India's digital payments revolution has transformed how money moves across the economy. But as banks, fintech firms and payment platforms handle massive volumes of sensitive financial data, cyber criminals are becoming more sophisticated. As threats like stolen identities, compromised credentials and the future threat of quantum computing get real, cyber security experts warn that protecting digital payments is becoming one of the biggest technological challenges of the AI era. This story explores how the payment security industry investigates fraud, protects sensitive data like card numbers, PINs and account details, and prepares for the next generation of cyber threats.


India’s Digital Payment Boom Faces Dangerous New Cyber Threats

India is reportedly in talks with several countries across Africa and South America to help them build digital payment systems modelled after unified payments interface, or, upi. The national payments corporation of India’s international arm, npci international payments limited, is leading the effort.

India Drives Global Digital Payment Revolution

India's revolutionary Unified Payments Interface (UPI) marked its global debut as it was formally launched at the iconic Eiffel Tower in Paris, France. The momentous occasion, organised by the Indian Embassy in France, aligns with Prime Minister Narendra Modi's vision of taking UPI to the global stage.

<h2>Launch at the Eiffel tower</h2>

The formal launch took place at the Eiffel Tower during a significant Republic Day Reception, embodying the growing ties between India and France.

The event not only signifies the implementation of PM Modi's announcement but also underscores the broader vision of making UPI a global standard.

The official handle of the Indian Embassy in France shared the news on Twitter, expressing gratitude to the Minister Delegate in charge of Democratic Renewal, Government Spokesperson Prisca Thevenot, for honoring the occasion.

The event gathered members of Parliament, business leaders, scholars, friends of India, and the Indian community in France.

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UPI formally launched at the iconic Eiffel Tower at the huge Republic Day Reception. 🇮🇳➡️🇫🇷 
 
Implementing PM <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a>’s announcement &amp; the vision of taking UPI global. <a href="https://t.co/abl7IPJ0To">pic.twitter.com/abl7IPJ0To</a>
— India in France (@IndiaembFrance) <a href="https://twitter.com/IndiaembFrance/status/1753406488826048729?ref_src=twsrc%5Etfw">February 2, 2024</a></blockquote>
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<h2>PM Modi's invitation to President Macron</h2>

Emmanuel Macron, the President of France, served as the Chief Guest during India's 75th Republic Day celebrations in New Delhi on January 26, following an invitation from Prime Minister Modi. During Macron's visit to Jaipur, PM Modi provided a demonstration of the UPI digital payments system, emphasising its functionality.

<a href="https://www.wionews.com/technology/data-lab-india-and-ai-are-we-ahead-of-the-curve-588533">Also read |&nbsp;Data Lab | India and AI: Are we ahead of the curve?</a>

<h2>UPI for Eiffel Tower tickets</h2>

In line with this development,&nbsp;the National Payments Corporation of India (NPCI) announced that tourists visiting the Eiffel Tower can now book their tickets using UPI payments.

NPCI International Payments (NIPL) collaborated with French e-commerce and payments platform Lyra to facilitate the acceptance of UPI payments at the Eiffel Tower, making transactions quick, easy, and hassle-free.

Indian tourists, constituting the second-largest group of international visitors to the Eiffel Tower, can leverage the UPI payment mechanism to purchase tickets online.

Also watch |&nbsp;Gravitas: Who pays UPI payment surcharge?

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-who-pays-upi-payment-surcharge-577120/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The process involves scanning a QR code generated on the merchant's website to initiate a seamless payment experience.

Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI) in 2016, revolutionised the banking landscape. The system integrates multiple bank accounts into a single mobile application, offering seamless fund routing and merchant payments.&nbsp;

(With inputs from agencies)

India's revolutionary Unified Payments Interface (UPI) marked its global debut as it was formally launched at the iconic Eiffel Tower in Paris, France. The momentous occasion, organised by the Indian Embassy in France, aligns with Prime Minister Narendra Modi's vision of taking UPI to the global stage.

India's revolutionary Unified Payments Interface (UPI) marked its global debut as it was formally launched at the iconic Eiffel Tower in Paris, France. The momentous occasion, organised by the Indian Embassy in France, aligns with Prime Minister Narendra Modi's vision of taking UPI to the global stage. Launch at the Eiffel tower The formal launch took place at the Eiffel Tower during a significant Republic Day Reception, embodying the growing ties between India and France. The event not only signifies the implementation of PM Modi's announcement but also underscores the broader vision of making UPI a global standard. The official handle of the Indian Embassy in France shared the news on Twitter, expressing gratitude to the Minister Delegate in charge of Democratic Renewal, Government Spokesperson Prisca Thevenot, for honoring the occasion. The event gathered members of Parliament, business leaders, scholars, friends of India, and the Indian community in France. UPI formally launched at the iconic Eiffel Tower at the huge Republic Day Reception. 🇮🇳➡️🇫🇷 Implementing PM @narendramodi’s announcement & the vision of taking UPI global. pic.twitter.com/abl7IPJ0To — India in France (@IndiaembFrance) February 2, 2024 × PM Modi's invitation to President Macron Emmanuel Macron, the President of France, served as the Chief Guest during India's 75th Republic Day celebrations in New Delhi on January 26, following an invitation from Prime Minister Modi. During Macron's visit to Jaipur, PM Modi provided a demonstration of the UPI digital payments system, emphasising its functionality. Also read | Data Lab | India and AI: Are we ahead of the curve? UPI for Eiffel Tower tickets In line with this development, the National Payments Corporation of India (NPCI) announced that tourists visiting the Eiffel Tower can now book their tickets using UPI payments. NPCI International Payments (NIPL) collaborated with French e-commerce and payments platform Lyra to facilitate the acceptance of UPI payments at the Eiffel Tower, making transactions quick, easy, and hassle-free. Indian tourists, constituting the second-largest group of international visitors to the Eiffel Tower, can leverage the UPI payment mechanism to purchase tickets online. Also watch | Gravitas: Who pays UPI payment surcharge? The process involves scanning a QR code generated on the merchant's website to initiate a seamless payment experience. Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI) in 2016, revolutionised the banking landscape. The system integrates multiple bank accounts into a single mobile application, offering seamless fund routing and merchant payments. (With inputs from agencies)

India's UPI makes global debut, officially launched at iconic Eiffel Tower in Paris

If there is one Indian innovation that has grabbed global headlines, it is undoubtedly the UPI or Unified Payments Interface payments system.

UPI's place of pride in India's growth story could be easily gauged by Prime Minister Narendra Modi's statement at the recently-concluded BRICS meeting: "UPI is used at all levels from street vendors to large shopping malls. Today, among all countries in the world, India is the country with the highest digital transaction."

PM Modi also pitched for UPI's expansion into the BRICS grouping, which now has six new member states. "There is scope for working with BRICS on the (UPI) technology," media reports quoted him as&nbsp;saying.

But while experts will keenly watch its expansion into the BRICS bloc, UPI has already begun its march towards global dominance.

Countries join India's UPI bandwagon

In the past few weeks, three countries have joined the UPI bandwagon quickly - France, the United Arab Emirates and Sri Lanka. These three countries will now accept transactions via India's homegrown digital payments technology.

UPI's entry into France is significant, helping the technology get a foothold in Europe for the first time. Regarding Sri Lanka and the UAE, UPI's entry is set to deepen India's economic ties with the two nations.

"Indian travellers will be at ease of using foreign exchange, especially in France. UPI's growing global footprint will boost bilateral trade as well as tourism," says Haresh Calcuttawala, Co-Founder of TreZix, a B2B SaaS platform.

Calcuttawala adds that UPI's framework will smooth cross-border transactions and ensure swift and secure settlements between global trading partners. "UPI empowers businesses to focus on building strong relationships and expanding their global reach."

It is important to give some business perspective on the reasons for UPI's expansion into the three countries.

France has always been among the top European destinations for Indian tourists. Moreover, the country is a&nbsp;major trade destination for India's medium and small businesses, which are likely to benefit from the introduction of UPI.

On the other hand, India is Sri Lanka's biggest trade partner, with the bilateral trade standing at over $5.5 billion. Meanwhile, the India-UAE trade partnership is going strong, especially with the Comprehensive Economic Partnership Agreement coming into effect last year.

UPI: India's fintech pride

UPI's growing global footprint is also a sign of greater opportunities for the Indian fintech sector, which attracted funding worth $4.8 billion in 2022 and is expected to be a $2 trillion industry by 2030.

"This global expansion presents significant growth opportunities for the Indian fintech ecosystem to innovate and establish new business use cases that can play a crucial role in driving its adoption," says Anand Agrawal, Co-Founder &amp; CPTO of fintech startup Credgenics.

UPI, launched by the National Payments Corporation of India in 2016, has been the torchbearer of India's fintech story. From just one million transactions in October 2016, UPI has now crossed&nbsp;the landmark of 10&nbsp; billion transactions. This number seems even more significant considering that UPI accounted for 75 per cent of the retail transaction volume in 2022-23.

The greatest change that UPI has brought about is in the way Indians transact. According to GlobalData research, cash transactions have declined from 90 per cent of the total volume in 2017 to less than 60 per cent in 2021. UPI and other digital transaction systems have occupied the remaining space. Though cash is still the king in India, UPI has effectively created a niche for itself.

"India was a cash economy. But UPI became an efficient and easy payment alternative due to wide smartphone adoption, government initiatives for bank accounts, and cheap data," says 'finfluencer' Anushka Rathod.

It is no wonder that the quick and efficient nature of UPI payments resulted in cost savings of $12.6 billion and added $16.4 billion to the Indian economy in 2021, as per a study conducted by Cebr Economic Research.

How the UPI story blossomed

The 2016 demonetisation drive was a game-changer for India's digital payments landscape. Less than six months after Rs 500 and Rs 1000 notes were phased out, the total transaction volume on UPI rose from 2.9 million to 72 million. By the end of 2017, UPI transactions had grown by 900 per cent compared to the previous year. It is also worth noting that 2016-17 saw the launch of cheap data packs -- India has the third cheapest internet and undoubtedly helped proliferate UPI payments beyond India's Tier I cities.

But there is another red-letter day for UPI, which brought international recognition to digital payment technology. That day was November 7, 2019, on the eve of the third anniversary of the demonetisation drive. On that day, tech giant Google wrote a letter to the US Federal Reserve in support of a faster digital payment settlement service.

