digital payments - mopr payement.pdf · incentive, cashback, offers and promotional schemes on...
TRANSCRIPT
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Digital Payments
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Agenda Items
1 Introduction to Digital Payments
2. Trends in Digital Payments
3 Modes of digital Payments
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Introduction to Digital Payments
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Definition of Digital Payment
Benefits of Digital Payment
Why digital payments are required in India
Current State of Digital Payments
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Definition-Digital Payments
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Digital Payment are initiated by a person by way of :
o Instruction
o Authorization
o Order to bank to debit or credit an account maintained through
electronic means.
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Digital Payments - Benefits
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Convenience of use
Anytime Anywhere Any mode
Secure Transactions
Facilitate financial inclusion
Incentive, Cashback, Offers and promotional schemes on digital payments
No fear of losing cash or getting robbed or getting fake currency
No need to handle cash
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Why Digital Payments are required?
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Cash to GDP ratio higher than most of the countries12.4 %
Net cost of cash ~ 1.7 % of GDP1.7 %
Currency operation cost (Printing, Currency chest, supply etc.)21K Cr
of GDP, the foregone tax revenue from shadow economy3.2%
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Targeted Digital Payments
Union Budget 2017- Announcement
Mission has been set-up to achieve a target of (25 Bn) - 2500 Crore Digital Payment Txn in FY 18
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Modes of Digital Payments
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Cards
IMPS
UPI
BHIM App
AEPS
BHIM Aadhaar
*99#
BBPS
NCMC
NETC
NACH
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NPCI Products for Digital Payments
Except NFS & CTSInternal -
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Type of Card instruments
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Deb
it C
ard • Linked to
bank’s account. Usage at :
• ATMs, micro ATMs
• PoS
• Online Shopping (E-Commerce)
Cre
dit
Car
d • Linked to bank’s account. Usage at :
• ATMs, PoS
• Online Shopping (E-Commerce)
Pre
pai
d In
stru
men
t • Preloaded Card
• Can be recharged several times
• Can be used at PoS, Online transactions, ATMs
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Debit Cards
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• Total Number of debit cards: 88 Crore .• Card schemes are : Visa , MasterCard & RuPay .• Approx. 50 Cr cards are on VISA & Master card platform.• Approx. 37 Cr cards are on Rupay platform which represents 43% of the
total debit cards . • However , only 13 % RuPay cards are used for PoS & Ecommerce
transactions.• PMJDY mandates banks to issue RuPay debit cards . There are more than
800 issuing Banks for RuPay (27 PSBs, 14 Private banks , 700+ Co operative banks & RRBs).
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National Financial Switch - NPCI Impact
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Only 50 odd banks were offering ATM Cards
Customers were able to access own bank’s ATM only.
Limited no. of ATMs were getting installed- 55K till 2009
Customer migration to alternate channel was challenge for banks
Scenario before NFS
No. of ATMs now 220K + No. of Cards issued = 850 Mn + No. of ATM Txns. are showing
upward trend NPCI processes 11 Mn + Txns a
day (inter bank) Cost of Branch Operations
coming down
Post NPCI takeover of NFS
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RuPay : India’s own Card
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375 Million + RuPay Debit Cards issued
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Real Time Payment Service (RTPS) Options
107.85
661
927.55
1252.88
15.36 78.44220.81
506.84
0
500
1000
1500
2000
1622.1
2013-14 2014-15 2015-16 2016-17
RTPS Channel Usage in India (in Mn)
Money Order RTGS NEFT IMPSRTPS (in Mn) 2013-14 2014-15 2015-16 2016-17
Money Order 109.14 135.2 101.85 65.15RTGS 81.1 92.78 98.34 107.85NEFT 661 927.55 1252.88 1622.1IMPS 15.36 78.44 220.81 506.84
Like Telegram- Money Order seems Vanishing by 2020Internal -
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Settlement Cycle
IMPS – Immediate Payment Service
Member Banks
Service
Million Txn/Month
203
24X7
CH
AN
NEL
S
PR
OD
UC
TS P2P
P2A
ABRS
P2M
(PUSH)
M2P
(PULL)
FIR
NUUP
4
66
Mobile
*99#
Branch
ATM
Internet
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Immediate Payment Service (IMPS)
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Real-time domestic fund
transfer
24 X 7 X 365 availability
Simple, fast and easy to
use
Fast, Inexpensive,
Safe and secure
Channel Independent
AADHAAR No. based
transaction enabled
Financial and non-financial
service available
Alternate input options
Multiple access
mechanism
203 banks & non bank (PPIs) are on IMPS platform.
An innovative
“real-time” payment
service that is available
“round-the-clock” (even
on holidays) and facilitates
interbank (available with
select PPIs also), Account
to Account (or to wallets
also) fund transfer.
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Unified Payment Interface-UPI
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Push and Pull Payments
Virtual Address (‘Username@PSPName’)
(No need to share Bank account details)
Transfer using Single identifier like Virtual
Address or Aadhaar No
Banks – (Payment Service Provider) will provide App to customers of any bank
One App for all transaction needs
Single Click 2 Factor Authentication
The Unified Payments Interface (UPI) offers architecture and a set of standard Application Programming Interface (API) specifications to facilitate online payments.
Prerequisites for UPI Mobile Number
Registration with Bank Active Debit Card
52 Banks are live on UPI
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BHIM- Bharat Interface for Money
• Launched by the Hon’ble Prime Minister of India on 30th Dec’2016
• As of today, 50 Banks listed on BHIM and the counts are increasing
• A basic UPI app providing simple functionalities of Send and Request
money
• Provides Scan & Pay and Generate QR Code facility
• By default mobileno@upi is created with an option to create an
additional VPA of address@upi
• Transaction limit of Rs.10,000 per transaction and Rs.20,000 per day
• One Bank account can be added with a option to change the same
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BHIM/UPI Adoption
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User Profile for BHIM
Consumers
• Send Money to Friends & Family at ZERO cost
• Scan & Pay to QR code at Merchant
Shops/Neighbourhood
• Shop or Pay online by clicking on “Pay by UPI”
• Check Balance & See Transaction history
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Prerequisites for using #BHIM
Register Mobile Numbers
against their bank accounts
Active Debit Card
to set UPI PIN.
Can be done using any Debit Card
Bank Account
in any of the 50 UPI/BHIM Enabled
Banks
Internal - Internal -
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BHIM/UPI Adoption
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*99# NUUP – BHIM for Feature Phone
100% Bank accounts seeding with Mobile is still a challengeInternal -
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Aadhaar Enabled Payment System
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• Facilitating Aadhaar number based banking transactions• Simple , Secure and User Friendly Mode of Banking Solution• Inputs Required – Aadhaar Number, Biometric & Bank name
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Bhim AADHAAR
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• Launched by Hon’ble Prime Minister of India on 14th April, 2017
• Aimed at helping people make payments digitally using their biometric
• Allows merchants to accept payments via Aadhaar Number
• Merchants have to download the App on Mobile .
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BHIM Aadhaar
Facilitating Aadhaar based Banking & merchant transactions
For consumers not having access to card or mobile (not even feature phone)
Merchant Mobile
Consumer’s Aadhaar No. + Biometric
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Internal -
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Internal -