RBI asks Visa, Mastercard to stop card transactions under BPSP

Mumbai: RBI has asked card networks such as Visa and Mastercard to stop commercial card transactions under the Business Payment Solution Providers (BPSP) business, citing concerns about the legitimacy and inadequacy of merchant KYC and the end use of funds.

However, Karbon, a leading fintech firm offering B2B payments solutions, claims that it remains unaffected from RBI BPSP notification. The firm has launched a Corporate Prepaid card designed to meet the evolving needs of businesses amidst changing regulatory landscapes.

With reference to RBI's statement issued on February 15, on BPSP Payments, Karbon has clarified its stance, affirming that it neither engages in nor facilitates vendor payment services through its banking partners or product offerings. As such, this directive has no bearing on Karbon or any of its products. The product, Karbon Corporate Prepaid Card, allows businesses, big and small, to optimize their spending and ensure greater savings without compromising efficiency. The company aims to onboard 2500 businesses on its network this year with a total of 5000 Karbon Corporate Prepaid cards.

Responding to the recent 2023 RBI reKYC (Know your customer) mandate affecting the customers, Karbon recognized an opportunity to revolutionize the industry. During this period, companies were using corporate debit and personal cards for business expenses which prompted Karbon to tap the opportunity and introduce a Corporate Prepaid Cards that allows businesses to optimize spending, ensuring greater savings without compromising efficiency.

Talking to Bizz Buzz, Zain Shariff, Product Marketing Manager, Karbon Card, says, “Karbon is basically a fintech corporate card provider. So we have never offered a product nor will ever which basically linked bank transfers with corporate cards.”

We are a corporate card which any company can use for their business payments on payment gateways or POS machines or ATM withdrawals, whatever it is. So it's like it works like any other credit card which you see in the market out there, he added.

According to shariff, “Setting a new standard in corporate expense management, the newly launches prepaid card offers a host of features, including a flat 1 per cent cashback on every swipe, and add-on cards with flexible options for issuing cards to teams and individual team members as needed thereby facilitating seamless expense management.” In light of RBI's mandate on recurring international transactions, Karbon partnered with IDFC and Yes Bank to launch 'Karbon Forex.' This integrated solution facilitates and streamlines both inbound and outbound remittances, demonstrating Karbon's commitment to reliable, compliant, and efficient forex services. Looking ahead into 2024, Karbon is poised for unprecedented growth in India's Rs 10,000 crore-plus Corporate Card Industry and the $80 Billion-plus Foreign Remittance Industry. With a steadfast focus on innovation and customer-centricity, Karbon continues to reshape the fintech landscape, delivering unparalleled value to businesses across the nation.