Spice Money: Industry Monitoring 25 June 2019
- Priyanka Kanodia
- Jul 8, 2019
- 5 min read
Spice Money
Competitors
Mobile wallets ask RBI to look at video KYC as a possible alternative: report
Publication- Medianama
Edition- Online
Date- 25 June, 2019
Mobile wallet companies have given inputs to the Reserve Bank of India on video-based KYC (know your customer) as a possible way to eliminate the physical leg of the current KYC process, the Economic Times reports, citing an unnamed payments company executive. The central bank is understood to have worked on these, the source told ET, but there is no clarity yet on the when the guidelines will be released.
Previous push for video-based KYC in February
In February, industry body Digital India Collective for Empowerment (DICE) and Digital Lenders Association of India (DLAI) had approached the RBI with alternatives to Aadhaar eKYC. DICE’s recommendations included a request for regulatory approval from the RBI and Finance Ministry for video verification as a form of digital KYC. DICE’s signatories included BankBazaar, SBI Cards and Payments Services, Eko India Financial Services. The 55-member DLAI had also emphasized the affordability of digital eKYC, and how it reduced cost for disbursing small and short-term loans. Later that month, the RBI extended the deadline for full KYC compliance from February 28 to August 31.
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Industry News
Debit cards show up more at retail stores, less at ATMs
Publication- The Economic Times
Edition- Online
Date- 25 June, 2019
Bank customers are increasingly getting comfortable making payments through debit cards on swipe machines at kirana stores and local retail outlets. Latest data from the RBI show that over a third of all debit card transactions were made at point of sale (PoS) terminals in April this year for the first time since demonetisation. With about 80-crore withdrawals worth Rs 2.84 lakh crore in April, ATM transactions made for just over 66% of overall debit card transaction volume. PoS machines registered the rest 34% of the transaction volume in this period. The only other time the ATM transaction share fell below the two-thirds mark was in December 2016 — a month after demonetisation — when it was at 60.3% and PoS transactions at 39.7%, owing to the lack of cash in the system.
The transaction share was 68.6% to 31.4% for ATMs and PoS in March this year while in January, ATMs made up for over 70% of debit card transaction volume share, an analysis of RBI data showed. The Reserve Bank of India, in its payments vision document published in May 2019, has set an objective of achieving a PoS-based debit card transaction share of 44% by 2021 to push New Delhi’s goal of a lesscash digital economy. With increasing number of banks, both public sector and private sector, aggressively deploying swipe machines across small stores in the country, bankers say that cardbased digital transactions are only set to gain share from here on.
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IIT-M forum recommends multilingual digital payment apps
Publication- The Times of India
Edition- Online
Date- 25 June, 2019
To deepen the digital payments network, the Indian Institute of Technology-Madras (IIT-M), facultyled forum, has recommended to develop multilingual payment applications, with efficient customer support and grievance redressal mechanisms to the Reserve Bank of India (RBI). In recommendations submitted to the Nandan Nilekani-led RBI committee on the ‘Deepening of Digital Payments’, Mobile Payment Forum of India (MPFI), stated presence of regional languages is a crucial component towards achieving inclusiveness and increase the help of mobile and digital payments in rural India.
At present, payment applications including Unified Payments Interface (UPI) do not list all the official languages under the ‘language options’. Gaurav Raina, professor at Department of Electrical Engineering, IIT-M, and Chairman, MPFI, said “We have tried to address many broader perspectives of digital payments, such as drawing attention to costs incurred by users and merchants, the importance of regulation, methods, processes and standards for transactions, via channels like SMS.” “Customers must be clearly communicated on the fees charged by banks and payment operators for various digital payment services. We must also use voice-based features in mobile apps for effective services,” he said. MPFI is a joint initiative of Institute for Development and Research in Banking Technology (IDRBT), Hyderabad and the Rural Technology Business Incubator (RTBI), IIT Madras. The forum had played a key role in developing interoperability and security standards for the Immediate Payment Service (IMPS) and the UPI.
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MPFI Moots Multilingual Apps To Increase Inclusiveness In Digital Payments In India
Publication- Business World
Edition- Online
Date- 25 June, 2019
Indian Institute of Technology Madras (IIT-M) Faculty-led Mobile Payment Forum of India (MPFI) has called for developing multilingual payment applications, customer support and grievance redressal in multiple Indian languages. This is a crucial component to increase inclusiveness and the reach of mobile and digital payments in the country. At present, not all official languages are offered as ‘language options’ on Unified Payments Interface (UPI) payment applications. MPFI, which played an early and key role in developing interoperability and security standards for the Immediate Payment Service (IMPS) and later, the UPI, submitted these recommendations to Mr. Nandan Nilekani, Chairman, Reserve Bank of India (RBI) Committee, on the Deepening of Digital Payments.
IIT-M faculty Dr Gaurav Raina was elected as the Chairman of MPFI, which is a joint initiative of Institute for Development and Research in Banking Technology (IDRBT), Hyderabad and the Rural Technology Business Incubator (RTBI), IIT Madras. Started in 2006, MPFI’s mission is to enable mobile payments and mobile-based financial services for everyone in India. Highlighting the important aspects of the recommendations made to the RBI, Prof. Gaurav Raina, Department of Electrical Engineering, IIT Madras, and Chairman, MPFI, said, “The MPFI recommendations considered three broad perspectives for strengthening the digital payments space, and adding confidence and trust in the Indian consumer. They include (i). User and Merchant perspective, (ii). Regulation, methods and processes, and (iii). Standards for transactions, via channels like SMS.
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Soon nearly a third of US consumers will regularly make payments with their voice
Publication- Business Insider
Edition- Online
Date- 25 June, 2019
A revolution in payments and banking is beginning as virtual assistants like Siri and Alexa gain the abilities of cashiers, personal shoppers, and bank tellers. Already, Siri can help users make peer-to-peer (P2P) transfers with Venmo, Alexa can pay off Capital One credit card bills, and Google Assistant can let users shop with their voice from nearby stores.
This is just the beginning. Today, 18 million US consumers have made a voice payment, and Business Insider Intelligence projects that figure will quadruple over the next five years. In a new report, Business Insider Intelligence explores how and why financial services providers such as PayPal and Bank of America are positioning for voice interfaces to take off. The report includes actionable recommendations that draw on interviews with executives spearheading voice initiatives, as well as exclusive survey data from our proprietary research panel.
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Soon UPI Interface May Support More Regional Languages, As IIT Madras Led MPFI Makes Recommendations
Publication- Swarajya Mag
Edition- Online
Date- 25 June, 2019
The Indian Institute of Technology Madras (IIT-M) Faculty-led Mobile Payment Forum of India (MPFI) has called for developing payment applications, customer support and grievance redressal in multiple Indian languages to increase the inclusiveness and reach of the digital payments in India, reports India Today.
The MPFI, which is a joint initiative of Institute for Development and Research in Banking Technology (IDRBT) and the Rural Technology Business Incubator (RTBI) of IIT-M, submitted these recommendations to the Reserve Bank of India’s (RBI) Deepening Digital Payments Committee chairman Nandan Nilekani, an institute release said. At present, the Unified Payments Interface (UPI) does not offer all the official languages of the country under the ‘language options’ on its platform.
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