Fampay, under its parent company Trio, has launched a new unified payment interface (UPI) app called Namaspay, specifically designed for foreign travelers visiting India. This strategic move aims to explore new revenue streams for the company by tapping into the growing UPI ecosystem.
Namaspay is a dedicated app that allows travelers from various regions, including Europe, Africa, Australia, and the US, to make UPI-based payments in India. The app charges a one-time registration fee of ₹1,650, with additional charges of 4% for money loading and 1% for withdrawal. This makes Namaspay a viable payment option for tourists looking to avoid carrying cash while traveling in urban India, where UPI-powered apps have largely replaced cash transactions.
UPI, owned by the National Payments Corporation of India (NPCI), processed nearly 15 billion transactions in August, demonstrating its widespread acceptance across the country. Given that UPI is nearly universally accepted, an app like Namaspay provides a strong use case for foreign tourists who may prefer a seamless, cash-free payment method. Despite UPI’s vast usage, it has contributed minimally to the revenues of companies associated with it. Apps like Namaspay could potentially fill this profitability gap by targeting foreign travelers. Currently, Cheq is the only other notable competitor in this space, indicating a largely untapped market.
India received around 92 million foreign tourists in 2023, many of whom rely on cash or card payments. This presents a significant opportunity for UPI-based apps like Namaspay and Cheq to capture market share. However, experts caution that if the “UPI for foreigners” segment proves profitable, major players like PhonePe and Paytm may also introduce similar offerings, intensifying competition. The NPCI’s response to monetization efforts in this space could also shape the market dynamics, potentially setting new benchmarks.
Originally launched as a neo-banking platform targeting teens, Fampay pivoted to become a comprehensive UPI app, similar to PhonePe and Paytm. The company spent over ₹200 crore to build its fintech offering for users below 18 years of age but reported less than ₹15 crore in lifetime revenue despite raising $38 million in a Series A round. Nonetheless, Fampay has shown impressive growth, processing 52 million UPI transactions in July and reaching the top 10 in its category within a year of its pivot.
Namaspay is managed by Pehe through its subsidiary TrioTech, with Fampay’s co-founders, Sambhav Jain and Kush Taneja, listed as owners in regulatory filings. This latest venture indicates Fampay’s ongoing efforts to explore more use cases within the UPI ecosystem and potentially carve out a profitable niche by targeting foreign travelers.