To bolster its point, Google narrated the success story of UPI in India. Attributing UPI's success to its "thoughtful planning", the letter added that "critical aspects" of the design led to its growth in the world's biggest country. The letter noted how UPI's growth encouraged Google to enter the payment system through Google Pay while highlighting the success of collaboration between the government, technology and financial services.

UPI: The future and challenges

The UPI's future growth looks promising. UPI, comprising 75 per cent of India's digital transactions, is expected to grow four-fold by 2026. A PwC report states that UPI may constitute almost 90% of total transactional volume in retail digital payments over the next five years as it expands to rural areas and tier III and IV cities.

UPI's global expansion, too, holds a lot of promise. Sample this: Indians spent $10 billion on overseas travel between April and December 2022. Considering the substantial scale of international spending, the internationalisation of UPI can contribute significantly to the growth of the Indian economy.

With UPI going global, the payments platform will likely face tough competition from Visa, Mastercard and other long-established global payments giants. Visa and Mastercard occupy about 80 per cent of the global payments market space, and dislodging them will be a tall order.

"These payment platforms and networks have been around for a while and are cash-rich, so they will not make it easy for UPI to grow and eat away their market share and profits," argues Rathod.

Moreover, UPI will have to adjust its technology to cater to the wider customer base in the Western world. Initially, the cost of transfer and remittance fees will be high due to UPI's low rate of penetration.

Compliance with various digital regulations and the need for interoperability between various payment systems will be major challenges for UPI.

"To overcome these challenges, UPI stakeholders can concentrate on collaborating with global payment system providers and regulators to ensure compliance with local regulations and standards," opines Agarwal. &nbsp;

If there is one Indian innovation that has grabbed global headlines, it is undoubtedly the UPI or Unified Payments Interface payments system. UPI's place of pride in India's growth story could be easily gauged by Prime Minister Narendra Modi's statement at the recently-concluded BRICS meeting: "UPI is used at all levels from street vendors to large shopping malls.

If there is one Indian innovation that has grabbed global headlines, it is undoubtedly the UPI or Unified Payments Interface payments system. UPI's place of pride in India's growth story could be easily gauged by Prime Minister Narendra Modi's statement at the recently-concluded BRICS meeting: "UPI is used at all levels from street vendors to large shopping malls. Today, among all countries in the world, India is the country with the highest digital transaction." PM Modi also pitched for UPI's expansion into the BRICS grouping, which now has six new member states. "There is scope for working with BRICS on the (UPI) technology," media reports quoted him as saying. But while experts will keenly watch its expansion into the BRICS bloc, UPI has already begun its march towards global dominance. Countries join India's UPI bandwagon In the past few weeks, three countries have joined the UPI bandwagon quickly - France, the United Arab Emirates and Sri Lanka. These three countries will now accept transactions via India's homegrown digital payments technology. UPI's entry into France is significant, helping the technology get a foothold in Europe for the first time. Regarding Sri Lanka and the UAE, UPI's entry is set to deepen India's economic ties with the two nations. "Indian travellers will be at ease of using foreign exchange, especially in France. UPI's growing global footprint will boost bilateral trade as well as tourism," says Haresh Calcuttawala, Co-Founder of TreZix, a B2B SaaS platform. Calcuttawala adds that UPI's framework will smooth cross-border transactions and ensure swift and secure settlements between global trading partners. "UPI empowers businesses to focus on building strong relationships and expanding their global reach." It is important to give some business perspective on the reasons for UPI's expansion into the three countries. France has always been among the top European destinations for Indian tourists. Moreover, the country is a major trade destination for India's medium and small businesses, which are likely to benefit from the introduction of UPI. On the other hand, India is Sri Lanka's biggest trade partner, with the bilateral trade standing at over $5.5 billion. Meanwhile, the India-UAE trade partnership is going strong, especially with the Comprehensive Economic Partnership Agreement coming into effect last year. UPI: India's fintech pride UPI's growing global footprint is also a sign of greater opportunities for the Indian fintech sector, which attracted funding worth $4.8 billion in 2022 and is expected to be a $2 trillion industry by 2030. "This global expansion presents significant growth opportunities for the Indian fintech ecosystem to innovate and establish new business use cases that can play a crucial role in driving its adoption," says Anand Agrawal, Co-Founder & CPTO of fintech startup Credgenics. UPI, launched by the National Payments Corporation of India in 2016, has been the torchbearer of India's fintech story. From just one million transactions in October 2016, UPI has now crossed the landmark of 10 billion transactions. This number seems even more significant considering that UPI accounted for 75 per cent of the retail transaction volume in 2022-23. The greatest change that UPI has brought about is in the way Indians transact. According to GlobalData research, cash transactions have declined from 90 per cent of the total volume in 2017 to less than 60 per cent in 2021. UPI and other digital transaction systems have occupied the remaining space. Though cash is still the king in India, UPI has effectively created a niche for itself. "India was a cash economy. But UPI became an efficient and easy payment alternative due to wide smartphone adoption, government initiatives for bank accounts, and cheap data," says 'finfluencer' Anushka Rathod. It is no wonder that the quick and efficient nature of UPI payments resulted in cost savings of $12.6 billion and added $16.4 billion to the Indian economy in 2021, as per a study conducted by Cebr Economic Research. How the UPI story blossomed The 2016 demonetisation drive was a game-changer for India's digital payments landscape. Less than six months after Rs 500 and Rs 1000 notes were phased out, the total transaction volume on UPI rose from 2.9 million to 72 million. By the end of 2017, UPI transactions had grown by 900 per cent compared to the previous year. It is also worth noting that 2016-17 saw the launch of cheap data packs -- India has the third cheapest internet and undoubtedly helped proliferate UPI payments beyond India's Tier I cities. But there is another red-letter day for UPI, which brought international recognition to digital payment technology. That day was November 7, 2019, on the eve of the third anniversary of the demonetisation drive. On that day, tech giant Google wrote a letter to the US Federal Reserve in support of a faster digital payment settlement service. To bolster its point, Google narrated the success story of UPI in India. Attributing UPI's success to its "thoughtful planning", the letter added that "critical aspects" of the design led to its growth in the world's biggest country. The letter noted how UPI's growth encouraged Google to enter the payment system through Google Pay while highlighting the success of collaboration between the government, technology and financial services. UPI: The future and challenges The UPI's future growth looks promising. UPI, comprising 75 per cent of India's digital transactions, is expected to grow four-fold by 2026. A PwC report states that UPI may constitute almost 90% of total transactional volume in retail digital payments over the next five years as it expands to rural areas and tier III and IV cities. UPI's global expansion, too, holds a lot of promise. Sample this: Indians spent $10 billion on overseas travel between April and December 2022. Considering the substantial scale of international spending, the internationalisation of UPI can contribute significantly to the growth of the Indian economy. With UPI going global, the payments platform will likely face tough competition from Visa, Mastercard and other long-established global payments giants. Visa and Mastercard occupy about 80 per cent of the global payments market space, and dislodging them will be a tall order. "These payment platforms and networks have been around for a while and are cash-rich, so they will not make it easy for UPI to grow and eat away their market share and profits," argues Rathod. Moreover, UPI will have to adjust its technology to cater to the wider customer base in the Western world. Initially, the cost of transfer and remittance fees will be high due to UPI's low rate of penetration. Compliance with various digital regulations and the need for interoperability between various payment systems will be major challenges for UPI. "To overcome these challenges, UPI stakeholders can concentrate on collaborating with global payment system providers and regulators to ensure compliance with local regulations and standards," opines Agarwal.

UPI goes global: The past, present & future of India's payments platform

India’s digital public infrastructure, such as Aadhaar, the Universal Payments Interface (UPI), and digilocker, would change India from an informal, low-productivity, numerous collection of micro-economies to a formal, high-productivity mega-economy, said Chairman and Co-Founder of Infosys Nandan Nilekani on Sunday.

"What is fundamentally happening is that India is going from multiple sets of micro-economies to a single mega-economy. This is the trend for the next 20 years. This has been solved by a new way of solving problems called digital public infrastructure, which solves problems with technology at the population scale," Nilekani said at the B20 Summit in Delhi.

Furthermore, while the rest of the world struggles to reconcile innovation and regulation, the senior technology executive claims that India has already found a balance through a participatory form of data governance and architecture.

"When you use a digital platform, it generates data. India has developed a novel method for people and businesses to monetize their data footprint. This data footprint is their digital capital. Individuals may use digital capital to advance in life. This notion does not exist anyplace in the world," he added.

Nilekani presented various data points relating to DPIs to demonstrate the country's widespread approval. For example, he stated that due to DPIs, India was able to send $4.5 billion to the bank accounts of 150 million residents during COVID, and 700 million people already have bank accounts linked to their Aadhaar numbers.

UPI has grown to become the world's most important payment system, with over 9.66 billion transactions conducted on the network each month, and 1.3 billion individuals now utilize Aadhaar to do 80 million identity authentication transactions every day.

"India accomplished in 9 years what would have taken 47 years using traditional methods. "We went from being one of the least banked countries to one of the most financially inclusive," Nilekani said.

"Without the $250 billion IT services industry, none of this would have been possible. In addition, we have an exceptional startup ecosystem. We had 1,000 startups in 2016. We now have one lakh. "It is not a 10 percent&nbsp;linear growth, but a 10x growth," he continued.

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India’s digital public infrastructure, such as Aadhaar, the Universal Payments Interface (UPI), and digilocker, would change India from an informal, low-productivity, numerous collection of micro-economies to a formal, high-productivity mega-economy, said Chairman and Co-Founder of Infosys Nandan Nilekani on Sunday.

