The ban on online real money gaming (RMG) will suffer a strong injury to the payment aggregator (PA) companies. According to an estimate, this financial year may fall 25–30 per cent in the revenue of PA companies like Cashfree, PhonePe and EGBaz. Regrape’s revenue is also expected to decline a major decline. However, his revenue will fall less than PA. It can remain up to 10 percent.
Different methods of payment were used for RMG firms
Real Money Gaming (RMG) Different methods of payment were used for companies. For this, payment firms had to prepare separate products according to the need of RMG. On winning the users, money was required to be credited to their account soon. In the case of most RMGs, the loading of the wallet was called pay-in, while the winning amount with-out was called pay-out.
Transactions worth more than Rs 10,000 crore every month
There were more than Rs 10,000 crore value transactions every month through UPI for gaming. According to NPCI data, the annual value of transactions reached Rs 1.2 lakh crore. The monthly transaction of online real money gaming on UPI platform was around 40 crore. This means that there were more than 19 billion processes every month. This means that the revenue of payment companies during the last financial year would have been Rs 1,500 crore. This is just an estimate.
PA companies do not want to tell about the effect of revenue
Phonpe did not answer the questions asked about this. Rejirpe also refused to reveal something. Easebuzz and Cashfree denied that the ban on online gaming would have an impact on their revenue. Cashfree said in a statement, “Our merchant portfolio is quite diversified. Our more volume comes from sector like ecommerce, BFSI, travel and tourism. Real money companies are very low in our total business. So we do not think that the impact of the government’s online gaming will be affected. Are moving towards achieving. “
Cashfree’s payout was launched at API 2018
Earlier pay-outs channels were used for the processing of refunds and cashback. Cashfree’s payout was launched at API (Application Programming Interface) 2018. It was an innovation, making cashfall one of the most preferred PA companies for RMG companies. API helps connect two types of software to communicate with each other. On winning the players, the money payout used to credes with the use of API.
The gaming industry had become a major source of earnings for PA firms
The gaming industry had become a big source for PA firms to earn money from UPI payments. The government has enacted the law to ban online gaming. It provides that the bank or any other financial institution cannot charge any kind of commission for a payment or merchant discount rate for UPI. However, banks and PAs charge platform fees from online merchants.