroll, please — generative AI. Just as Athos, Porthos, and Aramis were a formidable trio, so too is the combination of traditional payment methods, innovative fintech solutions, and the cutting-edge capabilities of generative AI. With its ability to analyze vast amounts of data, identify patterns, and generate insights in real-time, GenAI is revolutionizing the payments landscape. From fraud detection and risk management to personalized customer experiences and predictive analytics, GenAI is slowly but surely becoming the unsung hero of the payments industry. #PaymentsTech #GenerativeAI #Innovation #Finance #Data

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Empower your customers to upgrade their home with payment solutions that fit their budget. Don’t lose out on the 56%* of consumers your current solutions don’t fit. Explore the American First Finance B2B opportunities today. Start Today: https://myaff.us/ypjzk04v #PaymentSolutions #NewCustomers #AmericanFirstFinance

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Bank and Credit Union CEOs Reveal Top Priorities in Annual Survey Know more:-https://lnkd.in/djM6-N2B Jack Henry #fintecbuzznews #fintech #financialtechnology #fintecbuzz #banking

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If you’ve been paying close attention, you realize that the once mundane world of cross-border payments is innovating at warp speed. International trade, global commerce, and remittances have never been more exciting! A recent G20 mandate has challenged financial institutions to improve cross-border payments by making them faster, cheaper, more transparent, and accessible. The Bank for International Settlements (BIS) has responded with Project Rialto. Project Rialto aims to improve instant cross-border payments using wholesale central bank digital currencies (wCBDCs). It explores the potential of wCBDCs to enhance speed, efficiency, and transparency by integrating decentralized finance (DeFi) technology into traditional financial systems. Pretty awesome, right? Well, it depends on who you’re speaking to. Here are the facts: There are two types of CBDCs: wholesale and retail. The promise of CBDCs, in general, is to optimize outdated financial systems and promote financial inclusion, especially in emerging economies. Countries like the Bahamas, Jamaica, and Nigeria have already introduced CBDCs, and more than 100 countries, including my homeland Ghana, are exploring their benefits. There are concerns: While promising, wCBDCs raise issues around increased surveillance and control by central banks, cybersecurity risks, and the complexities of integrating wCBDCs into existing systems. The reliance on decentralized solutions also presents uncertainties regarding regulatory compliance and the interoperability of diverse financial networks. Ultimately, the future of cross-border payments is at a crossroads, balancing innovation with careful consideration of the potential challenges ahead. Different economies are driven by different motivations, fueling the global interest in this transformative financial technology. #Payments #CBDCs #Blockchain #Innovation Read more here: https://lnkd.in/eHJX-yev

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Fintech Disruptor Update - Big Three Troublemakers We have had earnings announcements from SoFi and Block, and thanks to a great feature in Forbes by Jeff Kauflin, we have some numbers from Chime Let's Talk about it! Cash App 💳 Cash App is up to 24MM active debit card users, up 16% YoY 💳 Interchange is now the biggest drive of profit (was instant deposit) 💳 $1B in savings account growth and $71B in total inflows 💳 Primary Accounts (direct deposit) grew QoQ, but primary accounts not disclosed. (2MM last quarter) Shareholder letter was almost exclusively about #bitcoin, which may truly be a renewed focus given the performance. This could also be a misdirect from less than stellar growth. That said Cash App still has 24MM debit cards and 2MM primary accounts, which is nothing to sneeze at. SoFi 💳 Checking accounts grew 61% to 3.8MM 💳 Total Deposits grew $3B 90% from primary accounts 💳 32% growth in credit cards 💳 27% growth in personal loans 💳 Median FICO for customers was 744 💳 NIM is 5.91% despite cost of deposits being at 4.4% They seem to be hitting on all cylinders. Some of their numbers are misleading. For example the total lending products is a cumulative number and does not take out paid off or closed loans. They also count credit monitoring service as a product. It counts in their total FS product numbers. That said 3.8MM accounts and 90% deposit growth from primary customers is pretty impressive. Chime 💳 7MM accounts mostly primary 💳 $270MM spend on marketing in 2023 💳 Direct Deposit required to enable SpotMe and other features 💳 Cost to serve is 1/3 the cost of a traditional bank 💳 Launching Personal loans of up to $1000 with fixed fee structure 💳 Targeting consumers making under $100K per year 75% of the US population So What? Overall total checking from these three is around 34MM with about 12-13MM primary accounts. Cash App is focused on increasing conversions to primary, and Chime is looking to expand into more profitable lending products. While the replacement of banks and credit unions is a long way off SoFi is furthest along in offering end-to-end banking services (and has a charter). Together these three companies represent somewhere in the neighborhood of 5 -20% of the checking accounts in the market today. This does not include other fintechs like Affirm and Klarna, who are moving aggressively into the space. They are also growing at a much higher clip than almost anyone in the space. How concerned are you about the competition from #fintech and their cannibalization of your deposit base? What are you doing to overcome this headwind? #Fintechdisruptors #primarybank #checkingaccounts #banking #debitcards Mary Wisniewski Sam Kilmer Ron Shevlin Brandi Gregory Kevin Von Holten Emily Osburn Lindsay Hooks Jayme Madden

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It's a difficult thing in the digital world for banks to attract young consumers — and garner the loyalty of kids while they're young. U.S. Bank has found a promising solution through a partnership with fintech Greenlight. By integrating Greenlight's accounts and services into its own mobile banking app, U.S. Bank aims to attract the next generation of customers while providing valuable financial education and practical money management experience for kids The partnership addresses a critical gap in traditional banking offerings: the lack of transaction accounts for children. With Greenlight's debit card and money app, kids as young as 10 can learn to handle money and transact cashlessly, all while being subject to parental oversight. Parents can set spending limits, monitor transactions, and establish savings goals for their children, fostering financial responsibility from an early age. U.S. Bank sees two key benefits in this partnership. First, it differentiates the bank's "Bank Smartly" accounts, potentially attracting and retaining depositors who value financial education for their children. Second, by engaging with kids through Greenlight, the bank hopes to establish itself as the go-to institution when these young customers are ready for their first checking account. Greenlight's Brandon Horne, general manager of partnerships, emphasizes that the company's bank and credit union partnerships are an additional channel for growth, not a strategic shift. By embedding the parental experience in the bank's app, Greenlight gives financial institutions more ownership in the customer experience and facilitates a smooth transition as kids approach adulthood. Learn more in the full article by Steve Cocheo:

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