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Showing posts with label Unified Payments Interface. Show all posts
Showing posts with label Unified Payments Interface. Show all posts

Friday, 24 March 2017

16:01

South Indian Bank introduces Aadhar-based payment app

South Indian Bank introduces Aadhar-based payment app
KOCHI, MARCH 23:  
To promote cashless digital transactions, South Indian Bank has introduced Aadhar-based payment in its UPI mobile application- SIB M-Pay.
Unified Payment Interface enables all bank account holders to send and receive money from their Smartphone without entering the bank account information. Even non-customers of South Indian Bank can link any of their bank account in this mobile application. Currently, the fund transfer is possible only if the Virtual Address (UPI ID) of the beneficiary is known to the user. With the latest addition in SIB M-Pay, the fund transfers can be done by just entering the Aadhar number of the beneficiary. The amount will be credited directly to the beneficiary’s Aadhar linked bank account. SIB M-Pay app is currently available in Android Playstore.
Aadhar based payment in South Indian Bank's SIB M-Pay will be a major step in offering simple and efficient payment methods, as the country moves towards a 'Cashless Society' and Aadhar ID plays a key role in Digital India initiatives, said V G Mathew, MD & CEO of the bank.

Source:The Hindu
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Saturday, 15 October 2016

08:03

UPI 2.0 will disrupt payments in India

UPI 2.0 will disrupt payments in India

A month after introducing mobile-based payments architecture Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) is working on an upgraded version of UPI, to be released next year, that will contain features such as pre-authorized transactions and biometric authentication.
The new version of UPI, to be called UPI 2.0, will include new features such as electronic mandates that will allow users to pre-authorize transactions through digital signatures, as NPCI gears up to get tens of millions of new users on board UPI over the coming months.
“Once we reach about 30 banks including State Bank (of India or SBI) and HDFC Bank (Ltd), we will start an awareness campaign. We will also add new use cases of UPI technology such as merchant payments and bill payments. We have also planned a UPI version 2.0 for March 2017,” said A.P. Hota, managing director and chief executive of NPCI, in an email reply to queries from Mint.
In August, NPCI with the support of the Reserve Bank of India (RBI) and the Indian Banks’ Association created UPI and launched it in August. The system allows customers to safely and instantaneously pay for goods and services and transfer funds to others via their smartphones, almost as easily as sending a text message.
Since the launch of UPI, 20 banks have launched their UPI-based apps and mobile apps of 17 are available on the Google play store, Hota said. SBI and HDFC Bank are to join UPI soon.
Currently, on a daily basis, about 4,000 transactions are taking place from about 300,000 customers who have downloaded a UPI-based bank app, he added.
Other executives associated with UPI said the upgraded version will be compatible with the first version.
“UPI 1.0 will continue to mature...with better UI (user interface) and better features,” said Pramod Varma, chief architect at the Unique Identification Authority of India (UIDAI) and technical adviser to NPCI. “UPI 2.0 is an extension of additional capabilities and one of the big ones is electronic mandates that would come which allows me to need not authorize every transaction—I can pre-authorize through a digitally signed instrument.”
UPI 2.0 will be focused on integrating UPI with Aadhaar and the Bharat Bill Payment System (BBPS), said Dilip Asbe, chief operating officer of NPCI.
“By integrating with Aadhaar, it will enable iris authenticated (UPI) payments...we are hopeful to get RBI approval (for the same)... In case of BBPS, a user can do a card payment or use Internet banking (to make payments), we’ll integrate UPI as an additional mode of payment (to BBPS),” he added.
Axis Bank Ltd is one of the early bank adopters to launch its UPI mobile app a month ago. Since then, 100,000 users have registered and created a virtual payment address, said Sangram Singh, head (cards and payments business) at Axis Bank. The lender’s platform has clocked 60,000-65,000 transactions amounting to Rs8.5 crore since late August.
“Business models will be redefined and unserved markets open up as financial providers move from being data poor to data rich. We estimate the consumer and SME (small and medium enterprise) loan market will grow from $600 billion to $3,020 billion in the next 10 years. As barriers of access and reach break a digitally empowered customer with instantaneous authentication through Aadhaar, inter-operable payments and app-based delivery of services will be able to compare and contrast products from multiple providers,” wrote Credit Suisse analysts in a reported dated 29 June.
Some banks are tying up with start-ups for UPI. For instance, Flipkart-owned PhonePe Internet Pvt. Ltd tied up with Yes Bank Ltd to launch a consumer-facing app in August.
Razorpay Software Pvt. Ltd, an online payment gateway for merchants, has partnered with several banks to offer payments on UPI. Another payment gateway Instamojo Technologies Pvt. Ltd has partnered with ICICI Bank Ltd to allow individuals and small businesses to collect payments via UPI on its platform.
“So far we’ve managed to get about 1.5 lakh micro-SMEs and merchants on board our platform,” said Instamojo founder Sampad Swain.
In an interview, Infosys Ltd co-founder Nandan Nilekani said UPI will potentially disrupt payments in India and become a role model for other countries.
“Basically it was building on the NPCI’s successes, building on the rise of the smartphone, it was building on the need to have a simple merchant, debit product, built on the need to have virtual payment addresses, etc.— so I think all this came together beautifully,” said Nilekani, former UIDAI chairman and one of the key brains behind UPI. NPCI has been working under Nilekani’s guidance on UPI since February 2015.
Nilekani added that UPI also gives India an edge over other countries like the US and China, where payments systems are primarily controlled by a few entities—in China, for instance, mobile transactions primarily go through platforms like WeChat and AliPay.
“With UPI, anyone can build on top of it and innovate— it’s open and inclusive. It’s almost like being on a highway without any tollgates,” he said.

