All banks set to align digital payment solutions under Bhim

All banks set to align digital payment solutions under Bhim
MUMBAI: Indian banks, both public and private, are set to bring their digital payment solutions under the umbrella of Bhim or the Bharat Interface for Money, in a move that could boost widespread adoption of the Unified Payments Interface (UPI). Banks will now display Bhim as a prefix to their own UPI applications in a bid to erase confusion among users. 
In turn, this will help promote UPI as the single means of payment for smartphone-based small value retail transactions, according to bankers who see this as a branding exercise similar to how merchants display payment options for credit and debit card users. “The UPI front end of the bank apps will be changed to include the name Bhim, though this will be a nomenclature change. Eventually everything will become part of the larger Bhim family,” said one bankers directly aware of the development.

“This should help clear all forms of confusion among merchants ac cepting UPI and consumers using UPI for payments.” Bankers in the know told ET that since BHIM has become synonymous with digital payments, it will also help people to identify with the application easily. Further, it will also give a single identity to all the UPI apps of the different banks. Also, this could give access to the promotional campaigns run by the government to the users of bank-led UPI apps which till now was restricted to Bhim users.

“Since there is a wide-scale transactions for peer-to-peer payments. Bhim ready mpaign a wide-scale promotion campaign being run around Bhim, it has been decided through consensus that all bank apps should be renamed under the aegis of Bhim,” said a senior public sector banker.

Read more   ↓

Bhim was launched by Prime Minister Narendra Modi, last December, as a government promoted UPI application to promote digital emerged as a direct competitor for bank-led UPI apps like Axis Pay, SBI Pay, as well as non-bank UPI players like Flipkart-owned PhonePe and internet major Google’s payment application Tez.

Now with the rebranding, bankled UPI apps, for example, are being renamed as Bhim SBI Pay, Bhim Axis Pay, and Bhim RBL Pay. 

National Payments Corporation of India which runs the BHIM application and manages the UPI railroads, has notified banks to place BhimUPI prominently at merchant checkout locations.

Industry executives are of the view that if every UPI app gets branded as Bhim, then it could have a major effect on merchant adoption of the payment interface and will also benefit non-bank payment platforms. As of now UPI adoption has mainly been driven by peer-to-peer transactions.

“All banking or non-banking UPI apps work on the same back end promoted by NPCI, since all these apps are interoperable the decision to market UPI as a common brand will help popularise it among the masses,” said Rahul Gochhwal, cofounder of Trupay.

Source by gadgetsnow..
Share:

loading...