India’s digital public infrastructure, such as Aadhaar, the Universal Payments Interface (UPI), and digilocker, would change India from an informal, low-productivity, numerous collection of micro-economies to a formal, high-productivity mega-economy, said Chairman and Co-Founder of Infosys Nandan Nilekani on Sunday. "What is fundamentally happening is that India is going from multiple sets of micro-economies to a single mega-economy. This is the trend for the next 20 years. This has been solved by a new way of solving problems called digital public infrastructure, which solves problems with technology at the population scale," Nilekani said at the B20 Summit in Delhi. Furthermore, while the rest of the world struggles to reconcile innovation and regulation, the senior technology executive claims that India has already found a balance through a participatory form of data governance and architecture. "When you use a digital platform, it generates data. India has developed a novel method for people and businesses to monetize their data footprint. This data footprint is their digital capital. Individuals may use digital capital to advance in life. This notion does not exist anyplace in the world," he added. Nilekani presented various data points relating to DPIs to demonstrate the country's widespread approval. For example, he stated that due to DPIs, India was able to send $4.5 billion to the bank accounts of 150 million residents during COVID, and 700 million people already have bank accounts linked to their Aadhaar numbers. UPI has grown to become the world's most important payment system, with over 9.66 billion transactions conducted on the network each month, and 1.3 billion individuals now utilize Aadhaar to do 80 million identity authentication transactions every day. "India accomplished in 9 years what would have taken 47 years using traditional methods. "We went from being one of the least banked countries to one of the most financially inclusive," Nilekani said. "Without the $250 billion IT services industry, none of this would have been possible. In addition, we have an exceptional startup ecosystem. We had 1,000 startups in 2016. We now have one lakh. "It is not a 10 percent linear growth, but a 10x growth," he continued. WATCH WION LIVE HERE

Digital payments driving India's shift to unified mega-economy, says Nilekani

In 2000, after receiving a loan worth 8,00,000 rupees ($9,000), Vijay Shekhar Sharma founded Paytm's parent organisation – One97 Communications, which offered digital goods and services. Later in 2010, with an initial investment of $2 million, Sharma launched Paytm, an acronym for 'pay through mobile,' which started as a prepaid mobile and DTH (direct-to-home) recharge platform headquartered in Noida, India. &nbsp;

In less than ten years, Paytm has developed into one of the most valuable financial start-ups in the nation. &nbsp; &nbsp;

In 2014, the Paytm Wallet became one of India's most popular digital wallets. The following few years saw Paytm grow its user base and enter the e-commerce space by enabling online shopping and ticketing. Digital payments surged in 2016 after India demonetised 500- and 1000-rupee notes. &nbsp;

"Paytm Karo" became the infamous tagline that every Indian was familiar with when thinking about online shopping after demonetisation. &nbsp;

Paytm was the first payment app in the nation that achieved 100 million downloads in 2017. As of March 1, 2021, Paytm had 1.2 billion monthly transactions and more than 150 million active users. &nbsp; &nbsp;

With a 15 per cent month-over-month gain, the digital payments giant now holds the largest market share in the offline merchant payments sector. The business has expanded into several services, including ticketing for movies and flights, gold sales, insurance, bank deposits and remittances. &nbsp; &nbsp;

IPO Listing &nbsp; &nbsp;

In 2021, Paytm made history by conducting India's largest Initial Public Offering (IPO). Its initial public offering exceeded Coal India's IPO of Rs 15,200 crore ($1.8 billion) in 2010. &nbsp;

After completing the IPO, Paytm's founder Vijay Shekhar Sharma broke into tears during his speech at the Bombay Stock Exchange (BSE), as per a report by NDTV. &nbsp;

The company surpassed the market capitalisation milestone of Rs. 1 lakh crore ($12 billion). The digital payments company's market cap on the BSE touched Rs. 1.19 lakh crore ($14 billion). &nbsp;

Purchase of stake from Antfin &nbsp; &nbsp;

In August 2023, Paytm's CEO announced that he intends to purchase a 10.3 per cent stake from Antfin, an Ant Financial subsidiary, for $628 million. This move aimed to streamline ownership within the Indian payments firm. Following the announcement, Paytm's shares surged by 11.4 per cent, having already risen over 50 per cent in the year. Antfin (Netherlands) Holding B.V.'s acquisition price is 796.6 rupees ($9.3) per share, mirroring Paytm's recent closing price. This purchase will reduce Antfin's ownership to 13.5 per cent, relinquishing its status as the largest stakeholder. Notably, China's Alibaba sold its entire stake in Paytm in February, while Softbank Group Corp has gradually lowered its stake, now at 9.18 per cent. After this acquisition, Sharma, Paytm's founder, will become the primary stakeholder with 19.42 per cent. &nbsp; &nbsp;

The success of Paytm &nbsp;

Research by International Journal for Research in Engineering Application &amp; Management attributes Paytm's success to its revenue model and innovative strategies to enhance its services in the Indian digital financial services sector. &nbsp;

Revenue model &nbsp;

A diversified revenue model of Paytm has played a huge role in its growth and market leadership. By adopting various revenue streams, Paytm has ensured financial stability and catered to different user base segments. &nbsp;

For instance, the advertising revenue model allows sellers to promote their products on Paytm's platform for a fee. The subscription model lets sellers pay an annual subscription fee to list their products. And Paytm's advance payment model capitalises on customer payments by accruing interest until funds are transferred to sellers. &nbsp;

Innovative strategies &nbsp; &nbsp;

What began as a platform for online bill payments has evolved into a comprehensive mobile money solution, including the establishment of Paytm Payments Bank. This initiative bridges the gap for individuals needing access to traditional financial services. The launch of the Paytm for Business app and banking features targeting corporate customers exemplify Paytm's versatility and adaptability to varying market demands.

Paytm was among the first financial companies to push for cashless transactions by making digital payments through a unified payments interface (UPI), which has presently proven to be a huge success.

&nbsp;

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In 2000, after receiving a loan worth 8,00,000 rupees ($9,000), Vijay Shekhar Sharma founded Paytm's parent organisation – One97 Communications, which offered digital goods and services.

In 2000, after receiving a loan worth 8,00,000 rupees ($9,000), Vijay Shekhar Sharma founded Paytm's parent organisation – One97 Communications, which offered digital goods and services. Later in 2010, with an initial investment of $2 million, Sharma launched Paytm, an acronym for 'pay through mobile,' which started as a prepaid mobile and DTH (direct-to-home) recharge platform headquartered in Noida, India. In less than ten years, Paytm has developed into one of the most valuable financial start-ups in the nation. In 2014, the Paytm Wallet became one of India's most popular digital wallets. The following few years saw Paytm grow its user base and enter the e-commerce space by enabling online shopping and ticketing. Digital payments surged in 2016 after India demonetised 500- and 1000-rupee notes. "Paytm Karo" became the infamous tagline that every Indian was familiar with when thinking about online shopping after demonetisation. Paytm was the first payment app in the nation that achieved 100 million downloads in 2017. As of March 1, 2021, Paytm had 1.2 billion monthly transactions and more than 150 million active users. With a 15 per cent month-over-month gain, the digital payments giant now holds the largest market share in the offline merchant payments sector. The business has expanded into several services, including ticketing for movies and flights, gold sales, insurance, bank deposits and remittances. IPO Listing In 2021, Paytm made history by conducting India's largest Initial Public Offering (IPO). Its initial public offering exceeded Coal India's IPO of Rs 15,200 crore ($1.8 billion) in 2010. After completing the IPO, Paytm's founder Vijay Shekhar Sharma broke into tears during his speech at the Bombay Stock Exchange (BSE), as per a report by NDTV. The company surpassed the market capitalisation milestone of Rs. 1 lakh crore ($12 billion). The digital payments company's market cap on the BSE touched Rs. 1.19 lakh crore ($14 billion). Purchase of stake from Antfin In August 2023, Paytm's CEO announced that he intends to purchase a 10.3 per cent stake from Antfin, an Ant Financial subsidiary, for $628 million. This move aimed to streamline ownership within the Indian payments firm. Following the announcement, Paytm's shares surged by 11.4 per cent, having already risen over 50 per cent in the year. Antfin (Netherlands) Holding B.V.'s acquisition price is 796.6 rupees ($9.3) per share, mirroring Paytm's recent closing price. This purchase will reduce Antfin's ownership to 13.5 per cent, relinquishing its status as the largest stakeholder. Notably, China's Alibaba sold its entire stake in Paytm in February, while Softbank Group Corp has gradually lowered its stake, now at 9.18 per cent. After this acquisition, Sharma, Paytm's founder, will become the primary stakeholder with 19.42 per cent. The success of Paytm Research by International Journal for Research in Engineering Application & Management attributes Paytm's success to its revenue model and innovative strategies to enhance its services in the Indian digital financial services sector. Revenue model A diversified revenue model of Paytm has played a huge role in its growth and market leadership. By adopting various revenue streams, Paytm has ensured financial stability and catered to different user base segments. For instance, the advertising revenue model allows sellers to promote their products on Paytm's platform for a fee. The subscription model lets sellers pay an annual subscription fee to list their products. And Paytm's advance payment model capitalises on customer payments by accruing interest until funds are transferred to sellers. Innovative strategies What began as a platform for online bill payments has evolved into a comprehensive mobile money solution, including the establishment of Paytm Payments Bank. This initiative bridges the gap for individuals needing access to traditional financial services. The launch of the Paytm for Business app and banking features targeting corporate customers exemplify Paytm's versatility and adaptability to varying market demands. Paytm was among the first financial companies to push for cashless transactions by making digital payments through a unified payments interface (UPI), which has presently proven to be a huge success. WATCH WION LIVE HERE

Flashback Friday: Pioneering the e-wallet ecosystem – The story of Paytm  

India's UPI to get three new features, payments likely to be more efficient after update. India's homegrown digital payments platform UPI is going global. The fintech sector is overjoyed. It's another boost to the brand India. But analysts say a lot needs to be done before UPI takes off on the world stage.

India's UPI to get three new features, payments likely to be more efficient after update

India has emerged as a leader in digital infrastructure. the country has ranked number 1 in the highest number of digital transactions made in 2022. Can developing economies learn a lesson from India? Molly Gambhir tells you more.

Gravitas: India tops digital payments ranking

India has become a global leader in digital payments, accounting for 46% of all payments in 2022. India has been seeing new milestones, both in terms of value and volume. The Indian government's platform for citizen engagement, just published a new study that demonstrates the country's leadership in the world of digital payments. In the year under review, there were 89.5 million digital transactions in India.

From value to volume: India's digital payments success

India has topped the list for digital payments, surpassing four other nations, with an astounding 89.5 million transactions recorded in 2022.

