Saurabh Agrawal’s Post

After UPI, now there is an upswing in the credit card space. Swiggy has launched a Co-Branded Credit Card with HDFC Bank. Before this, Samsung, Axis Bank had already launched a Co-Branded Credit Card in 2022. Also, Apple is also set to launch its Credit card in collaboration with HDFC Bank soon in India. According to a report by RBI, In April 2023, India had over 86M credit cards, up 15% from 75M in April 2022. This could hit 100M by 2024. Consumers use credit cards to manage their finances because of the equipped 48-day interest-free period such that they have enough liquid cash to satisfy their daily needs. Apart from this, companies & banks make Indians use cards by offering discounts, cashback options & other perks. Post covid people increased spending on travel, entertainment, healthcare & consumer durables which contributed to the surge in credit card usage. Integration of credit cards & UPI payments rail has majorly contributed to the growth of credit card usage in India. According to a report, UPI has resulted in a 30-fold increase in credit card acceptance. There is one issue with the sharing of MDR (Merchant discount rate i.e., sum of fees incurred from certain digital transactions) in case of collaboration with US card companies. There are also certain risks when it comes to repayment of that credit. According to RBI, the amount that needs to be repaid by its users has also increased by 35%. So, users should maintain a balance between the pleasure of credit & financial etiquettes to avoid the debt web in the future.

Sometimes a small change can have a significant impact on the larger ecosystem. Take, for example, the recent update introduced by #AmazonPay (APay), which now restricts the use of APay balance with other payment methods. One of the most popular cobranded #CreditCards is the APay #ICICI CC, boasting over 5 million customers. Cardholders earn #cashback on their transactions as APay balance. Until recently, customers could use, say, ₹200 of their APay balance (earned through previous month transactions) and pay the remaining ₹800 with their APay ICICI CC when purchasing a ₹1000 product. This way, they can use their balance simultaneously, earning further cashback on the ₹800 spent. With the recent restriction, users now have two options: either not use their APay balance and pay the full amount using their credit card or load their APay balance first and use it to complete the payment. In the first scenario, the money in the APay balance remains stuck, but the user earns cashback. In the second scenario, the user loses out on the cashback, as loading the wallet provides cashback at a lower rate. This change would be beneficial for #Amazon (better cashflows), but reduces flexibility at the user's end! The major reason for the immense popularity of the APay ICICI CC was its straightforward cashback system, where rewards are calculated clearly, and gratification is provided monthly without any hassle or usage restrictions, probably the first in the industry. It will be interesting to see if these recent changes will result in lower usage of the card by existing users. Will cardholders adapt to the new system, or will they seek alternatives that offer more flexibility (like #SBI Cashback card)? Only time will tell. How do you feel about this change if you're an Amazon Pay ICICI CC user? Will it affect how you use your card? Share your thoughts and experiences in the comments below. #PersonalFinance #Money #Savings #Strategy #Cost

UPI - Introduction of 3 new features for Credit accounts. Convert your UPI transactions to EMI on the fly! National Payments Corporation Of India (NPCI) just launched 3 new features for Rupay Credit Card on UPI and Credit line on UPI. All your favorite apps have been asked to enable these by 31st May, till then you can test them out on BHIM, screens below 1️⃣ 𝐄𝐌𝐈 a) Apply for EMI on your linked RuPay Credit Card UPI transaction or Credit Line on UPI transaction b) Convert your past UPI using Credit transactions to EMIs through the App c) Convert your transaction to EMI at the time of making the transaction d) Manage all these EMI transactions from your UPI App - you will not be able to alter or remove the EMI except foreclosure 2️⃣ 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐁𝐢𝐥𝐥 𝐏𝐚𝐯𝐦𝐞𝐧𝐭/ 𝐈𝐧𝐬𝐭𝐚𝐥𝐦𝐞𝐧𝐭 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 a) Make one-time payments or set up UPI Autopay for outstanding credit card or credit line payments. This includes payments for self as well as others as in screens b) UPI App shall provide detailed view of linked credit instrument (minimum amount due, total amount due, bill due date etc) c) The dues will clear in real-time post payment and free up the credit balance for usage - no more long timelines for bill settlement post payment 3️⃣ 𝐋𝐢𝐦𝐢𝐭 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 a) Request a credit limit increase directly through your UPI app when needed just by entering your UPI pin b) Card/Credit Lines can now be issued with smaller limits and limit increase can be on the fly basis spend and repayment behavior c) Perfect use case for top-up loans on your credit instruments This was the expected next step in the Credit products on UPI enablement. Kudos to NPCI to enable this so quickly and this is a pretty smooth experience! Let's see how quickly my frequent apps PhonePe, Paytm and CRED introduce these 😁 #thoughtsbykeshav #creditcards #upi #creditonupi #digitalproducts #bhim #phonepe #gpay Link to NPCI article: https://lnkd.in/g-_v34tu

