Payment service provision in times of accelerated market and regulatory change: The case of India

Niklas Bartelt, Ulrich Hommel, Rushabh Patel and Shagufta Ali
Additional contact information
Niklas Bartelt: EBS University of Business & Law, Germany
Ulrich Hommel: Professor of Finance, EBS University of Business & Law, Germany
Rushabh Patel: Student, Master of Business Administration, Germany
Shagufta Ali: Student, Master of Business Administration, Germany

Journal of Payments Strategy & Systems, 2023, vol. 17, issue 3, 271-290

Abstract: This paper presents an analysis of the Indian payment system with a focus on payment service providers (PSPs). At the core, it assesses the state of competition by analysing market concentration, barriers to entry and the counterbalancing influence of buy-side market power. This is preceded by a detailed presentation of the institutional characteristics of the Indian payment landscape, in particular the role of the Unified Payments Interface (UPI) and regulatory intervention. Throughout the course of this investigation, we contrast India with the European payment markets (Eurozone plus affiliated countries), which helps to gauge the role of governmental bodies in the light of the very different state of e-commerce market development. The analysis arrives at the conjecture that, despite significant institutional, regulatory and market structure differences, the state of competition is remarkably similar to the European benchmark. The diversity of viable business models furthermore indicates a well-developed and differentiated PSP service offering in India (as in Europe).

Keywords: India; payments; payment service provider; PSP; payment gateway; payment aggregator; UPI; e-commerce; m-commerce (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/8020/download/ (application/pdf)
https://hstalks.com/article/8020/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jpss00:y:2023:v:17:i:3:p:271-290

Access Statistics for this article

More articles in Journal of Payments Strategy & Systems from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().