Latest news with #Mobikwik
Time of India
13-06-2025
- Business
- Time of India
Centre's no MDR stance derails fintech's UPI monetisation plans
Live Events The Ministry of Finance's clarification that there was no plan to reintroduce the merchant discount rate (MDR) on payments done via Unified Payments Interface has dampened the monetisation plans that payment firms had around the popular payment of listed payment firms fell Thursday, a day after the ministry said speculations about the return of the fee for processing UPI payments were 'completely false, baseless and misleading'. One 97 Communications , which runs the payment platform Paytm , closed 6.8% lower at Rs 895.15 on the BSE. One Mobikwik Systems, which operates the Mobikwik application, ended 2.6% down at Rs 274.15.'It will be business as usual since we have been operating without MDR for a few years now. But there was hope in the industry that MDR would be brought back at least for big-ticket transactions; now that is gone,' the chief executive of a major payment processor said on the condition of anonymity.A senior banker who leads the payments function at a private sector lender pointed out that once the government has got the merchant ecosystem used to free digital payments, bringing back the system was always going to be a the last two months, the industry circle was abuzz with conversations around the government seriously considering bringing back MDR, but only for large purchases.'Obviously, we do not know much, and we will not like to predict how the government is looking at it, but we definitely see talks of MDR coming on UPI,' Paytm chief executive Vijay Shekhar Sharma said during the company's FY25 analyst call. He said it could help in building monetisation opportunities from the core payments business for firms like insiders also pointed out that fintech firms have been encouraging customers to move to instruments like mobile wallets or prepaid payment instruments (PPIs) and credit cards, which are MDR generating instruments.'MDR on PPI-UPI, something that is already in motion from the RBI and it is under discussion in the payments ecosystem across multiple industry players and should go live soon. From our perspective, it will definitely bring a new source of revenue, which today we are not getting,' Mobikwik cofounder Bipin Preet Singh said during the FY25 analyst listed firms were talking about projected revenue opportunities, the ministry clarification on MDR could have an impact on fintech IPOs lined up for the coming reported on May 19 that PhonePe gets 95% of its revenue from digital payments and UPI payments is a core aspect of that business. The company is in the process of filing for an IPO in the second half of the current year. Merchant payments company Pine Labs, which is set to file its draft IPO papers this month, gets a significant share of payments via UPI. For Razorpay, another company planning to go public by 2026, UPI accounts for a significant chunk of business.'We have seen almost all forms of innovation and new investments stop in the core payments business. There was hope in the industry that some of it would come back, but it seems that is also gone,' said the founder of another payments firm.
Time of India
12-06-2025
- Business
- Time of India
Paytm, Mobikwik shares slip; US onsite visas stall
Paytm, Mobikwik shares slip; US onsite visas stall Also in the letter: Paytm, Mobikwik shares drop after government denies MDR on UPI Driving the news: Paytm shares fell as much as 10% intraday, briefly erasing Rs 6,123 crore in market cap, before recovering slightly to close 6.56% down at Rs 897.20. Mobikwik shares dropped 3% to Rs 273.05 during trade, before closing 2.68% lower at Rs 273.95, reducing its market value to Rs 2,128 crore. Backdrop: Earlier media reports suggested the government may introduce MDR charges on UPI transactions above Rs 3,000. During recent earnings calls, Paytm executives had voiced cautious optimism about MDR returning, which could benefit payment companies grappling with rising infrastructure costs. But the Finance Ministry dismissed these reports, calling them 'completely false, baseless, and misleading.' By the numbers: UPI processed 18.68 billion transactions worth Rs 25.14 lakh crore in May, up 33% year-on-year. Average daily transaction value stood at Rs 81,106 crore, with 602 million daily transactions. For FY24, UPI accounted for 80% of India's retail digital payments. Also Read: Why it matters: Also Read: US onsite visas stall for Indian techies amid slowdown, immigration pressure What's the story: Firms such as TCS, Infosys and Wipro have kept hundreds of approved candidates on hold, waiting for travel approvals