[image] UPI driving digital shift in India, but is not a money maker: Mastercard CFO India, which has primarily been a cash-based economy, now leads the world in real-time digital payments, accounting for almost 40% of all such transactions. However, the adoption of payments other than c…

UPI is classified as a public service category. I don’t remember where did I read it but it was mentioned when there was a confusion around an announcement around the fees that have to be paid when paying from a wallet. Hence, UPI will sustain. Rupay is being pushed as an alternative to Visa and Ma…

[image] Yagnesh Kubavat : UPI is classified as a public service category. Yes. I also remember reading this in the news.

My worry is that when the government takes it’s hands off UPI and the private companies take over… If they start charging for the UPI services, people will be in a for a shock and there is a possibility that whatever progress was made in digital payments may be erased and people may go back to cash …

[image] Alex Nazarene: I remember sometime back, Kotak started charging for UPI payments above a certain limit and RBI stepped in and told them they can’t do that and told to refund the money to the customers. Kotak is infamous for these stunts.

[image] Alex Nazarene: My worry is that when the government takes it’s hands off UPI Well, ownership of UPI will remain with NPCI and as long as RBI continues to set the road map for them, we should be good

In long term Rupay will start starting MDR, there is no doubt about it. The only question is when? Maybe, after certain years and capturing decent market size. My guess is that even then MDR charges in Rupay will be lower than the Visa & MasterCard.

There’s no doubt that UPI is sustainable, NPCI is more profitable than many other new age fintech companies. [NPCI-financials-01-768x418] Source: https://entrackr.com/2023/05/npci-posts-rs-773-cr-profit-in-fy22/

@saurabh.s My concern is that banks still have to operate their end of infrastructure for UPI to work and they are not making any money as of now. So NPCI alone making money won’t be enough. Of course I am not exactly sure how these things work on the backend. If some of our community friends can …

Found this post in the community. Thanks @yagnesh01 [image] Fintech News Bytes General [UPIWorkingFlowchart] Here is the workflow on UPI works. [UPIWorkingFlowchart]

[image] UPI: Zooming Merchant Payments Bring MDR Back On The Discussion Table An MDR is the fee that a merchant is charged for accepting credit card and debit card payments from customers. "“If banks and fintechs are investing so much, someone has to bear the…

Is UPI & RuPay sustainable?

General

alexnazy (Alex Nazarene) 17 September 2023 13:13 10

Found this post in the community. Thanks @yagnesh01

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Is UPI & RuPay sustainable?

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