Payment is no longer a protected territory of few large financial institutions (FI) and intermediaries. An evolving eco-system with technology players in the mix, and their rapid innovation, are continuously disrupting ways of making payments, ease of accepting cashless payments and the experience around it.
Regulatory moves from financial bodies are increasingly lowering entry barriers for Fintechs – be it democratization of customer data thru PSD2 directive in the UK or UPI (Unified Payment interface) based Payments in India. A regulation in the like of PSD2 shifts the control of customer data from FI to customer herself, and, necessitates building a new market place of API based Open Banking system; legacy players are not left with choices but to be part of the eco-system to stay relevant.
UPI platform by NPCI (National Payments corporation of India) is enabling road-side tea-sellers or small vegetable vendors to accept computer science and engineering payments and bringing banking service, like money transfer, to a wider audience. A low-cost UPI based payment with no MDR (merchant discount rate) imposed, that saw a hopping growth rate of 55% last year, questions existence of the costly 4-party payment system and challenges the legacy payment industry to revisit its revenue model.
Regulatory moves from financial bodies are increasingly lowering entry barriers for Fintechs – be it democratization of customer data thru PSD2 directive in the UK or UPI (Unified Payment interface) based Payments in India. A regulation in the like of PSD2 shifts the control of customer data from FI to customer herself, and, necessitates building a new market place of API based Open Banking system; legacy players are not left with choices but to be part of the eco-system to stay relevant.
UPI platform by NPCI (National Payments corporation of India) is enabling road-side tea-sellers or small vegetable vendors to accept computer science and engineering payments and bringing banking service, like money transfer, to a wider audience. A low-cost UPI based payment with no MDR (merchant discount rate) imposed, that saw a hopping growth rate of 55% last year, questions existence of the costly 4-party payment system and challenges the legacy payment industry to revisit its revenue model.
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