National Payment Corporation of India – Dutch Uncles

e-RUPI, India’s New Digital Payment Solution

Aakash Sharma — Wed, 04 Aug 2021 10:35:52 +0000

On 2nd August 2021, Prime Minister Narendra Modi launched a new digital payment system – e-RUPI – that can send government benefits directly to recipients’ mobile phones. e-RUPI is developed by the National Payments Corporation of India (NPCI), Department of Financial Services, National Health Authority, and Ministry of Health and Family Welfare.

e-RUPI is a sealing system that provides non-transferable services to citizens. This unique digital system will detect and repair potential gaps in the existing social benefits infrastructure of India.

What is the e-RUPI system?

The e-RUPI is a digital coupon that a recipient can use to avail a specific government service. The digital system does not require a card, app or internet connection to redeem coupons. The government will send the digital code to interested citizens for specific purposes via SMS thread or QR code.

How does e-RUPI work, and where can it be used?

This non-monetary and contactless medium is designed to provide immediate direct benefits to citizens. Under e-RUPI, beneficiaries will receive digital vouchers to take advantage of targeted healthcare services such as medical, nutritional and diagnostic support within the government support system.

The government will send the QR code or SMS string to the beneficiaries, who will then show it to the provider to complete the benefit transaction. Since these coupons are made for a specific purpose, they cannot be transferred or redeemed for cash.

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NPCI's UPI platform supports e-RUPI, and about ten banks have joined the service as issuing entities. These include private and public banking institutions.

e-RUPI Benefits to the Consumer

No Contact: The recipient beneficiary need not carry a printout of the voucher.

Easy Recovery: a two-step rotation process.

Secure and Reliable: The Beneficiary does not have to share their documents during the refund period, thereby safeguarding privacy.

No Registration or Bank Account Required: Users are not required to have a digital payment application certificate or bank account.

What can the industry expect from this new technology?

The government is considering opening e-RUPI services to private enterprises as part of their employee welfare or benefits programmes. While banks and payment systems play an essential role in this ecosystem, hospitals and companies can also use this technology.

In the future, e-RUPI will be used for other government Direct Benefit Transfer (DBT) schemes. Currently, 54 DBT programs are administered by 54 ministries. However, not all projects are suitable for everyone. Data from the National Information Center (NIC) currently shows that 7.32 trillion transactions have been processed and benefits worth approximately Rs. 1.42 trillion have been disbursed.

Services such as FASTag for vehicle taxes, the DigiLocker tool for tickets and electronic documents and the 59 minutes loans for entrepreneurs in micro, small and medium enterprises (MSMEs) have been highly valued by the industry and entrepreneurs in recent years. Most prominently, BHIM UPI made it easy for businesses to transact money and empowered the poor in carrying out their businesses and transactions easily.

As government support bolsters in adopting technology and leveraging it for connecting multiple sectors and people directly, even new businesses working on digital innovation can ensure rapid service delivery using technology and reap the benefits of government aid.

The post e-RUPI, India’s New Digital Payment Solution appeared first on Dutch Uncles.

If You Are a Start-Up, How to Select the Best Payment Gateway?

Tanisha Achrekar — Wed, 17 Mar 2021 00:35:05 +0000

When you are running an e-commerce business, one of the main decisions you have to make is how you want to receive payments from your customers. With having numerous payment gateway options, choosing the best one has now become more difficult than ever. When a customer is purchasing something from your website, you want their experience to be as smooth as possible.

What do I look for while selecting a payment gateway?

The first thing you need to consider while choosing the payment options is knowing your audience and its needs. Here are few pointers to look for when you are choosing a payment gateway for your startup:

Security

Security is a dealbreaker when it comes to receiving money from your consumers as a new business. You want to ensure them that their transaction is safe and secure or they might hesitate and not order at all. The PCI DSS (Payment Card Industry Data Security Standard) is the highest level in card data protection achieved by a gateway. To ensure the gateway you choose has one, should be the top priority. Over the past several years, people have had trust issues with online transactions. If your gateway does not seem secure enough, you may lose your orders. Security is a non-negotiable thing to look for while exploring payment options.

Fee structure

If you are a startup, you may feel hesitant to pay an initial setup fee as you are yet to make money. You can evaluate your options and choose the ones that may have lower or no set-up fees. Have a look at the use license and the storage that is being offered in the amount you are paying. Also, consider the Annual Maintenance Charges (AMC) while choosing a payment option. If you have sufficient funds, you can also choose multiple payment gateways. Multiple payment options enhance the trust of consumers to a greater extent.

