CASHLESS PAYMENTSYSTEMS

SUBJECT : E - COMMERCEPresented by Meet Shah

What is Cashless Payment ?A Payment Or Transactions which are operated or performed out without the use of COINS or CURRENCY NOTES for Money Transactions, instead using BANK CARDS or ELECTRONIC TRANSFER of Funds for Transactions is known as CASHLESS PAYMENT .

After Demonetization in India for currency of 500’s & 1000’s, the Cashless Payments / Digital Payments are given more importance.

BANK CARDS

AADHAR ENABLED

PAYMENT SYSTEM (AEPS)

UNIFIED PAYMENT

INTERFACE (UPI)

Unstructured Supplementary Service Data

(USSD)

E - WALLETS

POINT OF SALE (PoS)

There are mainly 6 types of Cashless Payments Systems.

BANK CARDS1. Getting a Bank Card -- First of All you need to go to your nearest bank for registrationof getting suitable type of Bank Card for your Account. Banks gives a 4 Digit PIN XXXX which is to used to operate the Card Anywhere. 2. Types of Cards & Usage -- Bank Cards are mainly classified into 4 types i.e. ATM Cards, Debit Cards, Credit Cards & Prepaid Cards.

DEBIT CARD• Linked To

your Bank Account.

• Can be Used to at Shops, Online Shopping's, ATM’s.

• Amount is directly Debited from your Bank Account.

CREDIT CARD

• Linked to Bank Account. But here we Use the Bank’s Money.

• Can be used at Shops, Online Shopping, ATM’s etc.

• Here the Bill of Usage of Card comes at the End of Every Month and the Amount used had to Paid to Bank in Certain Time Limit.

ATM CARD

• Linked to Bank Account.

• It is mainly Used For the Purpose Of ATM’s Transaction.

PREPAID CARD

• Pre-loaded From Bank Account.

• Safe to use, limited amount of transaction.

• Can be recharged like mobile recharge.

AADHAAR ENABLED PAYMENT SYSTEM(AEPS)

• AEPS allows bank-to-bank transaction at PoS .• Only Aadhar needed.• Aadhar enabled Services : - Balance Enquiry, Cash Withdrawal, Cash Deposit,

Aadhaar to Aadhaar Funds Transfer.

GO TO A MICRO ATM OR

BANKING CORRESPONDEN

T

PROVIDE YOUR BANK NAME AND

AADHAAR

CHOOSE WHICH TRANSACTION

TO DO

PROVIDE FINGER PRINT ON SCANNER

ON SUCCESSFUL TRANSACTION,

TAKE THE PRINT SLIP

PROCESS COMPLETD

Key Steps for AEPS Transaction

UNIFIED PAYMENT INTERFACE (UPI) Requirements for registration on UPI • Smartphone with internet facility • Bank Account details (only for registration)

UPI Registration Process DOWNLOAD ANY BANK’S APP OR 3RD PARTY APP

CHOOSE YOUR UNIQUE ID (AADHAR,

MOBILE NO.) AS VIRTUAL PAYMENT

ADDRESS (VPA)

SELECT YOUR BANK

GIVE ACCOUNT DETAILS FOR FIRST TIME

SET M-PIN FOR VALIDATING

TRANSACTIONS

REGISTRATION COMPLETED

AVAILABLE APPS (28 BANK APPS) SBI app, PNB UPI, UPI Collect (ICICI), Axis Pay, Canara Bank UPI, UCO UPI, Union Bank UPI, OBC UPI and 20 other banks

UPI also helps in Sending & Collecting Money.

Unstructured Supplementary Service Data(USSD)

*99# - National Unified USSD Platform (NUUP) -

• Required for Activation 1. Account in a Bank. 2. Any Mobile Phone on GSM Network.

Step 5: In the final step, you have to enter your MPIN to authorize the

transaction and last 4 digits of your account

number (separated by

space), and tap on send. That’s

it, once your transaction is

authorized, the money will be

instantly credited to the recipients

account.

Step 4: Next, you

need to enter amount and

remarks (separated by

space).

Step 3: Enter beneficiary

MMID, which you will have to get from the person

you are sending

money to.

Step 2: Enter beneficiary

mobile number.

Step 1: Dial *99#, type bank name,

and when the interface

opens, enter ‘3’ and tap

send.

• Registration Process For USSD. 1. Visit your branch to link mobile number and

bank account, Can be done at ATM or online also.

