Google Pay, Amazon Pay, and Walmart-backed Phonepe are reportedly seeking to join India’s central bank digital currency (CBDC) initiative led by the Reserve Bank of India (RBI). Other fintech firms like Cred and Mobikwik are also seeking participation. These companies aim to facilitate transactions through the e-rupee. The initiative aims to boost transaction volumes by expanding access beyond banks to major payment platforms.
Major Payment Platforms Seek to Join India’s Digital Rupee Initiative
Google Pay, Amazon Pay, and Walmart-backed Phonepe are seeking to join India’s central bank digital currency (CBDC) initiative spearheaded by the Reserve Bank of India (RBI), according to a Monday report from Reuters citing three sources directly involved in the discussions.
Alongside these major payment platforms, Indian fintech companies Cred and Mobikwik have also applied to participate in the RBI digital rupee pilot. These firms plan to facilitate transactions through the e-rupee, which the RBI launched in December 2022. Despite an initial surge in usage, e-rupee transactions have notably declined, underscoring the global obstacles central banks encounter in promoting digital currencies.
Previously, only banks could enable e-rupee transactions through their mobile applications, but the RBI broadened this access in April to include payment companies upon approval. These firms are now working with the RBI and the National Payments Corporation of India (NPCI) to implement e-rupee access over the forthcoming months. This initiative is anticipated to increase transaction volumes by widening the user base, as these companies currently account for over 85% of UPI digital payments, which total about 13 billion transactions per month.
India’s central bank recently announced that as of June, the digital rupee had reached five million users and involved 420,000 merchants in the retail CBDC pilot. The RBI highlighted that the digital rupee aims to supplement cash and existing payment systems, catering to both wholesale and retail markets.
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