UPI Enabled Indian Fintech Startup Trupay To Expand Into Mutual Funds, Insurance & Travel Payments
Indian Fintech Startup, Trupay, has launched a mobile payment app based on Unified Payment Interface (UPI). RBI, in conjunction with the National Payments Corporation of India (NPCI), recently launched the UPI payments platform in India.
Unified Payments Interface (UPI) enabled Trupay is a digital financial technology app which is also looking to enter areas such as payments to mutual funds, insurance companies and taxi aggregators such as Uber and Ola.
UPI is a one-touch transaction for transferring money between any two parties using a ‘unique virtual address’ on a smartphone. Once a beneficiary is added to the address, an MPIN ensures transaction within seconds.
Trupay is trying to expand its usage for investments, travel and for cash-on-delivery area, it has partnered with 21 banks.
Trupay will use UPI, which allows the user to make instant payments to anyone on its contact list directly from one’s bank account. UPI securely transforms a user’s bank account into a pay-on-the-go solution, which can then be used to pay anyone with just their phone number.
Indian Fintech Startup Trupay was founded in 2015 by IIM alumni Rahul Gochhwal, Vivek Lohcheb, and Narender Kumar, Trupay facilitates transactions between users and various businesses. The startup is backed by investors including M&S Partners, Japan and Aqualyng Holdings, Singapore.
UPI is an interoperable system launched by the Reserve Bank Of India (RBI) and the National Payments Corporation of India (NPCI), which will allow peer-to-peer and peer-to-entity payments by unifying mobile number, Aadhaar number and the bank account number.
“We had around 80,000 customers six months back; but within three days of UPI’s launch, we have added 20,000 customers, taking the total customer base to one lakh (100,000),” Vivek Lohcheb, co-founder of Trupay, said.
As of now, the focus is on integrating all the mobile numbers under UPI because these are more relevant to banks. However, going forward, Aadhaar should become the next round of integration, he said.
Trupay is also planning to be more aggressive in the offline stores segment rather than the online space.
Currently, any transaction conducted on Trupay has a ceiling of Rs.1 lakh . However, Trupay is in talks with the NPCI for a relaxation of limits.
Investing in mutual funds, for instance, can require people to invest more than Rs.1 lakh in one transaction.
“Talks are on with NPCI to look at the various use cases where Trupay (with the use of UPI) can come in and also for setting up different transaction limits for different use cases,” Lohcheb said.
“UPI is an innovative concept; however, it still requires people to use their bank accounts… Our customer base is not likely to be affected. Those having only physical cash will continue to depend on wallets for their transactions, which also thrive on cashbacks and discounts.” Naveen Surya, managing director of digital payments company ItzCash, said.
The UPI follows the IMPS (Immediate Payment Service) structure of payments. IMPS transactions allow real-time 24×7 transfer of money between parties with the use of IFSC codes and MMID. Trupay also claims to be one of the first few companies in the country to offer IMPS-based mobile payments solution for cash on delivery (CoD) payments with its mobile app.
In August 2016, PayPal too launched PayPal.Me for enabling easy cross-borders transactions for SMBs and freelancers working with overseas clients.