Sameer Nigam is an Indian Entrepreneur who founded PhonePe, a UPI-based online payment system in 2015 and serves as its Chief Executive Officer (CEO). He also served as the Senior Vice President of engineering at Flipkart. In 2009, he launched his very first venture Mime360, which connects content owners to content publishers. He made a personal investment in an organization called Artifacia on 14 January 2016. He was listed in the top Indian business leaders 40 under 40 list by The Economic Times. He has a net worth of INR 17 crore.
Let’s go through the success story of Sameer Nigam along with getting a glance at Sameer Nigam’s Net worth, Education, personal life, how he founded PhonePe & more.
Sameer Nigam Biography
Name
Sameer Nigam
Born
1978
Age
47 (2025)
Nationality
Indian
Education
University of Mumbai, University of Arizona; The Wharton School
Sameer Nigam was born in Delhi and currently resides in Bangalore, Karnataka. His father worked in the Indian Navy and is an IIT graduate. Sameer Nigam’s mother is an entrepreneur and cleared her IAS on the first attempt at 40. Sameer’s wife is a consultant and together they have a son and a daughter.
Nigam made his way from Noida to Mumbai and finally to Bangalore where his company PhonePe is headquartered. His venture got a tremendous boost from the demonetization policy, which the Indian government announced in the same launching year of PhonePe.
Sameer Nigam – Education
Sameer completed his formal education at DPS Noida. He received his Computer Engineering degree from the University of Mumbai. He further went to the University of Arizona for a Master of Science in Computer Engineering (1991-2001). Later, he studied Master of Business Administration in Entrepreneurship at The Wharton School, University of Pennsylvania (2007-2009).
Sameer Nigam – Professional Life
Sameer Nigam, the Phonepe owner, served as the Director of Search Product Development at Shopzilla from May 2001 to June 2007. He then launched his venture, Mime360 in 2009 which is an online social media distribution channel. The company was later acquired by Flipkart.
He served at Flipkart from October 2011 to August 2015. While working for the eCommerce giant, he worked in several divisions including Marketing and Engineering as Vice President and Senior Vice President respectively. He further launched his digital wallet platformPhonePe in 2015, where he is positioned as the CEO.
He did exceptionally well in his corporate career with cordial entrepreneurial experiences to his credit. He displayed his skills in product marketing, eCommerce, strategic partnerships, online marketing, digital strategy, user experience, web applications, startups, mobile marketing, digital media, special needs, business development, web development, web analytics, and many more.
He is highly skilled in team management, digital marketing, non-medical homecare, lead generation, search engine optimization, strategy, mobile applications, mobile advertising, and online advertising.
Sameer Nigam – Founder of Mime360
In 2009, Sameer launched his first venture Mime360 (Mallers Incorporation), an online media distribution channel headquartered in Mumbai, India. The company offers an exchange platform connecting content owners with content publishers including Saregama, Indiatimes, and others.
Mime’s security is aided by API Feeds that help to prevent piracy and allow a large number of publishers to sell the licensed content globally. Most importantly, Mime eliminates various infrastructure costs for partners including content management, storage, and local data center bandwidth, and authorizes content owners to even set regional pricing.
Mime360 was acquired by Flipkart. The eCommerce giant has been looking to acquire small companies to grow the team. After the acquisition, some of Mime’s employees joined Flipkart to launch a digital music distribution service later. The strong entrepreneurial zeal, vision, and experience kept Sameer going and he soon launched another venture.
Sameer launched his Unified Payments Interface (UPI) based startup, PhonePe in December 2015. He is the Founder and CEO of Bangalore headquarteredPhonePe. He is a member of the Board of Directors at the company and advises on Marketing and several other strategies.
Sameer along with two of his friends, Rahul Chari and Burzin Engineer brought the idea of launching and designing an online payment app based on UPI. The PhonePe application went live in August 2016. It is available to users in over 11 Indian languages.
PhonePe was acquired by Flipkart in 2016. However, the e-commerce giant came into the ownership of US-based Walmart Incorporation in 2018 worth $16 billion. The acquisition of PhonePe was with the aim of expanding its online shopping footprint in India.
PhonePe’s first annual report shows a 73% revenue increase to INR 5,064 crore, with the company posting an adjusted profit of INR 197 crore after a INR 738 crore loss last year. Founders Rahul Chari and Sameer Nigam each earned INR 5 crore in FY24, with lower ESOP valuations compared to the previous year.
PhonePe IPO
PhonePe has officially become a public company, as confirmed by regulatory filings.
The change was approved at an extraordinary general meeting held on April 16, 2025, and the company’s name has been updated from PhonePe Private Limited to PhonePe Limited.
This move marks a significant step toward its much-anticipated IPO. PhonePe has been gearing up for a domestic listing, having recently shifted its headquarters from Singapore to India and appointed four investment banks to guide the IPO process. PhonePe is targeting a valuation of up to $15 billion as it prepares to strengthen its presence in India’s fast-growing fintech sector. Backed by Walmart, the company has brought on Kotak Mahindra Capital, JP Morgan, Citi, and Morgan Stanley to guide its IPO journey.
PhonePe founder and CEO Sameer Nigam issued an apology on Sunday for his comments about Karnataka’s draft job reservation Bill, clarifying that he never meant to offend the state or its people. His statement came in response to a ‘Boycott PhonePe‘ campaign initiated by Kannada groups, including the Karnataka Rakshana Vedike and other pro-Kannada organizations. The campaign started on social media after Nigam’s post on X, which commented on the Karnataka Cabinet’s approval of ‘The Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024’.
Here is the post that he made on X which caused backlash:
I am 46 years old. Never lived in a state for 15+ yrs
My father worked in the Indian Navy. Got posted all over the country. His kids don’t deserve jobs in Karnataka?
I build companies. Have created 25000+ jobs across India! My kids dont deserve jobs in their home city?
The Wharton Business School, University of Pennsylvania conferred him with the Wharton Venture Award in 2008. He has participated in two events. He attended the 16th NASSCOM Product Conclave 2019 on 5 November 2019, held in Bangalore, Karnataka, India, Asia. He attended Money 20/20 Asia 2019 as a Speaker on 19 March 2019 held at Central Region, Singapore, Asia.
His venture PhonePe was conferred with a list of awards, which are as follows:-
PhonePe was recognized by the National Payments Corporation of India (NPCI) for attracting the largest number of merchant transactions on the UPI network. (2018)
Received Best Mobile Payment Product or Service Category at the IAMAI India Digital Awards 2018
Won the UPI Digital Innovation Award from NPCI (2018)
Won the SuperStartUp Asia Award (2018)
Won the Telecom and Technology category award from India Advertising Awards (2018)
Won the Best Mobile Payment Product or Service at the 9th India Digital Awards 2019 conducted by IAMAI
Received the Best Digital Wallet initiative at the 8th annual Indian Retail & eRetail Awards 2019 conducted by Zee Business and The Economic Times.
Awarded Fintech Person of the Year – India at the Global Fintech Fest 2024.
FAQs
What Sameer Nigam net worth?
Sameer Nigam has a net worth of INR. 17.7 crore (as of 2017).
What is Sameer Nigam education?
Sameer Nigam has completed a Computer Engineering degree from the University of Mumbai, an MS from the University of Arizona, and an MBA in Entrepreneurship from The Wharton School, University of Pennsylvania.
When we look at a business, one of the reasons behind its success and survival is definitely hard work and persistence. The same goes for a relationship, if you want it to last long, you need to make efforts and give your best, that’s how it works. People say that your significant other is your biggest form of strength and support, when you are building your business from the scratch, this strength and support can be of great help.
Nothing can be better than your life partner becoming your business partner. The trust, mutual respect, and the level of communication that is needed between business partners are already present in the relationship between real-life partners. Both of them are familiar with each other and their working style and know quite well what fuels their passion.
In this article, we will talk about famous couples in business together, and with their hearts and brains, they are conquering the business world. So let’s get right into it.
“The price of success is hard work, dedication to the job at hand, and the determination that whether we win or lose, we have applied the best of ourselves to the task at hand.” – Vince Lombardi
Top Couple Entrepreneurs in India – Ghazal Alagh and Varun Alagh
One of the most successful personal care product brands, Mamaearth was introduced by the dynamic duo of Ghazal Alagh and Varun Alagh in 2016. While expecting their baby at that time, both the couple decided to launch personal care products for babies when they realized, there was a limited number of chemical-free products present in the market.
Now the brand is not only for babies but is making products for everyone. The ingredients used to make the products are all-natural and plant-based and right was the first unicorn of 2022 with its valuation of $1.2 Billion.
Top Couple Entrepreneurs in India – Vineeta Singh and Kaushik Mukherjee
Vineeta Singh and Kaushik Mukherjee started SUGAR Cosmetics in 2012. They wanted to make long-lasting makeup for young people in India. Their products suit Indian skin tones, weather, and lifestyle. Vineeta and Kaushik are one of the most successful business couples in India.
Today, SUGAR Cosmetics sells on its website, big online stores like Nykaa and Myntra, and in many shops and pop-ups across India. It has become a top makeup brand that is affordable and popular. Vineeta Singh is also seen as an investor on Shark Tank India.
