Bullet Pay Later UPI

@rupeshmandal I feel like your problems are largely speculated than pre-existing. How far would someone want to go for a mere 1.5% cash back. I mean, cash-backs are good but promoting excessive consumerist behaviour.

A “give it all to me for free” approach for everything is not at all sustainable.

About the speculation of UPI becoming a chargeable service, it’s just a speculation for now. And in case it becomes a chargeable transaction, everyone would incur it. And hence the next steps would be for the industry to tackle the issue at large. In case, the industry and merchants give in to this charge, it would become the new normal. Easy.

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What are you talking about speculation?

Can Jitendra deny that MDR charges are stopping him to allow debit card payment options (forgive and forget credit card for a moment)?

Or is that also a speculation?

My issues is Jitendra’s ‘ego’ coming in the way to accept the fact about MDR charges in public. Just accept it and move on in life, man. No one is pushing you at a gunpoint.

I had asked the same question to Kunal Shah of Cred upon stopping Debit card payment and he openly admitted yes, it’s MDR charges.

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Everyone likes a little exra. And why not. I don’t have to do anything much. Simply i have to make payment with credit card or debit card instead of upi. I have to pay anyway. It’s just about choosing a method that pays me back. Value. That’s it.

Exactly my point. Neither bullet is doing charity nor is Govt. So definitely one day, I don’t know when, but some day for sure in the future merchants will have to pay UPI transaction charges to Govt. Remember, how in 2017 Govt. in order to accelerate digital behaviour, waived off MDR charges for 2 years and then they started charging for transaction amount more than Rs 2000 and then for transaction less than Rs 2000 also attracted charges for merchant. Similarly, it’s honeymoon period of UPI now.

The customer behaviour is that it can go back to cash or other means. So the burden goes to merchants only who have to pay.

In usual banking, if you notice, NEFT is free, so normally people are okay if you NEFT (free, but settlement in 2 hours) them instead of IMPS (charged but settlement instantly). So a customer always seeks value to squeeze it to maximum. Because like I said it’s business. A company is also for the same, profits. Not charity.

Not many front end banking solution services have a community page to begin with.

CRED’s business model is about reward systems, cash backs, and saving unnecessary charges. So yes, Kunal Shah would want to highlight MDR charges as his service is about saving those charges. They have huge brand tie ups, CRED coins ecosystem. And a high spending user base. The business model of CRED is about reward ecosystem. So they have built their partnerships like that fundamentally.
Jupiter, on the other hand, is a money management front end service. So obviously, their tie ups are not what you would expect CRED has. It’s a totally different service.

So the comments of two founders on any issue is in the context of the business/service they are building.

Again, it’s just a speculation so really can’t comment on it. And if charges are there, it’s for everyone.

Jupiter is not about what you might be expecting right now. Maybe you need a service like CRED.

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Truth be told, Jupiter is right now all talks and nothing else. It itself is only a speculation. Can tell more only when I use it first-hand for real.

Little that we know so far, there is Federal bank in the backend, and Jupiter is a service design layer on top of it. There are Neo banks that already exist in the market today. What is new? I don’t know. So I will wait for launch to say anything more.

Also, there are other services like bullet pay that exist in the market. Lazypay is there. There too it’s nothing new or unique or something others can’t replicate. It’s a clutered space, everyone prividing similar service and customer is never loyal.

Well, little late but I wanted to admit a counter view to this discussion:-

Banks today are giving you simple interest of around 2.5-3.5% p.a. on your savings account balance. For that you have to keep the money in the bank and wait for a year.

With a credit card, on your spends you are getting 1.5% back. Remember you are going to spend that money anyway. Say electricity bill payments, grocery, medicines etc. These are mandatory expenses. Now, you have the choice to either pay with net-banking or UPI or Debit/ Credit cards.

So if a Credit card (lifetime free and no charges) is giving me back 1.5% of the spend when the next statement is generated, why not pay with the card?

Suddenly your spends become investments.

Again 1.5% sounds “mere” but you have a time profit too against low savings bank interest rate, you don’t have to wait for a year to earn 2.5% savings interest.

You know drop by drop an ocean is made.

See that’s where the problem is. Banks offer cards, premium cards, ultra premium cards, what not. And usually for giving a % discount to you, sometimes the merchant/seller/service provider gets a lesser cut.

