{"id":148145,"date":"2025-09-19T21:36:07","date_gmt":"2025-09-19T21:36:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/148145\/"},"modified":"2025-09-19T21:36:07","modified_gmt":"2025-09-19T21:36:07","slug":"phonepe-paytm-cred-shut-down-rent-payment-services-as-rbi-mandates-new-rule-for-payment-aggregators","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/148145\/","title":{"rendered":"PhonePe, Paytm, CRED shut down rent payment services as RBI mandates new rule for payment aggregators"},"content":{"rendered":"

Fintech<\/a> leaders – PhonePe<\/a>, Paytm<\/a>, and CRED<\/a> have ceased rent payment services on their apps, a category that has become one of the fastest-growing use cases for credit card payments in recent years.<\/p>\n

RBI mandates new rule for payment aggregators<\/p>\n

This follows the Reserve Bank of India\u2019s (RBI<\/a>) reinforced Payment Aggregator (PA) and Payment Gateway (PG) guidelines, issued on September 15, which prevent PAs from facilitating payments to entities with whom they lack a direct contractual relationship.<\/p>\n

“A PA shall aggregate funds only for the merchant with whom it has contractual relationship. PA business shall not carry out marketplace business,” the circular said.<\/p>\n

As reported by MoneyControl, it impacts rent payments routed via fintech apps, where the landlord often isn\u2019t an onboarded merchant with full KYC.<\/p>\n

MC further mentioned that the new rules mandate that funds can only be settled into merchants\u2019 bank accounts post due diligence and prevent PAs from acting as marketplaces, a structure under which rent payments were earlier processed.<\/p>\n

\u201cRent was basically happening because PA-PG was acting as a marketplace for landlords without merchant KYC,\u201d said another industry source. \u201cThat\u2019s no longer permitted under RBI\u2019s updated framework.\u201d<\/p>\n

On June 26, India\u2019s largest private sector lender, HDFC Bank, in an email to its credit card customers, notified that rent payments made using credit cards through fintech apps will attract a 1 per cent fee up to Rs 3,000 per transaction.<\/p>\n

In March and April, ICICI Bank and SBI Cards, the other two large credit card issuers, had stopped offering reward points for rent payments.<\/p>\n

Since March 2024, fintech apps such as PhonePe, Paytm, Mobikwik, Freecharge and Amazon Pay have stopped accepting rent payments through credit cards.<\/p>\n

However, some resumed by adding more KYC and compliance processes for users, with a surge in rent payments using credit cards.<\/p>\n

In its new circular sent out on 15 September, RBI explicitly mentions “A PA shall ensure that a marketplace onboarded by it does not accept payments for a seller not onboarded on to the marketplace\u2019s platform”<\/p>\n

The central bank raised regulatory concerns around KYC compliance and potential misuse.<\/p>\n

Currently, users will no longer be able to use these apps to pay their monthly house rent through credit cards, compelling them to return to traditional bank transfers or cheque payments.<\/p>\n

Also read: Rolls-Royce opens its largest 700-seat GCC in Bengaluru (startuppedia.in)<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Fintech leaders – PhonePe, Paytm, and CRED have ceased rent payment services on their apps, a category that…\n","protected":false},"author":2,"featured_media":148146,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[66411,2306,17967,8179,86,56,54,55],"class_list":{"0":"post-148145","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mobile","8":"tag-cred","9":"tag-mobile","10":"tag-paytm","11":"tag-phonepe","12":"tag-technology","13":"tag-uk","14":"tag-united-kingdom","15":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/148145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=148145"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/148145\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/148146"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=148145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=148145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=148145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}