Top Couple Entrepreneurs in India – Shubra Chadda and Vivek Prabhakar
This 2010 venture that deals with fashion and home décor products was founded by the couple Shubra Chadda and Vivek Prabhakar. The amount of courage to set their dream company they showed was immeasurable; they sold their apartment in Bangalore to establish Chumbak and struggled together to be where they are now. The company now has over 44 stores in India that sell a variety of lifestyles related products. The current value of the company is $30 Million.
Shikhar Singh & Nidhi Singh – Samosa Singh
Top Couple Entrepreneurs in India – Shikhar Singh & Nidhi Singh
Probably the most loved Indian snack in the country, Samosa has an immense fan following. It is not at all different for Nidhi Singh and Shikhar Singh as well. The couple decides to form Samosa Singh in 2015, a Samosa snack brand that offers different regional varieties of the said snack to its customers.
By using fresh and hygienic ingredients while making the food item, it has able to grasp the attention of the mass. They sold their apartment for a big kitchen so that they can cater to the orders of the corporate world. The sacrifice was definitely worth it as now the valuation of the company is $7.26 Million.
Rohan Bhargava & Swati Bhargava – CashKaro
Top Couple Entrepreneurs in India – Rohan Bhargava and Swati Bhargava
Friends turned life partners; Swati and Rohan founded CashKaro in the year 2013 and since then have never looked back. It is a platform that deals with coupons and cashback. The platform provides its customers with coupons that help them get discounts and cashback while shopping online.
People while shopping from popular E-commerce sites like Myntra, Flipkart, Amazon can use these coupons. The valuation of CashKaro is $2.2 Billion.
Top Couple Entrepreneurs in India – Anand Shahani and Mehak Sagar
WedMeGood is a platform that helps you organise your wedding, from finding photographers to setting up the perfect wedding venue and getting the best makeup artist for your big day, this platform does everything. Founded by the couple Anand Shahani and Mehak Sagar in 2014, the headquarters of the company is situated in Haryana, India.
Bipin Preet Singh & Upasana Taku – MobiKwik
Top Couple Entrepreneurs in India – Bipin Preet Singh and Upasana Taku
This payment service provider online platform was founded in the year 2009 by the married couple Bipin Preet Singh and Upasana Taku. The platform helps in booking tickets, recharging, paying bills for electricity and other services. Its vision was to transform the landscape of digital payments in India and it has been successfully doing that for a long time. Currently, the valuation of MobiKwik is $700 to $750 Million.
Arjun Shetty & Rati Shetty – BankBazaar
Top Couple Entrepreneurs in India – Arjun Shetty and Rati Shetty
BankBazaar was founded by the childhood sweethearts and married couple Arjun Shetty and Rati Shetty in 2008. This fintech company helps people compare offers related to debit cards, credit cards loans, mutual funds, and others with different banking and non-banking financial companies. The current value of BankBazaar is $280 Million.
Bhavna Anand Sharma & Siddhesh Sharma – Cureveda
Top Couple Entrepreneurs in India – Siddesh Sharma and Bhavna Anand Sharma
This company is mainly focused on solving some common illnesses like diabetes, thyroid, and heart-related problems. In 2014, the married couple Bhavna Anand Sharma and Siddhesh Sharma joined hands and started Cureveda which creates herbal supplements to solve common health-related problems. Various ranges of dietary and herbal supplements are produced for customers that are 100% Vegetarian.
Kuonal Lakhapati & Aayushi Lakhapati – Upnourish
Top Couple Entrepreneurs in India – Kuonal Lakhapati & Aayushi Lakhapati
Upnourish is a meal replacement product venture. It is mumbai based Health & Wellness startups that enables people to eat healthy yet low on calories meal in their busy life schedules. Upnourish aims to make health and nutritional food easily available and convenient to all aspirational people with busy lifestyle so that they do not have to compromise on their health goals.
Naina Ruhail & Prateek Ruhail – Vanity Wagon
Top Couple Entrepreneurs in India – Naina Ruhail & Prateek Ruhail
Vanity Wagon (‘VW’) is India’s first and largest clean beauty marketplace. One of the finest information-oriented beauty marketplaces, that pledges to bring only toxin-free and natural beauty products to its consumers. VW offers a trust-worthy platform where one of the most requested elements between a business and a customer, i.e, transparency would be paramount of our relationship. Be it beauty or personal care, it swears by to bring the safest solutions to your doorstep without any hassle. VW stands by the rule of never having to compromise in any manner to find the right products for our customers. It believes in sustainable beauty and stands firm in its mission to educate the audience and deliver what’s best for them. It is curating the best of clean beauty without compromising on efficiency and ensuring that the products are cruelty-free. Prior to onboarding any brand, it always check whether the brand is certified- cruelty-free by PETA and safe-to-use by ECOCERT or other recognized institutions.
Aarti Gill & Mihir Gadani – OZiva
Top Couple Entrepreneurs in India – Aarti Gill & Mihir Gadani
A spouse can be a life partner and a business partner at the same time. Valentine’s Day is all about signifying appreciation and love for one’s significant other. Like building and maintaining a relationship, business partnerships also hinge on chemistry between co-founders, trust, and effective communication. When life partners start a business together, there is a good compatibility which in turn helps the business grow because life partners understand each other the most out of anyone in this world.
The Indian startup ecosystem is buzzing with new startups every day, growing on the back of rising undertakings of capital interest. With the progress in the number of startups, love has found its way, in the form of a couple’s journey to build a successful business together. Their shared familiarity and values along with both their working styles can become powerful tools in fueling the passion for business.
These husband-wife entrepreneur duos have come together and made the most of their shared effective communication and trust in running a business successfully. Take a look at emerging Indian and popular brands started by couplepreneurs.
India’s first certified clean-label active plant based nutrition and wellness brand, OZiva was launched in 2016 by Aarti Gill and Mihir Gadani as co-founders. The brand is India’s first certified Clean Label Brand that offers an inspirational range of holistic plant-based nutrition, beauty and health products along with a fully digitized ecosystem intended to enable millions of Indians people towards living a healthier and better life. OZiva offers an inspirational range of holistic plant-based nutrition, beauty and health products. The brand recently launched the OZiva Clean Beauty Range and Kids Nutrition Range as well. Aarti’s technical and marketing wizardry alongside her youthful disposition and passion towards health & fitness along with Mihir true believer of combining the different aspects of Yoga, Ayurveda & Functional Fitness for optimal health, has been the driving force behind the rise of OZiva.
Sandeep Singh & Nikki Singh Arora – Blue Tribe
Top Couple Entrepreneurs in India – Nikki Singh Arora & Sandeep Singh
According to husband-wife duo Sandeep Singh and Nikki Singh Arora – the founders of Blue Tribe, the will to raise their daughter in a greener environment inspired them to build Blue Tribe as a one-of-a-kind food-tech company, which brings out plant based alternate meats like Chicken Keema, Chicken Nuggets, Mutton Keema, Chicken Momos, Chicken Sausage, etc. Through BlueTribe, they strive to arouse a lifestyle change in non-vegetarian food lovers so that everyone can take a conscious step towards healing the green planet. Their vision is to offer the perfect alternative of meat-based food items made entirely from plant-based ingredients. The best part is, these modernistic plant-based meat products are similar in taste, texture and quality and thus offer a genuine chance for meat lovers to choose a relatively more sustainable and eco-friendly substitute without compromising anything.
Nidhi Yadav & Satpal Yadav – AKS Clothing
Top Couple Entrepreneurs in India – Nidhi Yadav & Satpal Yadav
A Yuvdhi Apparels Private Limited brand, AKS Clothing, was started in 2014 by a hitched couple, Nidhi Yadav and Satpal Yadav. AKS clothing is renowned for its great taste in design and long-lasting material quality and has been the pinnacle of beautiful, graceful, and stylish women’s attire. The AKS clothing line comprises the best and most fashionable fabrics available.
Conclusion
When your significant other becomes your business partner, starting with your dreams become much more interesting because they are familiar with their working styles and characteristics.
Finding a perfect business partner can be quite a tough job but if it is your life partner, the difficult path may not become easier but you will definitely get the courage to face the upcoming challenges. The above couple entrepreneurs proved that the couple that hustles together, reach the peak of success together.
FAQs
Can a couple start a business?
If a couple starts a business, it might turn out to be a dream job, as they already have the required bond and mutual respect that is needed between business partners.
Who are some of the top successful couple entrepreneurs?
Varun Alagh & Ghazal Alagh, Shubra Chadda & Vivek Prabhakar, Shikhar Singh & Nidhi Singh, and Bipin Preet Singh & Upasana Taku are some of the successful entrepreneurs.
Who is Aarti Gill husband?
Mihir Gadani is the husband of Aarti Gill. They have founded OZiva company.
What can be the best business for husband and wife to start?
A husband and wife can start a business that matches their skills and interests. Some great options include a café or bakery if they love cooking, an online store for fashion or handmade products, a consulting business in their expertise, or a content creation venture like blogging or YouTube. They can also explore franchise businesses, event planning, or a fitness studio. The key is to choose something they enjoy and can manage together efficiently.
Electronic payments can be defined as a digital transaction between two parties. These payments include ACH, cards, bank transfers, digital wallets, mobile payments, and many more. When it comes to credit cards, the global electronics payment industry is dominated by four giants – Visa, Mastercard, American Express, and Discover.
