Due to new regulations from the Reserve Bank of India (RBI), CRED, PhonePe, and Paytm have suspended credit card rent payment services on their platforms. Reports suggest that platforms like No Broker and Housing may also discontinue this service in the future. This decision will directly impact the millions of users who used these apps to pay their monthly rent.
Following the Reserve Bank of India’s (RBI) new Payment Aggregator Regulations, major fintech companies CRED, PhonePe, and Paytm have discontinued the facility for rent payments using credit cards on their platforms. This move follows the release of the RBI’s Master Directions.
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This decision will most impact those who used these apps to pay their monthly rent. Now, these platforms will have to process landlords’ KYC (Know Your Customer) requirements, which is a costly and complex process for companies.
Why was the service stopped?
According to the new rules of RBI, any Payment Aggregator (PA) will have to ensure that any marketplace on its platform does not process payments for any outside seller.
This means that if you pay rent through CRED, PhonePe, or Paytm, they will have to process your landlord’s KYC. The KYC process is costly and time-consuming, so the companies immediately discontinued the service.
Which companies were most affected?
CRED and PhonePe have been hit the hardest, as these two platforms were leaders in rent payments. Paytm has also suspended its services. Real estate platforms like NoBroker and Housing may follow suit in the coming weeks.
Why is it a big problem for users?
Millions of people used these apps every month to pay rent. They also received cashback, reward points, and offers for rent payments. Now, this benefit has completely stopped. Those who had set up auto-payment will also face problems.
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