RBI Mandates BBPS for Credit Card Payments, Disrupts Third-Party App Use like CRED and PhonePe

RBI's New Guidelines Disrupt Credit Card Payments via Third-Party Apps like CRED and PhonePe

The Reserve Bank of India (RBI) has rolled out stringent guidelines effective July 1, impacting how credit card bills can be paid through third-party apps. According to the latest regulations, all credit card bill payments via such apps must now be routed through the Bharat Bill Payment System (BBPS), managed by the National Payments Corporation of India (NPCI).

This move directly affects customers of major banks who have relied on apps like CRED, PhonePe, Amazon Pay, and Paytm for convenient bill settlements. However, since these platforms have not yet integrated with BBPS, users will no longer have the option to make credit card payments through these apps.

The primary objective behind these guidelines is to bolster security measures and streamline the credit card payment process across the banking sector. By mandating BBPS integration, RBI aims to ensure a standardized and secure platform for bill payments, enhancing overall transactional security.

Customers of prominent banks such as HDFC, ICICI Bank, Citibank, and Axis Bank are among those affected by this regulatory shift. They will now need to resort to alternative channels for credit card bill settlements, such as their banks’ official net banking portals or mobile apps. Physical bank branches may still offer bill payment services for those who prefer offline transactions.

This development poses significant challenges for fintech giants like CRED, PhonePe, and others, as they scramble to comply with the new regulations. Integration with BBPS becomes imperative for these companies to sustain their relevance in the competitive credit card bill payment landscape. Failure to adapt could lead to substantial disruption in their service offerings and customer base.

Sources By Agencies

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