Tag: Digital Payment

Payment channels show pick-up in Oct driven by festive spends

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However, the recovery in the economy is yet to become entrenched and broad-based, many believe.

Most digital payment channels recorded an increase in the value of transactions on a month-on-month basis in October as festive-season spending gave a boost to consumption.

According to data available on the Reserve Bank of India’s website, spends through the National Electronic Funds Transfer (NEFT) rose 2% MoM to Rs 24.76 lakh crore, Immediate Payment Service (IMPS) spends were up 14% to Rs 3.7 lakh crore, Unified Payments Interface (UPI) spends grew 18% to Rs 7.71 lakh crore, credit card spends rose 21% to Rs 76,274 crore and debit card spends grew 19% to Rs 61,416 crore. Electronic toll payments also recorded an increase. The value of transactions through prepaid payment instrument (PPI) cards, however, fell 16% MoM to Rs 2,498 crore.

Several indicators suggest a pick-up in consumption during October. The RBI said in its State of the Economy report for November that the outcome of improved mobility – both passenger and goods – was reflected in a surge in fuel consumption in October. The consumption of petrol touched pre-pandemic levels, while aviation turbine fuel (ATF) and diesel consumption exhibited sequential improvement.

Players in the payments ecosystem witnessed strong traction in volumes during the month. On Wednesday, PhonePe said it processed over two billion transactions on its platform in October on the back of rapid traction across tier II, tier III cities and beyond, which accounted for 80% of transactions. Banks, too, have reported an uptick in consumption. HDFC Bank said in an investor call that early results for the first 10 days of October showed a 42% growth in card spends over a similar time period in September, driven by festive spends.

However, the recovery in the economy is yet to become entrenched and broad-based, many believe. RBI governor Shaktikanta Das on Tuesday said that the Q1FY22 GDP data revealed that there still exists a significant gap in both private consumption and investment, relative to their pre-pandemic levels in FY20.

“Contributing the largest share of aggregate demand, around 56% of GDP, private consumption is critical for inclusive, durable and balanced growth of our country. Daily wage earners and workers at the lower rungs of the society have incurred significant losses of income and employment during the pandemic that will take time to repair,” Das said.

At the same time, he expressed confidence that consumption demand triggered by the festive season and the recent cut in levies on fuel by the central and state governments will augment purchasing power of people and create space for additional consumption.

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PIDF corpus at ₹614 crore

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The corpus of the Payments Infrastructure Development Fund (PIDF) stands at ₹613.89 crore. Over 2.45 lakh physical devices and more than 55.36 lakh digital devices were deployed for payment acceptance under the PIDF by September-end 2021.

“Contribution to the PIDF is made by the Reserve Bank, authorised card networks and card issuing banks; the corpus currently stands at ₹614 crore,” the Reserve Bank of India said on Tuesday in a status update on the scheme.

RBI’s contribution

Of this amount, while the RBI has contributed ₹ 250 crore, authorised card networks have contributed ₹153.72 crore and card issuing banks have put in ₹210.17 crore.

The PIDF Scheme, operationalised by the RBI from January 1, 2021, subsidises deployment of Points of Sale infrastructure (physical and digital modes) in Tier-3 to Tier-6 centres and north-eastern States of the country.

From August 26 this year, beneficiaries of PM Street Vendor’s AtmaNirbhar Nidhi in Tier-1 and Tier-2 centres are also covered.

In terms of deployment of payments acceptance devices, 98,504 physical devices and 20,46,075 digital devices were deployed in Tier 3 and 4 centres. Another 84,968 physical devices and 30,47,750 digital devices were deployed in Tier 5 and 6 centres.

Physical devices include PoS, mobile PoS, GPRS, PSTN or Public Switched Telephone Network and digital devices include inter-operable QR code-based payments such as UPI QR, Bharat QR.

In the north-eastern States, 18,449 physical devices and 2,42,145 digital devices were deployed while under the PM SVANidhi Scheme, 44,021 physical devices and 2,00,708 digital devices were deployed.

