Amazon Pay, PhonePe, Google Pay Revenue May Be Hit by Zero UPI Interchange, PSP Fees

Through a circular on Friday, the National Payments Corporation of India (NPCI) said that it has agreed to revise the UPI interchange and payment service provider fees to “zero” for all domestic UPI merchant (P2M) transactions with retrospective effect from January 1, 2020. The abolition of the fees has been made for an interim period until April 30, 2020, according to the circular. The same is not applicable to services like mandates, EMI, overdraft account and business-to-business (B2B) collections and payments. The move to do away with these transactions fees comes after the abolishment of the Merchant Discount Rate (MDR).

With banks not able to charge merchants any MDR for RuPay debit card and UPI transactions, it was expected that they would be given the breather of not paying a fee to other stakeholders. However, the move may hit revenues of digital payments players like PhonePe, Google Pay and Amazon Pay which have spent heavily to grab a greater market share in the UPI ecosystem. As the abolishment of the UPI interchange and PSP fees for all domestic UPI merchant transactions comes with retrospective effect from January 1, it is not yet known how the fee already collected so far will be recovered.

The waiver of the PSP fee would hardly leave any room for Third-Party Apps (TPAs) such as Google Pay, PhonePe, Amazon Pay and others to earn anything on UPI transactions. On every UPI P2M transactions, these TPAs on average make about Rs 0.30 – 0.35 through PSP fee. It remains to be seen what future revenue generation streams can help these digital payments players stay afloat.


Digital Transactions in Delhi-NCR Grew 235 Per Cent in 2019: Razorpay Report

In the Delhi-NCR region, Amazon Pay was the most used digital wallet among consumers, followed by Ola Money, while Google Pay topped the list among UPI apps.


Updated:January 22, 2020, 10:42 AM IST

Representative image. (Illustration: Shutterstock)
Representative image. (Illustration: Shutterstock)

Digital transactions in Delhi-NCR grew by 235 per cent from 2018 (January-December) to 2019 (January-December) and the region was the third most digitised state in 2019, thus, contributing 13.05 per cent in 2019 (up from 10.9 per cent in 2018), said a new report by full-stack financial services company Razorpay on Tuesday.

“The last year has been buzzing for the fintech sector in Delhi, with the adoption of new digital payment modes and bringing the digital currency to the mainstream. The last six months saw a tremendous shift in the consumption patterns of businesses and consumer preferences of digital payments in the region. With UPI growing by a whopping 442 per cent in Delhi, I am certain that this payment method will overtake cards by at least 20 per cent in the next 12 months,” Harshil Mathur, CEO and co-founder of Razorpay, said in a statement.

In 2019, Karnataka saw the highest adoption of digital payments (26.64 per cent) followed by Maharashtra (15.92 per cent) and Delhi NCR (13.01 per cent). While the usage of cards (46 per cent) and net banking (11 per cent) saw a decline in 2019, down from 56 per cent and 23 per cent for cards and net banking, respectively in 2018, UPI (38 per cent) went up from 17 per cent in 2018.

Amazon Pay was the most preferred wallet among consumers (33 per cent), followed by Ola Money (17 per cent) in 2019. The top three sectors in digital payment adoption for 2019 were food and beverage (26 per cent), financial services (12.5 per cent) and transportation (8 per cent). Among UPI, Google Pay contributed 59 per cent, PhonePe contributed 26 per cent, followed by Paytm (7 per cent) and BHIM (6 per cent) in digital transactions in 2019.


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| Edited by: Chhavianshika Singh


Amazon Great Indian Sale: Get Rs 15,000 Amazon Pay Cashback With a New OnePlus TV

Yet another month, yet another sale, and yet more enticing offers to splurge on. This is particularly true if you want to buy a new TV. The OnePlus TVs are back on sale during the Amazon Great Indian Sale which is now live. The offers are applicable on both variants of the OnePlus TV—the OnePlus TV 55 Q1 and the OnePlus TV 55 Q1 Pro. The OnePlus TV 55 Q1 priced at Rs 69,899 and the OnePlus TV 55 Q1 Pro sporting a sticker price of Rs 99,899. That is before the discounts kick in.

For starters, you will get Rs 10,000 cashback as Amazon Pay Balance if you pay for the OnePlus TV 55Q1 through any prepaid methods—that is, pay for it using a credit card, debit card, Amazon Pay wallet or UPI. The cashback gets added to your Amazon Pay account for further transactions and payments. If you buy the OnePlus TV 55Q1 Pro, the return that you get as Amazon Pay cashback is Rs 15,000. If you are paying with an SBI credit card, you can avail a discount of Rs 1,500 on either of the OnePlus TV variants. This means the price of the OnePlus TV 55 Q1 becomes Rs 68,399 while the OnePlus TV 55 Q1 Pro will cost Rs 98,399.

And if you have an older TV to exchange, that will get you a maximum of Rs 2,050 depending on the screen size, age and brand of the TV. In the previous Amazon sale, this value was Rs 9,830 at best, which makes the current exchange offer look pale in comparison. You can also choose to avail the No Cost EMI option which includes credit cards from American Express, Axis Bank, ICICI Bank, Amazon Pay ICICI card, HDFC Bank, Citi Bank, SBI, IndusInd, Yes Bank, Kotak, RBL, HSBC and Standard Chartered, as well as select bank debit cards, Bajaj Finserv EMI cards and Amazon Pay EMI.

Some of the features that the OnePlus TV line-up packs in include Super Resolution, Contrast enhancement and support for Dolby Vision and Dolby Atmos technologies. The 55-inch QLED panel has the native 4K resolution. It also has the widest HDR support as well—for HDR10, HDR10+, HLG and Dolby Vision. Some of the features that the OnePlus TV line-up packs in include Super Resolution, Contrast enhancement and support for Dolby Atmos as well. While the feature set is largely the same across both TVs, the OnePlus TV 55 Q1 Pro also has an integrated slide-out soundbar-esque speaker system which has 8 speakers—two facing backwards and six facing towards the front, for wider sound and bass as well. The total sound output is rated at 50-watts. These TVs run Google’s Android TV, including popular streaming apps such as Netflix, Amazon Prime Video and Hotstar.

Over the past few months, OnePlus has rolled out updates that have significantly improved the picture quality as well as the overall user experience of the premium OnePlus TVs—something that was perhaps to be expected from first generation devices.