PhonePe

India's big banks have a longstanding grudge.

It's against the three main fintechs, Paytm, Google Pay, and PhonePe, for gatekeeping over 80% of the country's UPI payments.

But here's the irony.

Four of those same banks also control 80% of India's credit card market.

Obviously, that isn't exactly good news for the big banks.

Their own apps handle only about 2% of UPI volume.

PhonePe has 46%, Google Pay 36%, and Paytm 7%.

To compete at scale, an HDFC would have to sell its credit line through PhonePe or Google Pay.

PhonePe marks first international foray.

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Now, PhonePe marks first international foray.

It has secured in-principle approval from the Central Bank of UAE for two payment licenses.

The Bengaluru-based fintech firm has completed the initial regulatory due diligence and will have to secure final approval before it can commence commercial operations in UAE.

But, you know, let's look at the other side of the toll road.

The entities running the UPI infrastructure, the banks, the National Payments Corporation of India, the payment service providers like Google Pay or PhonePe.

They have a valid argument, too, don't they?

They have an existential argument.

MDR boost.

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Now, MDR, MDR, MDR, uh, it's all anyone seems to be talking about right now.

But for India's biggest UPI player, it could also be the push needed to get its IPO moving.

Now, in an exclusive interview to us earlier today, PhonePe CEO Samir Nigam said that the new MDR and the incremental revenue it could generate could push the payments major closer to an IPO filing.

Earlier this year, PhonePe had indefinitely postponed its IPO process, citing geopolitical uncertainties and investing sentiment.

NPCI gets a fixed fee of around zero point zero two basis points per transaction as switching fees.

UPI apps such as PhonePe, Google Pay, and payment...

Paytm partner with banks to connect to the UPI network, and these partners are called the PSP banks.

Since PSP banks have an outsized role in ensuring the success of UPI, they are likely to get a higher share of MDR, unlike in the card ecosystem.

Now coming to the tidbits.

One, PhonePe has received its first international license from the Central Bank of the UAE, paving the way for local operations in its first overseas market.

The license will allow it to serve merchants directly and offer payment and cross-border transaction services.

Two, the US Department of Labor has suspended new permanent labor certification or PERM filings by Cognizant amid an investigation into alleged immigration fraud.

I mean, who's complaining? True.

I've been working with PhonePe.

Not jingles, their ads.

On which phone? On PhonePe!

I've not

heard of this

Probably half of you are definitely going to be users of his product given the market share.

Sameer Nigam, founder of PhonePe, very, very good to have you here.

Congratulations on all that you have achieved over the years.

One of the reasons we do this podcast is that a lot of the celeb stories like yours from the outside are very intimidating to many in the audience.

Even as entrepreneurs, how to think about, okay, I can have a lot of operating metrics, what will make money? I think that Flipkart taught us an incredible amount of.

Awesome.

And then you went on to start PhonePe.

I didn't think of this framework of asymmetric bet.