🌟 Understanding “UPI Now Pay Later” 🌟 Reserve Bank of India (RBI) on 4th Sep 2023 issued a notification which has expanded the scope of UPI by enabling transfer to / from pre-sanctioned credit lines at banks which means you can "UPI Now” and “Pay Later”. Under this facility, payments through a pre-sanctioned credit line issued by a Bank to Individuals, with prior consent, are enabled for transactions using the UPI System. This means that you can make UPI payments even when there are insufficient funds in the linked bank account. How does it work: 🤔 To use this feature, individuals must first give their consent to the bank for establishing a Credit Limit/Line. Once approved, individuals can make transactions using their UPI applications like Google Pay, Paytm, PhonePe, or various mobile banking UPI applications with the available Credit Limit. Interest Charges: 🔢 Interest charges will vary from bank to bank. Some banks charge interest on the amount spent from the credit line, while others offer a credit-free period, meaning no interest accrues if the outstanding amount is settled within a specified time period. Banks Offering UPI Now Pay Later: 🏦 As of now, only HDFC Bank and ICICI Bank are among the trailblazers in providing UPI Now Pay Later services. How this feature is different from Credit Cards: 🤷♂️ While a credit line for UPI is similar to credit cards on UPI, but the key difference is the accessibility and convenience. Currently, banks require a lot of documents before issuing credit cards. Hence a large section of society gets excluded from accessing credit using credit cards due to the absence of formal income documents. But a pre-approved credit lines are more accessible, requiring basic account verification, making them an attractive option for small borrowers and business owners in need of working capital. This accessibility will potentially disrupt the traditional credit card user base. Conclusion: ✔ “UPI Now Pay Later” represents a major breakthrough in Digital Lending/Payments, by bridging the gap between traditional credit lines and UPI transactions through greater convenience, accessibility, and financial freedom for the users. National Payments Corporation Of India (NPCI) #unpl #upi #npci #digitallending #lending #platform #bnpl #paylater

You don’t have to rush in to withdraw your money from your FASTags issued by Paytm Payments Bank . Or for that matter uninstalling your Paytm app. Yes. The RBI has issued a notice to Paytm payments bank to stop accepting any of the following transaction types from their users 1. Issuance of new accounts 2. Top up of existing accounts or wallets But Paytm can continue the following 1. Credit existing accounts with refunds, cashbacks, interest payments 2. Utilisation of customers existing funds So. User funds are safe. PayTM’s business on the other hand, is gonna take a huge hit. Now coming to UPI payments. The merchants paytm acquired who had their nodal at payment payments bank will be impacted yes. But I’d like to go by the history of fintech, where financial institutions always come to the rescue of their competitors in order yo serve customers. Remember when PhonePe went down when Yes Bank had a similar embargo? Overnight, we had PhonePe tie up with ICICI and user transactions started going through within 24 hours. I wouldn’t be surprised if I saw a similar turnaround story happening here too!!! This just reinforces the belief that if you’re building a fintech product, it’s important to solve a customer problem yes. But you must also remember the regulators are your biggest stakeholders, and customer champions. Ignore them at your own peril

