Tuesday, May 27, 2014

Is Rupay A Threat To Global Sharks Like Mastercard & Visa?




Will Rupay become the Indian ultimatum posing a threat to global sharks like MasterCard & Visa?
The current online trasaction system does not allow the participation of all Indian banks & financial institutions in electronic payments.All we yearned for was a open loop,super-secure, multi-lateral sytem which would offer this inclusion. Kudos our very own Rupay...it offer much more!

Working towards enhancing the payment ecosystem in our country,Rupay is all set to support issuance of debit and prepaid cards by over 250 banks ,150 cooperative banks and Regional Rural Banks (RRBs) in India.RuPay functions across three channels  i.e ATMs, Point of Sales (POS) and online payments.  

Key Features:

 Faster Transaction Processing
Rupay offers simplified architecture & transaction flow thereby reducing transaction time, resulting in faster transaction processing and reduction in drop-outs.

 Security
Enhanced security measures are in place in addition to the RBI mandated 2-Factor authentication viz. registration, OTP, image based authentication and anti-phishing measures .Further the bank themed PIN pad shuffles as & when a digit is entered as an additional security measure.

 Contactless
The efficiency  of our innovative contactless payment option can be increased by employing Rupay.

Why Rupay Poses a threat to Visa & MasterCard?

 Lower cost and affordability :
Due to its domesticity, the cost of clearing and settlement  would be lower  This would make the transaction costs affordable & drive increased usage of Rupay cards.

 Customized product offering :
RuPay, being a domestic scheme is committed towards development of customized product and service offerings for Indian consumers.

 Security :
Transaction and customer data related to RuPay card transactions will reside in India.  

 Right pricing-Untapped consumer segment :
Our untapped rural consumers market who do not have access to banking and financial services can be tapped into through Rupay's right pricing. RuPay cards are more economically feasible for banks to offer to their customers. Relevant product variants such as Milk Card, Kisan Card& IRCTC cards would ensure that banks target the unexplored consumer segments. 

 Inter-operability between payment channels and products :
RuPay card is uniquely positioned to offer complete inter-operability between various payments channels and products. NPCI currently offers varied solutions across platforms including ATMs, mobile technology, cheques etc and is extremely well placed in nurturing RuPay cards across these platforms. 

 Truely Unique
Personal accident insurance and permanent disability cover of Rs one lakh is given to the cardholder.This unique feature is not available with any of the international cards Visa & MasterCard!

Wednesday, May 21, 2014

Tap-to-pay Eftpos transactions on the way

Tap-to-pay Eftpos transactions on the way

Shoppers will soon be able to swipe their debit cards for small payments, continuing the enthusiastic adoption of contactless cards in Australia that has accelerated the demise of cash.
Eftpos launches its defence against Visa and MasterCard’s contactless payments in September when banks begin to roll out its contactless cards.

The 30-year-old domestic electronic payments company has raced to replace its aging bilateral network with a hub system in just seven months. This will allow it to upgrade its network twice a year and aid its rollout of contactless payments on chip cards from September.
Transactions on Eftpos’s network declined from 51 per cent of all card transactions in 2011 to 45 per cent in April due to the rapid local take-up of contactless chip cards offered by international card companies.

The acceptance of contactless cards by Woolworths and Coles is a big ­contributor to Australians becoming among the most enthusiastic adopters of contactless cards in the world.

Usage rose from just 12 per cent of card holders in September 2011 to 47 per cent in March 2014, a recent study by RFi and Hewlett Packard found.

The take-up of contactless cards and online shopping led cash usage to fall by 20 per cent between September 2012 and September 2013. Reserve Bank of Australia figures show cash withdrawals declined by about $1 billion to about $15.3 billion per month in December 2013, compared to December 2009.

In the 2013 financial year, the RBA found the amount of cash withdrawn had declined only marginally to $243 billion. But the relative use of cash has fallen because household spending increased by 5 per cent in that time.

Eftpos ‘cheapest payment to take’

Eftpos managing director Bruce Mansfield says the company has made millions of test transactions over its new network, and two of its members – which include all major banks as well as Woolworths and Coles – will begin using it from September.

“Centralised payments hubs are being built around the world, including Faster Payments in the United Kingdom and RuPay in India, just to a name a couple,” Mansfield told the Cards and Payments annual conference in Melbourne last week.

With 14.6 million eftpos-only cards in the market, he said it should be expected that contactless Eftpos would lead to a “percentage of cash transactions replaced by Eftpos contactless”.

Russell Zimmerman, the head of the Australian Retailers Association, says many smaller businesses preferred to receive cash because they incorrectly thought it cost them nothing to accept whereas they had to pay fees to the card companies. But he said any business accepting payments above $20 would prefer to accept payments made via Eftpos, so the availability of contactless payments via that network should ease resistance to accepting non-cash payments. “There should, by rights, be less resistance to Eftpos because it is the cheapest payment to take,” he says.