or visa stamping, people familiar with the matter told ET. At one IT firm, nearly 600 employees selected for assignments in 2023-24 are still waiting for deployment. The reasons: Subcontracting costs — traditionally used to bridge talent gaps — have declined, as firms optimise general and administrative expenses, according to Kotak Institutional Equities. The numbers: The US issued 11,080 H-1B visas to Indian nationals in April, 11,067 in March, and 13,749 in February, per US State Department data. The annual cap for Indian H-1B visa allotments remains at 85,000. Why it matters: Also Read: Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: OpenAI in fresh funding talks with Saudi PIF, Reliance The latest: The company is looking to secure $30 billion in the second tranche by December, which would value it at about $260 billion pre-money, the report said. SoftBank, which leads the round, has already invested nearly $2 billion and bought another $240 million worth of shares from employees earlier this year. SoftBank is expected to commit about three-fourths of this tranche, while Coatue and Founders Fund may invest at least $100 million each, according to the report. Talks with PIF and Reliance are still in early stages and may evolve, The Information added. OpenAI wants to partner with Reliance to distribute and sell its AI products in India, which CEO Sam Altman has called its second-largest user market. India context: In February, Altman visited India and met government officials and business leaders, including executives from Reliance. As reported by ETtech, OpenAI has also partnered with India's Ministry of Electronics and IT (MeitY) to launch OpenAI Academy India, focused on AI skill development. Separately, Reliance Jio is expanding its AI infrastructure ambitions through investments in data centres, a potential future avenue for collaboration with OpenAI. Also Read: Between the lines: The massive fundraise comes as OpenAI projects capital spending of $90 billion between 2025 and 2027, driven by soaring compute needs as ChatGPT's weekly active users crossed 500 million. Completion of the round hinges on OpenAI completing a corporate restructuring of its for-profit unit by year-end. If that fails, SoftBank may cut its commitment and reduce the round to $20 billion, per the report. The Stargate project, OpenAI's $500 billion global AI data centre buildout with SoftBank, MGX and Oracle, remains a parallel track. Indian semiconductor firms go global to fast-track chipmaking ambitions Driving the moves: Tata Electronics and L&T Semiconductor Technologies (LTSCT) have made strategic bids to acquire foreign chip assets. LTSCT and Kaynes Semicon are jointly acquiring Fujitsu General Electronics' power modules business in Japan for Rs 118.34 crore. Polymatech acquired US-based semiconductor equipment provider Nisene Technology last year to build an integrated manufacturing base. The big picture: Indian firms are eyeing advanced packaging, OSAT (outsourced semiconductor assembly and test), and precision manufacturing capabilities to upskill local talent and establish robust training pipelines. India already has strength in chip design, but access to specialised IP, equipment and know-how remains limited. Why Malaysia matters: Expert view: 'Most acquisitions and partnerships at the moment are really about two things: gaining access to trained talent – essentially acqui-hires – and jump-starting work on cutting-edge technologies,' said Prithvideep Singh of Continental Device India Ltd (CDIL). 'All the JVs and strategic partnerships are a result of the need for Indian entities to build their core competency with best in class proven technology and manufacturing processes,' added Neil Shah of Counterpoint Research. Why it matters: Musk's net worth edges up after Trump apology Catch up quick: Backstory: The tensions stemmed from Musk mocking Trump's economic policy proposals, referring to his spending bill as 'The Big Ugly Bill.' Musk had also stepped down from the Department of Government Efficiency before launching several critical posts. What Trump said: Meanwhile: Also Read: Paytm and Mobikwik stocks slide after MDR rumour sparks selloff. This and more in today's ETtech Top 5.■ OpenAI seeks fresh funds■ Indian semicon goes global■ Musk's apology worksShares of digital payments players Paytm and Mobikwik slipped on Thursday after the finance ministry denied media reports that it was considering levying a merchant discount rate (MDR) on UPI fintech players argue that MDR is needed to sustain payment infrastructure, the government remains firm on keeping UPI free for consumers and merchants to promote digital payments at IT majors are pausing deputations to the US, delaying onsite assignments for thousands of skilled workers even after visa clearances, amid softening client demand and tighter immigration US immigration policies remain tight, executives say business uncertainty and slowing client budgets are bigger factors driving caution. AI-led efficiencies are also shrinking the need for extensive onsite onsite assignments have historically been critical for employee retention and career growth in Indian IT. But with delayed deputations extending to 24 months for many, firms are now prioritising previously selected employees over fresh nominations for Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship has held discussions with Saudi Arabia's Public Investment Fund (PIF), Reliance Industries and UAE's MGX to raise fresh capital as part of its $40 billion megafund , US tech publication The Information chipmakers are turning to overseas acquisitions to bridge capability gaps as they push to build a domestic semiconductor ET reported on June 3 , Tata Electronics is exploring OSAT or fab acquisitions in Malaysia to accelerate its entry into semiconductor manufacturing and domestic semiconductor fabs remain years away, strategic overseas acquisitions are helping Indian companies fast-track capability building in advanced packaging — a crucial step for future global Musk's net worth climbed slightly after his public apology to Donald Trump over recent comments, as the two leaders sought to patch up wealth rose by $191 million to reach $411.4 billion, according to Forbes' real-time tracker. The Tesla CEO posted on X : 'I regret some of my posts about President @realDonaldTrump last week. They went too far.'After the apology, Trump told the New York Post: 'I thought it was very nice that he did that.' White House Press Secretary Karoline Leavitt confirmed Trump appreciated Musk's has unveiled a new 'Trump Card' US residency visa programme priced at $5 million, with registrations open on The programme, still under development, promises wealthy applicants a path to US residency, though details remain scarce.
Time of India
12-06-2025
- Business
- Time of India
Paytm, Mobikwik shares tumble after finance ministry rules out MDR on UPI transactions
Investors sold Paytm and Mobikwik shares on Thursday, a day after the Finance Ministry denied reports of charges on UPI transactions. Paytm shares dropped 10% in trade today, before recovering later. The stock was trading 6.56% lower at Rs 897.20 as of 2:30 p.m. The company's market capitalisation dropped as much as Rs 6,123 crore to an intraday low of Rs 55,123 crore, but later returned to Rs 57,233 crore. Meanwhile, Mobikwik shares fell 3% to an intraday low of Rs 273.05 per share. As of 2:35 p.m., the counter was down 2.68% at Rs 273.95. The company's market value dropped to Rs 2,121 crore, before recovering slightly to Rs 2,128 crore. On Wednesday media reports claimed that the government was planning to levy a Merchant Discount Rate (MDR) on transactions exceeding Rs 3,000 via the Unified Payments Interface (UPI). Over the last few months, the digital payments industry has been abuzz about MDR coming back on UPI. During their FY25 results call with stock market analysts, senior executives at Paytm had expressed optimism about the government considering such a move. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Kulkas yang belum Terjual dengan Harga Termurah (Lihat harga) Cari Sekarang Undo The ministry later clarified that no such plan is under consideration. 'Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading. Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens. The Government remains fully committed to promoting digital payments via UPI,' a Finance Ministry post on X said. Live Events MDR is a levy charged on a merchant for processing debit and credit card transactions. UPI and RuPay debit card payments have been exempted from this charge since the presentation of Union Budget 2019-20 to promote digital transactions. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories To support payment ecosystem participants, incentives for the promotion of RuPay debit cards and BHIM-UPI transactions (P2M) up to Rs 2,000 were announced in March. However, banks and fintechs have called the incentives insufficient and want MDR brought back for such transactions to sustain infrastructure and maintenance costs. Scale of UPI UPI processed 18.68 billion transactions worth Rs 25.14 lakh crore in May, marking a 33% increase over the year-ago period. The average daily transaction amount stood at Rs 81,106 crore, with 602 million daily transactions. For the fiscal year ended March 2024, UPI accounted for 80% of India's retail digital payments.