WHAT COLLAPSED PAYTM? Paytm share price on 30th January, 2024= Rs 761 Paytm share price on 12th March, 2024= Rs 369 What caused such a massive fluctuation? The RISE & DOWNFALL of Paytm: 1.0: Background Paytm was founded in August, 2010 with an initial investment of $2 million by the current CEO Mr. Vijay Shekhar Sharma. Initially it provided services of mobile recharge only. It started to widen it's spectrum and gain recognition by receiving huge investments from companies such as Sapphire Ventures, Alibaba Group, Soft Bank, Berkshire Hathway etc. Paytm also expanded its boundaries by enabling services such as railway and flight bookings, bill payments, forex, loan payments etc. 1.1: Rise of Paytm The event which brought a grand succes to Paytm was demonitization announced on date 8th November, 2016. As per Euromoney report, it enhanced the customer base of Paytm by 50 million on an average. In 2017, Paytm became India's first app to cross 10cr. users. It won the award of Best UPI and most user-friendly app of Global Fintech Fest 2022. 1.2: Midway RBI observed that there was persistent non-compliance of regulations by Paytm. Several warnings and monetary penalities were imposes by RBI in the years 2018, 2020 & 2021. There are also instances of mandatory audit requirement commanded by RBI. 1.3: Downfall of Paytm RBI on 31st January, 2024 announced operational restrictions that after 15th march, 2024 Paytm Payments Bank shall be ineligible to •Accept any new deposits from customers •Onboard any new customer •Allow Deposition of money in E-wallets •Top-up money in customer accounts 1.4: Reasons of such a decision There were many events of oversights by Paytm: 📌Non-compliance of Anti-Money laundering regulations 📌No accurate verification of customer identity (KYC) 📌Multiple accounts were registered having common PAN 📌There were many transactions of crores of Rs giving rise to risk of potential money laundering 📌Paytm consisted of 35 crores wallets out of which 31 crores were inactive giving rise to mule accounts 📌inconsistencies in financial statements of Paytm and parent company one communications were identified 📌False documents and audit reports were submitted 1.5 Current scenario & conclusion RBI is unlikely to extend the deadline of 15th march for termination of Paytm's operations. Winning back the customer's trust shall be the most challenging thing for Paytm now. The management has recommended a change in the business model of Paytm. There is a proposition of Paytm becoming a third-party application provider. One of the solutions could be HDFC bank acquiring the Paytm's wallet. Despite such restrictions, the customers can continue to withdraw money, conduct transactions and transfer money from their Paytm accounts. #paytm #casestudy #news #banking #finance #research #analysis