From these four, it is Visa and Mastercard are arch rivals with distinct product offerings. Both these companies issue payment cards through co-branded relationships. Even as these two companies do not extend credit or issue cards, their product repertoire consists of credit facilities, and debit and prepaid card options are issued through various business partnerships.
Visa and Mastercard, both exclusively operate as network processors and are involved in all three areas of the payments market. The companies have similar business operations, offering payment cards to the public through partner member financial institutions. The member financial institutions issue cards either directly or in partnerships with airlines, hotels, or even retail brands.
Visa Inc.
Visa was founded in the year 1958 as BankAmericard, headquartered in Fresno, California. It was the brainchild of Bank of America’s in-house Product Development team, Customer Services Research Group, and Joseph P. Williams, its leader. In response to its then competitor, Master Charge, the BankAmericard program was licensed to other financial institutions in the year 1966. In the year 1970, Bank of America gave up direct control of the BankAmericard program and formed a co-operative with other various BankAmericard issuer banks to take over its Management. It was renamed to Visa Inc., in the year 1976.
Currently, the world’s second-largest card payment organization, Visa commands a 50% market share of total card payments. In the year 2020, Visa Inc.’s net revenue was a whopping USD 21.8 billion with a payments volume of USD 8.8 trillion. The company’s core product repertoire consists of credit, debit, and prepaid cards as well as business solutions and global ATM services.
How Visa Became The Most Popular Card In The U.S.
Mastercard Inc.
Also an American company, Mastercard Inc. was founded in 1966 in Purchase, New York. The company has an interesting history, with it first being known as Interbank and then Master Charge before settling for its current name. It was created by an alliance of several banks and regional bankcard associations in response to the BankAmericard, which was issued by Bank of America. BankAmericard later became Visa, which is still Mastercard’s biggest global competitor. Mastercard Inc.’s, initial public offering was in the year 2006, when it became a publicly traded company. Before its IPO, Mastercard Worldwide was a cooperative that was owned by more than 25,000 financial institutions.
The year 2020 saw Mastercard Inc.’s net revenue at USD 15.3 billion with a payment volume of USD 6.3 trillion. The company’s core product offerings include consumer credit, debit and prepaid cards, and a commercial product business. Its business segment known as Payment Solutions, is broken as per geographical locations across the US and the world.
Both these companies are known for offering three different card levels. Visa offers traditional, signature, and infinite while Mastercard’s card offerings include standard, world, and world elite.
Common Benefits
When it comes to credit card product comparison of Visa and Mastercard, it is only fair that the product offering of both companies is compared on similar grounds. Some benefits are common to both, some existing due to federal regulations while others have become industry standards, expected by issuers to be provided for their customers.
Zero Liability Protection
Both companies protect their user base against unauthorized charges. In the event a credit card has been used for fraudulent purchases, the user can report it to the issuer and have the card blocked and the transaction reversed. In such a scenario, the charges are borne by the card company.
Visa – Report a Lost or Stolen Card
Cell Phone Protection
This is also a service that is provided by both companies. Visa Signature members can get cell phone protection each month when they pay their wireless bill with their Visa card. On the other hand, World Mastercard offers a USD 1000 yearly coverage on cell phone protection in the event of a cell phone gets stolen or needs certain repairs, when the phone bill is paid with World Mastercard.
Global Emergency Services
Although both companies offer this service, Mastercard offers it for every card level available anytime, anywhere, and in any language. This helps in replacing a stolen card, access of cash advances, etc. Visa offers travel and emergency assistance services for Visa Infinite card holders that provide help in an emergency across the world.
Mastercard – Global Emergency Services
Other Benefits
Visa
Visa offers three tiers of credit cards to its customers – Visa Traditional, Visa Signature, and Visa Infinite. Visa Signature and Visa Infinite offer maximum benefits and perks. However, on the whole, Visa offers more benefits than Mastercard.
a) Purchase Protection and Insurance offers additional benefits to Signature and Infinite card users that include lost luggage reimbursement, trip delay, cancellation, and interruption reimbursement, extended warranty protection, zero liability protection, etc.
Benefits of Visa Infinite
b) Visa Signature Luxury Hotel Collection offers its members special status at more than 900 participating hotels. This allows members access to seven premium benefits that include the best available rate guarantee, automatic room upgrade on arrival if available, complimentary in-room Wi-Fi when available, complimentary breakfast for two, USD 25 food or beverage credit, VIP guest status, and late checkout upon request.
Visa Signature Luxury Hotel Collection
c) Travel benefits for Signature and Infinite card members that include, Global Entry statement credits, Priority Pass lounge access, special Visa Signature offers, and rental car privileges.
d) Emergency Services that Visa provides for its members include important services like roadside dispatch, lost or stolen card reporting, emergency replacement, emergency cash disbursement, etc.
Mastercard
Mastercard too offers three different tiers of credit cards, with each one offering benefits and perks. The three different card categories include Standard, World, and World Elite. Below are some common benefits offered by Mastercard.
a) Purchase Protection and Insurance which is offered by all three cards with World and World Elite cards offering the most benefits. These include Mastercard ID theft protection, cell phone protection, global emergency services, etc.
Benefits of World Elite Masterclass
b) Concierge Services is offered by World Elite Mastercard which can schedule restaurant reservations, and event tickets, or even help in purchasing items that are hard to find. There is no user fee attached to this card. World Mastercard users can use Mastercard Airport Concierge and special Golf Concierge service through Priceless Golf.
c) Mastercard Luxury Hotel and Resorts Portfolio gives World and World Elite Mastercard members access and upgrades at more than 3000 properties across the world. Depending on the property, the amenities can vary, offering complimentary daily breakfast, amenity credits up to USD 100, and other perks.
Mastercard’s Travel and Lifestyle Services
d) Luxury Event Deals offer access to many luxury events like special access to PGA Tour gold outings, access to Priceless Experiences that include film festivals and cooking lessons from private chefs, and many others.
The Better Card – Conclusion
Both Visa and Mastercard offer several advantages, some mandated by rules and regulations, others as industry norms demanded by end consumers. Each one has its benefits that appeal to individual consumers. While it is difficult to pinpoint a clear winner, both these companies are world leaders in their operational sectors. Depending on individuals and the benefits that most suit them, credit cards can be chosen.
FAQs
When was Visa founded?
Visa was founded in 1958.
When was Mastercard founded?
Mastercard was founded in 1966.
What are the three cards offered by Visa?
Visa offers traditional, signature, and infinite credit cards.
What are the three cards offered by Mastercard?
Mastercard’s card offerings include standard, world, and world elite.
PayPal is the ultimate pioneer of digital payments and has revolutionized the way we conduct transactions. The company was founded in December 1998 by a group of visionaries, including Peter Thiel, Max Levchin, and Elon Musk. Since then, it has soared to great heights, becoming a household name in the world of e-commerce.
PayPal’s journey began with the development of security software for handheld devices, but it wasn’t long before they shifted their focus to digital payments. In October 2002, PayPal went public and, within a year, was acquired by eBay for a whopping $1.5 billion. This acquisition fueled PayPal’s growth, and the company quickly became the go-to choice for online payments.
PayPal is a global leader in the payments industry, processing over $936 billion in payments in 2020. The company has a market share of around 20% in the digital payments market, and its revenue in 2020 exceeded $21 billion. PayPal has been the recipient of numerous awards, including the 2020 Fortune Change the World list and the 2021 World’s Most Admired Companies list by Fortune.
PayPal’s current position in the market is nothing short of remarkable. The company’s commitment to innovation and customer satisfaction has led to an ever-growing user base. With over 377 million active users in more than 200 markets, PayPal has established itself as the undisputed leader in the digital payments industry.
PayPal Market Share
PayPal’s success can be attributed to its cutting-edge marketing strategies, which have helped it stand out in a crowded market. The company has launched several high-profile marketing campaigns, including collaborations with popular brands like Adidas and Google. Its marketing efforts are centered around the theme of simplicity and convenience, making it easy for users to adopt and use its services.
PayPal’s journey from a security software company to a global leader in digital payments is nothing short of inspiring. Its commitment to innovation, customer satisfaction, and simple marketing strategies has made it a household name in the world of e-commerce. PayPal’s continued success is a testament to its enduring impact on the payments industry and its dedication to providing a seamless user experience.
PayPal is a digital payments platform that caters to a diverse range of users, including individuals, businesses, and freelancers. Its services are designed to cater to a wide range of customers, making it an accessible option for anyone looking for a secure and convenient way to transact online.
The platform’s target audience is primarily individuals who conduct online transactions regularly, including e-commerce shoppers, freelancers, and gig economy workers. PayPal’s services are particularly popular among millennials and Gen Z, who prefer to make payments digitally.
PayPal’s target audience includes users of all ages, genders, and income levels. However, its primary demographic is users between the ages of 18 and 34, who make up a significant portion of its user base. This group is more likely to be tech-savvy and familiar with digital payment options.
PayPal’s target audience is global. The platform is available in more than 200 markets worldwide, making it accessible to users in almost every corner of the world. Its services are particularly popular in the United States, the United Kingdom, and Australia.
Other factors that influence PayPal’s target audience include online shopping habits, the frequency of online transactions, and the need for secure payment options. The platform is particularly attractive to users who prefer to transact online without the need to share sensitive financial information.
