Saturday, 28 January 2023

Slice launched UPI features

Slice launched UPI features

Slice, a Tiger Global-backed fintech unicorn, has launched UPI (Unified Payments Interface) on its platform as it looks to tap into a trillion-dollar payments market in India, which acts as a critical customer purchase funnel.

Till now, Slice only provided credit line-linked Visa cards focusing on new to credit and sub-prime millennial customers. While UPI payments do not generate any revenue to fintech as they fall under the zero-MDR policy, which directs that merchants should not be levied any charge on accepting payments via this mode,

They open up a larger customer base fintech and then leverage it to cross-sell other offerings.

To be sure, UPI sees more than 550 crore monthly transactions, and in 2021-22 (Financial Year 22), the entire value of UPI transactions has reached $1 trillion.

In an interview with Media, Rajan Bajaj, Slice founder and CEO, said that Slice has over 10 million customers on its waiting list, and UPI will allow all to use the Slice app. However, the credit will be extended only to a handful of customers.

Slice's policy is the opposite of many fintech players such as Walmart Inc's Paytm, Google Pay, and PhonePe, which started as payment apps first and then expanded to various financial services, including lending.

Bajaj said.

"If you start with payments, there is no clarity on the business model. We wanted to start a strong business model and then offer more payments products using our free cash flow,"

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UPI transactions are influenced by three players – Paytm Payments Ban, Google Pay, and PhonePe, with PhonePe alone enjoying a market share of more than 45 percent in monthly transactions.

Google Pay and Paytm Payments Bank share around 35 and 15 percent, respectively.

Bajaj said,

"We have put in all our efforts to save even a single second for the customer. We are going to completely shift our focus from just providing credit to an exclusive set of customers to providing overall payments going forward. Strategically this is a priority that we want to focus on for the coming years."

Slice had first revealed its plans to launch UPI on its app in September 2021.

Bajaj also said that after UPI, Slice plans to offer tap and pay, direct merchant checkout, and work with the National Payments Corporation of India (NPCI) to allow customers credit lines in their wallets through UPI.

Slice had turned into a unicorn, or a private company with a valuation of $1 billion or above, in November 2021 after it raised $220 million led by Tiger Global and Insight Partners. The company had said that it issues 200,000 cards per month, just behind leading banks like HDFC Bank and ICICI Bank.

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