As per&nbsp;the data, 46 per cent&nbsp;of all real-time payments made worldwide in 2022 were made in India. India has more digital payment transactions than the other four top countries put together, it added.

Brazil is second on the list which accounts for&nbsp;29.2 million transactions followed by China with 17.6 million transactions. Thailand ranked at number 4 with 16.5 million digital transactions followed by South Korea with 8 million worth of transactions, the data from MyGovIndia has stated.

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📈 India keeps dominating the digital payment landscape! 💸🇮🇳 With innovative solutions and widespread adoption, we're leading the way towards a cashless economy. 💻<a href="https://twitter.com/hashtag/9YearsOfTechForGrowth?src=hash&amp;ref_src=twsrc%5Etfw">#9YearsOfTechForGrowth</a> <a href="https://twitter.com/hashtag/9YearsOfSeva?src=hash&amp;ref_src=twsrc%5Etfw">#9YearsOfSeva</a><a href="https://twitter.com/GoI_MeitY?ref_src=twsrc%5Etfw">@GoI_MeitY</a> <a href="https://twitter.com/AshwiniVaishnaw?ref_src=twsrc%5Etfw">@AshwiniVaishnaw</a> <a href="https://twitter.com/Rajeev_GoI?ref_src=twsrc%5Etfw">@Rajeev_GoI</a><a href="https://twitter.com/alkesh12sharma?ref_src=twsrc%5Etfw">@alkesh12sharma</a> <a href="https://twitter.com/_DigitalIndia?ref_src=twsrc%5Etfw">@_DigitalIndia</a> <a href="https://t.co/cSfsFsq0mW">pic.twitter.com/cSfsFsq0mW</a>
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For the current fiscal year, the Ministry of Electronics and Information Technology (MeitY) is promoting digital payments by offering the Incentive Scheme for the Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions.

The Indian government's platform for citizen engagement, MyGovIndia, offers people the chance to contribute at the grassroots level and work towards Surajya.

India is the world leader in digital payments, according to Prime Minister Narendra Modi, who also claimed that the rural economy of the nation is changing.

“India is number one in digital payments. India is one of the countries where mobile data is the cheapest. Today, the country’s rural economy is transforming,” the PM said.

The expansion of digital payments in India and the availability of several simple and practical digital payment options have aided in improving the quality of life for residents, promoting financial inclusion, and boosting the country's commerce and economy.

Also read |&nbsp;<a href="https://www.wionews.com/technology/data-lab-india-and-ai-are-we-ahead-of-the-curve-588533">Data Lab | India and AI: Are we ahead of the curve?</a>

<h2>IMF praises India's digital infrastructure</h2>

The International Monetary Fund gave India's digital public infrastructure, one of the major success stories of the nation, a thumbs up.

In a recent paper, the IMF praised India's digital public infrastructure and stated that the nation's experience with the internet had "lessons for other countries embarking on their own digital transformation."

The 'India Stack' refers to the nation of India's digital public infrastructure, which includes the Aadhar, Unified Payments Interface (UPI), or digital payments, and Digilocker (an online storage platform).

Also watch |&nbsp;India High Commission organizes first defence exhibition in Sri Lanka

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As per&nbsp;the paper, they provide online, cashless, paperless, and private digital access to a range of public and private services.

"India was able to quickly provide support to an impressive share of poor households during the pandemic. In the first months of the pandemic about 87 per cent of poor households received at least one benefit," the paper said.

&nbsp;

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India has topped the list for digital payments, surpassing four other nations, with an astounding 89.5 million transactions recorded in 2022. As per the data, 46 per cent of all real-time payments made worldwide in 2022 were made in India.

India has topped the list for digital payments, surpassing four other nations, with an astounding 89.5 million transactions recorded in 2022. As per the data, 46 per cent of all real-time payments made worldwide in 2022 were made in India. India has more digital payment transactions than the other four top countries put together, it added. Brazil is second on the list which accounts for 29.2 million transactions followed by China with 17.6 million transactions. Thailand ranked at number 4 with 16.5 million digital transactions followed by South Korea with 8 million worth of transactions, the data from MyGovIndia has stated. 📈 India keeps dominating the digital payment landscape! 💸🇮🇳 With innovative solutions and widespread adoption, we're leading the way towards a cashless economy. 💻#9YearsOfTechForGrowth #9YearsOfSeva@GoI_MeitY @AshwiniVaishnaw @Rajeev_GoI@alkesh12sharma @_DigitalIndia pic.twitter.com/cSfsFsq0mW — MyGovIndia (@mygovindia) June 9, 2023 × For the current fiscal year, the Ministry of Electronics and Information Technology (MeitY) is promoting digital payments by offering the Incentive Scheme for the Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Transactions. The Indian government's platform for citizen engagement, MyGovIndia, offers people the chance to contribute at the grassroots level and work towards Surajya. India is the world leader in digital payments, according to Prime Minister Narendra Modi, who also claimed that the rural economy of the nation is changing. “India is number one in digital payments. India is one of the countries where mobile data is the cheapest. Today, the country’s rural economy is transforming,” the PM said. The expansion of digital payments in India and the availability of several simple and practical digital payment options have aided in improving the quality of life for residents, promoting financial inclusion, and boosting the country's commerce and economy. Also read | Data Lab | India and AI: Are we ahead of the curve? IMF praises India's digital infrastructure The International Monetary Fund gave India's digital public infrastructure, one of the major success stories of the nation, a thumbs up. In a recent paper, the IMF praised India's digital public infrastructure and stated that the nation's experience with the internet had "lessons for other countries embarking on their own digital transformation." The 'India Stack' refers to the nation of India's digital public infrastructure, which includes the Aadhar, Unified Payments Interface (UPI), or digital payments, and Digilocker (an online storage platform). Also watch | India High Commission organizes first defence exhibition in Sri Lanka As per the paper, they provide online, cashless, paperless, and private digital access to a range of public and private services. "India was able to quickly provide support to an impressive share of poor households during the pandemic. In the first months of the pandemic about 87 per cent of poor households received at least one benefit," the paper said. WATCH WION LIVE HERE:

Frontrunner in digital payments: India tops world ranking, says MyGovIndia data

A recent report by PWC India has unveiled some staggering projections that showcase the remarkable transformation taking place in India's payment landscape. According to the report, the unified payments interface, or UPI, is on a trajectory to achieve an astonishing milestone of 1 billion transactions per day by 2026-27.

UPI to take over 90% of retail digital payments in India

India's digital payments landscape is on the brink of a historic revolution, thanks to the Unified Payments Interface (UPI) system. A recent report by PwC India, titled "The Indian Payments Handbook – 2022-27", has projected that&nbsp;UPI will achieve a groundbreaking milestone of 1 billion daily transactions by 2026-27.&nbsp;

During the period of 2022-23, UPI accounted for 75 percent of the total transaction volume, signifying a massive shift towards digital payments. In the next five years, UPI is projected to strengthen its grip on the retail digital payments landscape and reach an astounding 90 percent of the total transaction volume.

India's Evolving Payment Habits

The exponential growth of UPI transactions paints a vivid picture of the nation's evolving payment habits. With a compounded annual growth rate (CAGR) of 50 percent, the total number of online transactions is projected to surge from 103 billion in FY 2022-23 to 411 billion in FY 2026-27. UPI transactions, in particular,&nbsp;are expected to experience a substantial rise from 83.71 billion in 2022-23 to a staggering 379 billion transactions by 2026-27.

While UPI takes the lead, the report also highlights the significance of credit cards in India's digital payments landscape. The credit card segment continues to experience robust growth, challenging the traditional dominance of debit cards. According to the report, credit card transactions are projected to surpass debit card transactions by FY 2024-2025, marking a significant turning point. This shift can be attributed to the convenience and versatility offered by credit cards, making them increasingly favored by consumers. Over the next five years, credit card issuance is expected to record&nbsp;a CAGR of 21 percent.

The report emphasises that the payments industry will focus on expanding the ecosystem and developing new use cases for existing payment platforms in the coming years. Areas such as embedded and ecosystem finance, digital lending based on payment transactions, and offline payments are predicted to drive the next phase of growth in the payments industry.&nbsp;

History of the UPI Revolution

UPI, launched in 2016 by the National Payments Corporation of India (NPCI), was introduced as a real-time payment system that aimed to simplify peer-to-peer transactions and facilitate seamless digital payments. While it faced skepticism and doubts about its potential to disrupt India's predominantly cash-based economy in its early stages, its user-friendly interface and interoperability across various banks and payment apps soon won the hearts of millions of Indians.

UPI's growth can be attributed to several key factors that contributed to its success&nbsp;

Firstly, the government's push for digitalization through initiatives like demonetization in 2016 created a favorable environment for UPI to thrive. The sudden scarcity of physical cash led to a surge in digital transactions, with UPI offering a convenient and secure alternative to cash payments.

Secondly, UPI's open architecture allows seamless integration with various payment service providers and banking apps, enabling users to link their bank accounts directly and initiate transactions effortlessly. This interoperability eliminated the need for multiple payment apps, making UPI an attractive choice for consumers and businesses.

Furthermore, UPI's innovative features, such as Virtual Payment Addresses (VPAs) and QR code scanning, revolutionized&nbsp;transactions. VPAs eliminated the need for sharing bank account details, providing a safer and more user-friendly experience. QR codes enabled quick, contactless payments, bridging the gap between online and offline transactions.

(Inputs from various news agencies)

India's digital payments landscape is on the brink of a historic revolution, thanks to the Unified Payments Interface (UPI) system. A recent report by PwC India, titled "The Indian Payments Handbook – 2022-27", has projected that UPI will achieve a groundbreaking milestone of 1 billion daily transactions by 2026-27.

