HOME > BUSINESS > YES Bank leaves rivals behind in UPI implementation for merchants

YES Bank leaves rivals behind in UPI implementation for merchants

yesbank-trupayYES Bank, the newest entrant to India’s banking sector, has turned out to be the most aggressive when it comes to taking advantage of India’s new payment infrastructure called UPI or Unified Payment Interface.

While most banks are looking at UPI primarily as a replacement for cash transfer solutions like NEFT and IMPS, YES Bank is taking full advantage of the possibilities offered by the simple, real-time payment platform.

In addition to offering account-to-account money transfer, it is expanding UPI to the online payment and ecommerce industry by aggressively tying up with partners.

Because of its simple, easy-to-use and real-time nature, UPI can serve as a replacement for card-based as well as cash payments — something that YES Bank seems keen to take advantage of.

While other banks have restricted their UPI platform to their own apps, YES Bank has aggressively looked for partners to bundle its solutions. Among them is Flipkart, with which Yes Bank has come up with a payment app known as PhonePe.

Another app partner is TruPay — a private company which has enabled UPI payments using Yes Bank’s infrastructure. Both of these apps issue their users UPI ids ending with ‘@yesbank’.

YES Bank’s efforts are aimed at converting UPI from merely a money transfer solution to a payment solution and getting a pie of the lucrative online payment business.

“UPI is going to be a game changer, not just for the end consumers but also for the businesses,” YES Bank said.

At present, payments for ecommerce transactions are either carried out via credit and debit cards, net banking or cash on delivery.

While the first three involve typing out relatively complicated card numbers, passwords and one-time PINs sent via SMS, UPI payments can be completed by pressing the mobile phone five times — four times to enter a 4-digit PIN number and then finally to click on submit.

A typical card-based payment requires the entering of dozens of characters, including a sixteen digit card number, card expiry date, CVV and finally the six- or eight-digit one-time-password sent over SMS.

Similarly, cash-on-delivery involves a large cost for the ecommerce players as couriers who offer these services impose special charges for collecting the payment in addition to making the delivery.

“The Bank aims to replace Cash on Delivery (CoD) with digital payments for Flipkart, Myntra and Jabong,” Yes Bank said.

Another positive aspect of UPI is lower cost.

Card payments typically involve a cost of 1.5%-2.0% to the merchant, while UPI payment costs are much much lower.

This can save a huge amount of money to companies like Flipkart, who sell items worth billions of dollars every year.

“UPI based transactions will be cheaper in comparison to card and wallet transactions,” Yes Bank said.

Security levels also tends to be higher.

While many online retailers offer their customers the option of saving their credit and debit card details with them, such data — if leaked — could result in people losing money to overseas hackers.

However, with UPI, only the virtual ID is stored at the merchant’s end, and never the four-digit MPIN. Without the PIN, the ID cannot be used to make any transaction. Since the platform is completely Indian, it is also less vulnerable to overseas hacker misuse.

However, given the entrenched nature of relationship between banks and global payment platforms such as Visa and MasterCard, it remains to be seen how successful National Payments Corporation India is in pushing UPI as a widespread payment platform.

“We are delighted to see YES BANK taking innovative steps towards utilizing UPI platform to on-board large merchants,” said AP Hota, Managing Director & CEO, NPCI. “This will help percolate usage of UPI platform by retail customers.”

In addition to online retailers, YES Bank has also tied up generic payment platform providers such as Ezetap and Cashless Technologies. This can help in eliminating physical point of sale (POS) machines, the bank said.

Another area where the bank has made inroads is in offering its UPI services to ‘social payment’ apps such as MyPoolin, Paysay and Splikart.

Similarly, the app Trupay will utilize the UPI solution for broking/NBFC/Power Sector payments.

YES BANK will also power UPI based Education Fees Payments through a tie-up with Instafeez.

Similarly, Capital Float will be utilizing YES BANK’s UPI mechanism to collect payments from their SME borrowers. YES BANK is also engaging with Merchants on various other genres including Cab Aggregation, Mutual Funds, Insurance and other B2B use cases.

“Coupled with a strong innovative offering and execution focus, YES BANK aims to capture a large market as well as mind share of the digital payments ecosystem in the India,” it said.

