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Face-to-face payments
Fixed POS
E-commerce statistics
Growth of 47% to Rs 46,000 crores Online travel industry contributes to 76% of total e-commerce Financial services such as online insurance payments and transactions through trading accounts 6% Retailing on Internet 6% Other online services (incl online classifieds) 5% Digital downloads 2.4%
POS statistics
E-commerce usage
Barring few services such as online ticketing, Indian consumers arent shopping online. Large number of surfers use the Internet to look for information about the product or service they want to buy followed by a physical visit to a shop for buying E-payment preferred mode for electronic delivery items Cash on delivery preferred mode for physical delivery items
POS usage
Credit card volume numbers are coming down on annual basis Debit card volume numbers are going up on annual basis Number of debit cards is 12 times higher than number of credit cards On an average, 15 transactions per credit card on annual basis On an average, 1 transaction per debit card on annual basis Average transaction value for credit card transaction Rs 2,800/ Average transaction value for debit card transaction Rs 1,600/-
Advantages of IMPS
Number of mobile users is lot more. Mobile number can be linked to bank account for everyone Replacement of cash Remote payments via website, IVR, mobile application Fixed POS via virtual POS at retail counters Mobile POS No investment on POS machine for receiving payment via IMPS Reducing the cost of issuing banks, as less cash withdrawal at ATMs and branches Reducing cost for merchants, as efficient settlement, less risk of fraud, process efficiency Convenience, anytime, anywhere payments
Mobile top-up
Oxigen mobile number and MMID Payment reference Operator*Mobile number
Use cases
Insurance DTH Fee payments Credit card payments Utility Bill payments Over-the-counter payments
OTP validity
OTP can be generated through mobile banking application and through SMS facility provided by the Bank OTP generation is 2-factor authentication process Only one OTP is valid at a time OTP valid for only one transaction successful or failure OTP is valid for 1 hour OTP is 6-digit numeric Transaction limit unlimited (subject to bank discretion) for OTP generated through mobile application, and Rs 5,000/for OTP generated through SMS
Mobile top-up
Customer provides OTP to the retailer Retailer prepaid balance is not debited. Oxigen account gets credited. Retailer gets commission. Incentive for retailer to promote IMPS Services can be extended to DTH, railways, bill payments, bus tickets, etc
Virtual POS
At cash counters in retail chains Customer swipes card at the cash counter Linked will billing system at cash counter Option to pay via IMPS Customer enters mobile number, MMID, and OTP Customer account is debited and retail chains account is credited
Mutual funds
Currently, in financial services, only Rs 2,000 crores worth of transactions through online methods In mutual funds, no transactions through credit cards Only debit cards and net banking methods allowed Payment through distributors also possible through distributor mobile POS method
Insurance
Agent can collect payment via agent mobile POS application. Credit directly into insurance company account No investment on POS machines for insurance company No need for agents to visit branch office to submit cash, cheques Agents promote this method because of above advantage
Merchant business
Transaction fee from merchant per transaction Deposits into merchant account with the Bank Existing current account holders to be provided the facility of receiving payments via IMPS, thereby widening merchant network No investment of POS machines for making facility available to merchants As an issuer, less cash withdrawal at ATMs and branches, therefore lesser cost of transaction Promotion on the ground through various channels Access channel (mobile) available widely Fixed and mobile POS facility, payments anytime, anywhere
Current status
Pilot launch with Union Bank of India and Kotak Mahindra Bank Union Bank of India as Issuer and Kotak Mahindra as both Issuer and Acquirer Kotak credit cards is pilot merchant for PUSH transaction Times of Money is pilot merchant for PULL transaction SBI development and testing completed, go-live in progress Oxigen is pilot merchant for PUSH and PULL transaction ICICI Bank certification in progress. Expected to go-live by middle of February Canara Bank certification after SBI go-live. Expected to go-live by middle of March Citi Bank, Axis Bank in development phase. Certification expected to start by end february, and complete by 15th April
Way forward
Let us know your interest in joining IMPS merchant payments, and provide the implementation plan Finalize the vendor Start the development Certification process 6-7 weeks One pilot merchant for PUSH and one for PULL Currently 8 pilot banks under certification Certification can be started after these 8 banks, and plan shall be shared