Monday, August 26, 2013

AP Grameena Vikas Bank opens 1.5 lakh no-frills accounts

Andhra Pradesh Grameena Vikas Bank (APGVB) has opened about 1.5 lakh no-frills accounts in eight districts on a single day as part of Direct Benefit Transfer (DBT) initiative.
The 638 branches together opened 72,122 accounts while the bank’s financial inclusion machinery under branch-less banking business correspondents model opened 75,320 no-frills accounts at 64 villages in Warangal district.

These accounts, opened with zero balance and seeded with Aadhar Cards, will be uploaded on NPCI Mapper along with other banks to join Aadhar Payment Bridge to facilitate electronic fund transfer like subsidies, scholarships etc., from the government departments concerned.

“The beneficiaries can withdraw the amount either at our branches or SBI group ATMs or through branch-less banking business correspondent agents (BCAs). Our bank started issuing RuPay ATM Debit Cards and has already in place BCAs,’’ APGVB said in a release on Friday.

Thursday, August 22, 2013

Global Domestic Payment Card Market Networks 2020 Foresight Report

International payment card networks such as Visa and MasterCard enjoy the majority of the global market share, enabling them to control pricing in their favor, leading to high transaction and settlement costs for the overall card payment channel. Owing to this, the idea of government backed domestic networks has started to gain momentum in a number of markets. The emergence of government-backed networks is expected to play a crucial role in the redistribution of market share; they are predicted to lower the cost of transactions and help in the growth of card services to a larger market through increased competition. The success of China’s UnionPay and India’s RuPay are expected to fuel the trend further. The ability to provide transaction facilities for up to 40% cheaper than international networks is expected to be the key growth driver for domestic networks, especially in emerging markets. Moreover, International networks have lagged behind in exploiting business opportunities in certain market segments such as micropayments, social benefit programs, and the reliance of the rural population on small financial institutions.

Scope for report “2020 Foresight Report: The Role of the Domestic Payment Card Network ( ”
  • This report provides comprehensive analysis of domestic payment card networks on a global scale with the current competitive landscape of different payment card networks and their market share in selected developed and emerging economies
  • Includes insights on both established and dominant domestic networks as well as new emerging schemes
  • Analyzes key market potentials including target markets, growth drivers and challenges
  • Examines key strategies adopted by domestic payment card networks to expand their business and increase revenues in both developed and emerging markets
  • Futuristic outlook about expected strategic response from international payment card networks to counter competition from local and national competitors
Competition among payment card networks is expected to accelerate over the next five years. This can be attributed to the rise of domestic networks in emerging economies and the opening of economies to international networks, such as in China. The rising competition is expected to have an impact on fees charged by card networks, which are expected to decline from the current levels and will also lead to a redistribution of market share. Although international card networks will continue to dominate the overall market over the next five years, domestic networks are expected to gain significant market share, driven by cost advantages and preference by government-aided financial institutions. The key target markets of domestic payment card networks include micropayments, small financial institutions and social benefit programs as well as traditional markets. Additionally, domestic networks are expected to increase their focus on smaller, independent stores with rising penetration of innovative technologies such as MPOS devices that support acceptance of card payments with minimal investment.

Thursday, August 8, 2013

NPCI launches chip-based debit cards for improved security

With the aim of providing better security to card holders, payment service provider National Payments Corporation of India (NPCI) has rolled out chip-based debit cards under the RuPay brand.
The chip card has to be inserted into the machine so that the user can key in a unique PIN to complete the transaction, which enhances the security level. The chip cards are based on international specifications that provide protection to banks and customers against card skimming and counterfeiting frauds, NPCI said in a statement. 

Bank of Baroda and Saraswat Co-operative Bank are the first two banks to issue these cards.
The card will be accepted at all channels including ATMs, point of sales (PoS) machines, e-commerce and now EMV (card standard developed by Europay, MasterCard and VISA) chip and pin cards across the globe. 

A. P. Hota, Managing Director and CEO, NPCI, says, “RuPay, a benchmark card scheme of NPCI, offers both modes of chip card — full EMV issuance and quick EMV issuance that will offer all the safety measures required of a next-generation card payment system.” 

Most banks are likely to opt for Quick EMV issuance of the RuPay card as there is no additional fee prescribed in it and also to meet the deadline of November 30 as prescribed by the Reserve Bank of India, to be issued by banks to all customers opting for international cards. Additionally, the Quick EMV option requires minimal changes at the banks’ host system to be borne by lower cost. Whereas, full EMV issuance entails higher cost and a much longer time, the company said.