The massive banks like ICICI and SBI banks warn the customer that third party apps leaking information about the customer details. They have raised involvement over non-banks for getting approach to their customer information through third-party applications which are developed for the UPI or Unified Payments Interface platform. ICICI Bank also has blocked the customers from connecting their accounts using the PhonePe UPI application which indicating these approach and also said that the app segregates against users of UPI apps of other banks.
Flipkart has owned PhonePe which is a third-party app although it is able to be a part of UPI through the partnership with Yes Bank. Anyhow the users have exposed that they cannot add their ICICI Bank account to the PhonePe UPI app. Flipkart has recently integrated UPI payments on its own website, and also offering customers cashback offer on their e-wallet on PhonePe UPI payment. Being one part of the UPI platform is that banks should promote the interoperability and they should allow customers to be the part of the UPI platform through any other bank’s app is one of the requirements to be improved.
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8 Things must do while using Paytm or other mobile wallets
- Mobile wallets have become increasingly popular since demonetization.
- Use a password to protect your smartphone.
- The money in the e-wallet must be safe even if we lose the wallet.
- Keep limited money in e-wallet because nothing is unhackable.
- Never save the bank detailed information in the online portal.
- Frequently change the passwords of the site.
- Always install the antivirus to protect the wallet.
- Always get the information by both SMS and e-mail.
The CEO of PhonePe, Sameer Nigam raised an issue that the bank has made no communication from them nor Yes Bank. They are clueless as to why this has been done. Some banks have raised the security related things at particular forums about the entry to UPI data to non-banking applications. This individual is following the confined practices which allowing the users to make payments with only its UPI. This is in breach of the UPI guidelines of interoperability and the customers can choose any app to make payments through UPI, said ICICI Bank. The bank also confirmed those pending decisions of these concerns which have temporarily declined for undertaking the UPI transactions.
In the same time, SBI also said that the bank is establishing that customer data details are not available to the third parties. As per this platform, the bank applications can only be used by customers. SBI Bank MD also said that to take up with the RBI and NPCI to get into non-banks that to be blocked. In the June’2016, SBI had blocked the customers from using net banking for loading the money in one of the largest e-wallet platforms such as Paytm, citing security. And SBI owns particular wallet named Buddy.
The wallet companies have been promoting for the approach to the UPI interface for e-wallets such as Paytm and Mobikwik. The PhonePe has also been the first out to block and also thanking them for the partnership with Yes Bank. The banks don’t want them to emerge as a strong competitor in this developing world. This has also happened between e-commerce firms and offline retailers. A lot of new companies have gained more in payment area but banks don’t like that. These issues will have more agitation from both the parties to migrate with digital payments. Banks are raising the issue of managerial arbitrage.