News ICICI Bank blocks payments for its customers on Flipkart’s wallet PhonePe

[Devesh]

In a sign of the growing turf war between banks and new economy fintech companies, India’s largest private sector lender ICICI Bank has blocked payments by its customers on Flipkart’s wallet and payments app PhonePe, citing “restrictive practices” and security concerns over data. The move comes after the country’s largest lender, SBI, barred top ups through net banking and cards on mobile wallets last year, citing security issues.

PhonePe has partnered with Yes Bank for UPI (Unified Payment Interface) transactions, since currently only banks are allowed access to the UPI payment system. However, according to UPI guidelines, any bank customer can use any banks’ UPI app for payments. ICICI Bank customers have not been able to make UPI-based transactions on PhonePe since Friday. “Some banks, including us, have raised security-related concerns at appropriate forums about the access to UPI data to a non-banking application.

Further, this entity is following restrictive practices allowing users to make payments with only its UPI handle, which is in contravention to the UPI guidelines of interoperability and choice that empowers a customer to choose any app to make payments through UPI,” said an ICICI Bank spokesperson in an emailed statement to ET’s queries. “Pending resolution of these concerns, we have temporarily declined to undertake UPI transactions originating from this entity,” the spokesperson added.

ICICI bank: icici bank blocks payments for its customers on flipkart’s wallet phonepe, Telecom News, ET Telecom

 

[Technoglitch]

PhonePe has partnered with Yes Bank for UPI (Unified Payment Interface) transactions, since currently only banks are allowed access to the UPI payment system. However, according to UPI guidelines, any bank customer can use any banks’ UPI app for payments. ICICI Bank customers have not been able to make UPI-based transactions on PhonePe since Friday. “Some banks, including us, have raised security-related concerns at appropriate forums about the access to UPI data to a non-banking application.

too many restrictions

 

[Devesh]

Yes... every bank wants customers to use there own wallet and imposing this on there customers.

 

[Technoglitch]

it is better to download UPI app with which he hold bank account

 

[Devesh]

By the way these type of restriction will shatter the dream of #Cashless India... bcoz people will find difficult to do transaction with these many restriction.

 

[scorpionking76]

UPI should advice all banks to join them hence the costs can be shared by them which will even strengthen case got cashless India.