Seamless and friendly experience

The checkout experience hugely impacts the purchases made on your website and the retention rate of your consumers. If your customer struggles or has a poor experience while making payment on your website, they are unlikely to make online payments next time. The payment gateway should be hassle-free and friendly so your consumers can just breeze through it. The more swift and smooth transactions, the happier your customers.

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A payment gateway is more of an investment than an expense.

How does it impact my business?

Since choosing the right payment gateway plays a vital role in streamlining your business and is a factor closely connected to the customers, there’s a lot in it for you!

Importance of secured payment gateway

Small startups are known for their ability to connect with customers’ needs and demands directly. Whether you are working for new clients or retaining the existing ones, their expectations are needed to meet with caution. An absence of a secured payment gateway is directly associated with losing customers’ trust.

See it as an investment, not an expense

When you are choosing a payment gateway for your business, keep in mind that it is an investment and not an expense. As in the long run, it will enhance your customer experience and retain more clients. The perception of your brand is directly impacted by the gateway you choose, so invest wisely!

The post If You Are a Start-Up, How to Select the Best Payment Gateway? appeared first on Dutch Uncles.

What is the National Payment Corporation of India?

Smruthi Krishnan — Fri, 12 Mar 2021 02:35:04 +0000

The National Payments Corporation of India (NPCI) is Section 8 umbrella organisation under the Payments industry which focuses on operations of retail payments and settlement systems in India. It was founded way back in 2008 and is headquartered in Mumbai, Maharashtra. India has emerged as the fastest growing FinTech market and the third largest FinTech ecosystem in the world. With the FinTech Industry gradually taking over the modern banking and financial sector especially with customer inclusion and easier services, the NPCI has been developing better products and services like Unified Payments Interface, Rupay, etc. to make retail payments easier for consumers and companies. The organisation has been largely responsible for the digital transformation of the payments industry in India and continues to work towards the same.

About National Payments Corporation of India

NPCI is a not-for-profit organisation which is registered under Section 8 of the Companies Act 2013. It was established by the Reserve Bank of India and Indian Banks’ Association. When they began, they had ten banks that promoted them including State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC. Presently, Dilip Asbe is the Managing Director and Chief Executive Officer of the NPCI.

NCPI also gets offers from nations around Asia, Africa and the Middle East to improve their payment infrastructure. They have been focusing keenly on the Internationalization of RuPay and Unified Payment Interface (UPI).

Services offered by NPCI

Aadhaar Enabled Payment System

It is a network of Micro ATMs which allows basic interoperable banking transactions through the Business correspondent of any bank by using Aadhaar authentication. In July 2019, NCPI announced that the transactions of Aadhaar Enabled Payment System (AePS) crossed 200 million.

Bharat Bill Payment System

It is a one-stop platform for payment of all bills, providing “Anytime Anywhere” bill payment service to all customers across India. It has multiple modes of payment and provides instant confirmation of payment via an SMS or receipt. They also plan to include insurance premium, mutual funds, school fees, institution fees, credit cards, local taxes, invoice payments, etc. in the future.

BharatQR

It is a common QR code developed by NPCI in collaboration with American Express, Mastercard and Visa for ease of payments and interoperability.

BHIM Aadhaar Pay

BHIM is a mobile app to act as Client software for the Unified Payments Interface. BHIM Aadhaar Pay is an Aadhaar based payments interface which allows real time payments to Merchants.

Cheque Truncation System

CTS is based on an online image-based cheque clearing system where cheque images and magnetic ink character recognition (MICR) data are captured at the collecting bank branch and transmitted electronically.

RuPay

RuPay is a domestic card scheme of India which is now accepted at all ATMs, Point-of-Sale terminals and most online merchants in the country. Rupay Contactless on the other hand is a contactless payment technology which does not require physical swiping or insertion of cards.

Unified Payments Interface

Unified Payments Interface is a real-time interbank payment system that works 24×7 on all working days and holidays. Integrated with 120 banks in India, it is a platform for sending or receiving money To initiate fund transfer, users have to use any UPI supporting Android or iOS app, link their bank accounts and generate BHIM UPI PIN. Funds can be transferred via Virtual Payment Address (VPA), Account number & IFSC, QR code, Mobile number and Aadhaar.

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