After the RBI’s June 30 BBPS deadline, third-party platforms like Cred and PhonePe use IMPS, NEFT, and UPI for credit card bill payments of non-compliant banks, while Paytm supports only BBPS-compliant banks like SBI.
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Even as the RBI’s June 30 deadline on the Bharat Bill Payment System (BBPS) has passed, some users can still make their credit card bill payments through third-party platforms like Cred and PhonePe. These fintech players are allowing credit card bill payments for non-compliant banks using alternative methods like IMPS, NEFT and UPI, but Paytm is not supporting it, according to industry players.
The Reserve Bank of India earlier directed that all credit card payments must be processed through the centralised payment system Bharat Bill Payment System (BBPS) after June 30.
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According to industry players, for non-compliant banks such as HDFC Bank and Axis Bank, Cred and PhonePe are using alternative methods like IMPS, NEFT, and UPI to process payments. For banks that have activated BBPS, such as SBI and Kotak Mahindra Bank, these fintech platforms are routing payments through the centralised billing network.
So far, among major banks, HDFC Bank and Axis Bank have not activated BBPS. Contacted by news18.com, HDFC Bank and Axis Bank did not respond despite multiple follow-ups.
ICICI Bank has activated BBPS today, bringing the total to 12 banks that have now activated BBPS.
“Lenders are all getting on board pretty fast,” said an industry player.
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The lenders who have activated BBPS include SBI Card, BoB Card, IndusInd Bank, Federal Bank, and Kotak Mahindra Bank.
“The reports that customers would not be able to make payments through fintech platforms like Cred after June 30 are completely untrue. Users can still make credit card bill payments for any bank. It is business as usual. For those lenders who have not complied with the BBPS directive, third-party apps are using alternative methods like IMPS, NEFT, and UPI. However, the fintech companies are using BBPS for those lenders who have already activated it,” an industry player explained.
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While Cred and PhonePe are allowing credit card payments for non-compliant banks, Paytm is not supporting it. “From July 1, 2024, we support credit card bill payments only for banks registered on the Bharat Bill Payment System (BBPS). We will update you once this bank is supported,” read a pop-up on Paytm while attempting to pay an HDFC Bank credit card bill on July 1.
Credit Card Bill Payments Via Third-Party Apps: User Experience
A user paid his HDFC credit card bill today via Cred. Since the lender has not yet activated BBPS, the payment was routed through IMPS. The SMS received by the HDFC Bank credit card user after the bill payment read: “DEAR HDFCBANK CARDMEMBER, PAYMENT OF Rs. XXX RECEIVED TOWARDS YOUR CREDIT CARD ENDING XXXX THROUGH IMPS ON 1-7-2024. YOUR AVAILABLE LIMIT IS RS. XXXXXX.”
Another payment made by an SBI credit card user via Cred read: “We have received payment of Rs.7,328.00 via BBPS & the same has been credited to your SBI Credit Card.”
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Why Has RBI Mandated Centralised Payment of Credit Cards?
Industry players said that the RBI aims to gain better visibility on payment trends and improve the ability to track and resolve fraudulent transactions through the centralised payment system.
