Tag: DigitalPayments

NPCI Launches UPI One World Wallet for International Travelers to India

Staff ReporterFinance 0

The National Payments Corporation of India (NPCI), which oversees India’s payment and settlement systems, has introduced a new wallet specifically designed for international travelers visiting the country. This innovative service, named ‘UPI One World,’ leverages India’s premier instant payments system, the Unified Payments Interface (UPI), to facilitate seamless digital payments for visitors.

The UPI One World wallet is being made available to delegates attending the World Heritage Committee meeting in New Delhi from July 21-31, 2024, thereby enhancing their overall experience at the event. This initiative will allow international visitors and the frequently traveling Indian diaspora to enjoy India’s rich culture, diverse cuisine, and various attractions without the need to carry cash or deal with the complexities of foreign exchange.

The process to obtain the wallet is straightforward. Travelers can acquire it at airports, hotels, money exchange points, and other designated locations after completing a verification process that requires a passport and a valid visa. Once set up, users can make payments at merchant locations by scanning QR codes using the UPI One World app. Additionally, any unused balance can be transferred back to the original payment source, adhering to foreign exchange regulations. This service is a collaborative effort by NPCI, IDFC First Bank, and Transcorp International Limited, and is regulated by the Reserve Bank of India.

“We are thrilled to offer the UPI experience to international guests visiting India through UPI One World,” said an NPCI spokesperson. “This move aims to enhance the experience for visitors by equipping them with UPI, the most preferred payment choice among Indians.”

“By enabling foreign travelers to experience the real-time payments system developed by India, we are taking a significant stride towards creating a more interconnected global digital payments ecosystem,” the spokesperson added.

This initiative underscores India’s expanding role in the global digital payments sector. In June 2024 alone, UPI processed nearly 14 billion transactions worth approximately US$ 240 billion. In 2023, UPI accounted for about 80 percent of all digital payment transactions in India, solidifying its position as one of the largest real-time payment systems globally.

The introduction of the UPI One World wallet is a significant development for international visitors. It offers a hassle-free, efficient way to manage payments during their stay in India. By using the UPI system, visitors can avoid the inconvenience of carrying large amounts of cash or dealing with currency conversion issues. The ability to transfer any unused balance back to the original payment source also provides a level of financial security and convenience that is highly appealing.

The collaboration between NPCI, IDFC First Bank, and Transcorp International Limited, with oversight from the Reserve Bank of India, ensures that the service is reliable and trustworthy. This partnership brings together significant expertise in digital payments, banking, and financial services, guaranteeing that travelers will have a seamless and efficient payment experience.

The NPCI spokesperson emphasized the importance of this service in enhancing the visitor experience in India. “We believe that UPI One World will significantly improve the way international travelers interact with India’s digital payment ecosystem. It is our goal to make their stay as comfortable and convenient as possible.”

By extending the UPI system to international visitors, NPCI is also promoting the global adoption of its digital payment solutions. This move is part of a broader strategy to position India as a leader in the global digital payments landscape. The impressive transaction volumes handled by UPI highlight its efficiency and widespread acceptance, making it an ideal solution for international travelers.

The launch of the UPI One World wallet by NPCI represents a major advancement in the digital payments sector. It not only provides international visitors with a convenient and efficient payment solution but also showcases India’s prowess in developing cutting-edge payment technologies. As UPI continues to grow and evolve, it is set to play a crucial role in shaping the future of global digital payments.

Paytm Plummets: Regulatory Woes and Market Turmoil Lead to Sharp Stock Decline

Staff ReporterBusiness, Finance/Economy 0

The once-thriving Paytm, a leading startup in India, has experienced a dramatic decline in the stock market this week, marking a continued plummet since its massive initial public offering (IPO) in 2021. Shares of the digital payment giant have undergone a staggering decline, hitting the maximum allowable decrease in Mumbai for two consecutive days, despite India’s stock markets reaching new highs. Since Wednesday’s closing, Paytm has tumbled by 36%, with a nearly 25% drop this year alone.

The company has faced significant challenges since its turbulent market debut in November 2021, failing to persuade investors of its potential profitability amid intensifying competition from domestic and international tech companies. Compounding its woes, regulatory issues emerged when the central bank prohibited its banking division from onboarding new customers two years ago.

With shares now trading at a mere 487 rupees (approximately $6) per share, the recent nosedive has erased a staggering $2 billion in market capitalization, leaving the company with a diminished valuation of only $3.7 billion. The latest downturn was triggered by additional regulatory actions from India’s central bank.

The Reserve Bank of India (RBI) recently instructed Paytm Payments Bank to cease accepting deposits and suspend other essential services due to “persistent non-compliances.” This directive, which caught the Indian tech community off guard, prompted Paytm to adopt damage control measures in an attempt to reassure investors and its vast user base of over 300 million.

However, despite pledges to swiftly address regulatory concerns and a subsequent conference call held after trading hours on Thursday, investor confidence continued to erode. According to Manish Chowdhury, head of research at brokerage firm StoxBox, the RBI’s directive poses a significant “reputational risk” to Paytm’s overall business and raises uncertainties about its future performance.

Founded in 2017 as a joint venture with founder Vijay Shekhar Sharma, Paytm initially operated as a payments bank, allowing deposits but not extending loans to customers. During Thursday’s conference call, Sharma downplayed the central bank’s actions as a temporary setback, asserting that Paytm will henceforth collaborate solely with other banks.

Paytm gained widespread recognition in 2016 when Indian Prime Minister Narendra Modi invalidated the nation’s two largest currency denominations, constituting approximately 86% of the country’s cash supply, as part of efforts to combat tax evasion and illicit wealth accumulation. Although the move caused significant disruptions to the economy, it fueled Paytm’s rapid expansion, attracting 10 million new users within a month and cementing its status as a household name in India.

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