Nepal bans Alipay, WeChat Pay

Kathmandu: Nepal‘s central bank has banned popular Chinese digital wallets Alipay and WeChat, an official said Tuesday, fearing loss of foreign currency earnings from thousands of Chinese tourists that visit the country. Nepal Rastra Bank issued a notice on Monday, banning the use of the Chinese digital payment platforms popularly used in hotels, restaurants and shops in tourist areas, especially in Chinese-run businesses.

Laxmi Prapanna Niroula, spokesman for Nepal’s central bank said that using the platforms in the country was illegal without the bank’s authorisation.

“We have enforced a ban on Alipay and WeChat Pay because the country is losing foreign currency earnings through its usage. Action will be taken if anyone is found using the platforms,” Niroula told AFP.

Niroula said currently there is no record of how many transactions have taken place through the platforms as they are not recorded in Nepal.

Alipay, started by e-commerce giant Alibaba and owned by its affiliate Ant Financial, and WeChat Pay, built into Tencent’s popular messaging service, have hundreds of millions of users between them and are China’s dominant payment platforms.

Over 150,000 Chinese tourists visited Nepal last year, helping it reach a landmark of welcoming over a million tourists for the first time.

Tourism is a major revenue earner for impoverished Nepal, home to eight of the world’s 14 peaks over 8,000 metres.

Tourism contributed 7.8 percent to Nepal’s GDP in 2017, creating over a million jobs, according to the World Travel and Tourism Council.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/nepal-bans-alipay-wechat-pay/69444581

Paytm Payments Bank turns profitable in second year of operation

Paytm Payments Bank Limited (PPB)  has posted profit to the tune of Rs 19 crore within second year of its operation in fiscal 2019. The bank had reported  loss of Rs 20.7 crore for the fiscal ended March, 2018,

PPB, which was incorporated in August 2016, formally began its operations in 2017.

Satish Kumar Gupta, MD and CEO of Paytm Payments Bank, said the bank performed “exceptionally well” in the last year. He claimed that PPB was the first payments bank in the country to announce profit, that too within two years of its operations.

As of April 2019, the bank has more than Rs 500 crore deposits in its savings account.

PPB claims to lead mobile banking transactions with over 19 per cent market share as of March 2019. Nearly a third of the total mobile banking transactions in India are powered by PPB and it processes over Rs 3 lakh crore worth of digital transactions on an annualised basis, the company said in a statement.

The majority of PPB earnings accrues from investing in government treasuries and FDs, besides commissions on facilitating payments across its saving bank accounts and its e-wallet holders. The e-wallet, which had a deposit of Rs 1700 crore, was able to generate 6-6.5 per cent interest for the company.

Gupta said that the deposits are expected to rise three-fold by the next financial year end.

Earlier, RBI data on payment banks revealed that Paytm Payments Bank and Airtel Payments Bank together command over 88% of the deposits in payment banks in India in 2018.

In December last year, Paytm witnessed over 240% rise in deposit to Rs 371.4 crore (48% of total deposit) from Rs 107.3 crore in March, added the report. In total, payments banks hold around Rs 780 crore in deposits, including savings and current accounts till the end of last year.

PPB now aims to introduce more products and features on its platform to increase the monthly processing of savings account payments from Rs 24,000 crore to Rs 40,000 crore in FY’20.

Paytm Founder Vijay Shekhar Sharma holds 51 per cent share in Paytm Payments Bank, while the rest is held by One97 Communications.

Besides Paytm, Airtel, Fino and India Posts are the other fully operational payment banks. There has been doubts about the earnings of the payment banks as they cannot generate revenues by lending. Besides the transaction size is always going to be small.

They are hoping to bring more people from the unbanked segment, which stands at 233 million, within their fold to achieve the scale.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://entrackr.com/2019/05/paytm-payments-bank-turns-profitable/

BharatPe sets sails for providing credits with cheaper interest rate to merchants

To head towards that one goal of business – profits, every startup has to think up ways to monetize efficiently. For digital payments startups, especially for the ones keenly focussing on the merchant side of the business, credit as a monetization avenue really becomes the need of the hour.

One such startup – BharatPe – that is a digital payments platform and has a separate app for merchants, has also started providing credits to these merchants digitally.

It counts on interdependent cyclical relationship of credit and application usage to increase the revenue on its platform. How? More usage of digital payments meaning more scope for lending, and higher the need for credit more the usage of this applications.

