In a major move in favour of the payment gateways PayU India and Paytm get in-principle approvals for consumer bill payment services. PayU India and Paytm have got amongst the first in-principle approvals for operating as a Bharat Bill Payments Operating Unit (BBPOU), allowing them to offer interoperable bill payment service to consumers.
Post this development, consumers will be able to pay all their bills anytime and anywhere under the Bharat Bill Payment System (BBPS), and the companies will provide platforms to offer these services.
While speaking about the development Vijay Shekhar Sharma, founder of Paytm, mentioned,
“We’re planning to launch the payments unit by August-September, alongside our payments bank,”
He further added that the permits have come with some conditions laid down by the Reserve Bank of India that need to be fulfilled.
The conditions that companies with in-principle approvals would have to meet, include a certification from National Payment Corporation of India (NPCI) for adherence to BBPS standards and system readiness. A system audit would also have to be conducted to evaluate the hardware, software, critical applications and security.
Shailaz Nag, co-founder of PayU India said that the license along with the company’s technology will offer a cost effective and efficient alternative to existing payment options, thus increasing consumer convenience.
Once the system is up and running, consumers will be able to pay a variety of bills such as utility bills, and going forward payments like school or university fee, municipal taxes. It will function as a tiered structure for operating the bill payment system in the country with a single brand image providing convenience of ‘anytime anywhere’ bill payment to customers.