PIDF will be operational for three years from January 1, 2021 and may be extended for two more years depending upon the progress. It aims to increase payments acceptance infrastructure by adding 30 lakh touch points – 10 lakh physical and 20 lakh digital payment acceptance devices every year.

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North Delhi Municipal corpn inks pact with SBI for digital payment, BFSI News, ET BFSI

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North Delhi Municipal Corporation has signed a Memorandum of Understanding (MoU) with State Bank of India (SBI)to boost online digital payment collection for municipal services.

SBI e-Pay is the payment aggregator service wing of the bank, which will facilitate online payment of municipal taxes and other fees by citizens.

One can pay taxes and dues of online municipal services such as registration of birth and death, property tax and e-mutation, health trade, general trade, veterinary trade and factory licence application services, for booking parks and community halls, renewal of tehbazari, hawking and hackney carriage through SBI ePay Gateway, said a north corporation official.

Commissioner Sanjay Goel said that the SBI e-Pay is the payment aggregator service wing of the bank, which will facilitate online payment of municipal taxes/fees.

“It provides digital access and to make e-governance services available to the citizens. The initiative is a step towards the Digital India Programme and to provide municipal services to the citizens of North Delhi in a digital way,” he said.



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How to transfer money using UPI without Internet, BFSI News, ET BFSI

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UPI stands for Unified Payment Interface (UPI). It allows transfer of money from one bank account to another instantly via one’s mobile phone. Payments can be made via app on mobile device only.

Along with the online mode, UPI is also available for non-Internet based mobile devices (smartphone as well as basic phones) in the form of a dialling option, *99#, and is known as USSD 2.0.

Here is a look at how you can use UPI without the Internet.

What you need to use UPI
Some of the commonly used apps offering payments via UPI method are BHIM, which is developed by NPCI, and there are some private players as well such as Paytm, PhonePe, Google Pay, Amazon Pay etc.

To use UPI, you must have a bank account with a member bank, i.e., your bank should allow you to use the UPI facility. Some of the member banks include State Bank of India (SBI), HDFC Bank and ICICI Bank.

Along with this, your mobile number must be registered with your bank account for purpose of verification.

Key services offered under *99#
According to the National Payments Corporation of India (NPCI), the key services offered under *99# service include, sending and receiving interbank account to account funds, balance enquiry, setting / changing UPI PIN besides host of other services. *99# service is currently offered by 41 leading banks & all GSM service providers and can be accessed in 12 different languages including Hindi & English.

Also read: How does UPI work?

Features of *99# service

  • Supports menu-based applications that is easy to maneuver for the users
  • Does not require data connectivity (works on signaling channel) that makes it high availability service
  • Round the clock availability (works even on holidays)

Do keep in mind that you will be charged a nominal fee for using this service by the telecomm service provider — it is usually Rs 0.5 per transaction for using the *99# service. The maximum charges have been set by TRAI at Rs 1.5 per transaction.How to register for *99#
Step 1: Dial *99# from your registered mobile number
Step 2: Select your bank account
Step 3: Enter the last 6 digits of your debit card number
Step 4: Enter the expiry date; enter and confirm the UPI PIN. After this step you can start using the service.

How to transfer money using *99#
Step 1: Dial *99# from your registered mobile number
Step 2: The screen with options will appear. Dial 1 to select “Send Money” and click on reply

Step 3: To send money, dial the option you want to use to send money: 1 for mobile number, 3 for UPI ID, 4 for saved beneficiary. If you want to transfer money using the person’s UPI ID, dial 3.

How to transfer money using UPI without Internet
Step 4: Next step is to enter the amount you want to transfer. Dial the amount you want to transfer. After entering the amount, you will be asked to enter your UPI PIN (set at the time of registration process mentioned above).

How to transfer money using UPI without Internet
How to transfer money using UPI without Internet
Step 5: Up on successful transfer of money you will get this message on your phone.

