E-wallets will be interoperable within 6 weeks – Times of India

E-wallets will be interoperable within 6 weeks - Times of India


MUMBAI: Issuers of prepaid payment instruments (PPIs) will need to get their systems ready for interoperability in six weeks. The reason: The Reserve Bank of India (RBI) had set March 31, 2022 as the deadline for PPI interoperability. In terms of RBI’s new guidelines, where PPIs are digital wallets the interoperability will have to be provided through Unified Payments Interface (UPI), and where they are physical (payment cards) they should be acceptable across card networks.
Prepaid instruments that are used for transport — metro and other public transport cards — are exempt from the interoperability guidelines. Issuers of gift cards, however, will have the option to make their cards interoperable. It is not just the issuers of the cards. The service providers who acquire merchants will also have to make their acceptance network interoperable.
Payments platform Juspay Technologies has launched OpenPPI — a solution that helps digital wallets implement and comply with RBI’s PPI interoperability regulations. According to RBI’s former executive director G Padmanabhan, interoperability of prepaid instruments like e-wallets will convert them from a niche product to a mass product. “Sharing of infrastructure brings forth economies of scale in a tech-driven ecosystem. Achieving PPI interoperability through the cynosure of the payments world — the UPI — is a rhythm-changing initiative,” he said.
Juspay provides an on-cloud tech stack that powers the UPI technology for large banks like Axis Bank, ICICI Bank and Yes Bank. It is also the UPI payment provider for merchants such as Amazon, Google, CRED, Bajaj, Ola, and Swiggy. It is now offering digital wallet companies an option to integrate with Juspay’s suite of payments offerings and get accepted across all major merchants in India.
“Interoperability essentially means that your e-wallet can now act as your bank account, enabling you to transfer money from e-wallets or cards seamlessly. It opens up multiple possibilities for e-wallet usage. A person can now scan any UPI QR code and pay with e-wallet balance instead of using their bank account through UPI,” said Juspay co-founder & COO Sheetal Lalwani.


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