Fintech Giants Join RBI’s Digital Rupee Pilot, Target 5M Users and 420K Merchants
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Google Pay, Amazon Pay, and PhonePe, backed by Walmart, are looking to join India’s central bank digital currency (CBDC) initiative led by the Reserve Bank of India (RBI). This move is part of an effort to make digital payments more widespread and accessible.
The goal is to use the e-rupee to facilitate transactions through these popular payment platforms, which will help increase the number of transactions and provide more options for users beyond traditional banks.
Google Pay, Amazon Pay, and PhonePe, backed by Walmart, are looking to join the Reserve Bank of India's (RBI) e-rupee initiative. The goal is to boost transactions through the e-rupee, which was launched in December 2022.
Initially, only banks were allowed to facilitate e-rupee… pic.twitter.com/I0gcTVRh6w
— ThuanCapitalGlobal (@ThuanGlobal) August 6, 2024
In addition to these major players, other fintech companies like Cred and Mobikwik are also interested in participating in the CBDC project. By including these firms, the RBI hopes to expand the reach of digital payments, making it easier for people to use the e-rupee for everyday transactions.
This initiative aims to modernize and streamline the payment system in India, enhancing convenience and efficiency for consumers.
Therefore, the inclusion of major payment platforms and fintech firms in India’s CBDC project could boost digital transaction volumes and enhance market efficiency. Investors may see increased interest in digital payment technologies and related stocks.
The news also highlights the growing adoption of digital currencies and their potential market impact.
Indian Fintech Giants and Payment Platforms Join RBI’s Digital Rupee Pilot to Boost Usage
Indian fintech companies Cred and Mobikwik, along with major payment platforms like Google Pay, Amazon Pay, and PhonePe, are applying to join the Reserve Bank of India’s (RBI) digital rupee pilot. It should be noted that RBI introduced the e-rupee in December 2022 to modernize digital transactions.
Although there was an initial boost in usage, e-rupee transactions have recently dropped, highlighting the challenges central banks face in encouraging digital currencies.
At first, only banks could handle transactions with India’s digital currency, the e-rupee. But starting in April, the Reserve Bank of India (RBI) allowed payment companies and fintech firms to join in, as long as they got approval. This change is meant to make it easier for more people to use the e-rupee by including popular payment apps and financial technology services.
The aim is to increase the number of digital transactions by making the e-rupee available to more people. Companies that already manage over 85% of UPI transactions, which total about 13 billion per month, are working with the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to add e-rupee support to their services. This means that soon, you’ll be able to use these popular apps for e-rupee transactions, making digital payments more convenient and widely used.
India’s Digital Rupee Gains Traction with 5 Million Users and 420,000 Merchants
As of June, five million people in India have started using the digital rupee, and 420,000 businesses accept it in a trial program. The digital rupee is meant to work alongside regular cash and current payment methods. It’s designed to help both businesses and everyday users by providing an additional option for transactions.
To boost India's digital rupee and provide transaction options outside of traditional banks, #Google Pay, #AmazonPay, and #PhonePe have partnered with the #RBI. https://t.co/z7m3kgoAJI pic.twitter.com/Q4XnUIdPEh
— Cryptonewsland (@cryptonewsland) August 7, 2024
The Reserve Bank of India (RBI) aims for the digital rupee to work alongside existing financial methods, enhancing the convenience of transactions for everyone. This initiative is part of a broader effort to modernize payments and make them more efficient for both large-scale and everyday transactions.
Therefore, the adoption of the digital rupee by five million users and 420,000 merchants signifies growing acceptance and usage of digital currencies in India. This development may boost investor confidence in digital payment technologies, potentially drive increased market activity, and further support the modernization of India’s financial systems.