The platform’s global presence and commitment to security and convenience make it an accessible and reliable option for anyone looking for a secure and easy way to transact online.
PayPal – Marketing Mix
PayPal is a digital payment platform that has disrupted the traditional payment industry. Its success can be attributed to its effective marketing mix, which combines product, price, promotion, and place to create a seamless user experience.
Product
This element of PayPal’s marketing mix is centered around its digital payment solutions, which allow users to securely send and receive payments online. The platform also offers a range of additional features, including buyer and seller protection, currency conversion, and integration with popular e-commerce platforms. These features add value to the core product, making it more attractive to users.
A Screenshot from PayPal’s Website
Price
This is another critical element of PayPal’s marketing mix. The platform charges a fee for its services, which is typically a percentage of the transaction amount. However, PayPal also offers competitive pricing, with fees that are often lower than those of traditional payment processors. This pricing strategy has helped PayPal remain competitive and attract a large user base.
Promotion
It includes the various channels the company uses to communicate with its target audience. PayPal’s promotional efforts include digital advertising, social media marketing, and email marketing. The company also partners with popular brands and e-commerce platforms to increase its visibility and reach new users.
Place
PayPal is available in over 200 markets worldwide, and its services can be accessed through its website and mobile app. The platform also partners with banks and other financial institutions to offer its services to their customers.
PayPal’s Mobile App
PayPal’s marketing mix has been instrumental in the company’s success. Its focus on product, pricing, promotion, and place has enabled the platform to create a seamless user experience, attract a large user base, and remain competitive in a crowded market. As digital payments continue to grow in popularity, PayPal’s marketing mix is likely to evolve to meet the changing needs of its users and maintain its position as a leader in the industry.
PayPal – Marketing Campaigns
One of PayPal’s most successful marketing campaigns is “New Money”, which was launched in 2014. The campaign aimed to promote PayPal’s mobile app and its capabilities to send and receive money on the go. The campaign’s message was centered around the idea of “New Money”, which represented a new era of digital payments that were fast, secure, and convenient.
PayPal – There’s A New Money In Town
Another successful campaign by PayPal was “People Rule”, which launched in 2018. The campaign aimed to showcase PayPal’s commitment to empowering people by providing them with the financial tools they need to succeed. The campaign featured real people from different backgrounds and highlighted how PayPal’s services had made a positive impact on their lives.
PayPal – People Rule
In 2020, PayPal launched a new campaign called “PayPal Is New Money”. The campaign aimed to position PayPal as a leading player in the fintech industry and showcase its innovative payment solutions. The campaign featured a series of ads that highlighted PayPal’s features, such as instant access to funds and the ability to send money globally.
PayPal’s marketing campaigns have been successful in promoting the platform’s features and capabilities while positioning it as a leading player in the digital payments industry.
PayPal – Marketing Strategies
PayPal is a leading digital payments platform that has transformed the way people conduct financial transactions. The platform’s success can be attributed to its effective marketing strategies, which have enabled it to attract a large user base and remain competitive. Let’s explore the top marketing strategies that have helped PayPal become a household name.
PayPal has partnered with popular brands such as eBay, Airbnb, and Uber to increase its visibility and reach new users.
Embrace Social Media
PayPal’s social media presence is strong, with active accounts on platforms such as Facebook, Twitter, and Instagram. The platform uses social media to engage with its users, provide customer support, and promote its products and services.
Offer Incentives
PayPal offers incentives to users to encourage them to use its platform. For example, the company offers cash-back rewards for using its PayPal Credit service.
Focus On Security
PayPal’s marketing strategy emphasizes the platform’s security features, such as buyer and seller protection, fraud detection, and two-factor authentication. This focus on security has helped PayPal establish trust with its users.
Expand Globally
PayPal has expanded its services to over 200 markets worldwide, making it a global leader in digital payments.
Use Data Analytics
PayPal uses data analytics to gain insights into its user’s behavior and preferences, allowing it to tailor its marketing efforts to specific demographics and regions.
Offer Flexible Payment Options
PayPal’s marketing strategy emphasizes its flexibility in terms of payment options. Users can choose to pay using their PayPal balance, credit or debit card, or bank account.
Leverage Influencer Marketing
PayPal has used influencer marketing to reach new audiences and promote its products and services. The platform has partnered with influencers in various niches, such as fashion, beauty, and tech.
PayPal’s marketing strategies have been instrumental in the platform’s success. The platform’s commitment to innovation and security has also played a crucial role in establishing trust with its users and maintaining its competitive edge in the market.
As digital payments continue to grow in popularity, PayPal’s marketing strategies will continue to evolve to meet the changing needs of its users. Whether through the use of data analytics, social media, or influencer marketing, PayPal’s marketing team will undoubtedly remain at the forefront of the industry.
As a leading digital payments platform, PayPal has demonstrated the importance of effective marketing in building and maintaining a successful brand. Its marketing strategies serve as an inspiration for other companies looking to establish a strong online presence and attract a loyal customer base.
Marketers can take a cue from PayPal’s emphasis on data analytics and social media to gain insights into their user’s behavior and preferences. By tailoring their marketing efforts to specific demographics and regions, they can effectively reach their target audience and establish trust with their users.
The key takeaway from PayPal’s marketing strategies is the importance of creating a seamless user experience, building trust with users through security and reliability, and continuously evolving to meet the changing needs of the market. By following these principles, marketers, and start-ups can establish a strong online presence and succeed in the highly competitive digital landscape.
FAQs
What is the target audience of PayPal?
The platform’s target audience is primarily individuals who conduct online transactions regularly, including e-commerce shoppers, freelancers, and gig economy workers. PayPal’s services are particularly popular among millennials and Gen Z, who prefer to make payments digitally.
Where is PayPal the most popular?
PayPal’s services are particularly popular in the United States, the United Kingdom, and Australia.
The National Payments Corporation of India was formed in 2008 with the objective of integrating all payment mechanisms existing in the country and making them uniform for retail payments. However, the majority of the population was opting for cash payments as retailers encouraged this method. There was also the problem of almost half the population that had no access to any form of banking service. This also precipitated the issue of black or illegal money and corruption within the country.
By 2012, the RBI had envisioned building an authorized payment and settlement system that was safe, efficient, accessible, inclusive, and interoperable. This was done as a part of the Green Initiative and to encourage the lesser use of paper in the domestic payment market. UPI was officially launched in 2016 for public use.
The CEO of Netmagic Solutions says UPI has become one of the most successful deep-tech innovations coming out of India. It works on an interoperable four-pillar push-pull model. There is a beneficiary at the front end, the payment service provider, and a beneficiary back end bank that settles the monetary transaction for the users.
As it began to gain traction and prominence in 2019, the Ministry of Finance nullified the Merchant Discount Rate (MDR) on UPI which catapulted the number of low-value transactions, making huge gains on real-time transaction volume data.
From 1st January 2019, UPI became a popular payment option for IPOs. By March 2020, the transaction limit was increased from INR 1 lakh to INR 2 lakhs, which was again increased to INR 5 lakhs in December 2021 for Retail Direct Scheme and IPO applications.
In its first monetary policy of FY 2022-2023, RBI has proposed using a UPI-based QR code for a cardless cash withdrawal facility from ATMs. ToneTag launched VoiceSE, in partnership with NSDL Payments Bank and NPCI, which will enable users to make UPI payments using voice in Hindi, Tamil, Telugu, Malayalam, Kannada and Bengali language. In 2021, the value of UPI transactions was more than INR 73 lakh crores, recording a 110% rise from INR 33.87 lakh crores in 2020.
The Volume of UPI-Based Digital Payments Across India from FY17 to FY22
Within two years of its launch, by 16th August 2018, UPI 2.0 was launched enabling their users to link Overdraft accounts to a UPI handle. There was an added feature of the AutoPay facility for recurring payments, and users were able to pre-authorize transactions by issuing a mandate for a specific merchant. The newer version also included a feature to view and store the invoice for transactions.
By August 2021, Bank of Baroda, Paytm Payments Bank and State Bank of India were live on UPI AutoPay and registered 204,000, 186,000 and 660,000 mandates respectively. Plans were in place for NCPI to expand AutoPay to international markets and operationalize real-time payment dispute resolution covering 90% of complaints by September 2022.
RuPay credit cards were allowed to be linked with UPI from 8th June 2022. Currently, NPCI is working on a real-time feature that will reduce the time period taken by banks to unblock funds over time-out or transaction from 24 hours to 30 seconds.
Continuing the growth of UPI and its features, the RBI Governor launched UPI 123PAY on 8th March 2022, offering 4 payment options to UPI users:
App-based functionality where a mobile phone manufacturer can install a UPI app through over-the-programming that can be used for payment.
Missed calls through which customers can use a dedicated merchant payment number by giving a missed call. The incoming authentication call will ask for PIN verification to complete the transaction.
Interactive Voice Response (IVR) based where the payment transaction will complete using pre-defined phone numbers.
Payment in offline mode through sound-based proximity data communication.
On 17th November 2021, NPCI International Payments Limited signed an MoU with PPRO Financial, a UK-based financial services firm, to expand the acceptance of UPI into foreign markets, specifically in China and the US, which accounts for half of all transactions from India.
