PAUL JEFFERSON CLARENCE S
DIGITAL TECHNOLOGY USE FOR PAYMENTS – A
ROAD MAP IN INDIA
Latest updates on Digital Payments in India……….
What is a Digital Payment?
Improves
Efficiency
A way of paying for a
goods or services
electronically, instead Ease
of using cash or a of use
check, in person or by
Customer
mail. convenience
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Advantages ……..
▪ Time savings. Money transfer between virtual accounts usually takes a few
minutes, while a wire transfer or a postal one may take several days. Also, you
will not waste your time waiting in lines at a bank or post office.
▪ Convenience. All the transfers can be performed at any time, anywhere. It's
enough to have an access to the Internet.
▪ User-friendly. Usually every service is designed to reach the widest possible
audience, so it has the intuitively understandable user interface. In addition, there
is always the opportunity to submit a question to a support team, which often
works 24/7. Anyway you can always get an answer using the forums on the
subject.
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Disadvantages
▪ Restrictions. Each payment system has its limits regarding the maximum
amount in the account, the number of transactions per day and the amount of
output
▪ The risk of being hacked. If you follow the seсurity rules the threat is minimal, it
can be compared to the risk of something like a robbery.
▪ The necessity of Internet access. If Internet connection fails, you can not get to
your online account.
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Why now?
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Types of Digital Payments
Net banking
Bank Cards • Electronic Funds Point of Sale E-Wallets
Transfer
UPI USSD AEPS
• United Payment • Unstructured • Aadhar Enabled
Interface Supplementary Payment System
Service Data
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Bank Cards
Prepaid
Debit Cards Credit Cards
Cards
Preloaded from your Issued by banks based
bank account Linked to your bank on the credit history
account
No need to have
Safe to use, limited
balance in the bank
amount of transaction
account
Used to pay at shops,
Recharge option is wallets, micro ATMS,
online shopping Widely accepted
simple
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Net Banking – Electronic Funds Transfer
▪ It is used for transferring money from one bank account directly to
another without any paper money changing hands. One of the
early mode of paperless transaction.
▪ This is enabled by all the banks and the customer can register for
netbanking by visiting the nearest branch.
Payment Gateway
▪ A platform which enables online payments for e-
businesses.
▪ Ability to accept online payment across different modes
viz., netbanking, credit cards, debit cards, e-wallet, etc.
from a single interface
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Point of Sale (POS)
▪ A point-of-sale (POS) terminal is a computerized replacement
for a cash register. The point of sale (POS) or point of
purchase (POP) is the time and place where a retail
transaction is completed.
▪ Physical, Mobile & Virtual PoS
▪ Use in 3 easy steps
Swipe / Input Generate
Scan amount receipt
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Download the e-
E-Wallets wallet app &
To Pay register using your
mobile number
▪ Electronic pre-paid payment system,
mobile-first Download the e-
wallet app & Click ‘Accept
payment’, show
▪ Used in purchasing items on-line with a register using your
QR code or
computer or a smartphone at a store. mobile number
mobile number
▪ An individual's account is required to be Add money to your
wallet from your See payment
linked to the digital wallet to load money bank account, received
in it. credit/debit card. details on the
history screen
▪ Most banks have their e-wallets and Click Pay, enter
some private companies merchant’s To Accept
mobile number
& amount to pay Payments
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United Payment Interface (UPI)
▪ Unified Payments Interface (UPI) is a system How do you register?
that powers multiple bank accounts into a
single mobile application (of any participating Download app
bank), merging several banking features,
seamless fund routing & merchant payments Choose your unique id (Aadhar, mobile
into one hood. no.) as virtual payment address
Select your bank
▪ Immediate money transfer through mobile
device round the clock 24*7 and 365 days.
Give account details for first time
▪ Single mobile application* for accessing
different bank accounts. Set M-Pin for validating transactions
▪ A recent launch has been BHIM – launched
by National Payment Corporation of India. Registration completed
See the next slide for details.
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* All the major banks also have their individual UPI app which operates on the
same principle
– a NPCI product under the aegis of
Government of India
Special features
Through the BHIM app, you can transfer money to a person ▪ National Payment Corporation of India under the
only using his mobile number. You don’t need a VPA or aegis of Government of India recently launched
bank account number. an UPI based app named – BHIM. It functions
similar to any other UPI based app.
Besides UPI PIN, you would be able to authenticate the fund
transfer using your fingerprints.
▪ Download here
This app would also work on feature phone without internet.
‘Scan and Pay’ facility. It makes the payment transfer fast,
specially at a shop.
You can also check bank balance of the account. It is not
limited to the parent bank of the app.
The BHIM app gives you a link to directly call the respective PAUL JEFFERSON CLARENCE S
bank if there is an issue.
Enter payee’s
UPI contd… Choose
virtual
“Send Enter amount
payment
money”
address
Send Money
Write remarks
Confirm the
Hit “Send” for
details
transaction
Enter payer’s
Choose
virtual
Enter amount “Collect
payment
money”
address
Collect Money
Enter when Write
do you want remarks for Hit “Confirm”
to collect transaction PAUL JEFFERSON CLARENCE S
USSD based Mobile Banking – *99# - National Unified USSD Platform (NUUP)
▪ What do you require? How do you register?
▪ Account in a bank
▪ Any mobile phone on GSM network Visit your branch to link mobile
number & bank account (Can be done
▪ Can be used for payments upto Rs at ATM or online as well)
5000 per day per customer
You will get you Mobile Money
▪ How do you operate? Identifier (MMID) and mobile PIN
(MPIN) upon registration
▪ Dial *99# from your phone and
follow the instructions on your Remember you MMID & MPIN
screen.
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Aadhar Enabled Payment System (AEPS)
▪ AEPS allows bank-to-bank
transaction at PoS (MicroATM) What can you do?
with the help of Business
Correspondent (BC) Account balance
▪ Prevalent where there are no Aadhar to Aadhar fund transfer
branches (rural areas)
Cash withdrawal
▪ Only Aadhar needed. Link you
Aadhar to your bank account Cash deposit
▪ Now you can do many transactions
at any AEPS point without any pin or Purchase at Fair Price Shops with
password (AEPS points – Micro AEPS
ATMs) PAUL JEFFERSON CLARENCE S
AEPS contd…
How do you transact?
Go to a Micro
Provide you Choose which
ATM or a
Bank name & transaction to
Business
Aadhar do
Correspondent
On successful
Provide finger
Process transaction,
print on
completed take the print
scanner
slip
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Further reading
▪ Presentation on Digital Payments by Niti Ayog -
[Link]
step%20presentation%20on%20digital%20payments_English.pdf
▪ Keep yourself updated with the latest news & announcements vis-à-vis digital
payments
▪ From the inputs of Sajid Khetani
Thank you
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