Fintech Giants Cred, BillDesk, And PhonePe To Halt Credit Card Bill Payments From July 1

Major fintech companies like PhonePe, Cred, BillDesk, and Infibeam Avenues are set to face significant changes following the Reserve Bank of India's (RBI) latest mandate, which requires all credit card bill payments to be routed through a centralised billing network starting from July 1. This update comes as reported by the Economic Times.

The RBI has stipulated that from June 30 onwards, all credit card transactions must be processed via the Bharat Bill Payment System (BBPS). However, several major banks, including HDFC Bank, ICICI Bank, and Axis Bank, have yet to integrate with BBPS. Collectively, these banks have issued over 50 million credit cards to customers.

Due to the non-compliance of these banks with the new regulations, fintech companies like PhonePe and Cred, which are already BBPS members, will be unable to process credit card payments for these banks after the deadline. Therefore, these banks must meet RBI's requirements by June 30 to ensure uninterrupted payment processing for their customers.

"The payments industry has requested a 90-day extension of the deadline," stated a major payments firm executive in the Economic Times report.

Currently, only eight out of the 34 banks authorized to issue credit cards have activated bill payments through BBPS. These banks include SBI Card, BoB Card, IndusInd Bank, Federal Bank, and Kotak Mahindra Bank.

Why Has RBI Mandated Centralised Payment of Credit Cards?
Industry experts suggest that this move aims to provide the RBI with enhanced oversight of payment patterns and facilitate the monitoring and resolution of fraudulent transactions. By centralizing the billing process, the RBI intends to streamline credit card payments and improve transparency in the financial ecosystem.