PhonePe is planning to enter the stockbroking business
PhonePe plans to enter India’s super competitive stockbroking business and is awaiting a license for the same from the Securities and Exchange Board of India (SEBI).
Moreover, the paper the Walmart-owned fintech start-up would encourage customers to divert unused wallet funds towards markets, using its existing base to compete for market share against established players in the industry. One source added that PhonePe goal was to become a full-fledged diversified financial services player.
Include that the company would be growing its merchant, investments, and insurance services in the coming years. They added that the company had no immediate plans to enter the lending market. PhonePe agent did not respond to queries, the report said. Particularly, PhonePe payments rival Paytm has already received its stockbroking license from SEBI.
On the other side, sources told the paper there were at least two more fintech companies with plans to enter stockbroking. While depending on its existing customer base may not be an unfounded strategy. PhonePe grabbed 44 percent of the Unified Payments Interface (UPI) market by facilitating 1.19 billion UPI transactions worth Rs. 2.31 lakh crores in March. Compared to closest rival Google Pay 35 percent share and 957 million transactions.
Extremely, the new developments come as UPI asked PhonePe to ‘moderate’ its volumes on UPI and comply with new third-party application rules of the National Payments Corporation of India (NPCI) which requires players to have no more than 30 percent market share each. In terms of financial services, the company similarly ventured into the mutual funds (MF) space in 2019 where it similarly targeted the existing customer base, besides the insurance and savings sectors.
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