How to transfer money using UPI without Internet
You will also get an SMS informing you about the transaction.



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PayU now exploring small-ticket products for underserved, says Anirban Mukherjee

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Having struck the largest fintech deal in the country with the acquisition of BillDesk, PayU India is now looking to explore small-ticket financial offerings and embedded finance for gig workers.

The company is currently piloting credit offerings for the SMB segment, Anirban Mukherjee, CEO, PayU India, said.

“Our goal is to become one of the leading payment companies by innovating digital credit and payments through partnerships and building together a full ecosystem of various financial services. On the digital credit front, we have already bought PaySense and merged it with LazyPay. We are at present experimenting with SMB credit and revolving credit. The demand is massive, and the segment is underserved,” Mukherjee told BusinessLine.

Strategic invetments

In its attempt to become a full services fintech player, PayU has been regularly making strategic investments in various fintech start-ups operating in different segments including DotPe, Fisdom and Indiagold. Mukherjee added that the company will continue to make similar investments, without disclosing specific capabilities he will be on the lookout for.

He believes that using LazyPay-based systems, consumers with little credit history will pave the way that PayU will take in the future. “We were the pioneers in ‘buy now, pay later’ segment. We are trying to do many things. Technological enhancements enable us to offer simple and lower ticket size products at various price points. We offer merchants overnight lending. We will also be exploring embedded finance for gig workers,” he said.

With embedded finance, unbanked population will get access to payment and lending products through the company’s platforms without needing to have or attach bank accounts.

BillDesk’s acquisition has boosted PayU’s journey in many ways. While PayU has been powering transactions for several internet economy companies, BillDesk has been a clear market leader in payment technologies space enabling over 50 per cent of the billing transactions in the country. The company also has been a key service provider to the BFSI sector and government organisations.

“This deal makes PayU one of the leading companies for digital payments. It gives us massive scale, and it will enable us to process 4 billion transactions together. It also creates scope for much more innovations and at that kind of scale, it will be very significant,” Mukherjee said.

The BillDesk team and founders will continue to be a part of the business even as PayU takes charge.

“India accounts for more than 50 per cent of our business and we are leaders in seven markets out of the 20 we operate in. BillDesk’s products have global applicability and with PayU partnership, we can take those innovations and platforms global,” he added.

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Jana SFB to provide digital payment infrastructure for Karnataka Government’s NSNK programme, BFSI News, ET BFSI

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Jana Small Finance Bank will provide the digital payment infrastructure and become the payment gateway services provider to the ‘Namma Shaale Nanna Koduge’ scheme, a state government initiative.

The Namma Shaale Nanna Koduge or My School, My contribution programme aims to provide accessibility to donors who wish to donate money to any government school in Karnataka. Chief Minister Basavaraj Bommai formally launched this program at Vidhana Soudha on September 5, Teacher’s Day.

The programme aims to develop a sense of ownership among the public, alumni and stakeholders, and strengthen the public education system. As per the process, the donation will be credited to the account of Karnataka Text Book Society – Department of Public Instruction, which will then get transferred to the respective school account , the bank said in a release.

Donors can use Jana Bank’s complete payment ecosystem of RTGS, NEFT, UPI, IMPS, Debit card, among others, to make their donations. Additionally, Jana Bank serves five lakh customers in Karnataka, which will help enable donors to reach out to the government schools. The bank has developed a round-the-clock complaint addressing mechanism through a support desk that will take care of any technical and operational queries of donors.



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Modi rolls out digital payment solution e-RUPI

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e-RUPI, a cashless and contactless instrument for digital payment developed by the National Payment Corporation of India (NPCI), Health Ministry, National Health Authority and Department of Financial Services was launched by Prime Minister Narendra Modi on Monday.

How does it work

This one-time payment mechanism allows users to redeem the voucher without a card or any digital payment app or internet banking. Based on the Unified Payment System, the Reserve Bank of India-approved e-RUPI is an e-voucher issued to the beneficiary through SMS or QR code on his or her mobile number. With the help of this, the service provider gets the payment directly into his account. Any government agency or corporate can generate e-RUPI through their partner banks.

