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Payments company MobiKwik will now allow UPI payments from ICICI Bank through its payment gateway aggregator ZaakPay, a company spokesperson told MediaNama. What this means, is that MobiKwik users can load money to their wallets using the UPI and which will be processed by ICICI Bank.

Note that wallets aren’t allowed on the UPI and inter-operability between wallets is not allowed. However, banks do allow loading of money to wallets using UPI.

However, ICICI Bank’s tie up with ZaakPay is interesting as it gives access to other smaller merchants on the payments aggregator for UPI transactions. MobiKwik said that it would consider offereing UPI payments to merchants. This is significant as banks are ramping up partnerships with payment gateway aggregators to get access to merchants. Banks are allowed to charge a higher fee to merchants for UPI transacations as compared to P2P payments.

Typically, there is a revenue sharing agreement with payment companies and banks for UPI transactions for access to their merchant database. In the case of Razorpay, banks pay 20 basis points per transaction.

MobiKwik declined to give further details about its agreement with Zaakpay and ICICI Bank, and also did not disclose if it had a revenue sharing agreement with the bank.

Note that Axis Bank and FreeCharge partnered to allow its users to make payments through the 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.

However, MobiKwik’s competitor Paytm has not signed signed up with any bank for UPI payments. Paytm also offers payment gateway aggregator services and does have a more than half a million offline merchants who can be onboarded on the UPI.

ICICI Bank’s other partnerships

Last month, ICICI Bank also tied up with C2C payments company Instamojo and payment aggregator ftcash for UPI payments. It will be a payment option for Instamojo and ftcash and ICICI Bank will process the transactions.

The bank has tied up with Aditya Birla Fashion and Retail Limited (ABFRL) and Hindustan Petroleum Corporation Limited(HPCL) to offer UPI based payments at its retail outlets.

MobiKwik funding

In August, Net1, a South African payment systems company, invested $40 million in MobiKiwk. With this deal, MobiKwik will be integrating Net1’s virtual card technology across all its wallets and extend its wallet services to all merchants. The company said that it will be using the funding to scale up in India and grow to a user base above 150 million and sign on 500,000 merchants. MobiKwik has a user base of 32 million and 100 retailers.