Mobile Banking &

Payment
ACHIEVING EXPONENTIAL GROWTH THROUGH
EFFECTIVE COLLABORATION AT TECHNOLOGY LEVEL
BETWEEN BANKS, TELECOM OPERATORS BY
CREATING A UNIFIED COMMUNICATION PLATFORM

TABLE OF CONTENTS
Mobile Banking & Payment................................................................................................ 3
Objective............................................................................................................................ 3
Issues with Current Eco-system......................................................................................... 3
Few Examples................................................................................................................. 4
Limited Reach................................................................................................................. 4
Multiple integrations....................................................................................................... 4
Current Implementation..................................................................................................... 5
Proposal............................................................................................................................. 6
Government Services......................................................................................................... 8
Role of various entities..................................................................................................... 10

MOBILE BANKING & PAYMENT

Mobile banking and payment is key to Indias growth. India can effectively utilize the
penetration of mobile phones to leap-frog the technology and revolutionize the way
financial transactions are carried out in India and across the globe. A successful
implementation across India will not only bring convenience at the finger-tips of the
consumer but will also help minimize cash handling and issues related to the same (cost
of handling cost is estimated to be 2% of GDP), help banks serve the customer base
effectively and also exponentially increase their ability to serve underserved and unserved population

OBJECTIVE
All the payments can be modelled as P2P (Party to Party) payment

Party to Party payment Scenarios

Person to Person money transfer
Person to Merchant payment (Payment to grocer, pharmacist etc - Over the
counter payment)
Person to Government (Payment of Tax)
Person to Merchant payment (Remote merchants) payment of Insurance
premium, utility bill, phone bills etc
Person to Business Payment (Payment for services rendered ex. payment to tax
consultant, builders )
Government to Person payment (Benefits)

The above objective can be met by effectively using the NPCIs IMPS service
http://www.npci.org.in/IMPSVideos.aspx
Example of a Person to Person payment

Sender uses Banks application enters

Beneficiary M#
Beneficiary MMID
Amount
mPIN
Narration / Comments (Optional)

Bank may choose to make SMS, USSD, GPRS based or any other channel based
application as per RBI guidelines to the end consumers.

ISSUES WITH CURRENT ECO-SYSTEM

Fragmented communication
Every bank uses their own method, channel to enable and promote service
Telecom operators use their own channel and communication mechanism to
promote mobile commerce

1.1

FEW EXAMPLES

Federal Bank
Customer need to send SMS to 98950 88888 or 5676762 in the following format
IMPS <beneficiary mobile no> <beneficiary's full MMID> <Amount to be transferred>
<last 3 digits of MMID of remitter>
Citi Bank
Use Citi Mobile application
SBI
Using SBIs mobile banking application or
Customer to send SMS to 9223440000
<IMPS><Mobile No>< MMID>< amount><User ID><MPIN><Purpose(Optional- 20 Char)>
Union Bank of India
Using UBIs mobile banking application

1.2

LIMITED REACH

Smart Client application which need to be downloaded on the mobile needs GPRS service
and is complex to use for layman and hence is a major deterrent for mass market
adoption.

1.3

MULTIPLE INTEGRATIONS

Most telcos are approaching the banks to enable mobile banking, this is resulting into
telcos providing separate connectivity to the bank and having a separate business and
technical integration.

CURRENT IMPLEMENTATION

Telecom Network

Telcos

PROPOSAL
Develop a common communication platform

Everyone dials the same code to access the service Ex. *158# to access mobile
banking & commerce service
All telcos connect to the common communication platform
All banks connect to the common communication platform
Communication platform to provide rendering layer - the implementation to strictly
follow all security and regulatory requirements prescribed by regulatory authorities
and individual entities like Banks and Telecom Operators

Use same concept for government services, mobile payment, mobile banking

Merchant Network

Banks

GOVERNMENT SERVICES

MPSP Mobile Payment Service Provider

Govt Dept System / Servers

Customer Selects Karnataka Govt Services

(Display List of Services)
Utility Payment
Insurance Payment
Income Tax
Housing Tax

Main Menu

Logic to display top level service listing

to be with Communication channel

Once top level service is selected by customer

rest of the service listing and processing of request
after selection of service to be done by individual
Govt Services Layer
i.e Route the traffic to individual Govt Dept
System/ Servers

List of services to be provisioned by individual Govt

platforms traffic routed from Communication layer
to Govt Services Platform for further processing

10

ROLE OF VARIOUS ENTITIES

SMS Aggregators
To send SMS to customers
Reminders
Receipts
Other Information

11