DBT schemes

Speaking at the launch of this digital tool, Modi said the e-RUPI voucher will play a big role in making direct benefit transfer more effective. Modi said with time its utility will also change. For instance, the e-RUPI will be helpful to give treatment, say for TB, or provide food for the needy. It is not only person-specific, but also purpose-specific.

“Any person who is desirous of giving vaccination to poor people in private hospitals can do so with the help of eRUPI. eRUPI will ensure that the e-voucher is used for the purpose of vaccination only and for any other work,” Modi said.

“It can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, TB eradication programmes, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertiliser subsidies, etc. Even the private sector can leverage these digital vouchers as part of their employee welfare and corporate social responsibility programmes,” the official release said.

e-RUPI connects the sponsors of the services with the beneficiaries and service providers in a digital manner without any physical interface. It also ensures that the payment to the service provider is made only after the transaction is completed. Being pre-paid in nature, it assures timely payment to the service provider without involvement of any intermediary, it added.

RS Sharma, Chief Executive Officer of the National Health Authority, said, “e-RUPI can be used in the areas of Health, Agriculture, nutrition and education. It will also be used in India’s National Digital Mission. We are fortunate to be the first user of this tool in the health ministry.”

TV Narendran, President, CII, while endorsing the tool, said that “the voucher system will enable all beneficiaries, including feature phone-users, to benefit through this mechanism. It will also be an excellent tool for the corporates, through which they can extend employee and community welfare schemes”.

According to Uday Shankar, President, FICCI, “The e-RUPI system will not only ensure that there are no leakages in the delivery of government services but also offer a much-needed ease and convenience to the people who are the recipient of such services. This can be a revolutionary concept and alter the paradigm of governance…FICCI will also encourage its members to consider using this platform for offering benefits to their employees and other stakeholders.”

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RBI’s digital index shows online payment is on the rise

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The Reserve Bank of India–Digital Payments Index for March 2021 rose to 270.59 as against 207.84 for March 2020.

“The RBI-DPI index has demonstrated significant growth in the index representing the rapid adoption and deepening of digital payments across the country in recent years,” the RBI said on Wednesday. The index stood at 217.74 for September 2020.

Also read: Mastercard to file an independent audit report

The composite RBI-DPI with March 2018 as base aims to capture the extent of digitisation of payments across the country. The index was launched on January 1 this year.

It comprises of five broad parameters that enable measurement of deepening and penetration of digital payments in the country over different time periods.

Also read: Reserve Bank working towards phased implementation of digital currencies

These parameters are payment enablers, payment infrastructure – demand side factors, payment infrastructure – supply-side factors, payment performance and consumer centricity.

Digital payments have seen a sharp growth in recent years, particularly since the Covid-19 pandemic that led to social distancing and work from home.

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Covid-19 pandemic fuelled digital payments modes: RBI Annual Report

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The Covid-19 pandemic fuelled the proliferation of digital modes of payments, the Reserve Bank of India noted in its Annual Report 2020-21. The prospects for FinTech in India’s financial system in 2021-22 will depend upon the degree of entrenchment of digital usage, it further said.

“The Covid-19 pandemic has fast-tracked digital transformation of the payments ecosystem in India. Besides augmenting the broad-based use of technology, the pandemic has fuelled the proliferation of digital modes of payment, propelling the country towards ‘less-cash’ alternatives,” the report said.

Overall, the total digital transaction volume in 2020-21 stood at 4,371 crore, as against 3,412 crore in 2019-20, attesting to the resilience of the digital payment system in the face of the pandemic.

Future of fintech

The report noted that the prospects for FinTech in India’s financial system in 2021-22 will depend upon the degree of entrenchment of digital usage, which is, in turn, contingent upon the resilience of the underlying acceptance infrastructure, financial literacy and awareness of the users and strengthening of the customer protection and cyber security protocols in place.