Onboarding of NRI/NRE Accounts
Earlier this month, the National Payments Corporation of India (NPCI) released a notice stating that Non-resident accounts like NRI/NRE accounts attached to international mobile numbers will be permitted to transact with UPI. To begin with, mobile numbers of ten countries will be enabled. These countries are Singapore, Australia, Canada, Hongkong, Oman, Qatar, United States of America, Saudi Arabia, United Arab Emirates and United Kingdom.
The NPCI, in its notice, has clarified that these accounts will be permitted to transact as long as the member banks ensure strict adherence to FEMA (Foreign Exchange Management Act) regulations and the guidelines issued by the RBI (Reserve Bank of India). All the UPI members including banks and payment platforms have been instructed by the NPCI to ensure that they are completely compliant to all the legalities by April 30, 2023.
Lauding this move, Rajsri Regan, Head of Development – Banking and Payments, India & Philippines, FIS said – “NPCI has been working to expand and boost the use of UPI across the world and this move will widen the use of digital payments as Indians living overseas will also be able to make instant transactions.” This facility will soon be extended to mobile numbers of other countries as well.
Will UPI Become a Paid Service?
The Ministry of Finance’s Tweet About UPI Services
The government had made transactions over UPI free of cost to encourage faster and deeper penetration of digital payments post demonetisation and especially, the pandemic. This is the government’s zero MDR (Merchant Discount Rate) framework in which neither the customers nor the merchants pay for utilizing UPI services.
However, in a discussion paper that RBI released in early August 2022, it said that as a fund transfer system bears a resemblance to the IMPS (Immediate Payment Service), the charges in UPI need to be similar to the charges that are applicable in IMPS for fund transfer transactions.
Furthermore, UPI service providers like PhonePe, Google Pay and Paytm Payments Bank have not earned any revenue for the last couple of years for their services. Industry executives are debating that with the setup and adoption of a robust digital payment infrastructure the time has come for them to earn revenue from these transactions so that more players are enticed to enter the UPI service space to build further financial inclusion.
The Finance Ministry has stepped in very recently and has tweeted – “UPI is a digital public good with immense convenience for the public and productivity gains for the economy. There is no consideration in Govt to levy any charges for UPI services. The concerns of the service providers for cost recovery have to be met through other means.”
UPI payment platforms like Google Pay and Paytm have amassed millions of active users and have a deep data mine to access to fine-tune their products. Also, they have other avenues for revenue building. The payment platforms earn a commission from the service provider whenever there is a bill payment for utilities like electricity and water as well as mobile recharges and DTH recharge payments. To these payment platforms data substitutes for revenue to a certain extent.
In the immediate future, it remains unlikely that UPI will become a paid service.
Conclusion
The penetration and adoption of UPI continues to grow as the service itself seeks to grow and expand to include more and more features. While the future is bright for the UPI platform, it will be a wait-and-watch game to see whether the service in the future might attract charges or not.
FAQs
What is UPI?
UPI stands for Unified Payments System. It is a system developed by the National Payments Corporation of India that supports multiple bank accounts in a single mobile application. It facilitates inter-bank, peer-to-peer, and person-to-merchant transactions.
Will UPI become a paid service?
There has been suspicion among the people that there may be the possibility of UPI transactions carrying a service charge. However, to clear people’s suspicion, the Finance Ministry recently made a tweet saying that there is no consideration in Govt to levy any charges for UPI services.
Once you start a new business in this age, just accepting cash is not enough, even though it’s a small business but nowadays people prefer paying cashlessly. Maybe you have started a new business or startup and you are wondering how to accept credit card payments from your customers. Or maybe you have an established business but haven’t yet made arrangements to accept credit card payments but now you want to. The process might seem to be difficult in the beginning but it is actually pretty easy.
In this article, we will talk about how to accept credit card payments for your small business and why it is important for small businesses to accept them. So, let’s take a look at it.
Why Should You Set up a System to Accept Credit Card Payments?
People are shifting toward digital payment methods nowadays. Digital payment options provide a sense of security to the customer and it is also very easy to pay through digital methods. Whether shopping online or offline, people nowadays prefer digital payment options to pay for the services/products they buy. Therefore, it becomes essential to set up systems to accept digital payments.
Some of the advantages of accepting credit cards are:
Your business cash flow increases and you don’t have to wait long for your payments to process.
Payments disputes are avoidable if credit cards are taken into consideration in small businesses.
How to Accept Credit Card Payments in India?
To accept payments from credit cards, you will need a machine called ‘Point of Sale or PoS’ machine. The PoS machine is a small device that allows customers to pay to your account directly from their credit cards. Every bank offers PoS machines to licensed merchants. In this article, we will see how to apply for a PoS machine in the State Bank of India (SBI), but the process will almost be the same for all the other banks.
Go To PoS SBI Website
The first step is to go on PoS SBI website. Here you will find about 8 different types of PoS Machines which are:
PSTN
Desktop GPRS
Portable GPRS
Mobile PoS
ECR Based Terminals
Bio-Metric Desktop GPRS
Bio-Metric Portable GPRS
NFC Enabled Terminal
Apply For PoS Machine
The next step is to apply for a PoS Machine. Just click on the ‘Apply Now’ button below the ‘New Merchant’ label. You will be asked to fill out a form asking for details about you and your business. Fill out the form and submit it.
Confirmation
If your application is approved, your details will be shared with the nearest branch of SBI. You will be asked to go there with your documents. Your personal and business documents will be checked and verified.
Installation of PoS
After your documents have been successfully verified, a person from the bank will visit your store and set up the payment terminal. He/she will also tell you about the functionalities of the machine and tell you how to use the machine.
And that is it. You have successfully set up a method to accept credit card payments from your customers. Please note that there are only one-time installation charges for the PoS or ‘Point of Sale’ machine and no bank will charge you anything apart from that. All the payments made by customers are directly transferred to your account with no additional fee. This is a very simple process. Therefore, any business, whether large or small should set up PoS for credit card payments.
Conclusion
All the payments made by customers are directly transferred to your account with no additional fee. This is a very simple process. Therefore, any business, whether large or small should set up PoS for credit card payments. Digital payments are
FAQs
What is the best way to take credit card payments for small businesses?
5 best ways to accept credit card payments for small businesses:
Square: Chances are, you’ve seen Square being used by many merchants and retailers.
Stripe: For those with businesses that need to go beyond credit card payments, Stripe is a good option.
ProPay.
PayPal.
Authorize.net.
How many POS terminals are there in India?
PoS terminals in India are: India has more than 4.7 million PoS terminals, as of 2021, to serve a population of over 125 crores. India has the least number of point of sale (POS) terminals among advanced economies and other emerging market economies.
How do I set up credit card payments for my business?
Setting up credit card payments for small businesses: Small businesses can accept credit card payments by using an online merchant gateway like Stripe or PayPal, by setting up a POS system with a merchant account, or by using a mobile card reader to accept credit card payments through a smartphone app.
Startup acquisition seems to be a great trend for many big companies. The companies or the startups that have made it big likes to indulge themselves in the game of acquisitions.
So, when a small startup is doing well in the market but does not have the capability to sustain that, bigger companies tend to take control of it. However, this does not mean that the big companies intend to turn them into successful businesses.
Razorpay is one of the startups that has made a huge success and now has jumped into this field of acquisitions. Over the years, it has acquired startups like TERA Finlabs, Opfin, and more.
It is India’s top and leading company founded in 2014 by Shashank Kumar. Along with him, Harshil Mathur is the co-founder. The company is based in Bengaluru, Karnataka.
It allows you to use any payment mode. This includes debit and credit cards, UPI, mobile wallets (Mobikwik, JioMoney, etc.) multi-currency, and more. It helps businesses and traders to automate bank transfers, bills, checks, salaries, etc.
It is a digital system of payments that acts as a link between many apps. The decreasing role of debit and credit cards has given rise to the idea of auto-payments. In this regard, Razorpay offers features like UPI autopay.
It has administrative features like reporting, payout time, and dispute resolution. Security features like two-factor authentication, fraud protection tools, and more.
Along with these, other features include E-commerce integration, application programming interface, accounting software integration, etc.
About Razorpay
List of Startups Acquired by Razorpay
Startup Acquisition is a process where bigger companies buy an entire small startup or take the maximum authority over it by buying most of its shares or equity. This usually happens, when large companies want to remove their competition in the market.
Also, many startups begin their businesses with the hope of ultimately selling them in the future. This is because, after a point of time, the growth of certain startups becomes stagnant. So, going under the shelter of big companies help them to stay afloat and get better exposure.
Razorpay is one of the most noted companies in India. This payment platform made online transactions super easy and efficient. Its efficiency, great strategies, and right funding at right time made it a Unicorn startup in 2020.
Over the years of its existence, it has made a total of five acquisitions. It has also made investments in NextPay, Shiprocket, and MSMEx.
The following is the list of startups acquired by Razorpay:
IZealiant Technologies
Founded: 2015 Acquired: March 2022
This is the most recent acquisition made by Razorpay. It is a Pune-based fin-tech startup founded in the year 2015 by Prashant Mengawade. It provides for payment transaction processing by banks, traders, and processors.
The startup provides application programming interface empowered, cloud-ready, and mobile-first payment processing products. The businesses are able to receive, process, and distribute the payments smoothly with this startup.
It offers features like multi-factor authentication, 3D secure 2.0, E-commerce acquiring, Mobile POS and Micro ATM, and more.