Follow ULTRA.news
EU to invest Rs 1,300 cr in India’s solar and wind power via Yes Bank The European Investment Bank, the lending arm of the European Union, will invest $200 mln (Rs 1,283 cr) into the Indian solar and power sector via a deal with Yes Bank in order to support the growth of renewable energy in the country. The investment will be routed through a r...
Yes Bank raises Rs 2,600 cr from banks in Japan, Taiwan India's fifth largest private sector bank Yes Bank said it is raising $400 Mn -- about Rs 2,600 cr -- through two five-year syndicated loans from banks in Taiwan and Japan. It will raise $250 Mn from Taiwanese banks and 16.5 Bn Yen -- about $150 Mn -- from Japan. "YES BANK ...
Infibeam CCAvenue launches pan-India billing service on BBPS E-commerce solutions provider Infibeam said its unit Avenues India, which operates the payment service CCAvenue, has entered the bill payment service with the launch of a new service BillAvenue. The service has been built atop the Bharat Bill Payment System created by the Nat...
Yes Bank signs distribution agreement for Reliance General Insurance products Reliance Capital said its subsidiary Reliance General Insurance Company signed an agreement with YES BANK to distribute general insurance products to the customers of YES BANK. YES BANK is India’s 5 th largest private sector Bank with a network of 1040 branches across and will...
MobiKwik creates wallet app for bank even as rivals focus on payments bank Wallet app provider MobiKwik announced a tie-up with IndusInd under which it has launched an app exclusively for the bank's 10 mln customers. The move is in line with the app company's strategy to be a partner and solutions provider to traditional financial services companies...
JIO Wallet Offers: Paytm, Amazon, PhonePe give cashback on 399 recharge Wallet players like Paytm, Mobikwik, PhonePe and AmazonPay have come up with cash back offers for Reliance Jio users who want to take advantage of the Rs 399 recharge scheme valid till today midnight. Last week, India's largest wireless Internet provider said anyone rechargin...
Don’t ignore cards in the era of mobile payments – SBI The ongoing rollout of Bharat QR and other mobile payment systems could result in some pain for banks as it could make it harder for their card or PoS business to become profitable. According to an estimate by the State Bank of India, card swipe transactions cost significantl...
Yes Bank launches impulse buying app ‘Tap To Shop’ Trying to differentiate itself from regular ecommerce websites and apps, Yes Bank has launched an impulse buying app known as Tap To Shop. Unlike regular online shopping apps, Tap To Shop will be focused exclusively on delivering deals that are not available at most times. The...
SpiceJet chooses HSBC as its UPI partner SpiceJet has chosen HSBC Bank as its partner for receiving UPI payments on its website. UPI or Unified Payments Interface is an advanced, easy-to-use, cheap and real-time payment platform designed by the National Payments Corporation of India. Unlike more expensive payment ...
Yes Bank denies billion dollar QIP rumors Yes Bank, one of India's youngest, and fastest-growing banks, said it had no plans to go for a billion-dollar qualified institutional placement of its shares as reported by the media. The bank had tried to do a mega share sale in September last year, but the effort didn't find...
PayTM ropes in IIT Kanpur for ‘cashless campus’ PayTM, India's biggest mobile payment company and a minority subsidiary of Alibaba Group, said it partnered with Indian Institute of Technology Kanpur to bring its cashless payment solution to the country’s premier engineering college. Under the program, students will be able ...
Bharti Airtel to launch pan-India Payments Bank tomorrow Bharti Airtel, India's largest telecom company, will take a crucial step towards entering the financial services business as it launches its Payments Bank operation across India tomorrow. Payments Bank refers to a limited operations bank that can be primarily used for maki...
PayTM adds support for UPI payments Customers of PayTM, India's largest wallet service can now make payments using the Unified Payments Interface, the government of India's open payments platform. The company has signed up with ICICI Bank be able to receive payments from its customers who are on the UPI platform...
After Freecharge, Axis Bank wins virtual POS provider Paynear for its UPI platform Paynear, which helps shopkeepers and businesses to accept card payments without buying a point-of-sale (POS) machine, has tied up with Axis Bank to implement support for UPI or Unified Payment Interface. UPI allows users to send and receive money and make payments using IDs th...
Three lakh Amul outlets to start accepting MobiKwik payments MobiKwik, Indian mobile wallet major, today announced its tie up with Amul, the Indian dairy cooperative. The association will help customers of Amul in making cashless payments with MobiKwik at 7000 Amul outlets and 3 lac Amul Multi brand outlets & retailers across India....
PayTM fraud not related to wallet service PayTM, India's largest wallet company, has been cheated to the extent over Rs 6.15 lakh by 48 customers claiming illegal refunds for goods they already received. The fraud does not involve any leakage of money from the wallet service, but is centered around claiming illegal re...
PayTM hit by Rs 6.15 lakh fraud PayTM, India's largest wallet company, has been cheated to the extent over Rs 6.15 lakh by 48 customers claiming illegal refunds for goods they already received. A case has been registered with the Central Bureau of Investigation, which is currently looking into the matter. ...
BEST bus users can now pay using Freecharge and Ridlr Freecharge, owned by Snapdeal, said users of BEST public transport buses in Mumbai can pay for their tickets using its wallet service. This has been achieved by tying up with Ridlr, the official mobile ticketing app partner of BEST. "BEST commuters can now pay for thei...
Domino’s Pizza starts cashless facility for phone orders Domino's Pizza has started cashless payment facility for those who order by phone as well. "Post demonetization, we have seen many customers choosing to order online. Consumers coming to our restaurants to dine in or carry out are able to pay With Credit caras or Wassets. Howe...
Freecharge ties up with ICICI Bank to offer POS services Snapdeal-owned FreeCharge has tied up with ICICI Bank's Merchant Services, which will allow consumers to pay their bill at over 1 Lakh ICICI stores with their Freecharge accounts. These merchants are located at across 700 cities and towns in India, the company said. "FreeC...