Also read: Demand for cash surged in 2020-21 due to Covid-19 pandemic: RBI Annual Report

“All these factors will help in cementing the trust of users in digital modes,” it said.

The RBI’s initiative to set up a pan-India new Umbrella Entity will intensify competition in the digital space and bring out the best for end users and other participants in terms of efficiency gains and convenience, the report further said.

“Collaborations between card issuing banks, FinTech players and other stakeholders of the payments ecosystem are likely to give rise to a new hybrid model of finance that will help address credit gaps and ramp up last mile outreach by leveraging on the geographical footprint of banks and technological know-how of FinTech companies,” it noted.

In the area of digital payments, various initiatives such as an innovation hub, a regulatory sandbox and offline payment solutions are underway to ensure that in the digital ecosystem, India maintains its position as a leader.

The RBI is also in the process of extending the geo-tagging framework put in place to capture location of bank branches, ATMs and BCs to cover payment system touch points, enabling accurate capture of their location across the country. Further, the possibility of leveraging India’s domestic payment systems to facilitate cross-border transactions is being explored, and corridors and charges for inward remittances will be reviewed.

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PayU sees a three-fold jump in transactions to $100 billion in three years

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PayU, online payments service provider and Prosus’ fintech arm, is expecting a three-fold-jump in GMV (gross merchandise value) to $100 billion over a three-year-period.

The GMV refers to the total value of transactions carried out through PayU platforms and products.

An increase in adoption in digitisation and payment solutions by small merchants along with rising popularity of e-commerce players and their ‘sale days’ are seen as major growth drivers in a pandemic-led new normal.

ACI Worldwide, in a recent report, indicated more than 70.3 billion real-time payments transactions were processed globally in 2020 — a surge of 41 per cent compared to the previous year.

This comes as the Covid-19 pandemic dramatically accelerated trends away from cash and cheques towards greater reliance on real-time and digital payments. The report said India retained top spot with 25.5 billion real-time payment transactions. By 2024, share of real-time payments volume in overall electronic transactions will exceed 50 per cent. This will touch 71.7 per cent by 2025.

PayU to offer Google Pay tokenised payment flow for merchants

Rise in transactions

According to Anirban Mukherjee, CEO, PayU India has doubled transactions growth rate over the last two years.

A PayU Insights report says the number of UPI transactions grew by 288 per cent and expenditure through UPI saw a 331 per cent uptick between 2019 and 2020. Payments in segments like indoor entertainment (subscription of OTT and so on), online training and upskilling courses, retail, e-commerce and financial services (insurance, etc) saw a jump; while travel and dining witnessed a dip.

Digitisation and automation of lending process would be the key going forward, says PayU Finance CEO

“Digital payments are witnessing an accelerated growth and the pandemic has pushed these trends upwards. Moreover, in the online sale days that took place across e-tailers like Flipkart eight out of top 11 merchants settled their transactions through PayU. There has been increased adoption across small merchants and 15X growth in transactions and settlement in this segment. So over a three year period, a three-fold-jump in GMV to $ 100 billion looks very much possible, even if there is a slight dip in momentum,” he told BusinessLine.

PayU earns primarily from service fees based on transaction volumes and values; subsricption charges by merchants and so on.

Omnichannel presence

Mukherjee adds that PayU is also increasing its omni-channel presence as it looks to provide contactless payment solutions to customers both in-store and online, through methods like QR, PoS, and others.

PayU is also expanding scope of its alternative digital credit solutions like LazyPay; and offerings under buy now-pay later or personal loan options are being increased.

The presence of Wibmo, a digital payment security firm and mobile payment technology platform, that PayU acquired in 2019 is being ramped up.

“We are currently profitable in the core payment business; while investments are on in the other verticals like LazyPay or Wibmo,” he added.

The company is also eyeing acquisitions, strategic partnerships and investments into a broader ecosystem spanning payments, credit and other digital financial services

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