Now, two problems.

  • Either you deny the premium credit cards at your store and let the consumer whine about your policies.

  • Or you increase your charges, and well… let consumer whine about your policies.

Let’s look at the ocean now -

If you go macroeconomic, some price hikes are often the result of the consumer wanting excessive discounts and cashbacks. If you save then and there, prices will go up faster and you won’t be aware about it. Even if you don’t realise, you will still be paying the price.

Convenience fees is something you and me can’t really dodge. It’s essential for good services to function longer.

Sustainability is important.

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@Divyaansh_Agarwal before I answer your points in particular, may I know if you are working at Bullet or Jupiter? Recently a few Jupiter folks visited my LinkedIn profile too.

Also, my next query is, how does Bullet UPI Pay Later generate revenue? One, I can guess is late fees when a customer doesn’t settle his or her bills on the due date. Anything else that I don’t know yet on how Bullet Pay will make money?

Only if I am aware of the business model, I can speak on how sustainable it is.

@Jiten a product related query, for a change :slightly_smiling_face:

Okay, so in my Bullet account, I have a credit of Rs 6500. But say while shopping online, the bill amount is Rs 10,000. Can I transfer Rs 3500 to my Bullet pay UPI to increase the credit limit to 10,000 and then pay through bullet?

You may ask why do I want to do so? Reasons being:-

  1. Just to use Bullet regularly for any UPI payment. And I can’t make payment online in parts. I have to make payment in one go.

  2. Utilise the credit and since Rs 10,000 bill amount is more than the available limit in my Bullet account (Rs 6500) so if I make an upfront payment of Rs 3500 to my bullet pay UPI ID to increase the limit temporarily to make payment of Rs 10k. I can clear the remaining Rs 6500 Bullet on the due date or when the auto-pay is launched, it would be paid off automatically from my bank.

  3. Instead of paying Rs 10,000 upfront from my bank account to a UPI payment, I would have to pay only Rs 3500 now from my bank account. The rest 6500 I can pay later to bullet.

Possible?

Nope

Meri bhi visit karva do bhai :sob:

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If you are interested in knowing the financial aspects and incomes, you can anytime download their financials from MCA, to get a better idea.

It’s a credit limit given to you based on your credit score, similar to a credit card, but not one. So how can you add extra money and then utilise it for making payment elsewhere? You cannot top-up your credit card account.

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I just pre-paid Rs 1 to my bullet account and it accepted. So my credit limit became Rs 6501. So technically it seems to be working.

You can. I had accidentally done it once. Made a double payment of my credit card bill my mistake and then noticed that the extra amount was added to my card limit which I utilized next month when I did some shopping.

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Oh is it? Technically it seems to be working, as excess payment has been done and it will reflect in your account as a balance. So maybe you can use it further. So i guess now you can shop for 10k using Bullet.

The thing happening in credit card is, your outstanding due becomes negative as you made payment when nothing was due. You are not increasing your credit limit. So for the next month, the excess amount paid would be shown as an increased limit and it wont be forever.

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Hay jiten while opening account with bullet there was some error’s coming it says unable to onboard you. pH 9839731549

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Hay @Jiten please reply I am unable to onboard on bullet it says argh something went wrong even my brother got onboarded I have Experian credit score of 821

You are not eligible to be on Bullet that’s why you are getting this Massage.

You are only thinking from your perspective, but unfortunately Bullet isn’t charity if that’s something you were thinking it is.
Bullet doesn’t earn anything when you do a UPI Transaction (well as far as I know, they can’t).
With Simpl, they are partnered with merchants and merchants pay significant fees, sometimes as much as 6-7% to Simpl, this is also the case with any non-upi based pay later fintech apps. Simpl can afford to pay MDR fees and still be profitable. Merchants pay Simpl those hefty fees because pay-later services improve conversion by as much as 100%. With Bullet UPI, you can pay at your local kirana store with credit but you can’t do so with Simpl. This flexibility is what you should accept as loss of reward points.

You can still be smart in earning reward points. My Bob Credit card pays me full fat reward points (1.25%) for Payzapp loading but only 0.25% with Mobikwik or PayTM. Good luck figuring another way for reward harvesting!

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