India is certainly not restraining itself when it comes to adopting the next generation of payment tools and systems. With the current favorable regulatory environment, banks and other stakeholders in the payments ecosystem are now leveraging this opportunity to come up with both consumer and business oriented payment solutions. Here are some innovation highlights from the Indian payments market:
RBI Eases Norms for Payments Using NFC Contactless Cards
For transactions under Rs.2000 ($33), there will soon be no need for additional factors of authentication. The Reserve Bank has been receiving requests from customers and entities in certain niche segments, indicating the need to foster innovative payment products/processes and enhance the convenience factor in certain types of transactions by removing the mandatory additional factor of authentication (AFA), according to an official press release.
RBI examined these requests from the perspective of the trade-off between security and convenience in card transactions, and reviewed the need for relaxation of almost obsolete instructions through suitable safeguards to protect customer interest in light of the availability of new technologies. One such technology was that of Near Field Communication (NFC) being used in contactless cards.
Axis Bank, MasterCard and Vayana Network Accelerate Business Payments in India
Axis Bank has announced its partnership with MasterCard & Vayana Network to launch ‘Invoice to Payment’: an end-to-end digital invoicing and payment solution. This solution aims to simplify B2B payments in India, estimated at over $95 billion annually. Processing of these payments today is physical, involves a number of manual steps, and requires much of corporates’ time and resources to reconcile invoices and their payments. Invoice to Payment is designed to simplify, digitize, and automate the entire process – from invoice presentment to final payment.
Axis Bank, in close partnership with MasterCard and Vayana Network, is the first bank in India to offer this comprehensive credit solution for business payments. With this solution, users will experience greater convenience, security, control, and increased efficiency in business payments. For the suppliers it will ensure the timely reception of payments. The fully integrated solution will give significant financial returns to both buyers and suppliers alike.
Paytm Announces IMPS Platform & Rollout of 50,000 Retail Outlets
One of India’s largest mobile commerce platforms, Paytm, is now offering IMPS as part of its payments platform. IMPS, or Immediate Payment Service, will allow Paytm mobile wallets to transfer money to any bank account and in real time. With the integration of IMPS, Paytm seeks to influence users to hold money in their Paytm wallets rather than the usual practice of using a personal banking account. With support for money transfer to any bank, Paytm certainly has the opportunity to promote itself much further with the advent of a cashless culture in India.
Paytm has also announced plans to roll out 50,000 retail outlets to facilitate over 25 million Paytm users to load cash into their digital wallets. This would help in promoting the digital wallet service to those customers who are new to this concept.
Nuspay to Bring Tokenized Payment Solution to India
Nuspay has developed a unique “Virtual Account-Tokenized Payment Solution” as a solution against online payment fraud. This solution can be integrated into mobile banking platforms and does not require the customer’s financial details. Moreover, the virtual account payment token eliminates transaction fraud and hacking risks. Nuspay is poised to launch this solution in India targeting consumers, merchants, financial institutions, and independent sales organizations.
The company is tying up with banks and financial institutions who will be acting as payment processors for the virtual account solution. With Nuspay support, banks will also get the opportunity to install NFC readers for merchants and enable payments through NFC cards and NFC enabled phones. Customers will have the option of using the Nuspay mobile app to pay at merchants who have NFC readers installed. The Nuspay payment system is poised to replace traditional payment methods in the country while bringing additional security through tokenization.