Mint
03-06-2025
- Business
- Mint
New HDFC credit card rules: Utility payments beyond limit to face extra charges
HDFC Bank has announced a slew of changes in its credit card transactions that include new charges on wallet loading using third party apps, online skill-based gaming transactions and utility payments beyond the specified limit. The revised charges will be applicable from July 1. 'If you load third-party wallets with more than ₹ 10,000 per month on platforms like (but not limited to) PayTM, Mobikwik, Freecharge, or Ola Money using your credit card, a 1% charge will apply,' HDFC Bank said in its communication to credit card customers. 'The charge will be applicable on the entire wallet loading spend for the month and will be capped at ₹ 4999 per month,' it said. For utility transactions, a charge of 1% will apply if you spend more than ₹ 50,000 per month using your personal credit card (consumer cards). The 1% charge will apply if you spend more than ₹ 75,000 per month using business credit cards. 'The charge will be applicable on the entire utility spend for the month and will be capped at ₹ 4999 per month,' HDFC Bank said. 'Insurance transactions won't be considered as utility transactions hence no charge will be applicable,' it said. The bank has also capped reward points on insurance transactions on its popular credit cards. While the reward points on insurance transactions has been capped at 10000 per month on Infinia and Infinia Metal credit cards, it has been fixed at 5000 per month for Diners Black, Diners Black Metal and Biz Black Metal cards. For all other cards, the limit has been fixed at 2000 per month. Marriott Bonvoy cards, however, will not have capping on reward points for insurance transactions. HDFC Bank has fixed the maximum charge per transaction for rent, fuel and education categories at ₹ 4999. 'Kindly note that the existing charge of 1% will continue to be applicable on all rent transactions, only on fuel transactions more than ₹ 15000/ ₹ 30000 per transaction and only on education transactions done via third-party apps,' it said. 'If you make payments through college/school websites or their POS (Point of Sales) machines, there will be no charges,' HDFC Bank said. 'If you spend more than ₹ 10,000 per month on platforms like (but not limited to) Dream11, Rummy Culture, Junglee Games, or MPL, a 1% charge will apply,' the bank said. 'The charge will be applicable on the entire online skill-based gaming spend for the month and will be capped at ₹ 4999 per month. No reward points will be earned on online skill-based gaming transactions,' it said. Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.
Hans India
01-06-2025
- Business
- Hans India
Private banks to hike charges on credit card, banking services from July 1
Starting July 1, major private sector banks like HDFC Bank and ICICI Bank will increase charges on various credit card and banking services. Both banks have informed their customers about the changes through official notifications. HDFC Bank has announced new charges for credit card users, especially for transactions involving online gaming, digital wallets, and utility payments. If a customer spends more than Rs 10,000 in a month on online skill-based gaming platforms such as Dream11, Rummy Culture, Junglee Games, or MPL, a 1 per cent fee will be charged on the total monthly spend in this category. The charge will be capped at Rs 4,999 per month. Additionally, no reward points will be given on such gaming transactions. Similarly, if a customer loads more than Rs 10,000 in a month into third-party wallets like PayTM, Mobikwik, Freecharge, or Ola Money using their HDFC credit card, a 1 per cent charge will apply to the entire amount. This fee will also be capped at Rs 4,999 per month. For utility payments, if the total spending goes beyond Rs 50,000 in a month, a 1 per cent charge will be added, again with a monthly cap of Rs 4,999. However, HDFC Bank has clarified that insurance payments will not be treated as utility payments, so no extra charge will be applied in such cases. The bank has also revised maximum charges for rent, fuel, and education transactions. The upper limit for charges in these categories will now be Rs 4,999 per transaction. The 1 per cent fee on rent payments will remain unchanged. Fuel transactions above Rs 15,000 will be charged 1 per cent, while education payments made directly through official college or school websites or their card machines will not be charged. ICICI Bank has also made changes in several service charges. The fee for depositing cash, cheques, or for DD (demand draft) and PO (pay order) transactions has been changed. Now, customers will be charged Rs 2 per Rs 1,000, with a minimum fee of Rs 50 and a maximum of Rs 15,000. Earlier, the bank charged Rs 50 for amounts up to Rs 10,000 and Rs 5 per Rs 1,000 beyond that. ATM usage fees have also gone up. After three free ATM transactions at other bank ATMs, ICICI will now charge Rs 23 for financial transactions and Rs 8.5 for non-financial ones. Previously, the financial transaction fee was Rs 21. For ICICI Bank's own ATMs, regular savings account holders will now pay Rs 23 for each financial transaction beyond the first five in a month, up from Rs 21 earlier. Additionally, the annual fee for ICICI Bank debit cards has increased from Rs 200 to Rs 300. The fee for a replacement debit card has also gone up from Rs 200 to Rs 300.
