RBI approves Spice Digital to process bill payments under Bharat Bill Payment System as BBPOU
New Delhi, August 28: Spice Digital Limited, a company well known in the market for its portfolio of MVAS, Telco, and Enterprise services forayed into FinTech space three years ago. Today SDL’s Spice Money is India’s leading India stack based FinTech Company. Spice Digital was chosen by National Payments Corporation of India (NPCI) as one of the eight BBPS operating units when NPCI launched its pilot project for Bharat Bill Payment System (BBPS) in August 2016.
Spice Money received an in-principle approval to set-up as a Bharat Bill Payment Operating Unit (BBPOU) under the Payment and Settlement Systems Act, 2007 in May 2016. After about a year of running the pilot, abiding by the technology and stipulated business processes, now, in an official communication, RBI has accorded final certification to Spice Digital for processing bill payments under BBPS as a BBPOU.
Spice Digital has received CoA from RBI for operating as BBPOU. The BBPS, through its centralized bill payment system, allows the users to use a single website or outlet to pay all their monthly or repetitive bills such as mobile phone and electricity. Bill payment is a major component of the retail payment transactions in India and is characterized by the presence of a large number of billers, and aggregators who provide a variety of payment options to customers.
According to the Digital Payments 2020 report by Google and Boston Consulting Group, non-cash contribution in the consumer payments segment will double to 40 per cent. Since January, 2017 the Bharat bill payment market has grown by nearly 70 times in over six months. According to the same report in this new era of digitization, India will see digital payments exceed USD 500 billion by 2020 and non-cash transactions exceed cash transactions by 2023.
“We are excited to have received the final license from the RBI allowing us to process bill payments as a Bharat Bill Payment Operating Unit (BBPOU) in the Bharat Bill Payment System (BBPS). This is our second license from the RBI, the first one being of a Pre-paid Payment Instruments. BBPS initiative will provide a major push to digital payments as it is a big step forward in formalising the bill payment system in the country. Leveraging on enabling infrastructure, technology and standards of Bill Payment System (BBPS) we are increasing acceptance channels especially physical through an assisted mode,” said global CEO, Spice Digital, Saket Agarwal.
SDL’s Spice money is making financial technology even more accessible to the common man. With a vision to bridge the gap of digital divide, Spice Money aims to reach the remotest corner of the nation bringing basic Fintech services like direct money transfer, Mini-ATM, Aadhar Enabled Payment System (AePS), health and vehicle insurance, travel booking and bill payments at every Indian’s reach. “It gives us a great deal of satisfaction that under BBPS we have empowered our 45,000+ Agent network to offer Bill payments of utility comprising of Electricity, Telecom, DTH, Water and Gas by giving a convenient O2O experience to the customers,” said Agarwal. (ANI)