Infibeam Avenues Limited is set to launch a new payment app, RediffPay, which will place the company in direct competition with popular platforms like PhonePe, Google Pay, Paytm, and MobiKwik. Sources told Entrackr that this move will mark Infibeam Avenues’ entry into the growing Unified Payments Interface (UPI) market.

Infibeam’s Acquisition of Rediff.com

Last month, Infibeam Avenues acquired a 54% stake in Rediff.com India. This acquisition highlights Infibeam’s strategy to transform Rediff.com into a consumer-facing digital financial services platform. Rediff.com, an established name in the digital space, will serve as the foundation for RediffPay’s launch.

The relaunch of Rediff.com will allow Infibeam to tap into Rediff’s large user base. Rediff claims 55 million monthly visits and more than 70 million registered email users. This existing user base is expected to give RediffPay a strong advantage over newer entrants who have had to build their customer bases from scratch.

RediffPay: Beyond UPI Payments

While RediffPay will primarily focus on UPI payments, Infibeam has larger plans for the app. According to sources, Infibeam aims to offer additional services, such as insurance, lending, stock trading, and wealth management, making RediffPay more than just a payment app. This comprehensive approach is expected to help Infibeam expand its reach into the financial services sector.

Leveraging UPI’s Growing Popularity

The UPI market in India is growing rapidly. In April 2024, Finance Minister Nirmala Sitharaman announced that India had processed 131 billion UPI transactions worth Rs 200 trillion in FY24. This presents a huge opportunity for Infibeam to capitalize on UPI’s success with the launch of RediffPay.

Infibeam plans to combine Rediff’s brand recognition and established user base with its own expertise in digital payments to grow RediffPay in the UPI market.

Partnership with Pirimid Technologies

Last year, Infibeam acquired a 49% stake in Pirimid Technologies, a company specializing in capital market trading software. Infibeam is working to integrate Pirimid’s capabilities into its digital payments platform. RediffPay is expected to play a key role in this initiative, providing services to domestic and international clients.

A Competitive Edge in UPI

One of RediffPay’s main advantages will be its ready-made customer base. “Unlike other UPI players who started from scratch, Rediff’s millions of users will give it a significant advantage,” said a source. Infibeam’s existing B2B payments platform, CCAvenue, will also help support RediffPay’s growth.

Additionally, Infibeam is developing advanced payment technology focused on transaction security, which could give RediffPay an edge over its competitors. This initiative aligns with Infibeam’s investment in AI technology through Phronetic.AI, led by CEO Rajesh Kumar SA.

Competition in the UPI Market

The UPI market is currently dominated by PhonePe, which holds a 48% market share, followed by Google Pay at 37.3% and Paytm with 7.21%. CRED has emerged as the fourth-largest player, while new entrants like Flipkart, NAVI, and BharatPe are also competing for a share of the UPI market.

RediffPay’s launch, backed by Rediff’s strong customer base and Infibeam’s expertise in digital payments, positions it as a serious contender in the UPI space.

Stay updated on the latest developments from Infibeam Avenues as RediffPay gears up to make its mark in the digital payments landscape.