As per The Verge, online shoppers will eventually see another option listed next to the usual payment methods, now that Facebook Pay will expand beyond the company’s own platforms.
Not long after credit card companies dropped out of its Libra cryptocurrency project, Facebook launched its payments system for use across the main site, as well as WhatsApp and Instagram.
Now, just like Google’s stored cards, PayPal integrations, Amazon Pay, and others, Facebook Pay is opening itself up for use in transactions with participating retailers. Shopify merchants are first in line to add the system on their sites, with others to follow after it launches in August.
Of course, this isn’t just an easier way for retailers to get paid with cards customers have already stored in their Facebook profiles, it’s also a way to get even more data into Facebook.
The announcement points to this privacy page for Facebook Pay, which clearly states:
1. As with previous payment options on our apps, when you make payments with Facebook Pay, we’ll collect information about the purchase such as the payment method, transaction date, billing, shipping and contact details. We designed Facebook Pay to securely store and encrypt your card and bank account numbers.
2. As with our other products, the actions you take with Facebook Pay can be used for purposes such as to deliver you more relevant content and ads, to provide customer support and to promote safety and integrity.
The card and bank account numbers you provide will not be used to personalize your experience or inform the ads you see.
The RBI also increased the prepaid payment instrument account limit to Rs 2 lakh per individual.
(Image: REUTERS)
The Reserve Bank of India would now allow RTGS and NEFT connectivity with non-bank payment system operators, paving way for UPI interoperability. Along with this, the RBI also increased the maximum balance per customer for payments banks to Rs 2 lakh per individual from Rs 1 lakh earlier. “This facility is expected to minimise settlement risk in the financial system and enhance the reach of digital financial services to all user segments,” RBI Governor Shaktikanta Das said after the first bi-monthly Monetary Policy Committee meeting of this financial year.
Centralised payment systems such as RTGS and NEFT, operated by the RBI, was so far restricted to only banks with a few exceptions. RBI today announced that it is proposing to enable non-bank payment systems like PPIs, card networks, White label ATM operators, among others to take direct membership in the central bank run RTGS and NEFT.
RBI had earlier in October 2018 issued guidelines for adoption of inter-operability on a voluntary basis for full KYC PPIs. “As migration toward inter-operability has not been significant, it is now proposed to make inter-operability mandatory for full KYC PPIs and for all payment acceptance infrastructure,” the RBI Governor said. To incentivize the same, RBI will increase the outstanding limit of such PPIs to Rs 2 lakh from the Rs 1 lakh limit earlier. The central bank said that it will issue a separate circular for the changes announced.
Further, in an attempt to incentivised people to carry less cash and consequently perform more digital transactions, RBI has also proposed to allow the facility of cash withdrawal, for full-KYC PPIs of non-bank PPI issuers.
POS devices are fast evolving and coming to some exciting everyday uses, and helping merchants manage their store operations efficiently.
By Nitish Asthana
For India’s small and medium-sized businesses, cash has traditionally been the favoured mode of accepting payments. The perceived cost factor around the point of sale (POS) terminals has been a key barrier to the adoption of digital payments in India. The year 2020 brought in a fresh perspective.
Fintech innovations that we are witnessing today are expected to further obliterate the digital divide. POS has emerged as the new OS that is driving growth for India’s kirana stores, mom and pop shops, and other businesses, making them embrace digital payments in a big way.
For the longest time, small and medium business owners in India believed POS devices helped them in only accepting payments. Modern-day POS technology empowers these merchants to offer Pay Later EMIs in few taps of the device and convert that casual store walk-in customer into a sale. Much needed in times like today when merchants are looking for ways to woo customers back to their stores after a prolonged period of lockdown.
POS devices are fast evolving and coming to some exciting everyday uses, and helping merchants manage their store operations efficiently. From inventory management, managing loyalty programs, to running promotional campaigns and even supporting their GST compliance needs. Smart tech integrations like business apps on POS are making it possible to make the POS a full-fledged OS that declutters the checkout counter and makes a single device perform multiple functions with ease.
POS is evolving with the changing consumer behaviour. Today, there is no single preferred mode of payment for India as a whole. With so many digital payment options, the Gen-Zers, millennials, and the older population each prefer their own way of checking out from a store. Be it a quick ‘tap and pay’ of the credit/debit card on the POS for contactless payments up to Rs 5,000/- to using UPI, wallets, QR codes and even loyalty points.
Offering affordability to customers: The pandemic reduced footfall and decreased sales for many local merchants, but the Buy Now Pay Later (BNPL) EMI offers available at offline stores via POS are turning out to be a potent tool for small and medium businesses to revive sales. While BNPL helped consumers make small-ticket purchases, it has also found traction in driving the purchase of white goods and other big-ticket items.
Making it a win-win ecosystem for all: Fintech innovations like BNPL via POS have led to greater collaboration between fintechs, banks and NBFCs, and even payment networks. Modern POS devices are offering new and innovative ways for consumers to decide how they shop and how they pay, and at the same time, it is empowering merchants, banks, and other lenders to join the growing trend of consumer financing at the point of sale. There is a major uptick in the BNPL offering via POS devices, and the trend is here to stay.
A 2020 report by Nielsen and the IAMAI reveals that rural India had around 227 million active internet users—around 10% more than the 205 million internet users in urban India. Increasing smartphone penetration coupled with internet expansion in smaller cities is accelerating digital payments adoption by merchants.
Amid this rapid adoption of digital payments in India, clearly smart POS products are fast emerging as a lifeline for merchants looking for cost-effective ways of running their store operations, minimising risk, driving profitability. As this trend catches up, India’s merchants have a lot to gain from the innovations happening in the POS space.
The author is president & COO, Pine Labs. Views are personal
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