Tag: YAP

Visa could gain 5% incremental share as curbs on MasterCard continue, BFSI News, ET BFSI

Personal Finance

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Economics made us partners – and necessity allies. JFK’s template on neighbourhood commercial blocs is being dusted off by Visa in its latest bid to grab MasterCard’s business. Alliances with the likes of IndusInd Bank, Yes Bank and RBL Bank – and another half a dozen fintech players – are at the core of an aggressive strategy that could help Visa gain 5-7 per cent incremental share as curbs on its rival continue.

“It is a great opportunity for Visa, which has been engaging heavily with start-ups in the last 18-24 months to move these sourcing pipes in their favor,” said Amit Das, Co-founder of Think360 – a payments analytics firm. “We have also heard of fintechs like YAP taking this opportunity to show how differentiated their agility is. They have managed to switch over completely to Visa pipes in less than 48 hours.”

Industry sources say that Visa and MasterCard together process a significant chunk – over 70 per cent – of India’s credit cards. For debit card issuances, NPCI’s RuPay is said to be the largest card issuer. The central bank doesn’t disclose the breakup.

These sources indicate that while Visa has a 44 per cent market share, MasterCard owns 37 per cent of the market.

“While both Visa and Rupay will benefit in the segments they are trying to address, Visa will benefit more because of its ability to roll out products faster than Rupay,” brokerage house Macquarie said in a recent report. “Visa has a concept of providing exceptional approval and is able to go live within 24 hours at times. Since the process of transition is shorter and faster with Visa, it could benefit more from this disruption.”

Visa is also gaining an upper hand in getting new debit card issuance contracts as well. The central government’s zero Merchant Discount Rate rule on RuPay debit cards means that private sector banks, which were tying up with Mastercard to issue these cards, are almost exclusively moving to Visa.

Last month, the Reserve Bank of India (RBI) imposed regulatory restrictions on MasterCard from onboarding new domestic debit, credit, or prepaid customers on its card network in India from July 22 onward. The central bank’s supervisory action cited “non-compliance with directions on Payment System Data.”

To be sure, these restrictions are only on Mastercard’s new cards and not the existing instruments held by customers.



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Fintech start-up YAP raises $10 million in Series B funding

Banking & Finance

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YAP, a Chennai-headquartered fintech start-up, on Tuesday announced that it has raised Series B funding of $10 million (₹ 73.2 crore), co-led by Flourish Ventures and Omidyar Network India.

This is the second fundraising for YAP in less than a year, which saw the participation of its existing investors BEENEXT, 8i Ventures and DMI Group. The Sparkle Fund and Better Capital also participated in the financing round.

The fintech start-up raised $4.5 million in its Series A round in April 2020.

Founded in 2015 with the goal of enabling payments for businesses, the platform has evolved into a “Bank-in-a-Box” fintech infrastructure provider. YAP enables businesses and platforms to offer their own branded financial services through partnerships with financial institutions or fintech companies while ensuring regulatory compliance.

“The tailwinds from the pandemic presented a shot in the arm for our business with across-the-board adoption of our API capabilities,” YAP Co-founder Madhusudanan R said in a press release, adding, “At one end, we have over 20 banks accelerating their efforts to partner; at the other end we have over 300 brands and fintechs looking to embed financial products.”

The investment will allow the start-up to strengthen its technology teams, build new capabilities as well as reach new markets across Asia, he added.

Currently, YAP’s infrastructure serves companies in India, Nepal, the United Arab Emirates, Australia, New Zealand and the Philippines. YAP intends to expand to Bangladesh, Saudi Arabia, Oman, Egypt, Vietnam and Indonesia.

“YAP is our first investment in embedded finance infrastructure in India, aligning with our principles of Fair Finance to foster a more inclusive economy,” Anuradha Ramachandran, Investments Director, Flourish Ventures, was quoted as saying in the statement.

“The YAP platform provides the rails on which fintechs and incumbents can build new cases for the underserved segment, while delivering financial services in a cost-effective way,” she added.

YAP offers end-to-end programme management services over a bundle of APIs that covers bank accounts, term deposits and a wide gamut of payments products including debt, credit, prepaid, travelcard, QR, UPI, NETC toll payments.

“At Omidyar Network India, we believe that Digital Enablers such as YAP can catalyze financial inclusion and drive usage of financial products across the Next Half Billion – the 500 million Indians expected to come online for the first time via their mobile phones,” Amol Warange, Director, Omidyar Network India was quoted as saying in the release.

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YAP raises ₹73.2 cr in series B funding

Banking & Finance

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Fintech infrastructure provider YAP on Tuesday said it has raised ₹73.2 crore or $10 million in series B funding round, co-led by Flourish Ventures and Omidyar Network India.

The company’s existing investors – BEENEXT, 8i Ventures, DMI Group – The Sparkle Fund and Better Capital also participated in the financing round, a release said.

“This investment allows us to strengthen our technology teams, build new capabilities as well as reach new markets across Asia,” YAP co-founder Madhusudanan R said in the release.

Flourish Ventures Investments Director Anuradha Ramachandran, said, “We strongly believe that YAP has the potential to be a leading scalable application programming interface (API) infrastructure company in India and can set a blueprint for its peers.”

In April last year, the company had raised $4.5 million in series A funding round from investors, including BEENEXT, 8i Ventures and DMI Group.

Founded in 2015, Chennai-headquartered YAP enables businesses and platforms to offer their own branded financial services through partnerships with financial institutions or fintech companies while ensuring regulatory compliance.

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