CCAvenue gets UPI payments through ICICI Bank
Published by Medianama | 14th October, 2016
Payment gateway aggregator CCAvenue announced that it has tied up with ICICI Bank for UPI payments. With this, UPI will be available as a payment option for all CCAvenue merchants at traditional debit card rates, the company said in a statement.
CCAvenue has more than 1 lakh merchants and banks have been tying up with more payment gateway aggregators to get access to more merchants. Typically, there is a revenue sharing agreement with banks when a merchant does a UPI transaction (20 basis points as it is in the case with Razorpay). Note on the UPI, banks are allowed to charge a merchants a higher fee than compared to P2P payments.
Others payment aggergators with deals with ICICI Bank include:
- ftcash
- Instamojo
- MobiKwik's Zaakpay
The interchange fee (MDR) for debit cards is capped at 0.75% for transactions less than Rs 2,000 in India by the RBI. We have written to CCAvenue for further details of their partnership with ICICI Bank and will update once we hear from them.
The NPCI, on the other hand, has been pushing banks to focus more on person-to-merchant (P2M) payments. "We've made the UPI live on the P2P side, however, it holds great potential on the P2M side... P2P transactions are not that frequent from a consumer standpoint. It happens once or twice in a month," Dilip Asbe, COO of the NPCI said at an event last month.
CCAvenue and UPI 2.0
Earlier this week, the NPCI said that will be launching the second version of the UPI by March 2017. CCAvenue said that it be will be working with NPCI and its banking partners to roll out the second version. UPI 2.0 will be focused on integrating UPI with Aadhaar and the Bharat Bill Payment System (BBPS) to include features such as pre-authorized transactions through digital signatures and biometric authentication.
CCAvenue also has an in-principle nod to run an operating unit under the BBPS. CCAvenue said it will also offer interoperable bill payment services to customers, through a network of agents or online, providing multiple payment modes with instant confirmation of payment and integrate the UPI.
CCAvenue has more than 1 lakh merchants and banks have been tying up with more payment gateway aggregators to get access to more merchants. Typically, there is a revenue sharing agreement with banks when a merchant does a UPI transaction (20 basis points as it is in the case with Razorpay). Note on the UPI, banks are allowed to charge a merchants a higher fee than compared to P2P payments.
Others payment aggergators with deals with ICICI Bank include:
- ftcash
- Instamojo
- MobiKwik's Zaakpay
The interchange fee (MDR) for debit cards is capped at 0.75% for transactions less than Rs 2,000 in India by the RBI. We have written to CCAvenue for further details of their partnership with ICICI Bank and will update once we hear from them.
The NPCI, on the other hand, has been pushing banks to focus more on person-to-merchant (P2M) payments. "We've made the UPI live on the P2P side, however, it holds great potential on the P2M side... P2P transactions are not that frequent from a consumer standpoint. It happens once or twice in a month," Dilip Asbe, COO of the NPCI said at an event last month.
CCAvenue and UPI 2.0
Earlier this week, the NPCI said that will be launching the second version of the UPI by March 2017. CCAvenue said that it be will be working with NPCI and its banking partners to roll out the second version. UPI 2.0 will be focused on integrating UPI with Aadhaar and the Bharat Bill Payment System (BBPS) to include features such as pre-authorized transactions through digital signatures and biometric authentication.
CCAvenue also has an in-principle nod to run an operating unit under the BBPS. CCAvenue said it will also offer interoperable bill payment services to customers, through a network of agents or online, providing multiple payment modes with instant confirmation of payment and integrate the UPI.
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