Tag: NPCI

Finance

Axis Bank Launches India’s First Gold-Backed Credit Line on UPI via Freecharge

Tanisha Cardozo

Axis Bank, one of India’s largest private sector banks, has announced a groundbreaking new offering in collaboration with Freecharge: India’s first gold-backed credit line on the Unified Payments Interface (UPI). This pioneering product is set to redefine how secured credit is accessed in India, particularly for micro, small and medium enterprises (MSMEs), self-employed professionals, and merchants operating across urban and rural markets.

The offering enables users to avail instant credit against their gold holdings, transforming an age-old asset into a dynamic financial tool for modern digital use. The standout feature of the product is its integration with UPI, making both transactions and repayments simple, fast, and accessible from any UPI-enabled app, including Freecharge. Customers only pay interest on the utilized credit amount, ensuring a cost-effective way to manage cash flow, address urgent liquidity needs, or fuel business growth.

Existing Axis Bank customers with gold loan eligibility can avail this credit line through a completely digital journey, removing the need for physical branch visits after onboarding. The product is designed for seamless digital interaction—users can borrow and repay in real-time through UPI, with clear visibility into their credit line usage.

Speaking at the launch, Munish Sharda, Executive Director at Axis Bank, highlighted the innovation, stating that combining the trust of gold with the flexibility of UPI positions this product as a landmark in digital lending. It underlines Axis Bank’s commitment to expanding financial inclusion and pioneering secure credit solutions in the digital age.

This launch also aligns with the National Payments Corporation of India (NPCI)’s recent guidelines permitting credit lines on UPI, opening up new avenues for banks and fintech players to collaborate and deliver accessible credit. Sohini Rajola, Executive Director – Growth at NPCI, noted that the infrastructure now in place allows financial institutions to build simplified and secure digital credit products that are scalable across India.

With Axis Bank’s expertise in credit and its vast branch network, coupled with Freecharge’s fintech innovation and digital-first approach, this new offering brings together the best of traditional finance and modern technology. It provides an innovative, trusted, and user-friendly credit solution, significantly raising the standard for digital lending in the country.

This marks a significant step forward in India’s journey toward inclusive, technology-driven financial services, and opens new possibilities for individuals and businesses to unlock the value of their assets instantly, anytime, anywhere.

Business

UPI Crosses 20 Billion Monthly Transactions for the First Time in August 2025

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National | September 1, 2025

India’s Unified Payments Interface (UPI) has achieved a historic milestone by crossing 20 billion transactions in a single month for the first time in August 2025. This record underscores the country’s growing digital payments ecosystem and its leadership in fintech innovation.

According to the National Payments Corporation of India (NPCI), the surge was driven by increased adoption of digital payments across urban and rural markets, integration of UPI into global platforms, and rising trust in India’s cashless economy.

🔑 Key Drivers of Growth:

  • 📲 Widespread smartphone penetration and internet access.
  • 🛍️ Increasing use of UPI for retail, e-commerce, and utility payments.
  • 🌍 Expansion of UPI’s global footprint, enabling cross-border transactions.
  • 💳 Rising preference for instant, secure, and low-cost payments.

Over the past few years, UPI has become a cornerstone of India’s digital economy. From street vendors to large corporations, its adoption reflects inclusivity and convenience.

What This Means for India
Industry experts suggest this milestone not only cements UPI’s role as a national payments backbone but also strengthens India’s global positioning in digital finance. With ongoing innovations like UPI Lite, Credit on UPI, and international collaborations, transaction volumes are expected to rise further in the coming years.

Looking Ahead
As India accelerates toward a cashless future, UPI’s exponential growth signals a shift in consumer behavior and financial accessibility. The 20-billion mark is more than a statistic—it’s a testament to the success of India’s digital economy vision.

📖 Stay updated on fintech and innovation stories at allycaral.com

Finance

UPI Market Share in July 2025: PhonePe Leads the Digital Payments Race

Tanisha Cardozo

India’s UPI (Unified Payments Interface) ecosystem continues to grow rapidly, and July 2025 data shows a clear winner emerging in the digital payments race.

