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    Tech giants brace for impact in India as new recurring payments directive goes into effect – TechCrunch

    Apple, Sony, Google, Zoom, PayPal, and several other tech companies, as well as numerous banks, are the way central banks in the world’s second-largest Internet market process recurring payments domestically.

    The Reserve Bank of India Directive, which goes into effect on Friday, is worth more than Rs 5,000 ($ 67) from users by implementing notifications, electronic mandats, and additions to banks, financial institutions, and payment gateways. Requesting additional approval for auto-renewable transactions. Authentication element (AFA). This directive affects all such transactions on debit cards, not just credit cards.

    Command, First announced in 2019Was scheduled to come into effect in April of this year, but was extended to September 30 after stating that banks and other players were not fully prepared to comply.

    The Central Bank of India was uninterested in the way the industry processed the directive, and in March “further delays in ensuring full compliance with the framework beyond the extended timeline will result in strict oversight. It will attract. “

    The Reserve Bank of India said in its first circulation in 2019 that the framework was designed to act as a “risk mitigation and customer promotion”, with issuers handling such transactions being “pre-transaction notices”. Shall be sent to the customer. At least 24 hours before the actual billing by SMS or email, depending on the customer’s preference. “

    Some companies are alerting their customers and possibly other business partners about the new directive.

    On Wednesday, Apple reminded developers of a new directive that “some transactions that do not meet these requirements will be rejected by the bank or card issuer.”

    HDFC, India’s largest private bank, posted the following message on its website: HDFC Bank’s credit / debit card app, except through an RBI compliant process. Several banks, including HDFC, Axis and Kotak, announced this week that they will comply with the new rules.

    In May of this year, Google stopped onboarding new recurring customers on the Play Store. The company told developers that free trials and installation prices would need to be removed from the app until “ecosystem challenges are resolved.” On youtube moved We only support the premium service prepaid payment acceptance model.

    In the same month, Amazon said it was “TemporarilySigning up for new members to the Amazon Prime Free Trial will be suspended until you are notified. Since then, the notification hasn’t changed.

    This directive does not affect recurring payments made through UPI, a payment infrastructure built by a coalition of retail banks. This explains why some companies — Including Netflix — Added support for automatic payments with domestic UPIs.

    However, the impact can be widespread. FinTech founders told TechCrunch that the payment providers they use to advertise on Facebook and Google have quoted central bank rules to inform them that automated payments will not be processed later this week. The founder requested anonymity to discuss what he considered sensitive.

    The new rules are the latest in a set of guidelines recently proposed or enforced by the Central Bank of India. As Pratik Bhakta Summary of posts to CapTableThe move encourages a surge in fintech startups that regulators are innovating for their users, but the RBI is closely monitoring whether any trends are trying to hurt those consumers. Is shown.

    “Until the law catches up, regulations need to be adapted so that the financial system absorbs digital innovation in a non-disruptive manner.” Said RBI Vice President TRabi Sankar at a meeting earlier this week. “Over time, prosper only if all stakeholders value long-term improvement over short-term benefits and internalize mature practices such as informed consent and transparency of data use. You can reach a mature payment system. “

    In an email to PlayStation Plus subscribers on Thursday, Sony said, “After September 30, 2021, if you try to pay for a subscription on the PlayStation Store, your PlayStation Plus credit or debit card payment may fail.” Stated.

    “This applies to both new subscription purchases and recurring subscription fee payments. This may cause future PlayStation Plus subscription fees set to be automatically billed to fail. Means that there is, in which case the PlayStation Plus subscription will be terminated. “

    Tech giants brace for impact in India as new recurring payments directive goes into effect – TechCrunch Source link Tech giants brace for impact in India as new recurring payments directive goes into effect – TechCrunch

    The post Tech giants brace for impact in India as new recurring payments directive goes into effect – TechCrunch appeared first on California News Times.

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