Major credit card issuers go live on Bharat Bill Payment Systems platform

Issuers live on the platform cater to 80-85% customers

Major credit issuers, including the largest — HDFC Bank —have integrated their systems with the Bharat Bill Payment Systems (BBPS) for receiving credit card repayments via third-party applications.

HDFC Bank went live on the platform earlier this week.

According to the BBPS website, currently Axis Bank, the fourth largest credit card issuer, Indian Overseas Bank, and Yes Bank are in the process of getting their systems integrated and are expected to go live on the platform soon.

Currently, 15 major issuers are live on the platform, including ICICI Bank, SBI Cards, Kotak Mahindra Bank, BoB card, and IndusInd Bank. There are now over 30 credit card issuers in the country.

“The issuers that are live on the BBPS platform constitute almost 80–85 per cent of the credit customers. So, in essence, the majority of the transactions are now being processed through the BBPS platform,” said a source.

The remaining credit card issuers are currently working on their systems and would integrate with the BBPS platform as and when they are ready.

While there is no definite timeline on when these smaller players will go live, all them have to eventually go live, the source added.

The Reserve Bank of India (RBI) had mandated that starting July 1 all credit card repayments had to be processed through the BBPS platform. This move is aimed at centralising the bill payment process and ensuring greater security.

Previously, certain third-party applications had opted to facilitate credit card bill payments exclusively for banks integrated into the BBPS starting from July 1. This was to comply with the RBI’s mandate. 

While there has been a delay in credit card issuers going live on the BBPS platform, the disruption among customers has not been widespread because users have multiple options to settle their dues.

Currently, third-party apps like Cred, Paytm, PhonePe, or Amazon Pay utilise national electronic fund transfer, real-time gross settlement, or other payment methods to transfer funds to credit card issuers. This is after users clear their bills on their platforms.

Issuers had been lobbying with the regulator for a grace period to integrate their systems with the BBPS platform, as many missed the mandated deadline. Whether the regulator has granted this leniency is unclear. However, credit issuers have expedited their system alignment to avoid regulatory repercussions.

Status Update

- HDFC Bank went live on the platform earlier this week

- It is the largest credit card issuer 

- Axis Bank, Indian Overseas Bank, Yes Bank may go live soon

- 15 major issuers are live on the platform out of 30 issuers in the country

- July 1 was the deadline set by the RBI