Reports have revealed today that a new fintech startup, India’s Slice, is preparing to enter India’s UPI payments market with PhonePe and Google Pay.
According to a source familiar with the situation, Bengaluru-based Slice, plans to introduce UPI payments for its India users within weeks.
The source revealed that the fintech startup is presently testing the new payment option within the company. And the startup is also updating the app to make UPI transactions more intuitive with a new in-app navigation flow. Slice’s decision to support UPI, a payment mechanism developed by a group of banks, comes at an interesting time.
UPI payments, which have become the most popular way for Indians to transact online today, are now led by Walmart-backed PhonePe and Google Pay, but a law slated to take effect shortly will compel them to give up some market share.
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The National Payments Corporation of India, which supervises the UPI ecosystem, is also striving to implement additional improvements that will level the playing field for UPI participants.
It’s working on a tool called digital mapper that would allow users to send money to one another without relying on virtual payment addresses by simply using their phone numbers. The regulatory body also intends to unify merchant payments on its platform by displaying all UPI alternatives at the checkout.
The NPCI’s upcoming intentions have piqued the curiosity of various industry players, prompting them to reconsider their perceptions of the payments ecosystem. Tata Digital, an Indian conglomerate, is also aiming to include UPI functionality in its upcoming app.
Reports have revealed that UPI support is part of a larger ambition for the younger business to make Slice the super-app for its younger demographic’s payment demands. Rajan Bajaj, the founder, and CEO of Slice, stated that the company aims to introduce UPI in the next week.
According to a person familiar with the startup’s internal data, Slice has become one of the country’s largest card-using businesses, dispensing roughly 400,000 cards every month. Slice has increased its products in the previous year, in addition to the rapid expansion of its card company, by widening its incentives and creating a card designed for the public.
The UPI offering from Slice will be the first to use &ID. Slice creates an NFT against users’ usernames when they join up for the UPI service. Slice’s rapid development and aggressive objectives explain why investors are interested in the company.