This has been done keeping in mind that these unorganised small merchants find it difficult to procure loans from regular institutions, be it NBFCs  or banks or others in the game.

The company that has onboarded with 7 lakh offline merchants on its platform till now has now partnered with NBFCs like Apollo Finvest to offer loans with ticket sizes between the range of Rs 10,000 to Rs 1 lakh at a minimum interest rate of 1.67%, lower than most in the industry.

The target is that at least 20-25% merchants on the platform use the credit services, making for a healthy, efficient, and successful revenue model.

Apart from monetization, this will also help the company in scaling up from the current figures of 10 million transactions worth $400 million altogether to the total payments on the platform reaching around a billion dollars, as co-founder of BharatPe Ashneer Grover told ET.

Given the importance of credit to merchants, BharatPe isn’t the only fish in the pond doing the business of lending to the merchants. Several others like Cars24, Flipkart, Ola and other pure-play fintech platforms are doing the same.

Two differentiators BharatPe is counting on to scale the business and credit facility in this highly competitive market is the separate focus on merchants via the BharatPe Merchant UPI platform powered by QR codes and the low-interest rate.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

MobiKwik thrives on targeting Bharat, witnesses 2X jump in revenue growth in FY19

MobiKwik’s annual report for FY19 says it’s building financial services for Bharat. The angle here, as elaborated by Founder and CEO Bipin Preet Singh in a blog post, is to not count on the unbanked, but the underbanked users.

What is this underbanked user? These are the 750 million banks accounts out of the total 900 million that are enrolled in Public Sector Unit (PSU) banks where the account holders are mostly from lower middle class. Why? Because they have access to lesser quality tech assistance, wealth management and other financial services provided by PSUs.

And Mobikwik within the last very year has gone from being an e-wallet to a horizontal fintech platform with launch of services like UPI, credit card payment, loans and credit line, insurance, mutual funds, digital gold investment, and instant redemption of mutual funds.

All we had wondered at the launch of these services was how much dent it would create in the market, or in the company’s performance. Seems like we’ve got our surface answers in the least.

MobiScore – the company’s indigenous credit score based on AI algorithms, saw 64 million users consenting to sharing the data required to generate a score and loans were disbursed in a completely digital manner with sizes ranging between Rs 2,000 to R 2 lakhs.

May 2019 saw MobiKwik giving away 70,000 loans and claims are being made that 1 lakh applications are received every month. Almost Rs 1,500 crore worth loans have been distributed to about 1.2 million customers in FY20 but just 3.5 lakh loans in FY19 with a $24 million loan book so far.

Apparently, credit scoring and loan disbursement made for a customer more loyal than a regular one.

Insurance numbers, however, remain yet to be disclosed. The deadline of the aim announced at the time of flaunch last year – to complete 15 lakh loans by end of FY19 – now seems to have been extended to end of 2019. For Bharat, these policies – accident and/or term – are cheap with prices as low assas Rs s20 giving a cover of Rs 1 lakh.

Wealth Management is all about helping the Bharat achieve their financial goals and manage their funds in a better way than savings at a low of cost of Rs 100, for which the company had acquired ClearFunds and launched KwikSave.

But what about that B2B business Magic? No idea.

This Nobelesse Oblige agenda has somehow stabilized the overall revenue growth rate of the company to 2X year-on-year taking the Rs 86.5 crore figure in FY18 to Rs 186.4 crore mark in FY19.

At the same time, claims illustarte that the company’s Contribution margin – Revenue apart from banking cost and marketing services – has gone up. And “in the right way” by increasing revenue.

But there is still no light being thrown on expenses, that could go on to postulate the true nature of this growth achieved by MobiKwik.

All there is, is the hype around MobiKwik being the second most preferred application for merchant payments and wallet to bank fund transfers (Umm? Hello Paytm, PhonePe, Google Pay), the 4th largest bill payments platform and some numbers key figures.

The monthly active user (MAU) count has reportedly increased by 90% with 40 million users in a year, 11% of overall UPI handles in India being issued under MobiKwik, and $3 billion in total payment volume under payment gateway (by how many of those 40 million people?).

It looks like a great picture on surface, but there are still a lot of grey areas to be explored most important one being how much of this penetration has actually been into the target market – Bharat?