India's digital payments landscape is on the brink of a historic revolution, thanks to the Unified Payments Interface (UPI) system. A recent report by PwC India, titled "The Indian Payments Handbook – 2022-27", has projected that UPI will achieve a groundbreaking milestone of 1 billion daily transactions by 2026-27. During the period of 2022-23, UPI accounted for 75 percent of the total transaction volume, signifying a massive shift towards digital payments. In the next five years, UPI is projected to strengthen its grip on the retail digital payments landscape and reach an astounding 90 percent of the total transaction volume. India's Evolving Payment Habits The exponential growth of UPI transactions paints a vivid picture of the nation's evolving payment habits. With a compounded annual growth rate (CAGR) of 50 percent, the total number of online transactions is projected to surge from 103 billion in FY 2022-23 to 411 billion in FY 2026-27. UPI transactions, in particular, are expected to experience a substantial rise from 83.71 billion in 2022-23 to a staggering 379 billion transactions by 2026-27. While UPI takes the lead, the report also highlights the significance of credit cards in India's digital payments landscape. The credit card segment continues to experience robust growth, challenging the traditional dominance of debit cards. According to the report, credit card transactions are projected to surpass debit card transactions by FY 2024-2025, marking a significant turning point. This shift can be attributed to the convenience and versatility offered by credit cards, making them increasingly favored by consumers. Over the next five years, credit card issuance is expected to record a CAGR of 21 percent. The report emphasises that the payments industry will focus on expanding the ecosystem and developing new use cases for existing payment platforms in the coming years. Areas such as embedded and ecosystem finance, digital lending based on payment transactions, and offline payments are predicted to drive the next phase of growth in the payments industry. History of the UPI Revolution UPI, launched in 2016 by the National Payments Corporation of India (NPCI), was introduced as a real-time payment system that aimed to simplify peer-to-peer transactions and facilitate seamless digital payments. While it faced skepticism and doubts about its potential to disrupt India's predominantly cash-based economy in its early stages, its user-friendly interface and interoperability across various banks and payment apps soon won the hearts of millions of Indians. UPI's growth can be attributed to several key factors that contributed to its success Firstly, the government's push for digitalization through initiatives like demonetization in 2016 created a favorable environment for UPI to thrive. The sudden scarcity of physical cash led to a surge in digital transactions, with UPI offering a convenient and secure alternative to cash payments. Secondly, UPI's open architecture allows seamless integration with various payment service providers and banking apps, enabling users to link their bank accounts directly and initiate transactions effortlessly. This interoperability eliminated the need for multiple payment apps, making UPI an attractive choice for consumers and businesses. Furthermore, UPI's innovative features, such as Virtual Payment Addresses (VPAs) and QR code scanning, revolutionized transactions. VPAs eliminated the need for sharing bank account details, providing a safer and more user-friendly experience. QR codes enabled quick, contactless payments, bridging the gap between online and offline transactions. (Inputs from various news agencies)

India's UPI set to record 1 billion daily transactions by 2026-27: Report

Six years ago, in April 2016, a product was launched by the National Payment Corporation of India (NPCI) called Unified Payment Interface (UPI). At that time, nobody had thought that this made in India product would bring a revolution in the fintech market in India. UPI recorded the highest single-month transaction in May 2022. According to data released by the NPCI, UPI processed more than Rs 10 lakh crore worth of transactions in May alone by processing nearly 6 billion payments.

Today, apps like Phonepe, Paytm, Google Pay, and others have become a crucial part of everyone's lives. But when UPI was launched initially, experts, including banks, were suspicious of its acceptance in a market like India. The reasons were less financial inclusiveness and low financial literacy. However, India has proved all experts wrong. Today it is considered a highly innovative product in the world's payment market. In 2019, Google wrote a letter to "FedNow"—an interbank real-time gross settlement service (RTGS)—detailing the successful example of UPI based digital payment and suggesting that they can learn from innovations like these.

The global ambition of UPI is also on the right track. UPI has gained acceptance in Singapore (March 2020), Bhutan (July 2021), UAE &amp; Nepal (Feb 2022). On June 17, 2022, the National Payments Corporation of India (NPCI) announced that UPI and Rupay cards (Indian payment cards) will soon be accepted in France. NPCI has already signed an MOU with Lyra, a France-based payment service provider. According to sources, NPCI is also eyeing other Asian markets like Malasyia, Thailand, and Vietnam. Without a doubt, UPI has the potential to be the first made in India product to cause a stir in the payment market. This will give great confidence to the Indian government, which is trying very hard to project India as a manufacturing and innovative hub. 
 
(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

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Six years ago, in April 2016, a product was launched by the National Payment Corporation of India (NPCI) called Unified Payment Interface (UPI). At that time, nobody had thought that this made in India product would bring a revolution in the fintech market in India.

Six years ago, in April 2016, a product was launched by the National Payment Corporation of India (NPCI) called Unified Payment Interface (UPI). At that time, nobody had thought that this made in India product would bring a revolution in the fintech market in India. UPI recorded the highest single-month transaction in May 2022. According to data released by the NPCI, UPI processed more than Rs 10 lakh crore worth of transactions in May alone by processing nearly 6 billion payments. Today, apps like Phonepe, Paytm, Google Pay, and others have become a crucial part of everyone's lives. But when UPI was launched initially, experts, including banks, were suspicious of its acceptance in a market like India. The reasons were less financial inclusiveness and low financial literacy. However, India has proved all experts wrong. Today it is considered a highly innovative product in the world's payment market. In 2019, Google wrote a letter to "FedNow"—an interbank real-time gross settlement service (RTGS)—detailing the successful example of UPI based digital payment and suggesting that they can learn from innovations like these. The global ambition of UPI is also on the right track. UPI has gained acceptance in Singapore (March 2020), Bhutan (July 2021), UAE & Nepal (Feb 2022). On June 17, 2022, the National Payments Corporation of India (NPCI) announced that UPI and Rupay cards (Indian payment cards) will soon be accepted in France. NPCI has already signed an MOU with Lyra, a France-based payment service provider. According to sources, NPCI is also eyeing other Asian markets like Malasyia, Thailand, and Vietnam. Without a doubt, UPI has the potential to be the first made in India product to cause a stir in the payment market. This will give great confidence to the Indian government, which is trying very hard to project India as a manufacturing and innovative hub. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Digital payment revolution in India and its global ambition

After great anticipation, the World Bank&nbsp;recently&nbsp;released&nbsp;'The Global Findex Report 2021'. The Global Findex surveys over 125,000 adults in 123 economies during COVID-19 to better understand how people use formal and informal financial services and digital payment.

In its Global Findex Database 2021, the World Bank highlighted that account ownership worldwide increased by 50&nbsp;per cent&nbsp;to reach 76&nbsp;per cent&nbsp;of the global adult population. Recent growth in account ownership has been widespread across dozens of developing economies and most of the newly account opened in India and China.

This report indicates that "74 per cent&nbsp;of men had an account in developing countries whereas women are six&nbsp;points behind, accounts for 68 per cent". According to the report, gaps in rural areas exist but this report couldn't quantity the urban-rural gap. However in developing countries like India and Bangladesh, there is virtually no difference in account ownership between adults in urban and rural areas.

Here are the major insights from the report:

1.&nbsp;Receiving payment directly into bank account is a gateway for using other financial services such as relying on an account to save and borrow. 83&nbsp;per cent&nbsp;of adult in developing nation who received digital payment also made a digital payment, up from 79&nbsp;per cent&nbsp;in 2017.

2.&nbsp;Mobile money has become enabler of financial inclusion in Sub-Saharan Africa,&nbsp;especially for women. Sub-Saharan Africa is home to all 11 economies in which a larger share of adults-only had mobile money account rather that a normal bank account. The spread of mobile money has created better opportunities to serve women, poor people and other groups who have been traditionally excluded from formal financial services. According to the report, around three&nbsp;out of&nbsp;four&nbsp;mobile owners in Sub-Saharan Africa used their mobile money account to make or receive at least one payment that was not person-to-person.​

3.&nbsp;COVID-19 pandemic catalyzed growth in the use of digital payments. In developing countries in 2021, 18&nbsp;per cent&nbsp;of adults paid utility bills directly from an account. About one third of these paid bills online for the first time. In India, more than 80 million adults made their first digital payment to merchant during pandemic whereas in China, 82&nbsp;per cent&nbsp;of adults made a digital payment in 2022, including over 100 million adults (11 per cent) who did so for the first time after the start of pandemic.

4.&nbsp;Government, private employers and financial providers could help expand financial access and usage among the unbanked by lowering barriers and improving infrastructure. This report indicates new opportunities to drive financial inclusion by increasing account ownership among the unbanked and expanding the use of financial among those who already have account - in particular by leveraging digital payments.

5.&nbsp;Adults in developing countries are more likely to worry about finances than adults in high-income countries. Concerns around medical expenses are highest in Sub-Saharan Africa and South Asia, where 64 per cent&nbsp;of adults are very worried and the lowest in East Asia and the Pacific, where 38&nbsp;per cent&nbsp;of adults are very worried.​​​

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

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After great anticipation, the World Bank recently released 'The Global Findex Report 2021'. The Global Findex surveys over 125,000 adults in 123 economies during COVID-19 to better understand how people use formal and informal financial services and digital payment.

After great anticipation, the World Bank recently released 'The Global Findex Report 2021'. The Global Findex surveys over 125,000 adults in 123 economies during COVID-19 to better understand how people use formal and informal financial services and digital payment. In its Global Findex Database 2021, the World Bank highlighted that account ownership worldwide increased by 50 per cent to reach 76 per cent of the global adult population. Recent growth in account ownership has been widespread across dozens of developing economies and most of the newly account opened in India and China. This report indicates that "74 per cent of men had an account in developing countries whereas women are six points behind, accounts for 68 per cent". According to the report, gaps in rural areas exist but this report couldn't quantity the urban-rural gap. However in developing countries like India and Bangladesh, there is virtually no difference in account ownership between adults in urban and rural areas. Here are the major insights from the report: 1. Receiving payment directly into bank account is a gateway for using other financial services such as relying on an account to save and borrow. 83 per cent of adult in developing nation who received digital payment also made a digital payment, up from 79 per cent in 2017. 2. Mobile money has become enabler of financial inclusion in Sub-Saharan Africa, especially for women. Sub-Saharan Africa is home to all 11 economies in which a larger share of adults-only had mobile money account rather that a normal bank account. The spread of mobile money has created better opportunities to serve women, poor people and other groups who have been traditionally excluded from formal financial services. According to the report, around three out of four mobile owners in Sub-Saharan Africa used their mobile money account to make or receive at least one payment that was not person-to-person. 3. COVID-19 pandemic catalyzed growth in the use of digital payments. In developing countries in 2021, 18 per cent of adults paid utility bills directly from an account. About one third of these paid bills online for the first time. In India, more than 80 million adults made their first digital payment to merchant during pandemic whereas in China, 82 per cent of adults made a digital payment in 2022, including over 100 million adults (11 per cent) who did so for the first time after the start of pandemic. 4. Government, private employers and financial providers could help expand financial access and usage among the unbanked by lowering barriers and improving infrastructure. This report indicates new opportunities to drive financial inclusion by increasing account ownership among the unbanked and expanding the use of financial among those who already have account - in particular by leveraging digital payments. 5. Adults in developing countries are more likely to worry about finances than adults in high-income countries. Concerns around medical expenses are highest in Sub-Saharan Africa and South Asia, where 64 per cent of adults are very worried and the lowest in East Asia and the Pacific, where 38 per cent of adults are very worried. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.) WATCH WION LIVE HERE ×

Pandemic catalysed growth in use of digital payments: Report

Three pilot tests for digital transactions without the internet were successfully completed by India's central bank (RBI). Based on the experience of 2,40,000 transactions, the RBI has created a framework which will be available on the platforms of banks, credit cards, and payment apps.

