CRED, PhonePe, and Paytm have halted rent payments via credit cards on their platforms, according to three sources aware of the matter. The move follows the Reserve Bank of India’s (RBI) latest master directions on payment aggregator regulations.
Entrackr tested rent payments by credit card on these apps and found the service temporarily unavailable.
“CRED, PhonePe, and Paytm suspended the rent payment service just two days after the new guidelines were issued. While they technically have time until later this year to comply, the companies acted immediately under regulatory pressure,” said one of the sources, requesting anonymity.
As per RBI’s directions on KYC and due diligence for payment aggregators (PA), a PA must ensure that a marketplace onboarded by it does not process payments for any seller outside the platform. In effect, this means apps like CRED, PhonePe, and Paytm would have to conduct KYC of landlords, a process that is costly and complex.
Sources added that NoBroker and Housing are also expected to suspend rent payments via credit cards in the coming weeks.
“CRED and PhonePe have been impacted the most, as they were the leading platforms facilitating rent payments through credit cards,” said the source quoted above.
Queries sent to PhonePe, Paytm, and CRED did not elicit an immediate response. The story will be updated if and when they respond.
Disclaimer:
Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investors here.