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://entrackr.com/2019/05/mobikwik-fy19/

Digital transactions will increase four times to 8707 Cr by end of 2021: RBI

With a promise to offer people of India e-payment experience that will be exceptionally safe, secure and truly world-class, the Reserve Bank of India has come out with vision document for the next three years.

In the vision road map, the central bank outlined 12 expected outcomes, including reduction in volume of cheque-based payments, growth of UPI, a four-fold increase in digital payments, increase in e-payment GDP, reduction in paper-based transactions, improved pricing, better customer grievance redressal mechanisms and establishment of new payment system operators (PSO), out of 36 specific action points over the 36-month timeframe.

RBI, in the vision document, said to witness accelerated growth in individual retail electronic payment systems, both in terms of a number of transactions and increased availability.

The number of digital transactions is expected to increase more than four times from 2069 crore in December 2018 to 8707 crore in December 2021, said ‘Payment and Settlement Systems in India: Vision 2019 – 2021’ document released by RBI.

In the same period, RBI is expected to see an increase in the share of digital payments to 14.8% of gross domestic product (GDP) by December 2021 as against 8.4% in 2018.  It also indicated that debit cards will play an important role in driving digital payments.

Usage of debit cards at PoS transactions is expected to be at least 44% of total debit card transactions, the vision document added. In value terms, it is expected to be 22% by the end of 2021.

RBI further plans to reduce the demand of the cash through enhancing the availability of card acceptance device infrastructure. It is expected to have 5 mn active PoS.

It also talked about creating an ecosystem for healthy competition in payment space.

The payment systems landscape will continue to change with further innovation and entry of more players which is expected to ensure the optimal cost to the customers and freer access to multiple payment system options, said RBI.

In January this year, expressing concerns of concentration in the retail payments space, the RBI had invited public views on opening up the payment space to encourage innovation and competition.

The current Vision document outlines the road map for the three-year period spanning from 2019 to 2021.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source https://entrackr.com/2019/05/rbi-digital-payment-vision-document-2021/

Here’s a closer look at Paytm’s first ever credit card

Indian digital payments major, Paytm, on Tuesday announced its foray into the credit card business with the launch of its Paytm First credit card, co-branded and issued by Citibank India.

According to the company, the contactless-enabled card issued by Citi will provide one percent cashback on all transactions made by the user, without any restrictions. The cashback will be auto-credited to the card every month.

In addition to this, the company said the card will be accepted in India and internationally, and comes with an annual fee of Rs 500, which will be waived off on spends exceeding Rs 50,000 per year.

Users can also avail exclusive offers on dining, shopping, and travel amongst others on the globally-acclaimed Citi Privileges platform. Further, the card EMI paid by a consumer will be subjective.

 

In a statement, Paytm said that customers can apply for a credit card on their Paytm app, where they will also be able to conveniently track offers through the Paytm First Card passbook.

Paytm First Card customers will also be awarded Paytm promo-codes worth Rs 10,000 on spending a minimum of Rs 10,000 on the credit card within the first four months of issuance, said the company. The Paytm First Card passbook not only allows customers to track their credit card transactions, but also highlights exclusive offers, both from Patym and Citi on a real-time basis.

Speaking on the launch, Vijay Shekhar Sharma, Chairman and CEO – One97 Communications, the parent of Paytm, said,

“We are delighted to partner with Citi to launch the Paytm First Card. Our new offering is designed to bring utmost flexibility to our customers in their digital payment options and will help spur large-ticket cashless payments. We are confident of getting a very good response from our customers.”

Paytm will identify the potential base using a selection tool, jointly developed by Citi and Paytm, to assess credit worthiness. This provides an innovative alternative to underwrite customers, who otherwise may or may not have a credit history.

Paytm also added that the Paytm First card will be offered based on an individual digital behaviour, and has nothing to do with ‘Paytm First’, the company’s premium subscription-based rewards and loyalty programme, launched in March, this year.

Stephen Bird, CEO, Global Consumer Banking, Citi, added,

“Paytm First Card gives us the opportunity to extend our expertise in credit card services to a new all-digital consumer base. What began as an institutional relationship for Citi has grown into a stronger and deeper partnership across the Citi franchise. Today’s announcement affirms how Citi is establishing itself globally as the partner of choice to accelerate growth for our partners, customers, and business.”

However, One97 Communications and Citi’s collaboration goes a long way.

