Upcoming Changes in Credit Card Repayments on Third Party Fintech Apps

Starting from July 1, significant adjustments will be impacting the way in which credit card holders have been making their repayments through third party fintech applications. This development comes in light of the banks that have not integrated with the Bharat Bill Payments System (BBPS), thus altering the landscape of digital credit card payments. Users of the third party fintech applications need to be prepared for the upcoming change, affecting their usual transaction processes.

Integration with Bharat Bill Payments System

The Bharat Bill Payments System (BBPS) is an initiative by the Reserve Bank of India (RBI), designed to provide an interoperable platform for standardized bill payment transactions. It is a crucial pillar in India’s aim to advance towards a more inclusive financial ecosystem. However, not all banks have enlisted in this system, which has sparked the upcoming restriction on credit card repayments through non-enlisted third party applications. The impact of this change is expected to be widespread, as fintech players have communicated to the Business Standard that they will temporarily halt credit card repayment services for those banks that remain unaligned with the BBPS.

Effect on Fintech Services and Consumers

The new regulation is poised to influence both the operational capabilities of fintech firms and the transactional behavior of consumers. Fintech applications that have been serving as intermediaries for credit card payments will have to reassess their strategies and possibly find alternative routes to accommodate their customers, while users of these services might need to seek other avenues or revert to the traditional methods of credit card repayment, possibly affecting the everyday convenience that these apps have offered.

CreditCard, FinTech, Regulations