Online auto-rickshaw aggregator Jugnoo has now launched its own unified payments interface (UPI) payments app called Jugnoo Pay. The company has partnered with YES Bank for the SDKs to develop the application and seems to be fashioned along the lines of Flipkart’s PhonePe.
Jugnoo Pay works with 30 banks across the country at present which have signed on with thee National Payments Corporation of India (NPCI) for the UPI. Jugnoo Pay s available on Google Play store for Android users. Apple users will have to wait as the UPI is still not available for iOS.
Currently, Jugnoo Pay can be used to send and receive money via the UPI. A user needs to have a virtual payment address to use the app else an address will be created on YES Bank which will link their bank account. Note that the UPI allows creation of VPAs of banks which are on the UPI platform.
“In next iteration, Jugnoo Pay will be integrated as a payment option in Jugnoo app so that users can pay their ride amount, groceries and meals directly from their bank accounts. Furthermore, it will soon be open for other e-commerce and businesses as payment solution. Jugnoo is also working on offline solution to ensure financial inclusion for all.” Ronak Goyal added in a statement.
Currently, Jugnoo has MobiKwik and Paytm to enable its users to pay with digital wallets.
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).
Banks more interested in getting merchants on UPI
Banks have been tying up with more payment gateway aggregators to get access to more merchants. Typically, there is a revenue sharing agreement with banks when a merchant does a UPI transaction (20 basis points as it is in the case with Razorpay). Note on the UPI, banks are allowed to charge a merchants a higher fee than compared to P2P payments.
For example, PayU has a deal with Axis Bank while ICICI Bank has deals with CCAvenue, MobiKwik’s Zaakpay, Instamojo and ftcash.