Eftpos charges merchants a flat fee of about 14¢ per transaction. Visa and MasterCard charge about 0.86 per cent of the transaction total. “If you are going to be selling something at $20 to $30 and above – if you’re a shoe shop or a dress shop – it has to be cheaper to take eftpos,” Zimmerman says.
However, Alex Ballman, head of research at RFi, says Eftpos is not offering anything new to what is already available so its move into contactless and online would be unlikely to make much difference to cash usage. “I am not convinced it is going to have a significant impact,” he says.

Wednesday, May 14, 2014

With RuPay, India builds its own card payment network

President Pranab Mukherjee presenting an award to CEO, ICICI Bank Ltd. Chanda Kochhar during the launch of "RuPay" card in New Delhi on Thursday.

India takes on global players like MasterCard and Visa; Conceived by National Payments Corporation of India, RuPay card is accepted at all ATMs (1.6 lakh plus), 95% of PoS terminals (9.45 lakh plus) and most of the eComm merchants (about 10,000) in the country

New Delhi : President Pranab Mukherjee on Thursday dedicated to the nation indigenous card payment network called RuPay taking on the global players like Visa and MasterCard. It will work on ATMs and merchant outlets and help in reducing cash transactions.

The new payment network developed by the National Payments Corporation of India (NPCI), a not-for-profit company envisioned by the Reserve Bank of India (RBI) and created by the banking industry, covers all the automated teller machines (ATMs) and most of the retail and e-commerce platforms.

The RuPay platform is being used by certain banks like ICICI, State Bank of India, Punjab National Bank, among others, for clearing and settlement. RuPay, which works on three channels — ATMs, Point of Sales (POS) and online sales, is the seventh such payment gateway in the world.  A variant of pre-paid RuPay card would shortly be launched by IRCTC, which will help in booking railway tickets.

“RuPay” is the coinage of two terms Rupee and Payment.  “Dedication of RuPay to the nation is symbolic of the maturity of the payment system development in India,” Mukherjee said after formally launching the card at a function at Rashtrapati Bhavan.  He pointed out that with the launch of new system, India has now ranked among the “few countries in the world to have such a network built domestically to meet the card-based payment system needs of the country.”

The RuPay card is accepted at all ATMs (1.6 lakh plus), 95 per cent of PoS terminals (9.45 lakh plus) and most of the eCom merchants (about 10,000) in the country.

RuPay Scheme provides flexibility to card issuing banks to issue special purpose cards like Kisan Cards, Milk Procurement Cards, Grain Procurement Cards and Financial Inclusion Cards.

A variant of the card called “Kisan Card is now being issued by all the Public Sector banks in addition to the mainstream debit card which has been issued by 43 banks”.   More than 150 cooperative banks and the Regional Rural Banks (RRBs) in the country have also issued RuPay ATM cards. The total number of cards issued as on date is 17 Million and is growing at a rate of about three million per month.

NPCI Chairman Balachandran M said the NPCI board plans to take RuPay card overseas and is already in talks with Discover Financial Services in the US and JDC in Japan for partnership.
Speaking on the occasion, Financial Services Secretary G S Sandhu said RuPay would be available at a cost which is much less than those of international cards.

For clearing and settlement of each transactions, banks will have to pay 40 per cent lower fees in RuPay platform compared to other international platforms. Public sector banks have already installed 25,331 RuPay cards enabled ATMS and 9,000 more ATMs would be installed in the current fiscal, Sandhu said.

Monday, May 12, 2014

RuPay will reduce dependence on cash transactions: Pranab Mukherjee

Dedicating 'RuPay' card to the nation, Mukherjee said for a large country like India, volume of card transactions will be significant in the years ahead.

Dedicating 'RuPay' card to the nation, Mukherjee said for a large country like India, volume of card transactions will be significant in the years ahead. 

NEW DELHI: President Pranab Mukherjee said 'RuPay'-- India's payment gateway -- will reduce dependence on cash and help in streamlining the card payment systems in the country.

Dedicating 'RuPay' card to the nation, Mukherjee said for a large country like India volume of card transactions will be significant in the years ahead.

RuPay will not only reduce dependence on cash, but will offer users diverse set of payment option within the country, he said, adding India is one of the few countries in the world to meet the card payment system needs domestically.

A variant of pre-paid RuPay card would shortly be launched by IRCTC, which will help in booking railway tickets. RuPay is developed by National Payments Corporation of India (NPCI) and would be the seventh such payment gateway in the world.

NPCI Chairman Balachandran M said the NPCI board plans to take RuPay card overseas and is already in talks with Discover Financial Services in the US and JDC in Japan for a collaboration.