𝐑𝐁𝐈 𝐛𝐚𝐫𝐬 𝐏𝐚𝐲𝐭𝐦’𝐬 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬   In a #significant and #unprecedented move, the Reserve Bank of India (RBI) has imposed restrictions on Paytm, a leading #fintech player, citing non-compliance and material supervisory concerns. The key points: 𝐍𝐚𝐭𝐮𝐫𝐞 𝐨𝐟 𝐀𝐜𝐭𝐢𝐨𝐧: 👉RBI has barred Paytm Payments Bank from offering basic payment services, including #UPI, #IMPS, #Aadhaar-enabled payments, and bill payment transactions, effective February 29. 👉The directive also prohibits the acceptance of #deposits, #credit transactions, or any top-ups in #Paytm #wallets after February 29. 𝐍𝐨𝐝𝐚𝐥 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐓𝐞𝐫𝐦𝐢𝐧𝐚𝐭𝐢𝐨𝐧: 👉The RBI has ordered the 𝐭𝐞𝐫𝐦𝐢𝐧𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐧𝐨𝐝𝐚𝐥 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐬 𝐨𝐟 One97 Communications Limited and 𝐏𝐚𝐲𝐭𝐦 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬, a rare and significant move in the industry. 👉Nodal accounts, responsible for facilitating payments to merchants, are instructed to be terminated before February 29, 2024. 𝐑𝐚𝐭𝐢𝐨𝐧𝐚𝐥𝐞 𝐚𝐧𝐝 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐈𝐬𝐬𝐮𝐞𝐬: 👉The RBI's action is rooted in major compliance issues identified during a comprehensive system audit and subsequent compliance validation reports. 👉Persistent non-compliance and material supervisory concerns in Paytm Payments Bank prompted the regulatory intervention. 𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝 𝐚𝐧𝐝 𝐏𝐫𝐞𝐯𝐢𝐨𝐮𝐬 𝐖𝐚𝐫𝐧𝐢𝐧𝐠𝐬: 👉The RBI had previously directed Paytm Payments Bank to halt the onboarding of new customers in March 2022. 👉This move follows Paytm's recent adjustments, including scaling down its buy-now-pay-later product and adopting a cautious stance on small-ticket loans. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: 👉Paytm's stock saw a marginal impact, ending nearly flat at Rs 761 apiece on BSE after the RBI's announcement. 👉One 97 Communications reported a 43% reduction in net loss and a 38% increase in revenue from operations in the third quarter. 𝐖𝐨𝐫𝐤𝐟𝐨𝐫𝐜𝐞 𝐚𝐧𝐝 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐂𝐡𝐚𝐧𝐠𝐞𝐬: 👉In December 2023, One 97 Communications laid off over 1,000 employees across multiple units, affecting approximately 10% of its workforce. 👉Paytm had been under duress, evident in the scaling down of its Paytm Postpaid product and a cautious approach towards small-ticket loans. 𝐓𝐡𝐞 𝐈𝐦𝐩𝐚𝐜𝐭 𝐢𝐧 𝐞𝐯𝐞𝐫𝐲𝐝𝐚𝐲 𝐥𝐢𝐟𝐞: 👉This will have an impact on regular people, for example Making UPI Payments, #Fasttag, prepaid instruments, wallets, FASTags, NCMC cards, etc 👉The Paytm stock will suffer, many Mutual Funds have invested in this company to be precise 23 mutual fund houses via 69 schemes had invested Rs 1,994.74 crore in Paytm as of December end (Souce: Money Control ) Does this news have any impact on you? Do share your thoughts on its impact on you or your family and friends If you have reached so far, thank you for reading. You can follow Manish Mathew and Intelligent Investors we share valuable insights and practical strategies. Source: #Ettech

Why Credit Card Failed and #upi won but Credit On #upi is going to be a game changer. The major reason of credit card loss is the Form Factor. 60 Million Small and Large SMEs in India. 20 Million Retail Businesses and only 1 Million have EDC machine vs 60 million UPI enabled businesses. that is only 2% adoption for EDC vs near 100% adoption for #upi many people blame 2% MDR for #creditcard but I believe that is superficial. Here is my observation with working with 50k retail Businesses @ Ezo Books major reason behind poor adoption of EDC is Form Factor of EDC. 1. EDC has high Learning Curve 2. EDC transaction is time consuming. Both are big NO for #sme of Bharat. Consider operations at #gupta kirana shop in small town. Though Gupta ji runs the shop alone with zero employee on record. In actuality, the whole family 5 - 7 manage the #galla around the clock. shop opens at 6 AM for milk distribution and closes at 10PM (DMart - Avenue Supermarts Ltd closes at 11PM) #father #mother #wife #son #daughter all are part time employees at #gupta ji Kirana shop. Coming to the point, EDC has big learning curve, 1. Chip Card 2. Swipe Card 3. Tap Card too much teach and learn for 60 year old father and mother of Gupta ji at the same time - UPI is very easy. Paytm pe ek hajar rupaye prapt hue. simple and easy no learning. EDC takes too much time for transaction, takes minimum 10 clicks and 1 minutes for whole transaction. consider evening rush time 6 to 7, 60 minutes window. around 30 transactions happen in 60 minutes. 2 minutes per transaction. add one minute of time extra to each transaction. 50% reduction in peak efficiency. this may lead to heavy loss of sale, as customer at retail shop is always and always in hurry (when did the last time you waited more than 20 seconds for printed bill at retail shop ?) Now consider Credit on UPI. all seven people working at guptaji kirana can accept #creditcards #debitcard payment of Visa Mastercard RuPay Every Individual wants to optimise spend on Axis Bank HDFC Bank credit card for rewards. on other hand SME need super dumb (no action needed), super easy and super fast products like #upi Paytm Sound Box and of course Ezo Books billing machine. PS - I am curious to see how MDR will work in Credit on UPI #gff2023 #gff National Payments Corporation Of India (NPCI) Jupiter Jitendra Gupta Amrish Rau Vaibhav Domkundwar Sameer Singh Jaini Makarand Kate Rishikesh Sakarkar