One97 Communications started as a Citi Commercial Banking client in 2009. To support the firm’s growing ambitions, Citi was an advisor on the initial investment by Ant Financial in February 2015 and the subsequent strategic investment by Alibaba Group and Ant Financial Services Group in 2016.

In November 2016, Paytm wallet was integrated with Citibank online and mobile app to make it convenient for Citi’s customers to top up their Paytm wallets online. Citi and Paytm have subsequently, and periodically, built exclusive offerings for Citi debit and credit card customers, such as cashback on movie tickets booked on the Paytm app.

Shinjini Kumar, Country Business Manager, Global Consumer Bank, Citibank India, added,

“The introduction of Paytm First Card is reflective of Citi’s commitment to partner with leading brands and to expand India’s digital ecosystem. Integrating the Citi service experience within a Paytm proposition will build engagement, thereby driving usage.”

Last week, YourStory reported that Paytm’s banking arm, Paytm Payments Bank, was also in talks with Visa to issue contactless debit cards. In addition to this, the payments major was also working with Visa to launch contactless point-of-sale terminals for its merchants who are new to card acceptance.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://yourstory.com/2019/05/paytm-first-credit-card-citibank-vijay-shekhar-sharma?utm_source=Firebase&utm_medium=browserpush

The following year in payments: patterns to expect in 2019

2018 was another huge year for the payments business, with mechanical advancement, moves in shopper desire, and new control all adding to its development.

The pace of progress throughout the following a year looks set to be the same; here is rundown of improvements to give careful consideration to in 2018.

Blockchain driving digital identity

Discussions encompassing the utilization cases for blockchain will keep on being predominant as the innovation keeps on developing, however one territory we may see a noteworthy increment in reception in 2019 is digital identity, a critical area for payments. Data breaches and privacy and fraud concerns, as well as online verification that provides an outdated user experience, are opening the door for a blockchain based alternative.

Security is presently everything

The expanded prioritization of security for organizations while choosing an online payment service provider (PSP) is a pattern that we have watched develop for various years, yet we have achieved the tipping point by which the capacity to keep up a safe payments framework is currently the most critical factor while joining forces with a PSP.

Increment in computerization

The drive to computerization is obvious all over the place, yet straightforward unlimited mechanization will result in clients losing power over any procedure. Hence, a trade off should be found by which the advantages of mechanization are acknowledged, yet without the administrator giving up the majority of its capacity to regulate the procedure through balanced governance.

One solution that will turn out to be progressively common in 2019 is a blockchain ‘keen contract’; bringing about the fast information preparing advantages of mechanization however with in-constructed balanced governance to spot abnormalities and keep up power over the procedure.

Normalizing cryptographic forms of money: the job of stablecoins

Despite the fact that the estimations of digital forms of money, for example, Bitcoin have fallen in the course of recent months, publicity encompassing cryptographic forms of money and their job as a factor in the payments biological system past being a store of riches will keep on being a key point of discussion in 2019. In any case, one of the key obstacles to defeat with the goal for digital forms of money to advance is dealing with their present dimensions of instability.

In the course of recent months, stablecoins have developed as a potential arrangement. Upheld by resources, for example, gold, conventional money, or even a mix of a few unique resources for enhancement, they seemingly offer the better of the two universes. They have the advantages of the blockchain biological system at the same time, since they’re upheld by customary resources, they’re less inclined to wild vacillations.

Mobile ordering

As shoppers turn out to be progressively acquainted with in-application payments, we ought to hope to see this type of payment grow past single administration applications such Uber. The making of restricted curated commercial centers, conformed to an area, for example, a college grounds, air terminal, or lodging, will empower clients to buy an assortment of items from nearby merchants and have them conveyed straightforwardly to them; an inconceivably increasingly helpful update on the present neighborhood shopping background.

Mass personalization

Artificial intelligence (AI) assume a critical job in retail procedure in 2019. This is on the grounds that though global retailers have scaled to a place of market strength, clients have needed to forfeit the personalization with neighborhood retailers that could give them an individual affair. Artificial intelligence can possibly address this; retailers can offer an individual client experience including redid offers, however on a mass scale through AI innovation.

The development of elective credit

We’re as of now observing the appropriation of elective credit offices to charge cards, for example, payments by portion and conceded payment by receipt, at the online checkout. Customer inclination is progressively towards ‘purchase currently, pay later’, as opposed to spare before making a buy, and online traders are glad to encourage that pattern.