Soon, Indians will make digital payments without internet

Prime Minister Narendra Modi introduced e-RUPI, a cashless and contactless digital payment system, on Monday.

The one-time payment system attempts to eliminate leaks in government assistance programmes and ensure that funds reach the intended recipients.

The platform would be a person-specific and purpose-specific payments system created by the National Payments Corporation of India (NPCI), the Department of Financial Services, the Ministry of Health and Family Welfare, and the National Health Authority. 
 
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How will e-RUPI function?

e-RUPI is a cashless and contactless digital payment system.

It is a QR code or SMS string-based e-Voucher that is sent to the beneficiaries' mobile phones.

Users of this seamless one-time payment mechanism will be able to redeem the voucher at the service provider without the use of a card, digital payments app, or online banking access.&nbsp;

It has been developed by National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health &amp; Family Welfare and National Health Authority.

e-RUPI establishes a digital link between service sponsors and beneficiaries and service providers, eliminating the need for a physical interface.

It also guarantees that the service provider is only paid once the transaction has been completed.

Because it is pre-paid, it ensures prompt payment to the service provider without the need for a middleman.

It is intended to be a game-changing effort aimed at assuring the delivery of leak-proof social services.

These digital coupons can be used by the private sector as part of employee welfare and corporate social responsibility programmes.

(With inputs from agencies)

Prime Minister Narendra Modi introduced e-RUPI, a cashless and contactless digital payment system, on Monday. The one-time payment system attempts to eliminate leaks in government assistance programmes and ensure that funds reach the intended recipients.

Prime Minister Narendra Modi introduced e-RUPI, a cashless and contactless digital payment system, on Monday. The one-time payment system attempts to eliminate leaks in government assistance programmes and ensure that funds reach the intended recipients. The platform would be a person-specific and purpose-specific payments system created by the National Payments Corporation of India (NPCI), the Department of Financial Services, the Ministry of Health and Family Welfare, and the National Health Authority. How will e-RUPI function? e-RUPI is a cashless and contactless digital payment system. It is a QR code or SMS string-based e-Voucher that is sent to the beneficiaries' mobile phones. Users of this seamless one-time payment mechanism will be able to redeem the voucher at the service provider without the use of a card, digital payments app, or online banking access. It has been developed by National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare and National Health Authority. e-RUPI establishes a digital link between service sponsors and beneficiaries and service providers, eliminating the need for a physical interface. It also guarantees that the service provider is only paid once the transaction has been completed. Because it is pre-paid, it ensures prompt payment to the service provider without the need for a middleman. It is intended to be a game-changing effort aimed at assuring the delivery of leak-proof social services. These digital coupons can be used by the private sector as part of employee welfare and corporate social responsibility programmes. (With inputs from agencies)

What is e-RUPI and how does it function?

PayPal Holdings reported its strongest first quarter on record and beat profit estimates on Wednesday, with a coronavirus-driven shift to online shopping and digital transactions boosting payment volumes.

World Business Watch: PayPal profit tops estimates on digital payments boom

The coronavirus pandemic has had an adverse impact on shopping across the globe.

The restrictions imposed on shopping and safety concerns raised by health authorities during the pandemic has forced several people to&nbsp;embrace e-commerce.

As most of the world emerges from lockdowns, the way we shop is also changing. Post pandemic, most people are consciously avoiding paying&nbsp;through cash.

Customers are&nbsp;making the most of technology and paying digitally through apps.

In Russia, shoppers are increasingly purchasing goods with just a turn of their heads as they embrace&nbsp;facial payment technology. It&nbsp;has been launched in multiple supermarkets and&nbsp;cafes in Moscow, where customers can avail 20 per cent discount on its use.

The new technology is the future of shopping as it does not require even QR codes for payment. Customers simply need to download the app and&nbsp;enter their&nbsp;biometric information.

<a href="https://www.wionews.com/videos/gravitas-the-future-of-shopping-374366">Watch |</a>

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-the-future-of-shopping-374366/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The uptake of this technology is promising.&nbsp;The X-5 group,&nbsp;Russia's leading food retailer&nbsp;was the first to come up with this technology.

Earlier this month, it joined forces with Russia's state giant Sberbank to roll out this technology in 52 of its supermarkets inspiring smaller stores to do the same.

According to&nbsp;Mikhail Kucherenkov,&nbsp;head of the X-5 group innovation lab,&nbsp;"There are currently more than 5,500 self-checkouts equipped with the facial recognition module. We're planning a rollout throughout the entire country in the near future. "

How does the technology really work?

Facial recognition is a biometric technology used to identify an individual.

A facial image&nbsp;technique makes it possible to authenticate one's identity or&nbsp;check if an individual is who he or she claims to be.

A person's face is compared to an existing image in a database which in return helps to identify the individual. Every little detail is taken into consideration.

The base of the ears,&nbsp;the distance between the two pupils,&nbsp;the shape of the nose, eyebrows and mouth, even the skin grain.

Originally this method was used to fight crime but now -- it is being used to access bank accounts and&nbsp;social media platforms.

Privacy concerns

With rising popularity,&nbsp;there are also growing security and&nbsp;privacy concerns.

In&nbsp;countries without personal freedoms,&nbsp;where governments have&nbsp;no limits to the use of technology,&nbsp;facial recognition could be used to spy upon&nbsp;the citizens.

Ultimately facial recognition data gets stored in servers, and as with any other computer system, it is vulnerable to hackers who&nbsp;can use the data to commit identity fraud.

There is a lack of regulation and no consistent legal framework for its use and limits. Nobody knows what businesses adopting facial recognition are doing.

The coronavirus pandemic has had an adverse impact on shopping across the globe. The restrictions imposed on shopping and safety concerns raised by health authorities during the pandemic has forced several people to embrace e-commerce.

The coronavirus pandemic has had an adverse impact on shopping across the globe. The restrictions imposed on shopping and safety concerns raised by health authorities during the pandemic has forced several people to embrace e-commerce. As most of the world emerges from lockdowns, the way we shop is also changing. Post pandemic, most people are consciously avoiding paying through cash. Customers are making the most of technology and paying digitally through apps. In Russia, shoppers are increasingly purchasing goods with just a turn of their heads as they embrace facial payment technology. It has been launched in multiple supermarkets and cafes in Moscow, where customers can avail 20 per cent discount on its use. The new technology is the future of shopping as it does not require even QR codes for payment. Customers simply need to download the app and enter their biometric information. Watch | The uptake of this technology is promising. The X-5 group, Russia's leading food retailer was the first to come up with this technology. Earlier this month, it joined forces with Russia's state giant Sberbank to roll out this technology in 52 of its supermarkets inspiring smaller stores to do the same. According to Mikhail Kucherenkov, head of the X-5 group innovation lab, "There are currently more than 5,500 self-checkouts equipped with the facial recognition module. We're planning a rollout throughout the entire country in the near future. " How does the technology really work? Facial recognition is a biometric technology used to identify an individual. A facial image technique makes it possible to authenticate one's identity or check if an individual is who he or she claims to be. A person's face is compared to an existing image in a database which in return helps to identify the individual. Every little detail is taken into consideration. The base of the ears, the distance between the two pupils, the shape of the nose, eyebrows and mouth, even the skin grain. Originally this method was used to fight crime but now -- it is being used to access bank accounts and social media platforms. Privacy concerns With rising popularity, there are also growing security and privacy concerns. In countries without personal freedoms, where governments have no limits to the use of technology, facial recognition could be used to spy upon the citizens. Ultimately facial recognition data gets stored in servers, and as with any other computer system, it is vulnerable to hackers who can use the data to commit identity fraud. There is a lack of regulation and no consistent legal framework for its use and limits. Nobody knows what businesses adopting facial recognition are doing.

Smile-to-pay: Shoppers turn to facial payment technology

American business magnate and Microsoft co-founder Bill Gates on Tuesday praised India for digital payments policies and said that India has built an ambitious platform for digital payments, including a system for sending rupees between any bank or smartphone app.

Bill Gates was speaking at the Singapore Fintech Festival on this day, where he lauded India's financial inclusion policies — especially the "ambitious" platforms for money transfer and identification — which he said will bring down the "cost and friction of money distribution" to the downtrodden in India.

“If people are going to study one country right now, other than China, I’d say they should look at India,” Gates said at the Singapore Fintech Festival on Tuesday. “Things are exploding there and innovation around that system is phenomenal.”

"India is a great example. They developed a lot of technologies that won't be possible for other countries. The role of the Gates Foundation as an advocate for those who don't have access today is to make sure there are technical standards, including open-source software and the digital identification systems, not just for financial activities but also for health, voting, and education," Gates said.

India's digital payment system got a major boost in 2016 due to demonetisation, accompanied by a boom in smartphones and cheap wireless data.

(With inputs from agencies)

American business magnate and Microsoft co-founder Bill Gates on Tuesday praised India for digital payments policies and said that India has built an ambitious platform for digital payments, including a system for sending rupees between any bank or smartphone app.