𝐃𝐨𝐧'𝐭 𝐠𝐞𝐭 𝐚 𝐜𝐫𝐞𝐝𝐢𝐭 𝐜𝐚𝐫𝐝 😵 Instead get a Amazon Pay ICICI Bank Credit Card! Checkout some of the perks below: 🎁Reward Galore for online shopping: a. Enjoy a 5% cashback on your Amazon purchases as a Amazon Prime member b. 3% cashback if you're a non-Prime member. c. For every other merchant, you still get a fantastic 2% cashback. It's like getting paid to shop! 💰 No Joining or Annual Fees: Yes, you heard that right! There are no joining fees or annual charges for this card. 🌐 Global Acceptance: Whether you're traveling or shopping internationally, your Amazon Pay ICICI Credit Card ensures that you have a reliable and widely accepted payment companion wherever you go. 📈 Build Your Credit Score: Responsible usage of this credit card can help you build and improve your credit score, opening doors to future financial opportunities. ⛽️ 1% fuel surcharge waiver: You won't have to pay the 1% fuel surcharge when you use your card to buy fuel. In addition to these benefits, the Amazon Pay ICICI credit card also offers a number of other features, such as: 1. Zero interest EMIs on select purchases ✨ 2. Travel insurance ✈️ 3. Purchase protection 🛡️ 4. Extended warranty ⌚️ It's an invite only credit card, check your eligibility with the link in the comments. PS: Don't get ANY credit card if you can't control your spending 💸 #amazon #icici #creditcard #cashback #rewards

*RBI - Paytm News* Simplifying Paytm Issue - *For Paytm Users* 1. All UPI Payments will keep working 2. Paytm Wallet will keep working 3. Fastag will keep working 4. All bookings will continue to work seamlessly 5. Paytm QR, Paytm Soundbox, Paytm Card Machine, all Paytm gadgets will continue to work - *Problem Area* Paytm has its own Paytm Payments Bank, which allows customers to open accounts and keep the money in their digital bank, which could be utilised like regular bank accounts. RBI has found supervisory issues in top management and functioning of Paytm Payments Bank and hence decided to stop their services from 1st March, 29th Feb 2024 being the last date. Customers only dealing with Paytm Payments Bank should be concerned, and move their money and accounts to other Banks. In a clarification from Paytm, the company will soon tie up with other banks to solve this banking issue. RBI has also allowed withdrawal of money from Paytm Payments Bank after 1st March as well. Lot of misinformation about #Paytm development All mainly talk about two things. Let's address that quickly. 1 Are my mutual fund investments via Paytm at risk? Will my SIPs be affected? No. All that's via a separate company called Paytm Money, which is regulated by SEBI and not RBI. 2 Will my UPI via Paytm stop? No. That's a big miscommunication by the media, to be frank. > The likes of Paytm, PhonePe, GPay or CREDPay etc run UPI, via backend partnerships with certain banks > For PhonePe, its a mix of YES BANK and ICICI Bank. For GPay it's Axis Bank. And for Paytm, it's the sister company Paytm Payments Bank > And, it's the payments bank which has been barred. from doing UPIP transactions, not Paytm Means what? If Paytm switches its backend banking partner, the UPI payments via the app would go on smoothly. And if you would recall, when Yes Bank collapsed, PhonePe onboarded ICICI Bank in less than 18 hours or SO. So, Paytm can do that too. No big deal. *Hope that clarifies all the concerns.* #stockmarketindia #linkedinforcreators #linkedincommunity #marketanalysis #dataanalysis #sharemarket