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Sunday, 28 August 2016

16:20

UPI Goes Live: Here Is Your 10-Point Guide To Get Started

UPI Goes Live: Here Is Your 10-Point Guide To Get Started

Here Is A 10-Point Cheat-Sheet
  1. The UPI app offers the facility to identify a bank customer with an email-like virtual address. Since bank account details are not given in this virtual address, the customer can freely share the UPI financial address with others. Users need to download the app and register before using it.
  2. A customer, for example, can also decide to use a mobile number or a short name for the virtual address such as XYZ@icici or 123456789@axis 
  3. The UPI app allows a customer to have multiple virtual addresses for multiple accounts in various banks.
  4. For making payment, the transaction will be complete once the customer authenticates the transaction through a secure PIN.
  5. The other benefits of this mobile payment mechanism include its round-the-clock availability and faster checkout.
  6. One can use the UPI app instead of paying cash on delivery (COD) on receipt of product from online shopping websites, and can pay for miscellaneous expenses like utility bills, over the counter payments and school fees.
  7. The Unified Payments Interface is an advanced version of the existing payment system IMPS, which offers instant 24X7 interbank electronic fund transfers across India through mobile, internet and ATMs.
  8. National Payments Corporation of India said the UPI app will be available in next two to three working days for the customers to download and start using.
  9. Andhra Bank, Axis Bank, Bank of Maharashtra, Canara Bank, DCB Bank, Federal Bank, ICICI Bank, Oriental Bank of Commerce, Karnataka Bank, UCO Bank, Union Bank of India, United Bank of India, Punjab National Bank are some of the banks that have joined the UPI platform. 
  10. Infosys co-founder Nandan Nilekani has been an adviser to NPCI on the UPI project. Reserve Bank of India Governor Raghuram Rajan in April this year had soft-launched the new payment mechanism and  it has been on a pilot run since then.
Source:NDTV


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Sunday, 8 May 2016

17:29

UPI will make Paytm, ICICI Bank’s Pockets, HDFC Bank’s Chillr redundant: Centrum

UPI will make Paytm, ICICI Bank’s Pockets, HDFC Bank’s Chillr redundant: Centrum

The ongoing push by the Reserve Bank of India (RBI) to revolutionise banking through the Unified Payments Interface (UPI) will leave mobile wallets redundant, as mobile banking has jumped over threefold in February from the year-ago period, according to a report.
The ongoing push by the Reserve Bank of India (RBI) to revolutionise banking through the Unified Payments Interface (UPI) will leave mobile wallets redundant, as mobile banking has jumped over threefold in February from the year-ago period, according to a report.
The report, by city-based Centrum Broking, stated that mobile wallet services like SBI’s Buddy, ICICI Bank’s Pockets, HDFC Bank’s Chillr and standalone operator Paytm will be redundant with the massive adoption of the UPI.
“Mobile banking has taken the country by storm, growing by 212 per cent growth in value terms in February 2016 over the same period in 2015 and by 131 per cent in volume.
“If the UPI adoption continues mobile wallets like SBI’s Buddy, ICICI Bank’s Pockets, HDFC Bank’s Chillr and Paytm will be redundant,” a Centrum Broking said in a report titled- ‘Banking Transactions – Technological Disruption’.
The report attributed the RBI push to adopt UPI as an effort to lower the cash economy. Quoting RBI data, the report said the cash floating in the system is about 18 per cent of the GDP, making the country one of the most cash-dependent economies in the world.
“The RBI wants to cut down on cash dependence and the UPI has been brought in to do just that. It will reduce the effort, time and cost incurred on simple transactions, below Rs 1 lakh. Through UPI, two or three bank accounts can be linked and therefore any payment/withdrawal can then be done by just sending a message on this app,” the report said.
UPI does not require a specific bank account unlike existing players which offer the product to only those who have an account with them, thus significantly increasing the pool of customers UPI could tap into, compared to banks which have a limited universe of customers.
Of the 29 banks that have already tied up with the RBI-promoted National Payments Corporation that launched the UPI, 10 banks — Federal Bank, Axis Bank, Ratnakar Bank, Yes Bank, Oriental Bank of Commerce, Union Bank, ICICI Bank, HDFC Bank, PNB and Canara Bank — are ready with their apps.
According to a World Bank report, only 53 per cent of the Indian population or 636 million people have bank accounts, while close over 1,000 million have mobile phones. If used to its full potential, UPI can penetrate far more homes than all the mobile wallets put together, the report said.
It is quite likely that to stay relevant in the market and operate on a low-cost model, banks and other financial service providers will have to go through a drastic digital makeover. Those who are left behind in this race might struggle to survive, it added.
Quoting the Reserve Bank data, the report noted that the value of mobile banking transactions rose 46 per cent in December 2015 from a month ago. But this is more than 300 per cent growth compared to December 2014 level, it said.

