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Private sector lender YES Bank has partnered with 50 companies to build an ecosystem for the Unified Payments Interface (UPI). For starters, it has already announced its partnership with Flipkart’s PhonePe. Others in the fold include Capital Float (lending), Ezetap, Benow (merchant aggregators), MyPoolin, Splitkart, Paysay (bill splitting) and Instafeez (fee collections).

Through the partnership with YES Bank, PhonePe will be trying to replace cash on delivery with digital payments for Flipkart, Myntra and newly acquired Jabong. While Capital Float will be using the bank’s UPI mechanism to collect payments form their SME borrowers and disbursal of loans. “The way we look at UPI, we want it to help in parts of India where the money flows in a little slower. Initially, we will not be looking at people in urban areas we are looking at merchants who live a little further away and getting money from them and giving loans,” Rohan Angrish, chief technology officer at Capital Float said.

The UPI went live this month with 21 banks including ICICI Bank, Axis Bank, Canara Bank and Punjab National Bank.

It is an architecture was built upon the IMPS mobile payments system which lets customers to transfer money across different banks with the use of a single identification and password. Through this, multiple bank accounts can be be linked to a single mobile banking application and money can be both received and requested through the same interface. More on that here.

Focus on P2M (person to merchant) payments: However, Dilip Asbe, chief operating officer of the National Payments Corporation of India (NCPI), commented that it is more interested in bank partnerships with more merchants to drive usage rather than P2P transfers. “We’ve made the UPI live on the P2P side, however, it holds great potential on the P2M side. And I’m happy that YES Bank is taking the lead on this to get a collaboration partnership model. P2P transactions are not that frequent from a consumer standpoint. It happens once or twice in a month,” he added.

Charge on merchants: Ritesh Pai, YES Bank’s senior president and head of digital banking, said that the lender will be charging merchants a similar fee to the MDR (merchant discount rate) on debit cards. For transactions less than Rs 2,000 the RBI has capped the MDR at 0.75% and 1% for transcations above Rs 2,000.

Axis Bank and FreeCharge tie-up: Last month, FreeCharge and Axis Bank  partnered to allow its users to make payments through the Unified Payments Interface (UPI). Through this, FreeCharge users will be allowed to load money into their wallets through the UPI option which will be powered by Axis Bank’s SDK.