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> The banks were MADE to do it That's what I said too, read my comment once more. I only pointed out that the banks didn't resist it, because they could see th

by _jgdh 9y ago

> The banks were MADE to do it That's what I said too, read my comment once more. I only pointed out that the banks didn't resist it, because they could see that a compelling payment experience could help them fight PayTM. > Anyone can integrate with UPI - you can too That's what makes me sceptical of your expertise. My experience working in a payments startup tells me that the only way to integrate with UPI is to partner up with an existing bank. For example, Flipkart's PhonePe couldn't simply start calling UPI APIs. They use software provided by Yes Bank Limited and all payment requests were routed through Yes Bank. This is why all PhonePe users have @ybl addresses, not @phonepe. > Its the demand side that they are figuring out. I don't see what "demand-side" needs to be figured out. Everyone agrees that giving the 200M users of Android/Whatsapp the power to make payments would be desirable. What Google and Facebook must actually figure out is how to integrate with YBL or whichever bank they're partnering with and to make sure their UX is good.

sandGorgon 9y ago
UPI addresses are linked to banks. When a merchant integrates with UPI, they are using it to transfer money and accept payments. For example if you use UPI via Razorpay - it does not ask you to create a new UPI id. What Flipkart/Phonepe did was a play to own the customer - and bring more people to their fold. So that was a strategic partnership between YBL and Phonepe via which users could implicitly get a bank account as well! However you can link your existing UPI id with it as well. YBL does not provide software - they have certain API that you can use. You can integrate with other banks as well...Or use Razorpay. The difference between both is that it's harder to talk to banks. The banks are still resisting it. The banks are not hugely threatened by Paytm in general but UPI is causing a drop in revenue. Check out HDFC trying to introduce UPI charges and the hullabaloo. It would have done it, if it hadn't gotten a rap from the regulators. Payments is a two sided game - I think that Google and Facebook are figuring out how to create walled gardens around payments in India, when UPI basically makes it easy to switch apps. This is purely my conjecture at this point. So yes, my expertise is definitely doubtful ;)

by _jgdh 9y ago

sandGorgon 9y ago

UPI addresses are linked to banks. When a merchant integrates with UPI, they are using it to transfer money and accept payments. For example if you use UPI via Razorpay - it does not ask you to create a new UPI id. What Flipkart/Phonepe did was a play to own the customer - and bring more people to their fold. So that was a strategic partnership between YBL and Phonepe via which users could implicitly get a bank account as well! However you can link your existing UPI id with it as well. YBL does not provide software - they have certain API that you can use. You can integrate with other banks as well...Or use Razorpay. The difference between both is that it's harder to talk to banks. The banks are still resisting it. The banks are not hugely threatened by Paytm in general but UPI is causing a drop in revenue. Check out HDFC trying to introduce UPI charges and the hullabaloo. It would have done it, if it hadn't gotten a rap from the regulators. Payments is a two sided game - I think that Google and Facebook are figuring out how to create walled gardens around payments in India, when UPI basically makes it easy to switch apps. This is purely my conjecture at this point. So yes, my expertise is definitely doubtful ;)