 Source:Financial Express
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Tuesday, 12 April 2016

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Saturday, 26 March 2016

19:02

Unified Payments Interface will be as transformational as Aadhaar

Unified Payments Interface will be as transformational as Aadhaar

Unified Payments Interface (UPI), a new process in electronic funds transfer, will be inaugurated by Reserve Bank of India Governor Raghuram Rajan on April 11. Conceived and being implemented by National Payments Corporation of India (NPCI) under the guidance of former chairman of Unique Identification Authority of India (UIDAI) Nandan Nilekani, this mode of payment is likely to be as transformational as Aadhaar when it gets adopted by most banks.

Initially, 29 banks are likely to adopt it, and certification is already in progress for 12 banks. Other banks will join soon. The process will ride on the existing infrastructure of Immediate Payments Service (IMPS), which facilitates money transfer from any bank/wallet account to any other bank/wallet account as permitted by RBI “instantly” 24×7. UPI enhances the user experience of IMPS with some additional processes.

Firstly, UPI enables ‘instant collect’, which was not possible under IMPS. It addresses the current problem of about 30% decline in e-commerce payment transactions due to a complicated transaction flow. With UPI, the friction gets minimised and e-commerce market players can pull money from shoppers easily. Cash on delivery (COD) transactions can also be completed by the delivery staff by collecting money electronically while delivering the goods.

A biller can collect bills from consumers by automating the collection process on the due date, supplementing thereby the already existing ECS (debit)/NACH (debit) process. Clubs/schools can collect periodic fees. A daughter can now make a UPI request to her father’s account and the father, recognising that the request has come from a valid source, can authorise the transaction or even reject it.

The father can also “hold” the transaction for verifying the transaction before authorising it with a one-time password (OTP) or static PIN. The landlord can pull the money from the tenant. There can be multiple usage of such nature for online/face-to-face payments. Secondly, UPI has a facility to identify a bank customer with an email-like virtual address.
A customer can create a unique financial address in his/her bank linked with the bank account number at the backend. The customer will use only the virtual address while dealing with others without sharing the account details. For instance, a customer at State Bank of India (SBI) can create an address like shortname@ sbiormobilenumber@sbi.

Looking at the domain name sbi, NPCI will route the transaction to SBI and SBI will apply the credit/debit by resolving the virtual address to the account number. A customer can have multiple virtual addresses for multiple accounts in multiple banks. There is no account number mapper anywhere other than the customer’s own bank to ensure privacy of customer data.
The advantage of such an approach is the customer can freely share the financial address to others. Thirdly, UPI will operate primarily on smartphones, leveraging their ever-increasing utilities. Though the current base of smartphones in India is about 300 million (December 2015), the number is likely to touch 400 million in two years. This will help customers to do a whole range of banking operations and shopping from the mobile itself.

Smartphones will also enable banks and their certified merchants to integrate the library being supplied by NPCI so that the process of capturing the authentication information is secure and uniform across banks similar to customers providing authentication information on ATMs irrespective of bank ownership. As mobile phones get Aadhaar-ready, biometric authentication would also be possible through them.

Fourthly, UPI will enable single-click two-factor authentication with mobile itself as the first-factor using the unique hardware identification of the smartphone, and OTP/static mobile PIN as the second. Banks will compete with each other to provide simple and user-friendly solutions without compromising on the regulatory guidelines on two-factor authentication. A few banks are enhancing the security without compromising simplicity.

For instance, the application can have a facility for the user to maintain a list of virtual addresses from which pull request would be permitted or to pre-register the beneficiaries. Banks can have applications with utilities to remind when bill payments are due. Customers can also generate various reports on transactions made.
In summary, UPI promises to be truly transformational. Let us watch how it shapes the future of payment systems in the country.

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