Mumbai. The corporate sector is excited about the New Umbrella Entity (NUE), made from everyday necessities shopping to paying all kinds of bills. The country’s major industrial houses are joining hands with banks and companies associated with digital payment services. Reliance Industries has tied up with Facebook, Google and Infibeam to create a digital payment network. Other industry groups including Tata Sons and Amazon are also preparing to enter the digital payment market by acquiring licenses. Paytm and Ola have partnered with IndusInd Bank, Tata Sons with HDFC Bank and Kotak Mahindra Bank. Many other companies are also engaged in this line. Growing fast
Business: The digital payment business in the country is growing rapidly. Looking at the data for the past five years, it shows that there has been an increase of 55 percent annually. There is no denying that the digital payment business is worth billions of rupees. Market experts believe that there are good prospects in this. Due to this, big companies are placing bets in NUE. Central government is promoting digital payment instead of cash
You will get many options –
Currently digital payment is through UPI. After obtaining the license, the companies will create their own platform for digital payment. This will give customers different options. License holders will provide services such as ATMs, point of sales, Aadhaar linked payments. These companies can also work for the clearing and settlement systems of banks.
NPCI’s dominance remains intact
The National Payment Corporation of India (NPCI) dominates the digital payment business. For this, NPCI has created a Unified Payment Interface (UPI) platform. The Rupe network is also operated by the same company, in which it is challenged with Visa and MasterCard. The Reserve Bank also wants to increase competition in the digital payment market, which will give the benefit of affordable service to the common people. The risk associated with online payment will also be less.
Tata has applied
The Tata group has formed the Farbin company to create a digital payment network at the national level. Farbin has submitted an application for NUE license. However, this has not been confirmed by Tata. Tata will own 40 percent of Farbin’s shares. Master Card, NABARD, PayU, Flipkart etc. will have 30% share. Kotak Mahindra Bank and HDFC Bank will each hold 9.99 per cent.