Razorpay announced the acquisition of the startup on the 16th of March, 2022 for an undisclosed amount.
It is a Malaysian direct debit payment startup founded in the year 2018 by Zac Liew and Steve Kucia. The startup is designed to aid and ease the collection of recurring payments.
The startup tends to make settlements between customers, merchants, and their banks. It manages transactions and also collects cash receipts. It ensures all this by building technology on top of the payment framework.
It offers features like card payments, direct debit, payment collection, payouts, management of subscriptions, billing, and more.
Razorpay announced the acquisition of this startup on the 8th of February, 2022. It acquired the startup for an amount between 19 to 20 Million dollars.
TERA Finlabs
Founded: 2017 Acquired: July 2021
It is a startup that offers businesses financing solutions. It was founded in the year 2017 by Pradeep Rathnam and Harshil Mathur. It is based in Bengaluru. It provides technology, risk, and capital solutions.
This risk technology startup offers digital lending solutions for the organizations of finance and customer technology companies.
It is known for its great specialty in digital lending. It specializes in data-driven risk management, credit underwriting, and capital solutions.
Razorpay announced the acquisition of the startup for an undisclosed amount on the 19thof July 2021.
Opfin
Founded: 2017 Acquired: November 2019
It is a payroll management startup founded in the year 2017 by Anuj Jain. It is based in Gurugram. This enables the customers to custom-make their payment workflow to be as hands-off or hands-on as they want.
The startup is super helpful for small businesses. Its interface is perceptive and simple to use. This discards irrelevant jargon and unwanted steps.
It offers a wide variety of features like compliance management, attendance management, approval process control, application programming interface, attendance tracking, and more.
Razorpay announced its acquisition of it on the 23rd of November, 2019 without disclosing the amount.
It is a fraud detection startup founded in the year 2016 by Shashank Kumar. The startup rules out scams and frauds in digital, e-commerce, and banking transactions by using Artificial Intelligence. It is based in Gurugram.
The startup provides automatic detection and prevention solutions by using AI, big data technology, location profile, and device fingerprinting.
It offers features like risky order profiling, verification of shipping addresses, model customization, intelligent automation, and more. This helps to cut fraud, keep the rate of interest in check, and improve success and profitability.
Razorpay declared its acquisition of the startup on the 5thof August, 2019. This was the first acquisition made by Razorpay for an undisclosed amount.
Conclusion
Over its eight years of existence, Razorpay has surely made great progress and created a significant name for itself in the market. It has not only made itself successful but has also helped various other businesses by making their processes easy and efficient.
Since its birth, it has made a total of five acquisitions. All these startups have helped Razorpay to become even more skillful than it was on its own. These have strengthened the company more in the fields of banking services, neobanking, payout processing, e-commerce fraud detection, and more.
FAQs
What are the startups acquired by Razorpay?
Razorpay has acquired 5 startups:
IZealiant Technologies
Curlec
TERA Finlabs
Opfin
ThirdWatch
Who is the founder of Razorpay?
Shashank Kumar and Harshil Mathur are the founders of Razorpay.
BharatPe and PhonePe which are two digital payment applications in India have been fighting in the Delhi High Court regarding trademark rights on their name. It is said that the companies have been fighting among themselves since the year 2018. Let’s look at the complete case study of BharatPe and PhonePe.
The two major digital payment applications have been said to have fighting over the usage of the suffix Pe in their names and the company PhonePe has been claiming trademark rights over it. It is observed that both the companies have been arguing about the topic since the year 2018 and later the Bengaluru based startup PhonePe moved to the court.
The two leading Digital payment applications have been fighting in the court for a very long time. The documents seen have conveyed that the Flipkart owned PhonePe has sought an authoritative order from the High Court against BharatPe for the usage of the word Pe in the name.
It is said that the court did not grant an injection on the original appeal of PhonePe. The suit that had been complained about was based on seeking an authoritative order restraining the use of trademark, passing off, damages, etc. The company PhonePe has filed a suit on BharatPe for using the suffix Pe in both the languages English as well as Hindi and also both in graphic design as well as text.
PhonePe has been said to have sent a legal notice to BharatPe last year and the company had soon changed the logo and the colour of their original frame but that did not solve the issue and PhonePe had taken the case to the court.
BharatPe old vs new logo
A PhonePe spokesperson had conveyed that the company had approached the Delhi high court in order to protect their brand trademarks which they believe were being broken against the agreement of the law and added that the company was not interested to comment beyond this whereas BharatPe had declined to comment about the issue.
The Justice had conveyed that the usage of the word Pe in both the company’s names was nothing but a different spelling used to denote the word pay and added that no rights can be claimed over a mark which describes a word or even a word which is used to describe a part by misspelling it.
The court also added that the word Pe had not derived any other meaning other than pay. That is the company has not created a different impression on the minds of people like giving the word Pe a secondary meaning which refers to the goods or service provided by the company.
However, the Justice had conveyed that if the word Pe has acquired a secondary meaning then the court would look for a trial and the company will have to prove to the court that the word has a secondary meaning and the primary meaning i.e., pay should have been completely removed from the minds of their consumers. In order to move forward with this, the company will have to create evidence from their customers that the word has a complete secondary meaning which is related to the goods or service they provide.
The Court had said that considering the above factors both PhonePe and BharatPe are made up of several parts and added that these parts cannot be separated as Phone and Pe and Bharat and Pe. The court conveyed that the company PhonePe cannot claim rights over the word Pe.
The court added that the word Pe provides the meaning of the service provided by both the companies that is pay and said that by misspelling Pay and Pe there cannot be any claim on the legal positions.
About PhonePe and BharatPe
PhonePe Logo
PhonePe and BharatPe are both companies that provide digital payment services where as BharatPe provides their services only for the merchants and concentrates completely on that sector but PhonePe provides for both merchants as well as individual consumers as anyone who downloads the app can use PhonePe’s service.
BharatPe Logo
PhonePe has been increasingly expanding towards the merchant payments sector and BharatPe can be considered to be one of its major competitors in the field. PhonePe is considered to have a valuation of around USD 7 billion according to Morgan Stanley and BharatPe has been the fastest growing merchant payment company.
BharatPe has conveyed that they have around 1.5 million merchants on their platform with a daily transaction of around INR 7 lakhs and PhonePe for business has around 4.2 million merchants using it actively. Both the companies are considered to be expanding aggressively on-boarding offline merchants.
BharatPe is a billion-dollar company with a valuation of close to USD 1 billion whereas PhonePe is already in the billion-dollar club. It is considered to be the first instance where 500 crores + companies involving into a fight against the trademark.
FAQ
Who is the founder of BharatPe?
Ashneer Grover and Sashvat Nakrani are the founders of BharatPe.
Is BharatPe Government company?
BharatPe is a private company founded in 2018.
Is PhonePe an Indian company?
PhonePe is an Indian digital payments and financial services company headquartered in Bangalore, India. It was founded in December 2015, by Sameer Nigam, Rahul Chari and Burzin Engineer.
Is BharatPe and PhonePe same?
No, BharatPe and PhonePe are different companies. They both offer digital payment services.
The unified payments interface is the buzzword for the pandemic year. Ever since the pandemic hit, people became scared of touching any surface in the world. This was the time when the UPI came to the rescue. UPI or the unified payments interface is a method or gateway that is capable of transferring money from one bank to the other. This is a life saviour in a country like India. We are a country of more than a billion people and everyone has to do certain basic transactions everyday.
With so many transactions happening all over the country, it becomes hard and inconvenient. UPI eases just that thing. It lets you pay directly from your bank and you don’t have to carry notes and currency of small denominations and even larger denominations. In all its sense, UPI was a game-changer in India. It is fast, safe, easy and convenient.
There was however some issue over the UPI case in India. You cannot transfer money outside the borders of India. For that, you will have to follow some other method of transaction. In recent news, it was announced that Nepal (India’s neighbour) will accept the UPI payments from India. In fact, it will be the first country that will adopt the UPI system that India has inbuilt in itself. This step will be playing a pivotal role in transforming digital work all over the place, in India and as well as in Nepal. It was officially announced by the NPCI on Thursday, last week.
NPCI stands for National payments corporation of India. Here we will be discussing Nepal, which is India’s friend and all in all aspects. In this article, we will also discuss what will be the after-effects of this news. How will the fintech startups change, will this be a better move for them or will the move give them a hard time. Let us see first how the UPI works, and why it is so widely used.
A Small Brief About the Unified Payments Interface
We have invented so much, achieved so much and we are still in the process of innovating and adding value to the world. However, any amount of technology in the world is of no use, if it cannot ease the life of humans. Because what’s the matter if tech is useless? When the population rises to a great extent, something has to be invented which will work efficiently in managing human affairs.
In fact, as the population of the world rises, there has to be something that holds the number of transactions happening everywhere. This is when the word digital payment came into the picture. It is a mode of payment that is made via Digital means. Real money is flown out of a payer’s bank and is credited to the receiver’s bank. This is also a fast, easy and secure method to transact.
In a country like India, where the population bubble is so huge, it becomes crucial to innovate in the medium of transactions. This is when the word UPI comes to place. There is a strong possibility that someone has not heard of this word beforehand.
UPI or Unified Payment Interface is a digital payments service that costs nothing to the payer and receiver but makes it easy for both parties. It is a payments service and as the name suggests, it is a pathway through which money can be transferred to anyone in India.
