Financial Ripples
Two Cents Worth

Is Google late to the Soundbox party? Or maybe not!

UPI Market Share
Merchants using Soundbox
5.8 million
Rs 75-125
Phone Pe
1 million
Rs 49
Google pay
Why is Google entering this space?
Payment Aggregator: A New Business Opportunity for Payment Players?
How do payment aggregators work in India?
How payment aggregators work?
How to make a profit?
  • Keep the MDR higher than the cost paid to different payment instruments/modes
  • Intelligent routing mechanism to direct the volume towards less charging payment modes
  • Charge the banks some subvention for a volume commitment
Why are many fintech players trying for a payment aggregator license?
Joint Digital Platform: PSBs Plan to Connect with Fintech Companies
News Article
How OCEN is different from PSBs' joint digital platform?
Why is a unified cloud based digital platform required?
What is there for PSBs and fintech companies?
  • State-run banks can leverage the resources of multiple fintech firms, reducing the cost of sourcing loans and investing in expensive platforms or technologies
  • PSBs and fintech companies can save cost of integration and provide a uniform customer journey
  • Fintech companies can gain easy access to capital and increase revenues
Wait and watch for
  • It is yet to be seen how PSB Alliance Ltd's initiative will materialize in India's highly regulated digital lending landscape
  • A significant concern is the security and sharing of data between regulated and unregulated entities
  • The revenue sharing model for stakeholders such as PSBs, fintech platforms, payment gateways, and payment aggregators
News for You
  • Cashfree lays of 100 employees to reduce cost.
  • KreditBee raises $120 million funding in new tranche.
  • Investors forked out Rs 8,000 cr to shift base from Singapore to India, says PhonePe CEO Sameer Nigam.
  • Visa and Mastercard may be allowed a share of India's online payments.
  • Indian fintech micro-lender KreditBee tops-up Series D by $120m.
  • RBI asks PayU India to reapply for a payment aggregator license.
  • Advantage Paytm says analysts as Alibaba cuts stake in Vijay Shekhar Sharma-led fintech.
  • PM Modi holds a meeting with economists at NITI Aayog; applauds the success of India digital story & rapid adoption of fintech across the country.
  • Yubi Becomes India’s first fintech company to achieve the SOC 2 type II attestation for data security and privacy.
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