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CRED, PhonePe, Paytm stop rent payments via credit cards

EntrackrEntrackr ยท 2m ago
CRED, PhonePe, Paytm stop rent payments via credit cards
Medial

CRED, PhonePe, and Paytm have halted rent payments via credit cards on their platforms, according to three sources aware of the matter. The move follows the Reserve Bank of Indiaโ€™s (RBI) latest master directions on payment aggregator regulations. Entrackr tested rent payments by credit card on these apps and found the service temporarily unavailable. โ€œCRED, PhonePe, and Paytm suspended the rent payment service just two days after the new guidelines were issued. While they technically have time until later this year to comply, the companies acted immediately under regulatory pressure,โ€ said one of the sources, requesting anonymity. As per RBIโ€™s directions on KYC and due diligence for payment aggregators (PA), a PA must ensure that a marketplace onboarded by it does not process payments for any seller outside the platform. In effect, this means apps like CRED, PhonePe, and Paytm would have to conduct KYC of landlords, a process that is costly and complex. Sources added that NoBroker and Housing are also expected to suspend rent payments via credit cards in the coming weeks. โ€œCRED and PhonePe have been impacted the most, as they were the leading platforms facilitating rent payments through credit cards,โ€ said the source quoted above. Queries sent to PhonePe, Paytm, and CRED did not elicit an immediate response. The story will be updated if and when they respond.

Ahead of mega IPO, PhonePe converts to public entity

EntrackrEntrackr ยท 7m ago
Ahead of mega IPO, PhonePe converts to public entity
Medial

Itโ€™s worth noting that PhonePe was the first Indian company to shift its domicile from overseas (Singapore) to India. PhonePe, the digital payments platform aiming for a $15 billion valuation in its upcoming initial public offering, has converted from a private company to a public limited company. โ€œThe members are hereby informed that, as one of the prerequisites for the process of initial public offering, the company is required to convert into a public limited company under the Companies Act, 2013,โ€ PhonePe said in a regulatory filing with the Registrar of Companies (RoC). The name of the company will be changed from โ€œPhonePe Private Limitedโ€ to โ€œPhonePe Limited.โ€ Notably, PhonePe became the first Indian company to relocate its domicile from overseas (Singapore) to India. In 2022, the Walmart-controlled firm completed this reverse flip, paying over Rs 8,000 crore (around $1 billion) in taxes as part of the process. Media reports indicate that PhonePe plans to initiate its IPO process in the first week of March and has brought on board Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley as advisors. Led by Sameer Nigam, PhonePe last secured $100 million in December 2023 as part of a $1 billion funding round, at a pre-money valuation of $12 billion. Walmart remains the majority shareholder, while other notable investors include Microsoft, General Atlantic, Tiger Global, Ribbit Capital, TVS Capital, Tencent, and the Qatar Investment Authority. PhonePe is the largest player in the UPI ecosystem, commanding over 47% of the market share by transaction volume. The company reported revenue of more than Rs 5,000 crore in FY24, while reducing losses by 28.6% to Rs 1,996 crore in the same period.

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