Trader selection of elective credit will keep on expanding in 2019, in-store just as on the web. As Open Banking finds an a dependable balance in the UK, this may create open doors for banks and elective loan specialists to contend at the purpose of offer for offer of the purchaser’s money related information and wallet.

The proceeded with reevaluation of money

While the appropriation of new innovation, for example, contactless cards and mobile wallets will keep on lessening the volume of money shoppers convey (and its use in-store), the inverse is the situation with regards to eCommerce.

The development of money payment alternatives at online checkouts has kept on creating as a pattern in the course of recent years; in 2019 we will see considerably assist appropriation, especially in less created markets of these items.

Monetary administrations for the unbanked

An unmistakable concentration for governments, banks, organizations, and innovation organizations is handling the issue of monetary consideration by means of equivalent money related incorporation to the unbanked and underbanked. Let’s see the development of further innovation activities to help these instruments in 2019.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoftdeveloped a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Mobile wallet transaction volumes 12% rise in March

After five months of an interval, mobile wallet-based transactions have witnessed a slight rise in March this year.

About 384.89 million transactions worth Rs 15,999 crore were recorded in March, which is an increase of 19% in transactions volume from last September and 11.55% from the preceding month, as per RBI data.

Around 324.16 million transactions amounting to Rs 15,102 crore took place in September. In February, close to 345 million transactions worth Rs 14,279 crore took place.

The rise is attributed to the year-end occurrence when the volume of transactions rises. India has seen a spurt in digital transactions since November 2016, when the government announced demonetisation of all Rs 500 and Rs 1000 banknotes.

In 2018-19, as per RBI, there has been 30% Year-on-Year jump in value and 37% growth in the volume of transactions in compared to 2017-18.

In September last year, mobile wallets witnessed most of the decline after the SC ruling on Aadhaar. The apex court barred private entities to use Aadhaar for electronic know your customer (e-KYC) to sign up a new customer.

This led to about 6-time rise in customer verification cost for mobile wallets.  This raised big concern over their completion of customer verification.

In October, despite the SC ruling, mobile wallets recorded around 368.45 Mn transactions amounting to Rs 18,786 Cr.

Transactions through mobile wallets fell in November as mobile wallet companies had to stop using Aadhaar for electronic know your customer (e-KYC) to enrol new customers.

Meanwhile, RBI had asked mobile wallets to complete the process by end of February 2019.

However, during the same period, UPI, which was launched in August 2016, witnessed sustain increase in transactions.

It hit a record high of 799.54 million transactions, 93K more transactions than when it was launched, worth Rs 1.33 trillion in March.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoftdeveloped a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://entrackr.com/2019/05/mobile-wallet-transactions-rise-in-march/

Digital Wallet Payment in Security

As we move into a cashless economy, there is continually going to be addresses brought over the security up in digital payments. Nations over the world have seen various advances towards cyber security measures, yet not without a couple of hiccups along the street. As India is genuinely new to the idea of computerized payments, there is dependably that approaching risk of a digital assault that could delete an individual’s ledger. Luckily, the administration is moving firmly towards a super-secure method for making payments through cell phones and different cashless assets.

To the extent security is concerned, the best thing shoppers can do today is to guarantee that they make careful strides in counteracting the burglary or loss of vital information on their mobile phones. Here are a few different ways to guarantee full security when you get ready to make payments the digital way.

Mobile applications are a standout amongst the most helpful cell phone includes ever existing. Applications are so easy to use that numerous organizations that had recently worked exclusively by means of sites have moved spotlight on building up a versatile application adaptation of their administrations. While the Play Store (Android) and App Store (iOS) do give standard security checks their confirmed application programs, there can be instances of broken or meddlesome application includes that could misuse payment conventions. With the instance of e-wallet applications, you should be sure beyond a shadow of a doubt of utilizing and offering essential data to the application’s database preceding introducing it. There are numerous choices to browse, however it is most secure to introduce the e-wallet application with the most hits and client suggested downloads. Additionally, check the security rules and application necessities before you input individual data.

Update to the latest Ideas

Truly, it might bother be always shelled with meddlesome programming reports on your mobile phone or whatever other equipment that bolsters digital payments. Yet, in all actuality these updates are finished by their individual parent associations for valid justifications. A lion’s share of minor and regular updates you spot will include bug fixes and UI upgrades, just for the sole purpose of making significant components like the exchange of cash smoother and less mistake inclined. Set your gadget to acknowledge programming refreshes naturally and dependably experience what the update is going to see how to utilize it.

