Business Finance

Digital Payments Market Categorized Due To Data Directive

The order to digital payment firms from the nation’s central bank obliging them to store all consumer information by October on servers inside India has piercingly divided the market. Local firms, comprising the nation’s biggest digital payment supplier Flipkart-owned PhonePe and Paytm, have greeted the decision. On the other hand, international tech companies have cautioned in opposition to reciprocal action arising from such an order.

Others such as payment supplier PayU, controlled by South Africa-located Naspers, have wanted data storage or “data mirroring” in other locations apart from India, to evade worldwide payment networks from being disturbed.

“There is no reason why firms must be opposed to the directive since most nations such as Russia, China, and many nations in Europe need firms to not only store information locally but also operate it inside the nation,” claimed payments business of Paytm’s chief operating officer, Kiran Vasireddy, to the media in an interview. Paytm has been storing consumer information inside India prior to the RBI (Reserve Bank of India) obliged it in April.

Flipkart-controlled PhonePe, which also stores information locally, anticipates no disturbance in processes from the RBI rules.

“India is surfacing as a great democratically open digital country and it has unlocked doors for any company to come and work here. Hence, it is imperative that there are correct measures to defend user interests in the future,” head at PhonePe for payments and banking relations, Hemant Gala, claimed to the media in an interview. RBI’s order in April aimed all digital payment firms working in India to arrange data storage plants by October inside the nation.

On a related note, PhonePe is all ready to increase its headcount by 2 times by the end of this year. It will be extending its business and technology teams, as well as other operations. The firm is appointing for its business development, engineering, analytics, and design roles, among others. Apart from the lateral appointments, it has appointed from engineering colleges and premium business schools to increase up tech hiring for 2018.

About the author

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Shivangi Mehra

Shivangi holds a degree in Masters in Business Administration, from S. P. Jain Institute of Management and Research College, in the field of business and finance. She has been active in industry since 6 years, and has written for various well known publications as well. Her articles have been featured several times in regional news and as global tech news. Her unique style of writing, and in-depth analysis skills regarding the past trends and upcoming scope of opportunities makes her a perfect choice for her designation as an Editor for Latest Industry News.

Email: shivangi.m@latestindustrynews.com

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