NPCI Likely to Announce 1.2% Interchange for Credit Line on UPI
- NPCI is expected to set a 1.2% interchange fee for pre-sanctioned credit lines on UPI, with a circular likely next week. - The credit line will not be available for person-to-person transfers, focusing instead on merchant transactions. - Interchange fees are crucial for covering the risk and interest for the capital deployed by credit issuers. - Negotiations are ongoing between NPCI, banks, and UPI apps regarding revenue sharing, with TPAPs like PhonePe and Google Pay likely to get 0.08% commission. - The product has faced delays due to a lack of strong business cases, but NPCI mandates may drive adoption.
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The National Payments Corporation of India (NPCI), a special unit of the Reserve Bank of India, plans to extend the deadline for introducing a 30% cap on the market share of individual UPI ecosystem participants, the sources said. The NPCI had initially planned to enforce the market share cap in January 2021, but postponed the deadline to January 1, 2025. TechCrunch had previously reported that the regulator was moving towards extending the deadline further after concluding that there is no practical solution to address the issue. source: techcrunch
India’s mobile payments regulator is likely to extend the deadline for imposing market share caps on the popular UPI payments rail by one to...
https://techcrunch.com/2024/05/09/india-weighs-delaying-caps-on-upi-market-share-in-win-for-phonepe-google-pay/