RuPay works on three channels - ATMs, Point of Sales (POS) and online sales. Speaking on the occasion, Financial Services Secretary G S Sandhu said RuPay would be available at a cost which is much less than the cost of international cards.

The public sector banks have already installed 25,331 RuPay cards enabled ATMS and 9,000 more ATMs would be installed in the current fiscal, Sandhu said. The RuPay card is accepted at all ATMs (1.6 lakh plus), 95 per cent of PoS terminals (9.45 lakh plus) and most of the eCom merchants (about 10,000) in the country.

Since the transaction processing will happen domestically, it is expected to lead to lower cost of clearing and settlement. Banks Will pay fees in Indian rupees instead of foreign currency.

A variant of the card called 'Kisan Card' is now being issued by all the public sector banks in addition to the mainstream debit card which has been issued by 43 banks. Further, a separate card for payment of milk purchases has also been launched.

The total number of banks issuing RuPay cards is now more than 250 and the card base as on April was at 20 million plus. More than 150 cooperative banks and the regional rural banks (RRBs) have also issued RuPay ATM card.

RuPay, a new card payment scheme, is the coinage of two terms Rupee and Payment. RuPay card offers personal accident insurance and permanent disability cover of Rs one lakh to the cardholder, subject to the card being kept in activated condition.

Such a feature is not present on any international card scheme, a statement said.

Thursday, May 8, 2014

Pranab launches RuPay, India’s own card payment network


President Pranab Mukherjee during dedication of the

President Pranab Mukherjee on Thursday dedicated to the nation indigenous card payment network called RuPay taking on the global players like Visa and MasterCard.

The new payment network developed by the National Payments Corporation of India (NPCI), a not-for-profit company envisioned by the Reserve Bank of India (RBI) and created by the banking industry, covers all the automated teller machines (ATMs) and most of the retail and e-commerce platforms. 

RuPay is the coinage of two terms Rupee and Payment. 

“Dedication of RuPay to the nation is symbolic of the maturity of the payment system development in India,” Mukherjee said after formally launching the card at a function at Rashtrapati Bhavan.
He pointed out that with the launch of new system, India has now ranked among the “few countries in the world to have such a network built domestically to meet the card-based payment system needs of the country.” 

RuPay cards are accepted at all ATMs, more than 90 per cent of ‘Point of Sale’ (POS) terminals and more than 10,000 e-commerce merchants across the country. 

“It is also heartening to note that a few banks have started issuing cards which are accepted internationally through the network of an international partner,” Mr. Mukherjee said.
RuPay Scheme provides flexibility to card issuing banks to issue special purpose cards like Kisan Cards, Milk Procurement Cards, Grain Procurement Cards and Financial Inclusion Cards.
A variant of the card called “Kisan Card is now being issued by all the Public Sector banks in addition to the mainstream debit card which has been issued by 43 banks”. 

More than 150 cooperative banks and the Regional Rural Banks (RRBs) in the country have also issued RuPay ATM cards. The total number of cards issued as on date is 17 Million and is growing at a rate of about three million per month. 

Mukherjee said card—based payment transactions in India is set to grow rapidly in the coming years as the economy matures and internet penetration increases. 

“An indigenous system like RuPay will, hopefully, not only reduce the dependence on cash and cheque modes of settlement but will also make it easier to offer products based on specific requirements of diverse user sets within the country,” the president said.

Wednesday, May 7, 2014

President Pranab Mukhrerjee to dedicate indigenous payment card RuPay to nation


 
RuPay, an indigenous payment card accepted at most retail and e-commerce platforms and all automated teller machines (ATMs) across the country, will be dedicated to the nation Thursday. 


RuPay, an indigenous payment card accepted at most retail and e-commerce platforms and all automated teller machines (ATMs) across the country, will be dedicated to the nation Thursday.
President Pranab Mukherjee is scheduled to dedicate the card payment network to the nation at a function at Rashtrapati Bhavan.

"RuPay" is the coinage of two terms Rupee and Payment. It has been developed by National Payments Corporation of India (NPCI), a not-for-profit company envisioned by the Reserve Bank of India (RBI) and created by the banking industry.

According to an official statement, the RuPay card, launched March 26, 2012, is accepted at all ATMs (over 1,60,000), 95 percent of point-of-sale (PoS) terminals (over 9,45,000) and most of the e-commerce merchants (over 10,000) across the country.

A variant of the card called "Kisan Card" is now being issued by all the public sector banks in addition to the mainstream debit cards issued by 43 banks.

"A variant of Pre-paid RuPay card would shortly be launched by IRCTC," it said.
More than 150 cooperative banks and Regional Rural Banks (RRBs) in the country have issued the RuPay ATM card. The total number of cards issued as on date is 17 Million and is growing at a rate of about three million per month.

"This card symbolizes the capabilities of banking industry in India to build a card payment network so that dependency on international card scheme is minimised," the statement said.