Following the diktat of the Reserve Bank of India (RBI) which forbade co-branded PPI arrangements on UPI, startups like DreamX, Akudo and Muvin discontinued their UPI feature. However, teen-focused fintech firm Fampay and Cheq’s (Terrafin Solutions Private Limited) UPI features seem to be unaffected as both remain up and running.
Before discontinuing their UPI, DreamX, Akudo and Muvin also communicated to their users about it through email and app notifications on June 30. For Fampay and Cheq however, it seems to be business as usual for now. Entrackr has reviewed the UPI service of the apps mentioned in the beginning of the story.
Last week, RBI directed PPI issuers to stop UPI in a co-branding agreement. Sources assert that Pine Lab’s partnership with DreamX prompted RBI to crack down on such arrangements immediately.
Entrackr was first to report this on June 27.
Dream11’s DreamX used to run its UPI in a co-branded arrangement with Pine Labs whereas LivQuik was a PPI issuer for Akudo and Muvin. Fampay’s UPI is powered by Tri O Tech Solutions and according to Triotech’s terms of use and privacy policy until Sunday, Fampay entered into a co-branded agreement with it to issue wallets.
Following our queries on Sunday evening, Triotech has updated its terms of use and privacy policy. “Fampay by Trio” available on Google Play Store and Apple App Store which is hosted by Triotech Solutions Pvt Ltd, a “licenced PPI Payments Issuer,” mentions TrioTech terms of use.
Entrackr’s sources indicate that since Fampay and Cheq’s UPI service are under a co-branded arrangement it should also face similar rules, and consequences as DreamX and others. “We are looking at criterias under which Fampay has remained unaffected. NPCI allowing Fampay to continue their UPI services has come as a surprise to all of us. We followed the RBI circular and are at a disadvantage now,” said one of the companies affected by the move on condition of anonymity.
Queries sent to Fampay and National Payment Corporation of India did not elicit any response. We will update the story in case they do.
“Cheq is the app and brand of Transcorp’s UPI offerings. We are operating under the guidelines and directions of National Payments Corporation of India and Reserve Bank of India,” said the company’s spokesperson.
It’s worth noting that Transcorp and Cheq are different entities and we didn’t find any link between the two. While Transcorp International is a public company and its promoters aren’t associated with Cheq, Cheq is owned by Manish Kumar Shukla and Sudhanshu Shekhar, according to its regulatory filings. Angel List is the sole investor in Cheq with a 3.86% stake in the company.
