Paytm Payments Bank signs up as acquiring partner for e-RUPI service
What is the news :
- Paytm Payments Bank Limited (PPBL) has become an official acquiring partner for e-RUPI vouchers, further making it accessible at offline stores across the country.
- e-RUPI, which is a government initiative, is a cashless prepaid voucher that beneficiaries can present via SMS or QR Code.
- Paytm’s merchant partners can then scan, enter the amount to be paid and receive the payment directly in their bank account.
- This will benefit beneficiaries (users), even those who do not have access to formal banking services or smartphones to avail the convenience of digital payments.
- PPBL has also partnered with One97 Communications Limited (OCL), the company that owns Paytm, to leverage the latter’s strong merchant base.
Improving accessibility to digital
- With this, merchants will be empowered with another digital payment collection method that will help them further increase their digital footprint and onboard more customers.
- With the acceptance of e-RUPI vouchers, merchants across the country will be able to promote cashless payments, which will further drive the government’s mission of introducing more Indians to the digital economy.
- PPBL is empowering merchants to accept e-RUPI vouchers, which gives it an opportunity to tap into a larger user base that is a beneficiary of this initiative.
- This will further encourage more merchants to embrace cashless transactions, leading to an increase of digital payments.
- The Reserve Bank of India (RBI) had recently increased the cap of e-RUPI vouchers issued by the government to ₹1 lakh per year from ₹ 10,000 and allowed beneficiaries to use the voucher multiple times until fully redeemed.
- PPBL has been profitable for three years in a row and recorded a 25.8 per cent increase in profit after taxes to ₹37.5 crore in FY21, up from ₹29.8 crore in FY20. The bank’s annual revenue for FY21 stood at ₹2,200 crore.
About e- Rupi
- e-RUPI is basically a digital voucher which a beneficiary gets on his phone in the form of an SMS or QR code. It is a pre-paid voucher, which he/she can go and redeem it at any centre that accepts its.
- For example, if the Government wants to cover a particular treatment of an employee in a specified hospital, it can issue an e-RUPI voucher for the determined amount through a partner bank.
- The employee will receive an SMS or a QR Code on his feature phone / smart phone. He/she can go to the specified hospital, avail of the services and pay through the e-RUPI voucher received on his phone.
- Thus e-RUPI is a one time contactless, cashless voucher-based mode of payment that helps users redeem the voucher without a card, digital payments app, or internet banking access.
How is e-RUPI advantageous to the Consumer ?
- e-RUPI does not require the beneficiary to have a bank account, a major distinguishing feature as compared to other digital payment forms.  It ensures an easy, contactless two-step redemption process that does not require sharing of personal details either.
- Another advantage is that e-RUPI is operable on basic phones also, and hence it can be used by persons who do not own smart-phones or in places that lack internet connection.
What are the benefits of e-RUPI for the sponsors.
- e-RUPI is expected to play a major role in strengthening Direct-Benefit Transfer and making it more transparent. Since, there is no need for physical issuance of vouchers, it will also lead to some cost savings as well.
What benefits accrue to the Service Providers.
- Being a prepaid voucher, e-RUPI would assure real time payments to the service provider.
Important :
- e-RUPI is a digital solution was launched by the PM via video conferencing to allow cashless payment solution for COVID-19 vaccination.
- The digital payment solution has been developed with the support of DFS (Department of Financial Services) and NHA (National Health Authority) and is powered by National Payments Corporation of India (NPCI).
- eRUPI voucher is going to play a huge role in making Direct Benefit Transfer (DBT) more effective in digital transactions in the country and will give a new dimension to digital governance.Â
About paytm payment bank :
- Paytmis an Indian multinational technology company that specializes in digital payment system, e-commerce and financial services.
- Founded – August 2010
- Headquarters – Noida
- CEO – Vijay shekhar Sharma.
- President – Amit Nayyar
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