Phonepe is entering in Mutual fund business says CEO
Phonepe is planning to apply for an Asset Management Company(AMC) license which will propel it to sell its Mutual Funds.
The CEO of Phonepe didn’t disclose the release date of its new openings but has simply said “Phonepe had a good chance of getting there at some point in time”. Obviously many compliance and paperwork has to manage before releasing even the launch date.
Phonepe is leading payment platform funded by Flipkart and Walmart and has clocked over 3900 crores transactions in the April- June quarter of this year.
Phonepe has some intellect thoughts on having Mutual Fund license as they can help it’s team for designing cost-effective products suited for their consumers.
As they have recently got their insurance brokerage license and in-principle Account Aggregator licence.
Why Phonepe is entering in Mutual Funds’ Industry?
The National Payments Corporation of India (NPCI), which controls the UPI system has set some new rules which are restricting the Market share of UPI apps at 30%. Hence Phonepe has to moderate its share below 30% by 2023.
These guidelines will start from 2023 while it’s mandatory for new players like Whatsapp pay.
CEO Sameer Nigam says “We are informed of the Cap obviously”.
And they have clarified to regulators that they don’t give any more cashback on UPI from last 2.5 years and are not artificially growing transactions rather it’s becoming users’ preference to choose Phonepe as medium of payment over other UPI payment apps.
Phonepe is leading now, Google pay and Phonepe together control 85% of the Market share on UPI.
NPCI Clarification on a new rule of 30% Cap
NPCI Managing Director (MD) Mr. Dilip Asbe has clarified that a 30% cap was introduced keeping in mind the concentration risk approach i.e., What if Phonepe has the highest market share and if it fails to deliver such services to its users in the forthcoming future.
Mr. Asbe believes that the existing players like Paytm, Amazon pay and WhatsApp pay shall increase their market share in the near future so that NPCI need not to interfere or take any actions to stop the growth of UPI.