It is the most accepted digital payments method. Since the demonetisation and the covid 19 pandemic, the use cases of UPI has also risen many folds. Which makes it the perfect go-to pathway for any sort of transaction.
It is developed by NPCI, which stands for National Payments Corporation of India. It is safe and secure as it is regulated by the Reserve Bank of India. RBI is the Apex bank in India, which is also the central bank of India. It regulates and secures every UPI transaction happening in the country. It is secure in this manner.
Another thing is that UPI is simple and convenient. All it takes is a mobile number and a bank account. It connects with your email id which is used to make a VPA ID. VPA is a virtual payments address.
As the name suggests, it is the online address to which payments are directed or payments are taken. VPA is something that directs the payment/transaction path. Transfers can be inter-bank and they can also be intra-bank. A mobile number also works seamlessly in the UPI payment system, if it is attached/linked with the bank account of the sender or receiver.
There are many benefits for a service like the UPI. But however, there is one limit to a UPI transaction. You cannot do a UPI payment across borders as it is only available in India. In recent news, something striking happened. It was reported that Nepal will be accepting the UPI structure of India. It is such a great welcoming move by which people can transact even in Nepal from a UPI enabled app. Let us see what is the news and what will be its implications.
India Nepal UPI Collaboration
In recent news, it was announced that Nepal will be accepting UPI which is a great initiative for development in both the countries, India and Nepal. In fact, it will become the first country to do this. The country said that they want to adopt India’s payment gateway for growing together.
NCPI has also given a nod to this agreement. Its foreign wing has joined hands with another technology entity to provide services in Nepal. The work of providing the infrastructure for this facility will begin soon in time.
NPCI International, Gateway Payment Service, and Manam Infotech, all three trifectas have come together and joined hands to deploy UPI solutions in Nepal. NPCI International Payments Ltd (NIPL) is all set to Enable NPCI’s flagship Unified Payments Interface(UPI) platform in Nepal.
This partnership or collaboration will enable many developments, like the creation of a real-time payments system in Nepal, leveraging NPCI’s top of the line or state of the art technology to democratise payments and displace cash
NCPI has come together and joined hands with GPS and Manam Infotech to provide services relating to the Unified Payments Interface to the country of Nepal. GPS here stands for Gateway Payments Services and Manam is a famous tech company on the land of Nepal. It has been clearly stated that GPS or Gateway payment service will be responsible for acting as a system operator for payments in Nepal.
Manam infotech will add the Unified Payments Interface to the whole country. It is a divided work and with the joint efforts of the respected bodies, this work will be done in an effective manner.
The collaboration will also make for the larger digital public good in Nepal. This effort on both ends will improve real-time person-to-person which is called P2P and person-to-merchant which is P2M transactions in the neighbouring country, NPCI said in a statement.
There have been rising sentiments of all the people who see UPI as a great initiative in a digital world. With Nepal joining hands with India, this will boost the usage of UPI and it will also promote the digital economy which everyone today strives to become. Moreover, this broad use of UPI will also bring these two countries together in the same sphere of payments.
As merchants and consumers from both countries will get benefits from this collaboration. Payments can be received and accepted from both countries which will make trade and communication easier on both ends of the locations.
With collaboration with Nepal, we can achieve a greater goal of merging the two economies, not exactly but the magnitude will rise in both places. As the collaboration will start working, it will also be seen that person to person and person to merchant transactions will also improve the number of countries. National payments corporation of India and investors and merchants are all looking forward to all the doors of opportunities that will be open after this collaboration on UPI.
National payments corporation and NIPL (International payments limited) which is its foreign wing, was incorporated in April 2020. The NIPL is a wholly-owned subsidiary of the national payments corporation of India. The sole purpose of NPCI is to regulate all the UPI payments in India.
Everything that is related to the Unified payment interface in India is to be managed by this entity. The foreign department of NPCI is known as NIPL and operates in connecting UPI outside Indian borders. The purpose of NIPL is to employ a payment system that is real-time, with the international markets. It has also the work of card schemes and RuPay which works outside Indian borders.
NPCI or the national payments corporation of India has developed and proved its capabilities in the past. It is the organisation that has the majority stakes in working overtime with the UPI in India.
The widespread usage of the Unified payments interface would not be possible, had it not been with the NPCI. Thus, this body has been the worthy organisation to regulate and promote UPI in Indian markets. The international wing of NPCI has also done immense work in its designated part. NIPL is focused on transforming payments across the globe with the use of technology and innovation
Nepal has a population of about 30 million (3 crore) with around 45 per cent banked. Mobile penetration of over 135 per cent with 65 percent of the population using smartphones provides a bedrock for seamless replication of the digital revolution in India to be replicated in Nepal, NPCI said.
NPCI International, Gateway Payment Service, and Manam Infotech. The trifecta has come to deploy UPI solutions in Nepal. This partnership or collaboration will enable many consequences, like the creation of a real-time payments system in Nepal, leveraging NPCI’s top of the line or state of the art technology to democratise payments and displace cash. NPCI International Payments Ltd (NIPL) is all set to Enable NPCI’s flagship Unified Payments Interface(UPI) platform in Nepal.
Conversely, several countries want to establish a ‘real-time payment system’ or ‘domestic card scheme’ in their own country. NIPL, with its knowledge and experience, can offer these countries technological assistance through licensing, consulting for building real-time payment systems to meet the rapidly evolving need of fast-growing global businesses. It will not only enable payment for Indians but also uplift other countries by enhancing their payment capabilities through technological assistance, consulting, and infrastructure.
As mentioned before, NPCI is the governing body when it comes to any case related to UPI. NPCI stands for National payments corporation India. In this case, when Nepal is agreeing to add UPI in their country, NPCI has to nod. To this query, it is amazing to see that NPCI has agreed to the partnership which will improve payments in both geographies. The foreign/international wing of the national payments corporation of India has cleared any issues related to the collaborations.
NIPL which is National international payments Ltd, which is the foreign department of the National payments corporation of India has joined with some organisations to provide UPI to the international market. In this case, where Nepal will become the first-ever country to get the UPI as their payments gateway, NIPL has planned everything which they will be needing.
They have joined two other entities to fulfil their mission of enabling UPI in Nepal. The two bodies are the GPS and Manam. GPS stands for gateway payments service and the other entity is Manam Infotech. Enabling the Unified Payments Interface in Nepal, which is not an easy task, requires a lot of work and efficiency. These two entities with which the NIPL has collaborated, are well versed with the world of UPI and how it operates.
Gateway Payments Service will be the payment system operator in Nepal. The other company, that is Manam Infotech will be responsible for employing Unified Payments Interface in the neighbour to India.
The collaboration will serve the larger digital public good in Nepal and bolster interoperable real-time person-to-person (P2P) and person-to-merchant (P2M) transactions in the neighbouring country, NPCI said in a statement.
“Nepal shall be the first country outside of India to adopt UPI as the payments platform driving the digitalization of cash transactions and furthering the vision and objectives of the Nepal Government and Nepal Rastra Bank as the Central bank,” it said.
This collaboration will enable the last-mile consumers in Nepal to reap the benefits of an open interoperable payments system driving immediate payment transfers between bank accounts and merchant payments in real-time.
Among all the news of Nepal accepting Unified payment interface as their go-to transacting pathway, one entity is in charge of the settings. You guessed it right, it is Manam Infotech private limited.
Manam infotech will be the responsible body for enabling UPI technology and operations in India. It will work very closely and parallel to the GPS. GPS or Gateway payments service is the service that is entrusted with the responsibility of maintaining the pathway.
Nepal shall be the first country outside of India to adopt UPI as the payments platform driving the digitalisation of cash transactions and furthering the vision and objectives of the Nepal Government and Nepal Rastra Bank as the Central bank.
“Manam has always been part of major digital transformation across the various regions of the world, we believe this partnership will eliminate all the barriers of payment transformation within Nepal and across the border thereby transforming the regional economy,” Naga Babu Ramineni, Director of Manam said.
Manam Infotech Private Limited is a very repeated name in the article and it is worthy to be named many times. Manam Infotech is a Fintech (Finance plus technology) company based out of Bangalore, India.
Manam Infotech is the fintech arm for many leading banks across various regions. The regions in which Manam infotech works fabulously includes Asia, Africa and the Middle East. The company stands tall with over a decade of experience in digital wallets, payments, and all the omnipresent banking and digital lending. Manam Infotech has also been a part of transforming the traditional banks to digital-first banks, which was the primary focus of the government for a long time now.
What is the Gateway Payment Service (GPS)?
Another name that we have repeated in this article is GPS or the gateway payment service. GPS is a payment system operator with expertise in all the works relating to payment services and operators. It is to its core a PSO or a payment system operator.
It is licensed by NRB, which stands for Nepal Rastra Bank, which is the apex bank in the country (Central Bank of Nepal). It has been allowed a PSO licence which enables the entity to work and operate in all sorts of payment and transaction settlement-related technology.
GPS has all the rights that include all that of payment gateway, domestic and international gateway, with UPI, that is unified payments interface in switch and in card transactions.
Benefits of UPI collaboration in Nepal
The benefits that this collaboration entails are endless. The collaboration will help people build real-time money connections with the country without having to go through the hassle of other payment methods. This UPI partnership will be real-time and it will be capable of crossing borders.