2. You will get your Mobile Money Identifier (MMID) and Mobile PIN (MPIN) upon registration.

3. Remember your MMID and MPIN.Transfer Funds to another Bank Account

Can be used for payments upto Rs 5000 per day per customer

E - WALLETSWhat are e-wallets?

• Electronic pre-paid payment system. • Used in purchasing items on-line with a computer or a smartphone at a store. • An individual's account is required to be linked to the digital wallet to load money in it. • Most banks have their e-wallets and some private companies

Consumer Wallet Limits: Rs.20,000/month for all. Rs.1 lakh/month with KYC CONSUMER

DOWNLOADS THE APP ON

SMARTPHONE

SIGN UP USING MOBILE

LOAD MONEY USING DEBIT

CARD/CREDIT CARD OF NETBANKING

START USING WALLET TO MAKE

PAYMENTS

Merchant Wallet Limits: Rs.50,000/month with Self Declaration. Rs.1 lakh/month with KYC SHOPKEEPER

/SERVICE PROVIDER

DOWNLOADS THE APP

SIGN UP USING MOBILE

SELF DECLARE ITSELF AS A MERCHANT

START ACCEPTING PAYMENT

Basic Requirements to Start Using a Wallet: Bank Account, Smartphone, 2G/3G Connection & A Free Wallet App E – Wallet Example – PayTm, FreeCharge, MobikWik, Oxygen, etc.

POINT OF SALE (PoS)Types Of PoS

PHYSICAL PoS • SWIPE A

DEBIT/CREDIT CARD ON THE POS MACHINE

• ENTER AMOUNT TO BE PAID AND PIN

• GENERATE RECEIPT

M – PoS• PLUG-IN THE M-

SWIPE• LAUNCH THE

APPLICATION• SWIPE YOUR

CUSTOMER CARD• ENTER THE CARD

HOLDER MOBILE NUMBER & E-MAIL ID

• OBTAIN YOUR CUSTOMER SIGNATURE

• NOTIFICATION IS RECEIVED ON SUCCESSFUL TRANSACTION

V – PoS• No PoS

machine required

• QR code used for payment to bank account of merchant

• Complete privacy of merchant bank account

PoS Points To Be Taken Care Of.• Register your mobile

number at bank for regular information by SMS for every transaction

• Never share your PIN to anyone

• Transact at only trusted merchants

• While at ATM, ensure no one is looking over your shoulders

Moving towards a Cashless Economy: Here are the advantages1. Cost of handling cash reduces2. Brings transparency3. Help curb the creation of black money4. Will increase the tax base and add to tax revenues.

Hightlights of the incentives announced –1) Discount on fuel Purchase2)  PoS Machines in Village3)  Discount on Suburban Railway tickets4) Service Tax Exemption5) Discount on Highway Toll6) Discount on Insurance Premiums7) Rupay Cards to Farmers

MERITS / ADVANTAGES

DEMERITS / DISADVANTAGESHere are the Disadavntages of Cashless Payment System1) Poor knowledge about transaction process, India is still ill-literate

democracy.2) Hacking into one's account due to server vulnerability.3) Mass scale cyber theft into central government account, website,

which has chances of deleting your transaction history or government stats about all citizens

4) Mistake by many individuals of entering wrong digits in hurry, believe me it's major drawback

5) Cashless transactions are not guaranteed by sovereign. In absence of sovereign guarantee, people are left at mercy of businesses who have founded these methods and promoting their use.

6) The dispute mechanisms are business and method specific and can leave people in chaos and very confused about what is binding regulation Vs what is a business practice

7) Inconsistency over payment mechanisms - merchants accept only a specific type of cashless method. If consumer is using different method, the capability to conduct transact might be effected.

COMPARISIONIndia is a country where 98 per cent of total economic transactions by volume are done through cash. However, this may no longer be the case in future as the government has already steered the country towards cash less society.Prime Minister's demonetisation move has also divided the top economists in and outside the country over its unquantifiable outcomes, at least for now. 

COUNTRIES CASHLESS TRANSACTIONS

1-Singapore 61%2-Netherlands 60%3-France 59%4-Sweden 59%5-Canada 57%6-Belgium 56%7-United Kingdom 52%8-USA 45%9-Australia 35%10-Germany 33%11-South Korea 29%12-Spain 16%13-Brazil 15%14-Japan 14%15-China 10% India 02%

• Cashless Transactions in India can be taken up by Giving Proper information of its usage to the people.

• Govt. should organise a proper Demo of the New Payments systems Launched in Rural & Urban Areas.

• The importance & Benefits of Cashless Transaction should be explained to users.

• Cashless Transactions Should also take place in Education System, so students are also aware of about it.