Infibeam To Start UPI Payments Services With New App RediffPay

Infibeam Avenues Limited is set to venture into the UPI market with its innovative payment application, RediffPay, according to sources familiar with the development. This move is anticipated to position Infibeam Avenues among the leading contenders in the UPI domain, including established entities such as PhonePe, Paytm, Google Pay, and MobiKwik.

In August, Infibeam Avenues Limited acquired a 54% stake in Rediff.com India, signaling its intention to relaunch Rediff.com India as a consumer-centric digital financial services aggregator.

The company aims to broaden its scope beyond UPI payments by incorporating insurance, lending, stock trading, and wealth management services, as disclosed by a confidential source.

In an interview with Finance Minister Nirmala Sitharaman in April 2024, it was highlighted that India witnessed 131 billion UPI transactions valued at Rs 200 trillion in FY24. Infibeam plans to capitalize on Rediff’s extensive user base and brand recognition, in conjunction with its proprietary expertise in digital payments, to expand its UPI offerings.

For reference, Rediff has 55 million monthly visitors and over 70 million registered email users.

In 2023, Infibeam acquired a 49% stake in Pirimid Technologies, a provider of capital market trading software. The company is in the process of integrating this capability into its digital payments platform, with RediffPay expected to play a pivotal role in this initiative, as confirmed by sources.

Unlike its competitors, who had to establish their platforms from the ground up, Rediff’s existing customer base of millions is anticipated to provide it with a significant competitive advantage, particularly in the B2C segment, with a focus on consumer payments. Through RediffPay, Infibeam aims to offer UPI services alongside other financial solutions, including credit on UPI and bill payments.

Moreover, Infibeam is in the development phase of comprehensive payment technology focused on enhancing transaction security, which is expected to differentiate RediffPay from its competitors. This initiative is in line with Infibeam’s investment in artificial intelligence through Phronetic.AI. In January, Infibeam appointed Rajesh Kumar SA as the chief executive officer (CEO) of Phronetic.AI.

Presently, PhonePe holds the largest market share in terms of volume in UPI, followed by Google Pay and Paytm with shares of 37.3% and 7.21%, respectively. While CRED has emerged as the fourth-largest player in UPI transactions, the market has seen the entry of several new players into the consumer-facing payments sector, including Flipkart, NAVI, and BharatPe.