American business magnate and Microsoft co-founder Bill Gates on Tuesday praised India for digital payments policies and said that India has built an ambitious platform for digital payments, including a system for sending rupees between any bank or smartphone app. Bill Gates was speaking at the Singapore Fintech Festival on this day, where he lauded India's financial inclusion policies — especially the "ambitious" platforms for money transfer and identification — which he said will bring down the "cost and friction of money distribution" to the downtrodden in India. “If people are going to study one country right now, other than China, I’d say they should look at India,” Gates said at the Singapore Fintech Festival on Tuesday. “Things are exploding there and innovation around that system is phenomenal.” "India is a great example. They developed a lot of technologies that won't be possible for other countries. The role of the Gates Foundation as an advocate for those who don't have access today is to make sure there are technical standards, including open-source software and the digital identification systems, not just for financial activities but also for health, voting, and education," Gates said. India's digital payment system got a major boost in 2016 due to demonetisation, accompanied by a boom in smartphones and cheap wireless data. (With inputs from agencies)

Bill Gates lauds Indian digital innovations, calls it a country to study besides China

The Reserve Bank of India (RBI) plans to make online payment system National Electronic Funds Transfer (NEFT) available round-the-clock in a bid to boost digital transactions.

At present, the transfer of funds via NEFT is dependent on bank working hours.&nbsp;

The facility of electronic transfer of funds is available from 8 am to 7 pm on all working days of the week, except the second and fourth Saturdays in a month.&nbsp;

The NEFT system is used for fund transfers up to Rs two lakh."As mentioned in the Payment System Vision 2021 document, the Reserve Bank will make available the NEFT system on a 24x7 basis from December 2019.&nbsp;

This is expected to revolutionise the retail payments system of the country," the RBI said in a statement on Wednesday.

Last month, the banking regulator had scrapped the levy on online transactions such as NEFT to make the transfer of funds cheaper.

The RBI also proposed the creation of a central payment fraud registry that will track banking fraud. At present, there is a Central Fraud Monitoring Cell of the central bank.

Payment system companies will be provided access to the registry for near-real-time fraud monitoring and the aggregated fraud data will be published to educate customers on emerging risks.&nbsp;

A detailed framework in this regard will be put in place by the end of October, said the RBI.

"With the digital payment ecosystem making substantial progress in terms of growth of payment infrastructure as well as volume and value of digital payment transactions, fraud risk monitoring and management by the stakeholders have assumed importance. It has always been the endeavour of the Reserve Bank to improve the confidence of customers in the payment systems," it said.

The Reserve Bank of India (RBI) plans to make online payment system National Electronic Funds Transfer (NEFT) available round-the-clock in a bid to boost digital transactions.

The Reserve Bank of India (RBI) plans to make online payment system National Electronic Funds Transfer (NEFT) available round-the-clock in a bid to boost digital transactions. At present, the transfer of funds via NEFT is dependent on bank working hours. The facility of electronic transfer of funds is available from 8 am to 7 pm on all working days of the week, except the second and fourth Saturdays in a month. The NEFT system is used for fund transfers up to Rs two lakh."As mentioned in the Payment System Vision 2021 document, the Reserve Bank will make available the NEFT system on a 24x7 basis from December 2019. This is expected to revolutionise the retail payments system of the country," the RBI said in a statement on Wednesday. Last month, the banking regulator had scrapped the levy on online transactions such as NEFT to make the transfer of funds cheaper. The RBI also proposed the creation of a central payment fraud registry that will track banking fraud. At present, there is a Central Fraud Monitoring Cell of the central bank. Payment system companies will be provided access to the registry for near-real-time fraud monitoring and the aggregated fraud data will be published to educate customers on emerging risks. A detailed framework in this regard will be put in place by the end of October, said the RBI. "With the digital payment ecosystem making substantial progress in terms of growth of payment infrastructure as well as volume and value of digital payment transactions, fraud risk monitoring and management by the stakeholders have assumed importance. It has always been the endeavour of the Reserve Bank to improve the confidence of customers in the payment systems," it said.

Reserve Bank of India to make NEFT available 24x7 for encouraging digital payments

&ldquo;The recommendations aim to strengthen the ecosystem to promote digital payments with a focus on reaching financially and socially excluded groups,&rdquo; the report said.

The committee said that it had studied the domestic scenario and drew on the best practices in the developed world in understanding the trajectory of development in payments industry and various interventions undertaken to promote digital payments.

Here are the 13 recommendations by the committee:

1. Make regulation of payments independent from the function of central banking:

The Committee weighed two options on how best this be implemented: (i) create a&nbsp;new payments regulator, or (ii) make the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI more independent. While both&nbsp;options would serve the intended objective, the Committee recommends that the BPSS be given an independent status which it today lacks by being a sub-committee of the Central Board of RBI. The statutory status of the new Board, within the overall structure of RBI, called Payments Regulatory Board (PRB) should be enshrined in the Payments and Settlement Systems Act, 2007 &ndash; Implementation by MoF: Finalisation of structure of PRB may be done in 30 days.

&nbsp;

2. Update the current Payments and Settlement Systems Act, 2007:

To include explicit mandate for (i) competition and innovation, (ii) open access and interoperability, (iii) consumer protection including penalties and independent appeal mechanism, (iv) regulations on systemic risks, (v) data protection and security and (v) a process of regulatory governance. The Committee has provided drafting instructions for the new Payments and Settlement Systems Act and this may be initiated at the earliest &ndash; Implementation by MoF: Finalisation of amendment bill and placing the same before the Union Cabinet may be done 30 days.

&nbsp;

3. Promote digital payments and receipts within Government:&nbsp;

By (i) adopting digital payments for all its needs, (ii) withdraw all charges levied by Government department and utilities on digital payments and bear the cost of such transactions, (iii) mandate government departments and agencies to provide option to consumers to pay digitally, (iv) incentivise consumers to make payments (including payment of fines and penalties) to Government electronically by giving a discount or cash back, (v) enable consumers to make payments (including taxes) to Government through suitable digital means like cards and wallets, (vi) special emphasis to promote digital payments for recurring low value transactions and (vii) reduce custom duties on payments acceptance equipment.&nbsp;Implementation agencies listed in recommendation section. Steps may be initiated in 30 days and reviewed fortnightly.

4. Create a fund proposed as DIPAYAN from savings generated from cash-less transactions to expand digital payments. Build audit capability to measure savings &ndash; Implementation by MoF, Ministry of Social Justice, Ministry of tribal Affairs and Ministry of Development of North Eastern Region. A time period of 60 days may be considered for initiating implementation by user agencies.

5. Create a ranking and reward framework to encourage and recognise government departments, State Governments, districts and panchayats and other market participants who lead the efforts on enabling digital payments &ndash; Implementation by NITI Aayog along with State Governments. Development of the framework maybe achieved in 60-90 days.

6. Implement other measures to promote digital payments including (i) promoting Aadaar based eKYC and paperless authentication (including where Permanent Account Number (PAN) has not been obtained), (ii) providing disincentives for usage of cash and (iii) creating awareness and transparency on cost of cash &ndash; Implementation by MoF, UIDAI, CBDT, Telecom Regulatory Authority of India (TRAI), Ministry of HRD, DoPT and RBI. May be initiated over 60-90 days.

7. Consider outsourcing the function of operation of payment systems like Real Time Gross Settlement (RTGS) and National Electronic Fund Transafer (NEFT). While moving RTGS to a separate operator is not envisaged for now &ndash; a cost benefit analysis may be initiated as an initial step. Overtime, multiple payment system operators should be encouraged and payment systems should be operated by market entities &ndash; Consultation paper may be released over 180 days.

8. Upgrade payment systems like RTGS and NEFT to operate on 24x7 basis in due course of time. RBI should progressively increase their timings over due course &ndash; A consultation paper may be released over 90 days.

9. Allow non-bank PSPs to directly access payment systems &ndash; Regulations may be released for consultation over 60 days.

10. Require NPCI, to be payments centric in its ownership and objectives. Ownership of NPCI should be diversified widely to include more banks and include non-banks. Its Board should be represented by majority public interest directors and include shareholder directors. NPCI should be allowed to function independently &ndash; Regulations may be released for consultation over 60 days.

11. Enable payments to be inter-operable between bank and non-banks as well as within non-banks. Mobile number and Aadhaar based fully inter-operable payments should be prioritised &ndash; NPCI may enable this on its platforms over 60 days.

12. Create a formal mechanism to enable innovations and new business models &ndash; Consultation paper may be released over 90-120 days.&nbsp;

13. Implement other measures to promote digital payments including issuing regulations on Systemically Important Payment System (SIPS) and Systemically Important Financial Institutions (SIFIs), growing acceptance network, enabling faster and cheaper credit and promoting cross border payments &ndash; Regulations may be released for consultation over 60-180 days. The RBI may within two weeks of releasing this Report, develop a comprehensive metric to quantitatively measure and monitor the enhancement of digital payment services in India.

(To learn more read <a href="http://www.zeebiz.com/">zeebiz.com</a>)

The committee to review the framework related to digital payments presented its report to the government Tuesday

