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It seems UPI apps are cleaning themselves. Phonepe got a fresh new look.
Half Human
TF Ace
Trying to stay afloat and survive by placing a lot of features that have been there already, onto eyecatchy positions.
Cred app is all about it. 🤓
Cred app is all about it. 🤓
Half Human
TF Ace
Upi won't fetch them any money naa??
All the money are from recharges and cross selling
Yes, that is true. And most of the apps struggle to generate profit due to that reason. Phonepe revenue is over 5000 cr but still they are in loss. But their high market share gives them the best opportunity to cross sell and generate actual profit.
Half Human
TF Ace
The irony is that The government wants them to drop there shares to less than 30% to make market place even. Their hard earned market share!!!..
Well I really don't see future to these companies , apart from free upi service, which when monetized loses USP.
Half Human
TF Ace
I wonder why phonepe is co-branding with any bank for upi reward CC??
They obviously have the highest market share? Then why not go for co branded CC??
They obviously have the highest market share? Then why not go for co branded CC??
This is so funny how we businessmen and economists, fool scientists, engineers, doctors, lawyers and aam admi (common people) etc. 🤣🤣
A few days ago, there was an article mentioning a burden of 4000 crores, and now it has increased to 5000 crores - https://www.informalnewz.com/upi-pa...or-using-upi-payment-app-check-details/?amp=1
Note - The government keeps adjusting subsidies, increasing them later if necessary.
The claim of a ₹4,000 crore burden or ₹5,000 crore is just an illusion.
The total cost of operating and maintaining an instant payment system like UPI is around ₹1,000 to ₹1,500 crore.
And I'm talking about all transactions. Yet, this article is saying the burden of transactions below ₹2,000 is ₹4,000 crore.
Other UPI services like AutoPay, International, B2B, B2C, IPO, etc., all have MDR charges, but customers don’t have to pay them.
Now, the government has already stated that "UPI is for the public good and hence we don’t charge for using it."
What does this mean? Simply that the government wants to run it on a no-profit, no-loss basis.
Businesses, on the other hand, want to profit from it—CEOs’ salaries to increase by crores, and investors to buy more yachts and islands.
That’s why I said this ₹4,000 crore or ₹5,000 crore burden is an illusion.
Last year, Moneycontrol reported an ₹8,000 crore burden, and people started sharing it on Twitter. 🤣🤣
The year before that, Axis Bank’s CEO also mentioned a ₹3,000 crore burden. 🤣🤣
These numbers don’t really mean anything.
And just a few months after Axis CEO mentioned a ₹3,000 crore burden, Axis Bank invested even more crores in UPI expansion.
Thank God we have some sensible journalists in India who started questioning Axis Bank's UPI expansion investment (I think this article was on Mint), asking why the Axis CEO made such a big drama earlier. If UPI was causing losses for Axis, why are they continuing to invest in it?
Now What's the reality ?
Note - If UPI is truly being treated as a public good and is meant to run on a no-profit, no-loss model, then the reality is far from what is being claimed.
Now, the important point: apps like PhonePe get only 0.02% MDR. Do you really think a company like PhonePe, with a $12 billion valuation, can become profitable with just 0.02% UPI MDR?
UPI app companies see UPI as a customer acquisition tool. They don't incur any losses, nor can UPI ever make them profitable.
Private companies always wants to make profits from everywhere.
If you still don’t understand, let me share another recent interesting news.
In the USA, there was a bill in Congress (US Parliament) to reduce the MDR for Visa/Mastercard.
Visa/Mastercard always argue that lowering the MDR would increase security risks and fraud because it would reduce the companies' profits.
How much would their profits decrease? Well, Visa alone made $19.743 billion in profit last year.
If the MDR was reduced, Visa might face a loss of around $1 billion, but the company would still earn over $18 billion.
Visa/Mastercard presented this argument, and US ministers agreed.
Of course, there were also allegations of bribery worth around $100 million against Visa/Mastercard. Which they gave to the US ministers.
Yet, people were convinced by the idea that Visa/Mastercard would suffer losses.
So, like i said Businesses always want to profit from it—CEOs’ salaries to increase by crores, and investors to buy more yachts and islands.
If you guys also want bank CEOs to go on another Europe vacation, or if you want to like and follow the bank CEO's daughter on Instagram in a bikini, then sure, let’s believe UPI is causing a ₹5,000 crore loss, dude.
And remember, this isn’t a personal joke like ‘liking and following the bank CEO’s daughter in a bikini on Instagram,’ because even she wants to grow her followers to get brand sponsorships. Otherwise, she’d keep her account private.
Nothing personal, everything is business.
Yes, obviously these apps are earning from other means, else how will Phonepe have a revenue of 5000 cr. UPI is basically the customer acquisition tool for these companies. And once the customer is onboarded on these apps, it is a goldmine for cross selling and up selling. Imagine the amount of data these companies can process which includes bank details, transactions, purchase patterns, credit scores, and what not. Loan and insurance companies would beg for such a database.
So basically
UPI = Customer Acquisition
Other Services = Sales and Profitability.
Centurion_wala
TF Premier
Well, I think it’s already great, just needs to be optimised a little bit and add some new features like ability to pay at Bharat QRs with linked cards & get custom upi id feature.
If it happens, I’ll delete all other upi apps 😄
Bina AI ka he likha hu.
Dekha do agar AI ne aisa answer diya maine jaise bata diya toh mann jaunga. 🤣🤣
Mazak kiya tha mai @Aniket