According to the latest numbers, PhonePe has secured a commanding 46.7% share of the UPI transaction volume, reaffirming its position as India’s leading payments app. Google Pay remains a strong contender at 36.2%, while Paytm trails at 7.1%. The remaining 10% is split among smaller players in the ecosystem, including banks’ own UPI apps and emerging fintech platforms.

📌 Key Highlights:

  • PhonePe leads the market with seamless integration and broad merchant support.
  • Google Pay remains a preferred choice for many due to its clean interface and strong brand trust.
  • Paytm continues to hold relevance but faces stiff competition from the top two players.
  • The “Others” category—at 10%—includes apps like Amazon Pay, BHIM, CRED, and banking apps.

India’s digital payment space is increasingly consolidated, with PhonePe and Google Pay collectively holding over 80% of the market. This duopoly reflects consumer preferences for reliability, cashback incentives, and a smooth user experience.

As UPI adoption deepens across tier-2 and tier-3 cities, players that innovate on ease of use and ecosystem integration will continue to thrive.

Business

UPI Alert: P2P ‘Collect Request’ Feature to Be Discontinued from October 1, 2025

Tanisha Cardozo

If you frequently use apps like PhonePe, Google Pay, or Paytm for sending or receiving money, there’s a major update you need to be aware of.

In a circular dated July 29, the National Payments Corporation of India (NPCI) has announced that the P2P “Collect Request” feature on UPI platforms will be discontinued from October 1, 2025.

What Is the P2P Collect Request Feature?

This feature allows UPI users to send a payment request to another user, often used to remind friends or family to share bills or pending payments. However, it has become a significant vector for scams and phishing attempts.

Fraudsters commonly use this to trick users into accepting fake requests under the pretense of emergencies or professional roles, leading to unauthorized debits from the victim’s account.

Why Is It Being Removed?

Despite a ₹2,000 limit per transaction, fraud cases have continued. NPCI has decided to remove the feature entirely for P2P payments to improve user safety.

From October 1, 2025, you’ll only be able to send money via:

✅ QR code scanning
✅ Selecting the contact number manually
✅ Entering the UPI PIN for authorization

Will Merchant Transactions Be Affected?

No. UPI collect requests from verified merchants like Flipkart, Amazon, Swiggy, and IRCTC will remain unaffected.
Users will still have to approve the request and enter their UPI PIN to complete the transaction, maintaining security protocols.

Key Takeaways for Users:

  • ❌ P2P UPI collect requests will stop from October 1, 2025
  • ✅ Continue using QR codes and contact-based UPI transfers
  • 🔒 The move aims to significantly reduce fraud risks
  • 🛍️ Merchant transactions will still function normally
Business

ICICI Bank to Begin Charging UPI Fees for Payment Aggregators from August 1, 2025

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In a move that could significantly reshape India’s digital payments landscape, ICICI Bank has announced it will introduce fees for payment aggregators on UPI (Unified Payments Interface) transactions, starting August 1, 2025.

This means that platforms acting as intermediaries—such as payment gateways and digital wallets—will now incur charges for processing UPI transactions through ICICI Bank infrastructure. While the bank has yet to publicly disclose the fee structure, the development is seen as a pivotal moment for India’s highly active and fast-growing digital payment ecosystem.

Why It Matters
India’s UPI system, developed by NPCI (National Payments Corporation of India), has so far offered zero-fee transactions to consumers and merchants, with banks and aggregators absorbing operational costs. However, with the sharp increase in transaction volumes and rising infrastructure costs, banks have long debated the need to monetize backend UPI services.

Implications for Fintech & Merchants
Payment aggregators like Razorpay, Paytm, PhonePe, and others may now need to adjust pricing models or absorb the costs, potentially affecting small businesses and merchants who rely on low-cost digital payment solutions.

Analysts say this move might also trigger a trend where other banks follow suit, bringing the long-standing debate on UPI monetization into the spotlight.

Consumer Impact
As of now, the fee is expected to apply only to payment aggregators, not end consumers. However, if aggregators pass on the costs, small transaction-based fees could become the norm in some segments.

Looking Ahead
This decision comes amid broader discussions by the Reserve Bank of India and NPCI about the sustainability of India’s digital payments infrastructure. ICICI Bank’s move will likely influence policy direction and business strategies in the months ahead.

Stay tuned to Allycaral for updates on how this change evolves and what it means for consumers, fintech platforms, and the Indian economy.