Enact essential safety efforts

Protection is a fundamental piece of everyday living, particularly in the event that you are facing a daily reality such that all that you do can be followed by a basic couple of catch presses. With regards to verifying basic information, mobile phones are the go-to gadget in the advanced age. Fundamental safety efforts like passwords, pins and biometric confirmation are utilized widely, and this is additionally helped with spending benevolent keen gadgets likewise including comparative safety efforts. The act of verifying individual digitized information must be spread across the nation if the nation is really going to change into an carefully sovereign money.

Make the most of two-factor authentication

You may have gone over a safety effort that requires the contribution of an e-secret word that lapses after use. Such safety efforts are called as two-factor confirmation that enormously diminishes the danger of false movement amid digital payments. Your e-wallet service provider will incite you with a One-Time-Password that must be entered to affirm payments, after you experience the underlying safety effort of entering your own secret phrase. This safety effort is polished over all significant payment specialist organizations, so ensure you have all the obligatory necessities dealt with before you proceed for a buy by means of digital implies.

Swipe just at confided in POS frameworks

Card payments in India are at a high danger of extortion because of the straightforwardness wherein your PIN number and card subtleties can be copied. Luckily, progression in payment strategies like portable e-cards is evacuating the danger of conveying such a large number of cards in your satchel. You should likewise be tired of where you swipe your card; it is ideal to swipe at confided in strip malls that utilization on the best and most recent POS machines.

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As mobile wallet plays a vital role, Roamsoft introduces a digital wallet platform “RPay” with customer app, merchant app, end- to- end admin panel. If you want to possess your own digital wallet solution then RPay is the right choice.

 

Facebook Stablecoin launch may bypass RBI regulations ban on crypto transactions

With Facebook’s reportedly planning to test its virtual currency codenamed Libra, it is likely that the move will lend legitimacy to use of digital currency in the country. But the fluid regulatory situation with regards to cryptocurrency has cast doubt about the efficacy of such a plan.

Last week Bloomberg reported that Facebook is building Stablecoin, a cryptocurrency pegged to the US dollar or a basket of currencies, making it less prone to swings in price. The product could eventually allow users to transfer money for remittances via WhatsApp through Stablecoin. India, given its expanse, has been chosen as the testing ground for the product.

The social media giant has, so far, chosen not to comment on the reports.

Anyway, given the size of the company, this was enough to cause a flutter in the relevant circles.

Facebook is expected to allow peer-to-peer transaction of its cryptocurrency and the proposed currency system would not require to use banks to transfer money to buy or sell digital currency, a report in ET said quoting leaders in cryptocurrency startups.

The foray shall not be aided by the regulatory policies in the country which continue to be ambiguous. In April 2018, the Reserve Bank of India had banned entities from providing services in virtual currencies to any individual or business.

Companies represented by the Internet and Mobile Association of India are fighting a case in the Supreme Court against the regulator’s ban. The next hearing on this case is scheduled in the second week of July. The court had also directed the government to come out with its own set of policies.

However, there is no law in the country which prevents users within a platform from exchanging digital tokens. Facebook is likely to initially operate within the ambit of this rule.

Nitin Sharma, founder of Incrypt Blockchain, has been quoted as saying that for the Facebook project to be deployed on a large scale in India, regulatory approval may eventually be a major impediment. Facebook will be faced with challenges of making the link between the crypto Stablecoin and rupee to be real to derive any value for its users.

Not everyone at the forefront of fighting for pro-cryptocurrency regulation in the country is, however, enthusiastic about Facebook’s plans. The fact that the company shall deploy a centralised approach by allowing transactions only within its various platforms, defeats the purpose altogether, said a bitcoin trader.

These are still the early days for Facebook. Moving beyond traditional payments to add blockchain-based Stablecoin transfers would represent a huge shift for the company. There is still no clarity about the wider rollout of the cryptocurrency by the company and hence it needs to be treated with caution.

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Looking forward to develop a digital payment app? Then Our RPay is the right choice. We have talented designers and developers to turn your ideas into an excellent solution

Source : https://entrackr.com/2019/05/facebooks-stablecoin-may-not-have-a-smooth-run/