ItzCash Card Ltd, India’s only multi service payment solutions company in the digital space, said on Monday (July 4) that it has received an in-principle approval from the Reserve Bank of India to operate as a Bharat Bill Payments Operating Unit (BBPOU). A BBPOU, which functions under the recently proposed Bharat Bill Payment System (BBPS), provides 'anytime anywhere' payment options to customers by pulling all bills and payment options onto a single platform.
The BBPS is an authorised payment system operated by National Payment Corporation of India (NPCI). The payment operating units under this system function as entities facilitating collection of repetitive payments for everyday utility services, such as, electricity, water, gas, telephone and Direct-to-Home (DTH). As per the new law, the entities currently engaged in such bill payment activities and desirous of continuing the activity are mandatorily required to apply for authorisation to the RBI under the Payment and Settlement Systems (PSS) Act 2007.
"In sync with the 'Digital India' mandate, the current thrust on revolutionising the country’s digital ecosystem is firmly gaining ground and the BBPS is an excellent platform which has come in timely to capture the country's new e-dream," says Naveen Surya, managing director, ItzCash.
For ItzCash, the license to operate as a BBPOU comes in as a fresh opportunity to reiterate its presence in the bill payments industry. The company, which has already clocked in the country’s highest volume transactions in the utility bill payments space at Rs 6,000 crore for the year 2015-16, has a distribution network for financial services with more than 75,000 franchise outlets across the country. It has also made a series of strategic partnerships to foster growth across emerging business and a rapidly evolving digital ecosystem.
ItzCash is expecting to generate Rs 270 crores in revenues in the current fiscal. The company recently announced strategic partnerships across sectors which included OYO, DHFL Pramerica, Ditto TV among others.
In the wake of convergence evolving in the industry rapidly, BBPS will usher in a new wave of digital network that will eventually enable all the payments converged on a single platform, Surya added.
In-principle approvals to operate as a BBPOU are issued after the applicants meet all eligibility requirements including existing net worth, and requisite billing experience as covered under the present scope of Bharat Bill Payments System. The RBI had invited applications for the license in October 2015.
ItzCash claims that it has already crossed Rs 50,000 crore worth of cumulative gross payment volume for all bill payments till date. According to the company, it has a customer base of at least 35 million customers across the country and is all set to cross Rs 15,000 crore in the current year of financial year (2016-17) alone.
The BBP System, which offers interoperable bill payment services to customers, both online as well as through a network of physical agents, also provides multiple payment modes and instant confirmation of payment.
According to Surya, BBPS platform will enhance the convenience factor significantly giving a new face-lift to the entire system accelerating the macro agenda of India going digital.
Established in 2006, ItzCash was promoted by Essel Group and is a pioneer in the prepaid payment sector in India. It is claimed to have initiated the concept of "digital cash" to the Indian consumer and various business entities, heralding the beginning towards enabling a cashless transacting society.
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Unnikrishnan is currently Senior Associate Editor with BW Businessworld at its Mumbai Bureau. During his two decades long journalistic career, he has received several media awards and recognitions. His articles on healthcare, life sciences and intellectual property rights (IPR) have been republished by several international blogs and journals.
