Now Reading: AvenuesAI to launch RediffPay UPI app by August
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AvenuesAI to launch RediffPay UPI app by August
AvenuesAI, the parent company of CCAvenue, is set to launch its UPI-based consumer payments app RediffPay as soon as August, after months of testing with a closed user group. The app, approved…
AvenuesAI, the parent company of CCAvenue, is set to launch its UPI-based consumer payments app RediffPay as soon as August, after months of testing with a closed user group. The app, approved by the National Payments Corporation of India, will let users pay utility and credit card bills, top up FASTag accounts, and later offer credit lines on UPI and wealth management services.
The company sees RediffPay as a second leg of its payments business, moving beyond merchant acquiring into consumer transactions. The launch comes as the government amends the Payment and Settlement Systems Act to allow a merchant discount rate on UPI, which could boost revenue. MDR is expected to apply only to large merchants and transactions above Rs 2,000, though final rules are yet to be notified.
AvenuesAI CEO Vishwas Patel said UPI accounts for 22% of the company's transactions, and any monetisation will add revenue. Rediff, in which AvenuesAI holds an 82% stake, filed a draft red herring prospectus for an IPO in April, aiming to raise Rs 600-800 crore.
Indian Opinion Analysis
The UPI market is dominated by PhonePe and Google Pay, which together handle over 80% of transactions by volume. For a new entrant like RediffPay to gain traction, it will need to offer a compelling differentiator beyond basic bill payments. The reintroduction of MDR could reshape the competitive landscape, as smaller TPAPs may see a direct revenue stream from high-value transactions, potentially funding user acquisition. The NPCI will set the final MDR framework, which the government expects to exempt small merchants and customers. RediffPay's success will depend on how quickly it can build a user base before the final MDR rules are notified.
AvenuesAI acquired Rediff in 2024 for about Rs 77 crore, gaining a legacy internet brand with a loyal user base. The IPO filing with SEBI will test investor appetite for a payments-plus-media story.
Source: medianama.com
This brief was synthesised by AI from the source linked above.