“The recommendations aim to strengthen the ecosystem to promote digital payments with a focus on reaching financially and socially excluded groups,” the report said. The committee said that it had studied the domestic scenario and drew on the best practices in the developed world in understanding the trajectory of development in payments industry and various interventions undertaken to promote digital payments. Here are the 13 recommendations by the committee: 1. Make regulation of payments independent from the function of central banking: The Committee weighed two options on how best this be implemented: (i) create a new payments regulator, or (ii) make the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI more independent. While both options would serve the intended objective, the Committee recommends that the BPSS be given an independent status which it today lacks by being a sub-committee of the Central Board of RBI. The statutory status of the new Board, within the overall structure of RBI, called Payments Regulatory Board (PRB) should be enshrined in the Payments and Settlement Systems Act, 2007 – Implementation by MoF: Finalisation of structure of PRB may be done in 30 days. 2. Update the current Payments and Settlement Systems Act, 2007: To include explicit mandate for (i) competition and innovation, (ii) open access and interoperability, (iii) consumer protection including penalties and independent appeal mechanism, (iv) regulations on systemic risks, (v) data protection and security and (v) a process of regulatory governance. The Committee has provided drafting instructions for the new Payments and Settlement Systems Act and this may be initiated at the earliest – Implementation by MoF: Finalisation of amendment bill and placing the same before the Union Cabinet may be done 30 days. 3. Promote digital payments and receipts within Government: By (i) adopting digital payments for all its needs, (ii) withdraw all charges levied by Government department and utilities on digital payments and bear the cost of such transactions, (iii) mandate government departments and agencies to provide option to consumers to pay digitally, (iv) incentivise consumers to make payments (including payment of fines and penalties) to Government electronically by giving a discount or cash back, (v) enable consumers to make payments (including taxes) to Government through suitable digital means like cards and wallets, (vi) special emphasis to promote digital payments for recurring low value transactions and (vii) reduce custom duties on payments acceptance equipment. Implementation agencies listed in recommendation section. Steps may be initiated in 30 days and reviewed fortnightly. 4. Create a fund proposed as DIPAYAN from savings generated from cash-less transactions to expand digital payments. Build audit capability to measure savings – Implementation by MoF, Ministry of Social Justice, Ministry of tribal Affairs and Ministry of Development of North Eastern Region. A time period of 60 days may be considered for initiating implementation by user agencies. 5. Create a ranking and reward framework to encourage and recognise government departments, State Governments, districts and panchayats and other market participants who lead the efforts on enabling digital payments – Implementation by NITI Aayog along with State Governments. Development of the framework maybe achieved in 60-90 days. 6. Implement other measures to promote digital payments including (i) promoting Aadaar based eKYC and paperless authentication (including where Permanent Account Number (PAN) has not been obtained), (ii) providing disincentives for usage of cash and (iii) creating awareness and transparency on cost of cash – Implementation by MoF, UIDAI, CBDT, Telecom Regulatory Authority of India (TRAI), Ministry of HRD, DoPT and RBI. May be initiated over 60-90 days. 7. Consider outsourcing the function of operation of payment systems like Real Time Gross Settlement (RTGS) and National Electronic Fund Transafer (NEFT). While moving RTGS to a separate operator is not envisaged for now – a cost benefit analysis may be initiated as an initial step. Overtime, multiple payment system operators should be encouraged and payment systems should be operated by market entities – Consultation paper may be released over 180 days. 8. Upgrade payment systems like RTGS and NEFT to operate on 24x7 basis in due course of time. RBI should progressively increase their timings over due course – A consultation paper may be released over 90 days. 9. Allow non-bank PSPs to directly access payment systems – Regulations may be released for consultation over 60 days. 10. Require NPCI, to be payments centric in its ownership and objectives. Ownership of NPCI should be diversified widely to include more banks and include non-banks. Its Board should be represented by majority public interest directors and include shareholder directors. NPCI should be allowed to function independently – Regulations may be released for consultation over 60 days. 11. Enable payments to be inter-operable between bank and non-banks as well as within non-banks. Mobile number and Aadhaar based fully inter-operable payments should be prioritised – NPCI may enable this on its platforms over 60 days. 12. Create a formal mechanism to enable innovations and new business models – Consultation paper may be released over 90-120 days. 13. Implement other measures to promote digital payments including issuing regulations on Systemically Important Payment System (SIPS) and Systemically Important Financial Institutions (SIFIs), growing acceptance network, enabling faster and cheaper credit and promoting cross border payments – Regulations may be released for consultation over 60-180 days. The RBI may within two weeks of releasing this Report, develop a comprehensive metric to quantitatively measure and monitor the enhancement of digital payment services in India. (To learn more read zeebiz.com)

Watal Committee on Digital Payments: Here are 13 recommendations

To promote digital payments post demonetisation, the Indian government will give daily, weekly and mega cash awards totalling Rs 340 crore for consumers as well as merchants beginning the Christmas Day.

Announcing &#39;Lucky Grahak Yojana&#39; and &#39;Digi Dhan Vyapar Yojana&#39;, Niti Aayog CEO Amitabh Kant said both the schemes will cover small transactions between Rs 50 and Rs 3,000 to encourage every section of the society to move to digital payments.

Terming it a &#39;Christmas Gift&#39; to the country, Kant said the first draw will happen on December 25 and the mega draw on April 14, the birth anniversary of B R Ambedkar.

National Payment Corporation of India (NPCI) will announce 15,000 winners of Rs 1,000 each for next 100 days, starting December 25. There will be 7,000 weekly awards each for consumers and merchants.

&quot;Focus of Lucky Grahak and Digi-Dhan Yojana is on poor, middle class and small businesses so as to bring them into digital payments revolution,&quot; said the Niti Aayog CEO.

As per estimates, only 5 per cent Indians use digital payment modes.

For consumers, there will mega awards of Rs 1 crore, Rs 50 lakh and Rs 25 lakh. In case of merchants, it has been fixed at Rs 50 lakh, Rs 25 lakh and Rs 5 lakh.

Estimated expenditure of the scheme to incentivize digital payments is Rs 340 crore, Kant said.

Giving details on digital transactions post demonetisation of old Rs 500/1000 notes, he said PoS transactions witnessed a jump of 95 per cent since November 8 (till December 7).

RuPay Card transactions were up 316 per cent and e-wallet 271 per cent, while both UPI about and USSD witnessed increase of about 1,200 per cent each.

All forms of transactions through UPI, USSD, Aadhar Enabled Payment System (AEPS) and RuPay cards will be eligible for lucky draws.

Niti Aayog also said the scheme is not applicable for transactions done through private credit cards and e-wallets of private companies.

(PTI)

The move aims to promote digital payment modes which are currently used by only 5 per cent Indians

To promote digital payments post demonetisation, the Indian government will give daily, weekly and mega cash awards totalling Rs 340 crore for consumers as well as merchants beginning the Christmas Day. Announcing 'Lucky Grahak Yojana' and 'Digi Dhan Vyapar Yojana', Niti Aayog CEO Amitabh Kant said both the schemes will cover small transactions between Rs 50 and Rs 3,000 to encourage every section of the society to move to digital payments. Terming it a 'Christmas Gift' to the country, Kant said the first draw will happen on December 25 and the mega draw on April 14, the birth anniversary of B R Ambedkar. National Payment Corporation of India (NPCI) will announce 15,000 winners of Rs 1,000 each for next 100 days, starting December 25. There will be 7,000 weekly awards each for consumers and merchants. "Focus of Lucky Grahak and Digi-Dhan Yojana is on poor, middle class and small businesses so as to bring them into digital payments revolution," said the Niti Aayog CEO. As per estimates, only 5 per cent Indians use digital payment modes. For consumers, there will mega awards of Rs 1 crore, Rs 50 lakh and Rs 25 lakh. In case of merchants, it has been fixed at Rs 50 lakh, Rs 25 lakh and Rs 5 lakh. Estimated expenditure of the scheme to incentivize digital payments is Rs 340 crore, Kant said. Giving details on digital transactions post demonetisation of old Rs 500/1000 notes, he said PoS transactions witnessed a jump of 95 per cent since November 8 (till December 7). RuPay Card transactions were up 316 per cent and e-wallet 271 per cent, while both UPI about and USSD witnessed increase of about 1,200 per cent each. All forms of transactions through UPI, USSD, Aadhar Enabled Payment System (AEPS) and RuPay cards will be eligible for lucky draws. Niti Aayog also said the scheme is not applicable for transactions done through private credit cards and e-wallets of private companies. (PTI)

India's Niti Aayog announces awards to spur digital payments

India&#39;s finance minister Arun Jaitley on Thursday announced a raft of measures aimed at encouraging&nbsp;people to make digital transactions.

Latest figures show digital payments have seen a jump since the Indian government decided to ban the old notes on November 8.&nbsp;Digital transactions have jumped from 20 per cent to 40 per cent in the last 30 days.

Pushing for more digital payment, he also announced a 0.75 per cent discount while buying fuel by debit/credit cards or through digital wallets.&nbsp;

Buying general, life insurance policies from government-controlled insurers&#39; websites and premium to get 10% and 8% discount, Jaitley said.

He also announced a 5 per cent&nbsp;discount for railway facilities like catering, retiring rooms if one uses digital payment system.

Announcing 11 decisions to promote digital transactions, Jaitley said that monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5 per cent discount from January 1.

&nbsp;

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India&#39;s finance minister Arun Jaitley announces raft of measures to incentivise digital transaction (WION)
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Online booking of railway tickets will get Rs 10 lakh accident insurance. Those using digital mode to pay for railway catering, accommodation, retiring room will be entitled to discount of 5 per cent.

Briefing the media corps at New Delhi on Thursday, Jaitley said two point of sale (PoS) machines would be installed at one lakh (100,000) villages across the country.

Earlier in the day, the government announced it would waive service tax for debit or credit card payments&nbsp;up to Rs 2,000.&nbsp;

&ldquo;Today its one month since PM announced demonetisation decision and in last 30 days we have seen major changes in economy,&rdquo; Jaitley said.

(WION with inputs from PTI)

&nbsp;

India's finance minister Arun Jaitley made a raft of announcements to encourage digital transactions

India's finance minister Arun Jaitley on Thursday announced a raft of measures aimed at encouraging people to make digital transactions. Latest figures show digital payments have seen a jump since the Indian government decided to ban the old notes on November 8. Digital transactions have jumped from 20 per cent to 40 per cent in the last 30 days. Pushing for more digital payment, he also announced a 0.75 per cent discount while buying fuel by debit/credit cards or through digital wallets. Buying general, life insurance policies from government-controlled insurers' websites and premium to get 10% and 8% discount, Jaitley said. He also announced a 5 per cent discount for railway facilities like catering, retiring rooms if one uses digital payment system. Announcing 11 decisions to promote digital transactions, Jaitley said that monthly and seasonal suburban railway tickets purchased through digital mode will get 0.5 per cent discount from January 1. India's finance minister Arun Jaitley announces raft of measures to incentivise digital transaction (WION) × Online booking of railway tickets will get Rs 10 lakh accident insurance. Those using digital mode to pay for railway catering, accommodation, retiring room will be entitled to discount of 5 per cent. Briefing the media corps at New Delhi on Thursday, Jaitley said two point of sale (PoS) machines would be installed at one lakh (100,000) villages across the country. Earlier in the day, the government announced it would waive service tax for debit or credit card payments up to Rs 2,000. “Today its one month since PM announced demonetisation decision and in last 30 days we have seen major changes in economy,” Jaitley said. (WION with inputs from PTI)

Demonetisation: Fuel, train tickets to be cheaper on digital payment

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