• Notification Date: 11-02-2025
• Notification No: N/A

Amid RBI Card Payment Ban, Fintech Startups Pivot to Bharat Connect

In response to the RBI's February 2024 ban on card-based business payments, fintech startups, which include EnKash, PayMate, and Happay, are shifting their focus to the Bharat Connect platform. This strategy enables them to continue B2B payments via a regulated and standardized network managed by NPCI Bharat Billpay.

A total ban on Visa and Mastercard commercial cards had started to take its toll on business; corporate card spends had fallen from Rs. 51,000 to Rs. 11,000 in just a year. The Bharat Connect platform seems to hold the key and solves all that ails, as it makes the process of payment smoother, integrates invoice links with GST filings, and reduces redundant tasks like repetitive KYC.

Although this shift provides stability and regulatory oversight, these pose challenges to the fintechs. The commercial cards ban undoubtedly limits revenue potential while the new platform's commercial viability is still evolving. However, investors find themselves enjoying the comfort of regulatory frameworks, which they think send strong signals about long-run stability.

There are very few of such startups like EnKash and PayMate who are moving ahead and leveraging Bharat Connect in reducing friction between the businesses, facilitating B2B transactions across the industry while battling to adjust themselves to new revenue models.