Infibeam Avenues Limited is set to enter the unified payments interface (UPI) market with its new payment app, RediffPay, as reported by sources familiar with the situation. This initiative will position Infibeam Avenues alongside established competitors like PhonePe, Paytm, Google Pay, and MobiKwik.
Recently, Infibeam acquired a 54% stake in Rediff.com India, indicating plans to relaunch the platform as a consumer-focused digital financial services aggregator. A source noted that Infibeam intends to expand beyond UPI payments to include offerings like insurance, lending, stock trading, and wealth management.
In April 2024, Finance Minister Nirmala Sitharaman announced that India recorded 131 billion UPI transactions worth ₹200 trillion in FY24. Infibeam aims to leverage Rediff's existing user base and brand strength, along with its own digital payment expertise, to enhance its UPI services. Rediff claims 55 million monthly visits and over 70 million registered email users.
Last year, Infibeam acquired a 49% stake in Pirimid Technologies, a capital market trading software provider, and is working on integrating this technology into its digital payment platform for both domestic and international clients, with RediffPay playing a central role.
Unlike other UPI providers that started from scratch, Rediff's established customer base will give it a significant advantage, especially when combined with CCAvenue's strong presence in B2B payments. This move marks Infibeam's first significant entry into the B2C sector, focusing on consumer payments through RediffPay, which will offer UPI services along with other financial solutions like credit and bill payments.
Queries sent to Infibeam and Rediff went unanswered before the publication of this story. Infibeam is also developing advanced payment technology aimed at enhancing transaction security, which could provide RediffPay with a competitive edge. This development aligns with Infibeam's investment in AI through Phronetic.AI, which has appointed Rajesh Kumar SA as its CEO.
Currently, PhonePe holds a 48% market share in UPI transactions, followed by Google Pay and Paytm with 37.3% and 7.21% shares, respectively. CRED is the fourth largest player in UPI transactions, while new entrants like Flipkart, NAVI, and BharatPe are also making strides in the consumer payments market.
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