All person to person money transactions and remittances between India and Nepal will flow like water. Not just person to person transactions but all the transactions related to the merchant’s part will be carried out effectively if this collaboration gets realised.
The benefits are endless, as UPI is one of the most famous methods of payment in India. India is the second-most populous country in the world and UPI is a hit here. With all the volume of transactions that are received from here, it will benefit a lot from Nepal and it will add a good amount of transactions to Nepal too.
In 2021, UPI enabled 39 Billion financial transactions amounting to commerce worth USD 940 Billion, which is equivalent to approximately 31% of India’s GDP. UPI’s real-time payment infrastructure will help catalyse the process of financial inclusion in Nepal and will also create more opportunities for businesses. It will help modernise Nepal’s digital payment infrastructure and bring the convenience of digital payments to citizens of Nepal.
Ritesh Shukla, CEO of NIPL said, “We are delighted to join hands with GPS and Manam Infotech to facilitate the deployment of NPCI’s flagship Unified Payments Interface in Nepal. At NIPL, we are committed to transforming payments by taking our robust payments solutions to global markets and collaborating with local payment system operators. We are excited about this partnership, which will enable consumers within Nepal to transact swiftly using a state-of-the-art UPI platform and deliver a seamless user experience. We are confident that this initiative will stand as a testimony to NAPLes technological capabilities and vision of scaling our unique offerings globally.”
Naga Babu Ramineni, Director of Manam said, “Manam has always been part of major digital transformation across the various regions of the world, we believe this partnership will eliminate all the barriers of payment transformation within Nepal and across the border thereby transforming the regional economy.”
Rajesh Prasad Manandhar, CEO of GPS said, “The same UPI service has created a significant positive impact in India in terms of the country’s digital payment transformation. We expect UPI in Nepal would play a pivotal role in transforming the digital economy of the country and dreams of building a less-cash society.”
How Will UPI Be Implemented in Nepal?
The neighbouring country of India, Nepal has good population stats. Out of all the population of Nepal, about 45 percent have bank accounts. That 45 percent account for something about 30 million people. Mobile penetration in Nepal is over 135 percent.
Moreover, it is reported that 65 percent of the population uses smartphones which will provide a good base for UPI payments. Not only this, the three major companies will work towards increasing the volume of transactions.
The three companies we are mentioning here are the UPI backed service providers. It is NPCI, National payments corporations of India, GPS, Gateway payment services, and Manam Infotech. All these three companies will work together to employ all the necessary equipment to make Unified payments accessible in Nepal all over the place.
It will also enable the way forward for real-time cross-border P2P remittances between Nepal and India, NPCI said. UPI service has created a significant positive impact in India in terms of the country’s digital payment transformation, Rajesh Prasad Manandhar, CEO of GPS said.
“We expect UPI in Nepal would play a pivotal role in transforming the digital economy of the country and dreams of building a less-cash society,” he added.
In 2021, UPI enabled 3,900 crore financial transactions valuing USD 940 billion, which is equivalent to approximately 31 per cent of India’s GDP. NIPL, being an internationally focused subsidiary of NPCI, is looking to drive deep collaboration with overseas partners in the areas of UPI like deployment, cross-border remittance, acceptance, using indigenously developed technologies in digital payments.
“At NIPL, we are committed to transforming payments by taking our robust payments solutions to global markets and collaborating with local payment system operators. We are confident that this initiative will stand as a testimony to NAPLes technological capabilities and vision of scaling our unique offerings globally,” Ritesh Shukla, CEO of NIPL said in the statement.
UPI’s real-time payment infrastructure will help catalyse the process of financial inclusion in Nepal and will also create more opportunities for businesses, NPCI said.
NIPL, being an internationally focused subsidiary of NPCI, is looking to drive deep collaboration with overseas partners in the areas of UPI like deployment, cross-border remittance, acceptance, using indigenously developed technologies in digital payments, NCPI said.
All the three organisations have nodded to set up a laid out plan in this path. They will be working together in a closely-knit target and process that will enable UPI in Nepal.
The benefits, as previously mentioned are countless. There will be ease in transactions of any sort, people and merchants will be the group of people who will be the first and foremost most affected in a good sense.
In short, it is a great move and that is why the NPCI and the concerned authorities nodded directly to the proposed news. This move is looked at as a win-win for both countries.
UPI is amongst the most successful real-time payments (RTP) systems globally, providing – simplicity, safety, and security in P2P and P2M transactions in India. It is the most popular payment mechanism in India and the recent news said that Nepal will also be accepting this. This is a great move and will benefit both countries in transactions. The better the volume of transactions, the better will it indicate and benefit the growth of the country.
The benefits are endless and will help all the people across the borders who indulge in regular payments across larger boundaries of the land.
FAQs
Is UPI made in India?
Yes, the UPI platform and technology is designed in India and is regulated by RBI.
Who regulates UPI in India?
The Reserve Bank of India (RBI) regulates UPI in India.
How many UPI users are there in India?
There are around 300 million active monthly users of UPI in India.
The biggest digital payment brand, dominating the whole digital transactions companies around the globe, is Visa. Visa Inc. is widely famous across the globe and serves over 200 countries and numerous territories. Visa facilitates dozens of services at a broad level to the individual consumers, financial institutions, governments, and merchants. It offers authorization, settlements, and clearing services in the smoothest manner.
Visa Inc. does not issue debit or credit cards although it does authorize the service of debit, credit, and prepaid cards to the enterprises as well as consumers. Visa gains its most profitable deals by selling services to various financial businesses and merchants, acting as the middleman. Visa’s biggest business strategy comes from expanding its presence to various digital payments, E-Commerce, and others. The biggest rival to Visa is Mastercard Inc. and PayPal Holdings Inc. in the market. In this article, we will discuss the business model of Visa and how it makes money! Let’s get started.
Visa Inc. is a prominent global digital payment company that acts as the middleman in facilitating consumers, financial institutions, government, and other businesses. Visa’s services are available in more than 200 countries and territories across the globe.
The American multinational corporation, Visa works as a financial services provider headquartered in Foster City, California, United States. Visa was founded by Dee Hock in 1958 as the BankAmericard.
Visa is known as the second-largest debit and credit card payment corporation, after China’s UnionPay. This data is based on the number of card payments made and the number of card issues of the company, annually. Apart from this, Visa is the leading banking card company in the whole world, dominating around 50% market share of the entire card payments.
Where does Visa Operate?
Visa is a global payment company that serves more than 200 countries and territories, worldwide. It’s four secured data centers operated in Highlands Ranch, Colorado; Singapore; Ashburn, Virginia, and London, England.
Key Products and Services of Visa
Visa Inc. offers tons of services to its consumers such as clearing, authorization, and settlement services. Its major services and products are:
Services: Clearing, Authorization, and Settlement services. Moreover, mobile payments, top-up services, and money transfers.
Products: Visa provides its allotted credit cards, commercial cards, debit cards, prepaid cards, and other mobile and money transaction-based products.
Visa majorly targets the people with a good income to spend and those who need credit points. The company targets its consumers through various channels such as banks or other financial institutions.
The digital payment company believes in providing consumers with the utmost convenience of its stakeholders.
Business Model of Visa
Visa logo
Visa functions on a pretty different business model as compared to the conventional models. Who doesn’t have a Visa card nowadays? But it’s pretty amazing how its business model functions. The digital payment company, Visa is a publicly-traded company that comes in the listing of the New York Stock Exchange.
Visa follows the Multiple sided platform- business model. It functions by spreading its card services everywhere. And the maximum the customer through a Visa card makes will be accepted by the merchants and vice versa.
Visa mainly focuses its marketing campaigns on the customers holding Visa’s card and are the subsidy side of the company. Visa provides the best facilities for payment to consumers, businesses, and government organizations. In a further manner, Visa uses a proprietary transaction processing network of technology.
What is unique about the Business Model of Visa?
Visa’s mode of generating revenue is entirely different from any other organization. It functions with an open-loop system and follows a transaction-centric business model.
Visa’s business model is based on connecting the consumers to the business owners as the middleman. Visa’s revenue generation isn’t based on the money made by the discount offers of merchants or consumer’s membership fees for issuing the card.
Visa functions as a transaction-centric business model where it earns its revenue through the payments as well as transaction volume done from its personalized cards.
Visa charges little transaction fees from the merchants. Let’s suppose there is a certain amount the consumer transacted to the merchants. So around 2-4% of the total will be merchant fees. That 2-4% will be split between the consumers and the organization, based on the interchange fees. There is always a high risk of default payment by the consumer but the person with a Visa card keeps more generated money from the merchants.
Visa generates its revenue from transactional processing, payment volumes, and value-added assistance including dispute management, issue processing, value-added information services, loyalty services, and many more.
The revenue is distributed in four streams as Service revenue, International transitional revenues, data processing revenue, and other sources of generating more revenue.
Conclusion
Visa is an excellent digital payment company when it comes to serving customers promptly. Although it does make it the second-largest digital payment company after UnionPay of China. But apart from that, Visa is the first choice of everyone across the globe. It offers tons of amazing services to merchants, financial institutions, and others. Through this article, we got the knowledge on how the company makes its money as well as its business model. Stay tuned for more updates!
Purbalee Dutta
Alan Joseph
