Fintech friction takes root in India’s banking landscape

Fintech friction takes root in India’s banking landscape

In the first fortnight of the New Year when Indians were still warming up to digital payments, many buyers on the country’s top shopping portal, Flipkart, had a nasty surprise: purchases they attempted on the Flipkart app through PhonePe, a digital payment method integrated into the app, were getting rejected.

The reason surfaced on Saturday, 14 January, when Sameer Nigam, chief executive of PhonePe that Flipkart acquired in April 2016, tweeted his anger. ICICI Bank Ltd, India’s largest private bank, was blocking transactions originating from PhonePe, which works on the Unified Payments Interface (UPI). “Such unilateral actions will hinder UPI adoption,” warned Nigam, a former Flipkart executive and co-founder of PhonePe.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter