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banking digital payments fintech mobile wallets

The UPI vs Wallets war: Who is the winner?

Choose the best payments platform for your business

Recent research suggests that between 2021-22 & 2024-25, UPI will dominate payments space with 59% payment transactions. Interestingly, UPI clocked a whopping 1.31 billion transactions in December 2019. Further, UPI has been dethroning popular payments medium like Wallets, Digital Cards, etc. In other words, UPI vs Wallets debate is a reality.

From the non-requirement of an intermediary to safe and secure transactions, UPI differs from wallets on a number of aspects.

UPI vs Wallets

In the course of this blog, let us learn the crucial differences between UPI and Wallets.

UPI vs Wallets Difference 1: Intermediary involvement/ Money Source

In the case of wallets, money is transferred from the sender’s wallet to the receiver’s wallet. The user has to load money from their respective bank account to the wallet before making a payment. Hence, the wallet acts as the intermediary in the money transfer between individuals. It involves a complex transaction process.

On the other hand, UPI involves direct bank to bank money transfer. There is no involvement of an intermediary, thereby reducing the complex wallet loading step. Hence, you can make the funds transfer with a single step.

UPI vs Wallets Difference 2: Account Identity

In the case of the wallet, the mobile number is the account identification entity. Before you make a transaction, the identity of the sender and the receiver is verified by the wallet application.

Contrarily, in the case of UPI, the VPA (Virtual Payment Address) acts as the payment identifier. It takes the form of:

ex: ******@ (application customised name) -> devi@okicici

UPI vs Wallets Difference 3: Interoperability

In the case of wallets, the sender and the receiver have to be registered with the same wallet app to make a transaction. For example, if the sender uses a Paytm wallet, the receiver should have the Paytm wallet to receive the money.

In comparison, the UPI transaction takes place between any two bank accounts, irrespective of the UPI application used to make the transaction. For example, using Google Pay, a sender can transfer money to a receiver who has Phonepe installed on his phone ( using his Phonepe VPA ).

UPI vs Wallets Difference 4: Transaction Limit

Wallets come with a low transaction limit. For example, for non-KYC customers, the transaction limit is 10k/month. And for KYC customers, the transaction limit is 20k/month.

On the other hand, for UPI transactions, there is a limit of 1 lakh transactions/day. However, the upper limit varies from bank to bank, i.e, from 10k to 1 lakh.

UPI vs Wallets Difference 5: Safety

UPI provides a platform for a safe and secure transaction. In other words, every UPI transaction happens with a 4 or 6 digit M-PIN (mobile pin). The MPIN is set up during the initial registration on the UPI App.

Comparatively, there is a chance of security compromise in the case of wallets due to the indirect involvement of the bank. It is basically a wallet to wallet money transfer.

Summary:

Top 5 differences between UPI and Wallets

  1. UPI comes with the direct bank to bank transfer while wallet transactions involve payments from one wallet to another with the indirect involvement of the bank.
  2. The wallet makes use of the mobile number for account identity while UPI makes use of the VPA.
  3. The UPI transfer happens between 2 bank accounts irrespective of the type of UPI app use whereas wallet transfer requires the installation of the same wallet app for money transfer.
  4. UPI transaction limit is 1 lakh per transaction while the wallet transaction is limited to 10k/month for non-KYC customers.
  5. UPI transaction requires an MPIN while wallet transaction may or may not involve an OTP.

 

Further reading:

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

 

Categories
banking digital payments fintech

How to make UPI fund transfer? These 5 awesome channels should not be missed

Best channels for UPI transaction

Are you facing payment issues while making cash payments? But, are you struggling to choose between the best digital alternative? Don’t worry, UPI channels are here to your rescue. Introduced in the year 2016, UPI has positively altered the payments ecosystem in the country by bringing in a wave of digitization.

UPI’s popularity stems from many factors. Firstly, UPI simplifies transactions by making use of the VPA (virtual payment address). It avoids the complex credential entry while making card transactions. Secondly, with the launch of UPI 2.0, features like QR & Signed Intent and Invoice in the inbox has scaled up the UPI security.

UPI Channels

 

In the course of the blog, let us learn the different channels for making a UPI transaction.

UPI Channel 1: Through VPA (Virtual Payment Address)

Money transfer through the VPA is the elementary method of transferring money through the UPI platform. VPA stands for Virtual Payment Address. It is a unique identifier that is required to map the payee details before initiating a financial transaction. A single identifier reduces the tedious task of entering bank details like bank account number, CVV, etc.

VPA format: User-defined name@bank/service provider

Ex: dheeraj@paytm or dheeraj@icicibank

UPI Channel 2: Account number + IFSC

Money transfer through the Account number + IFSC  is the secondary method of transferring money through the UPI platform. In case you are not aware of the payee’s VPA, you can still make the payment by making use of the account number and the IFSC combination.

The account number is the 12 digit number of the payee’s bank. IFSC code is the 11 digit alphanumeric number provided by the RBI for accurate identification of banks in India.

In your UPI app, search for the Bank Transfer option. A window to enter the Account number and IFSC opens up. After the verification of the payee, you can start making the money transfer.

UPI Channel 3: Mobile Number + MMID

Money transfer through mobile number verification is the third method to do UPI money transfers. It comes with the advantage of filtering out fraudulent numbers in the first go. You can be assured that your money reaches the right destination.

To transfer money through mobile number, open the Phone number tab on any UPI app. Enter the payee’s mobile number. You get a ‘payee verified’ or ‘payee not verified’ message to proceed with your transaction.

UPI Channel 4: Aadhaar Number

If you are not able to make transactions using the above 3 methods, you can use the Aadhaar method to make a UPI transaction. But, this feature is not available on all the UPI apps.

On the Aadhaar number enabled UPI app, go to the send money option. From there, select the Send Money/ Payee address type option. Select Aadhaar number from the dropdown. Subsequently, key in the Aadhaar number of the payee before making the transactions.

UPI Channel 5: Collect/ Pull Money basis VPA

Using UPI, you can send as well as request money from your acquaintances. This feature keeps a track of the money owed to you by your peers.

To access this UPI channel, go to the Collect Money option in your UPI App. Enter the VPA address of the payee along with the collection amount. Also, there is an option to enter the time when you want to collect the amount.

 

 

References:

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

Categories
banking digital payments

The ultimate winner in the UPI vs Digital Cards battle

UPI and Digital Cards have taken the payments ecosystem to the next level

 

Between October 2018 and January 2019, 67 million debit cards went off the circulation in the economy market. Also, as per statistics, around 6 lakh crore was spent using credit cards, an increase of 30%. On the other hand, UPI clocked a whopping 1.31 billion transactions in December 2019. This has opened up a debate on UPI vs Digital Cards.

UPI, introduced in 2016 is an instant digital payments ecosystem. The ease of transactions coupled with security features like QR and signed intent, Invoice, etc makes it more attractive vis a vis credit and debit cards.

UPI vs Digital Cards

In the course of this blog, let us discuss the distinguishing features of UPI vs Digital Cards debate.

UPI vs Digital Cards Feature 1: Ease of transactions

UPI has an edge over credit/debit cards when it comes to ease of transactions. In case of a credit or a debit card, card details like card number, CVV, card expiry date, etc is entered before making a transaction. The enormous details make the transaction lengthy and cumbersome.

Contrarily, UPI transactions take place upon entering the single information, VPA (Virtual Payment Address) of the payee. Hence, UPI transactions happen in a hassle-free and simple manner. There is no complexity like entering the card details.

UPI vs Digital Cards Feature 2: Cash withdrawal feature

Debit cards have an upper hand when it comes to withdrawing money from an Automated Teller Machine (ATM). Money withdrawal is available 24*7 from any corner of the country. Hence, this feature acts as an emergency cushion for people in the need of money.

Comparatively, UPI does not come with a cash withdrawal feature. Money transfer happens from bank to bank in an online fashion.  

UPI vs Digital Cards Feature 3: Level of compliance

Digital cards come with a high level of compliance formalities. For example, to avail a credit card, one needs to have a good credit score. Your credit score helps the banking authorities and companies in processing your credit card request.

On the other hand, UPI does not come with complex compliance formalities. Irrespective of your credit score, you can use UPI to make transactions with KYC verification and your mobile number registration.

UPI vs Digital Cards Feature 4: Refund feature

There are 3 parties in a credit card payment system. Customer, merchant and the intermediary bank ( customer’s bank ). In the case of refunds to the customer, the merchant has to directly deal with the customer’s bank.

While in the case of UPI transactions, merchant and buyer has direct contact. There is no role of an intermediary bank in facilitating the transactions. Hence, there is a reduction in the refund settlement time.

UPI vs Digital Cards Feature 5: Authorising requisite payment

In a credit card transaction system, the overdue amount is auto-debited from a customer’s bank account. Herein, a customer does not have control in authorizing the payment.

Contrarily, in a UPI transaction system, the customer is in full control of the money transfer. He/she can authorize send or receive money requests. Hence, the customer is in full control of the money transactions in the case of UPI.

UPI vs Digital Cards Feature 6: Support from banks

In the case of UPI transactions, banks have access to UPI, even if they don’t allow recurring payments on their systems. As a consequence, there is flexibility and ease of funds transfer.

In comparison, digital cards do not have access to recurring payments if the feature is not active at the bank’s end.

 

 

References:

  1. https://yourstory.com/2019/03/debit-card-numbers-falling-india-wqxk9uygzy
  2. https://www.instamojo.com/blog/credit-on-upi-the-next-big-thing/

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing Fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

 

 

 

Categories
banking digital payments

These 5 UPI security features will keep you asking for more

Learn these tips to do faster and secure transactions

Since its inception in 2016, UPI (Unified Payments Interface) continues to alter the digital payments ecosystem in India. Post the demonetization of Nov 2016, there has been an increasing demand for digital modes of transactions. UPI has commensurately filled up this requirement by offering faster and secure transactions. The money transfer or receive happens faster with the help of the sole information of VPA (virtual payment address). Further, UPI security features have garnered maximum attention since the beginning.

Statistics show that UPI transactions continue to increase by leaps and bounds. This showcases the increasing acceptability of UPI transactions for personal as well as commercial transactions. The transactions spiked to ₹2.02 trillion in December as compared to ₹1.89 trillion in November. Also, UPI touched 10% of India’s GDP since its inception in August 2016.

UPI Security features

There are numerous reasons for the popularity of UPI. One of the significant reasons could be attributed to the robust security features of UPI. It includes two-factor authentication, mobile number verification while registering, etc. Further, UPI 2.0 has brought in exciting security features like signed intent and QR and invoice in the inbox.

In the course of the blog, l will walk you through the security features of UPI in detail.

UPI Security feature 1: Binding with mobile number

This is a significant feature of UPI that brings in the first layer of security. UPI verification of the user happens during the initial login and registration. The UPI app binds with your mobile number to verify your identity. In case, you change the phone or the number, you need to verify your identity again. This option ensures that your credentials stay safe in case of mobile threat or identity threat.

UPI Security feature 2: Two-factor authentication

The second security feature comes into effect during the transaction process. While registering on UPI, users are given an option to set an MPIN (Mobile PIN). It is a 4 or 6 digit number set up while registering on the UPI app. You can generate it by clicking on create/generate MPIN tab and entering the debit card details (last six digits and card expiry details). In the course of transactions, this MPIN is used to authenticate a transaction. You can also change the MPIN if you forget it, using the same create/generate MPIN tab.  

UPI Security feature 3: Signed intent and QR

With a quick response code (QR) and signed intent option, users can check the authenticity of the merchants. Users have the option to check if the merchants are UPI verified or not. In case the merchant is not UPI verified, users get information via notifications. This security feature ensures that QR code tampering frauds remain low. Hence, signed intent and QR features bring in secure and tamper-proof transactions.

UPI Security feature 4: Invoice in the inbox

This is a noteworthy and secure feature addition to the UPI. Before initiating your payment to the merchant, it is possible to view the generated invoice. This brings in security by verifying the credentials of the transacting merchant. In other words, this feature safeguards you from fraudulent transactions.

With the launch of UPI 2.0, the security features are at a top-level. Based on the user requirements, the security features keep evolving and makes UPI one of the most sought after UPI feature.

 

References:

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

Categories
banking digital payments

Meet the next generation payments platform: UPI 2.0 is the name

Dive into the next level of UPI payments with these amazing features

The end of FY 2019 was a landmark year for UPI transactions with a whopping 10 billion transactions. On the other hand, UPI crossed the 1 billion mark in a time span of three years. Since its inception in 2016, UPI grew by leaps and bounds with UPI 2.0 being the latest update on the instant payment transfer system.

The UPI based transaction comes with the benefit of peer to peer transactions from a single platform. Irrespective of the banks, money transfer occurs directly from one account to the other with the help of a virtual payment address (VPA).

UPI 2.0

UPI 2.0 is an upgraded version of Unified Payments Interface (UPI). It endorses enhanced features and improved security structure. Also, it puts forward an easy authentication process. The four core security features of UPI 2.0 centers around linking overdraft account on UPI, signed intent and QR, one-time mandate and invoice in the inbox.

In this blog, we shall learn the basic concepts surrounding UPI 2.0.

UPI 2.0 Feature 1: Linkage of overdraft account on UPI

On UPI 1.0, there is a linkage option to both current and savings accounts of the users. But, with UPI 2.0, an overdraft account of the user or business is also linkable. Overdraft account linkage brings in a flexible money transfer for businesses. Businesses can withdraw money or make transactions even when there is a money deficit in their bank account. It ensures that businesses are not cash-starved during lean reasons.

UPI 2.0 Feature 2: Signed Intent and QR

With a quick response code (QR) and signed intent option, users can check the authenticity of the merchants. Users have the option to check if the merchants are UPI verified or not. In case the merchant is not UPI verified, users get information via notifications. This security feature ensures that QR code tampering frauds are reduced. Hence, signed intent and QR features bring in secure and tamper-proof transactions. 

UPI 2.0 Feature 3: One-time mandate

The significant feature allows you to pre-authorize a payment transfer. For example, if you want your debit account to be automatically debited with a certain amount at a specified day of the month, you can set the transaction command on UPI 2.0. This feature eases the problem of a user forgetting to make the transfer every month.

UPI 2.0 Feature 4: Invoice in the inbox

This is a noteworthy and secure feature addition to the UPI. Before making your payment to the merchant, it is possible to view the generated invoice. This brings in security by verifying the credentials of the transacting merchant. In other words, this feature safeguards you from fraudulent transactions.

On the whole, UPI 2.0 brings in an innovative, safe and secure ecosystem for online payments. At present, major banks like SBI, ICICI, Kotak Mahindra Bank, Axis Bank, Federal Bank, etc have operationalized UPI 2.0 on its platform. Other banks are following suit. Nevertheless, UPI features keep evolving to enhance the peer to peer payment transfer ecosystem.

Reference:

https://www.ccavenue.com/article/NPCI-enhances-Fund-Transfer-through-the-launch-of-UPI.jsp

https://www.bankbazaar.com/savings-account/upi-and-upi-2-0.html

 

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

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banking digital payments Uncategorized

Everything you ever wanted to know about UPI Apps

Get these UPI apps on your phone and make your payments with just one click

Tired of waiting for online money transfer? If so, don’t worry, Unified Payments Interface (UPI) is here to your rescue. With the help of UPI, send and receive money in an instant, in a hassle-free manner. Further, there are a number of UPI Apps to make your transaction.

There are a number of UPI Apps catering to different banks and service providers. Hence, it brings in a simple, focused and structured approach to payment transfer.

UPI Apps
UPI Apps for smooth payment settlement

In this blog, I will walk you through the popular UPI Apps that make the payment settlement system smooth.

1. Phonepe

PhonePe is a popular payment app with the option of UPI connectivity. The most important feature is the option of an additional wallet link and non-necessity of initial login.

There is no option of mandatory login using the Phonepe App. One can directly login to the site using the website URL.

Also, Phonepe gives access to popular linked wallets like JioMoney, Airtel Money, Freecharge, etc.

Going ahead, Phonepe has an innovative feature of navigating between over 50 apps. This is possible without downloading the app on your mobile or updating the same.

2. BHIM App

BHIM App is the most popular UPI payment App. It has an interesting feature of making UPI transactions from different banks on a single platform. Interestingly, BHIM App at present is available in 13 languages.

In addition to, Send Money, Receive Money and Scan & Pay option, you can also check your pending transactions via BHIM App. There is also an option of raising complaints about the declined transactions.

Further, the built-in security feature allows you to block users who put forth illicit money requests. Also, the user privacy feature enables you to disable your first UPI Id in case of the generation of a secondary UPI Id.

Going ahead, you don’t have to worry about payment reminders or splitting bills. There is an option to set a payment reminder as well as split bill with multiple UPI users in an instant.

3. Paytm

Recently, Paytm has enabled BHIM UPI on its payment platform. It follows a simple setup process with the selection of the ‘UPI App’ option from the Paytm App. Once the bank account and mobile number are verified, you can set the MPIN to start the transactions. The UPI Id follows the format mobilenumber@paytm.

Further, on changing the mobile, the verification of the new mobile number is mandatory to use BHIM UPI on Paytm.

4. MobiKwik

MobiKwik has the distinction of being the first payment platform to launch UPI Payment through its own virtual payment address. Also, Mobikwik provides a platform for P2P payment. So far, Whatsapp and Google Tezz are the sole providers of the P2P payment option.

5. Airtel Payments Bank

Airtel Payments Bank is the first payment bank to enable BHIM UPI on its payment platform. Using this platform, one can make money transfer to both it’s online and offline clients.

6. Google Tez

Google Tez is one of the popular payment apps from Google. Unlike BHIM App, Google Tez does not call for Aadhaar verification. There is a direct linkage of bank account using details like name, account number, IFSC Code, etc. Also, Google Tez has a unique feature of AudioQR sharing directly from one mobile to another. Further, like BHIM UPI App, the amount is transferred from a bank account to another, thereby reducing the need for an intermediary wallet.

Going ahead, Google Tez is also expected to support Credit Cards, Debit Cards, and e-wallets. 

7. iMobile

This is a UPI interface offered by ICICI bank. The funds’ transfer can be carried out without incurring any transaction cost. In addition, one can set the time limit by which the money transfer should take place.

Nevertheless, the lone limitation of this UPI App is that it is compatible exclusively with Android phones at present.

8. Axis Pay

Axis Pay UPI provides all the essential features of UPI along with the unique feature of the UPI mandate. This feature enables automatic debit of the amount from your account on a prescheduled date.

9. SBI Pay

The UPI App from SBI comes with a flexible user interface. SBI is also planning for the web version along with MMID transactions.

10. BOB UPI

This is another secure UPI app from Bank of Baroda. With a stylish and sleek design of the user interface, it comes with all the essential features of a UPI app.

11. Chillr

Chillr app is an app by HDFC with a UPI payment facility. Like few UPI apps, Chillr also provides the option of adding multiple bank accounts on the same app. This eliminates the need to have multiple mobile banking applications for different banks.

12. Uber

Uber UPI has been launched with the intention of integrating existing Uber users to the UPI platform. Herein, the users have to link their bank account to the app and the transactions happen from bank to bank. Further, this feature is available exclusively for Android phones.

13. Freecharge

Freecharge is a digital payment app with  #OntheGo PIN Feature, Payment through Whatsapp Feature, QR Code Scan feature, etc.

Using the OntheGo PIN feature, the merchant transactions can be done in a hassle-free manner. Upon making payments, at the merchant’s side, a PIN is valid for 3 minutes. Once, you receive the payment, the transaction is completed within seconds.

Further, Freecharge has the option of payment feature through Whatsapp. It can be carried out by typing FC followed by selecting the name of the contact to whom money is being sent.

The added security feature of Freecharge is brought about by entering CVV or CV2 before making payments.

14. PayZapp

PayZapp is the mobile wallet app introduced by HDFC. The distinguishing feature of the app is its PIN on the signup to the app. Further, the transaction charges for PayZapp UPI transactions range from Rs. 3-5. The lone limitation of the app is that it is available solely on Android phones.

15. Pockets

ICICI powered E-wallet works both as a wallet cum shopping card. In other words, one can send and receive money from bank accounts as well as friends. Further, the ‘Touch and Pay’ feature with pockets enables you to make transactions with the swipe of a card.

Going ahead, the inbuilt customer support feature makes Pockets all-time reliable.

 

On the whole, UPI Apps provide a flexible way to transfer money without the hassle of entering complicated bank account details. Apps like BHIM UPI, Google Tez, SBI Pay, etc gives the option of transacting through multiple bank accounts from a single app. Going ahead, UPI is a technology that has the potential for exponential growth in the coming decades.

 

 

For more information, refer:

https://www.bankbazaar.com/ifsc/upi-payment-app.html

http://www.chillr.com/

 
https://medium.com/@usm36/best-upi-payment-app-ceca68ffbaac

 

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

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banking digital payments fintech Uncategorized

Everything you ever wanted to know about Rupay card

Rupay continues its winning run in the economy

Have you ever made an online payment? Have you ever felt the pinch of high transaction charges? If so, you are not alone. For example, international payment gateways like Visa and MasterCard charge high transaction fees. Further, in the case of Visa and MasterCard, banks pay a certain charge on joining the foreign payment gateway network. On the other hand, Rupay Card brings about a simplified payment transaction system in India.

 Launched in the year 2012 by the National Payments Corporation of India Ltd(NPCI), Rupay has revolutionized the payment ecosystem in the country with low transaction costs, nil joining fees, etc.

Rupay Card Basics
Everything you wanted to know about Rupay

In this blog, you will get answers to all your questions on the Rupay Card.

1. What is Rupay Card?

Rupay Card is an Indian variant of the card payment scheme as compared to international players like Visa and Mastercard. Introduced by the National Payments Corporation of India (NPCI) in the year 2012, Rupay is used for primarily domestic payments.

2. Features of Rupay

  • Inbuilt insurance coverage
  • Direct link with government schemes like Pradhan Mantri Jan Dhan Yojana
  • Regular cashback and merchant service benefits like fuel discounts
  • Free access to airport lounges

3. How to apply for a Rupay Card?

To avail a Rupay card, one needs to submit one’s id proof cum address proof along with two passport size photographs. All the public, private, regional cum cooperative banks issue Rupay cards in India. A form fill up at one’s branch along with the KYC requirements is the prerequisite for a Rupay card.

4. What are the transaction costs in Rupay?

As compared to international counterparts, Rupay comes with low transaction charges. For example, for a bank transaction of Rs. 2000, if Rupay charges Rs. 2.50, international payment systems charge Rs. 3.50.

5. Difference between Rupay Cards and international cards?

  • Transaction cost: As compared to international cards, Rupay comes with low operational costs.
  • Joining fees: There is a quarterly fee to be paid for joining the international card network as compared to nil in the case of  Rupay.
  • Security: Rupay is comparatively safer due to the limitation of its operation to India
  • Bank Network: Unlike Rupay, the international card network does not include small banks like rural and cooperative banks within its network.
  • International acceptance: Rupay is only acceptable within India as compared to Visa and Mastercard which is accepted internationally.

6. What are the Security features of Rupay?

While using  Rupay for a transaction, authentication happens with the entry of an OTP sent to the registered mobile number. Further, there is 256-bit encryption rendering Rupay difficult to hack.

7. Benefits of Rupay

  • Accidental insurance coverage
  • Low cost, easily accessible by people
  • Direct link with government schemes to avail added benefits
  • Faster bank transactions
  • Increases the popularity of digital payments in the Indian economy.

8. What are the variants of Rupay Cards?

On a higher level, Rupay can be classified as Credit, Debit and Pre-paid cards.

Based on the transaction limits, Rupay Credit card can be further classified as:

(a)Rupay Classic Credit Card: With an accidental insurance coverage up to Rs. 1 lakh

(b)Rupay Platinum Credit Card: With an accidental insurance coverage up to Rs. 2 lakh

(c)Rupay Select Credit Card: With an accidental insurance coverage up to Rs. 5 lakh

On the whole, Rupay continues its winning run in the Indian economy. Interestingly, post-2016 demonetization, the demand for digital payments and Rupay is increasing on a commensurate basis.

 

 

If you have liked the article, feel free to drop in your valuable feedback in the comments below. 

For more information refer:

https://www.bankbazaar.com/saving-schemes/all-that-you-need-to-know-about-rupay-debit-card.html

https://www.npci.org.in › product-overview › rupay-product-overview

https://www.rupay.co.in

For more blogs, visit https://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

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banking digital payments Financial intermediary payment gateway Uncategorized

Banking in India explained

Service your needs through the banking institutions

Confused with the choice of a banking institution for your business? Right kind of funding is important for the health of any business. In other words, funding at the appropriate time gives more freedom for creativity and innovation. A well-funded business has more leverage for expansion and growth.

In India, we have a number of banks catering to different customers. Also, we have a mix of public and private sector banks servicing a variety of needs.

Banking institutions
Banking institutions in India to service your needs

In the course of this blog, I will walk you through the different types of banking institutions in India.

BROAD CLASSIFICATION OF BANKS

1. SCHEDULED BANKS

Scheduled banks are included in the second schedule of RBI Act,1934. By being a scheduled bank, one acquires membership of the clearinghouse. Also, the banks can get loans from RBI at the bank rate. Any bank with a capital of more than 5 lakh qualifies as a scheduled bank. Further, scheduled banks keep a cash reserve ratio with the RBI.

2. NON-SCHEDULED BANKS

Non-scheduled banks are not part of the second schedule of RBI Act,1934. The capital requirement of a non-scheduled bank is less than 5 lakhs. Non-scheduled banks are not members of the clearinghouse. Also, they do not have access to loans from RBI at the bank rate. Unlike scheduled banks, non-scheduled banks do not keep a cash reserve ratio with the RBI.

Non-scheduled banks are also called as local area banks in India. Coastal Local Area Bank Ltd, Capital Local Area Bank Ltd, Krishna Bhima Samruddhi Local Area Bank Ltd, Subhadra Local Area Bank Ltd are some of the examples.

TYPES OF SCHEDULED BANKS

1. COMMERCIAL BANKS

A commercial bank provides banking services with a profit motive. They ensure adequate credit creation and stability in a nation’s economy.

  • PUBLIC SECTOR BANKS: Public sector banks have the government as the major shareholder(more than 50%). Over 75% of the banking sector business comes under the purview of the Public sector banks. There are 12 major PSBs in India such as SBI, Bank of India, Bank of Baroda, Central Bank of India, etc. On the whole, there are 27 PSBs in India.
  • PRIVATE SECTOR BANKS: In private sector banks, non-government entities form the major shareholders. There are 22 private sector banks in India. Private sector banks provide a slightly less interest rate as compared to PSBs. Similarly, Private sector banks constitute over 15% market share in the country. Some major private sector banks in India are ICICI, HDFC, Axis, IDFC, etc.
  • FOREIGN BANKS: Foreign banks cater to the jurisdictional laws of both the parent and destination country. 1% of branch network in India constitutes foreign banks. Also, foreign banks have a Priority Sector Lending of 40% and a minimum capital requirement of 5 billion.
  • REGIONAL RURAL BANKS: Regional Rural Banks caters to the funding needs of the rural communities in India. It draws its operating and functional powers from the Regional Rural Banks Act, 1976. In addition, RRBs also cater to payments in government schemes like MGNNEGA and government pension programs. RRB has a joint shareholding of Central government(50%), State government(15%) and Sponsor Bank(35%).
  • PAYMENT BANKS: It is a new category of banks with limited functionality of a bank. For example, payments banks do not issue loans. The deposit limit is 1 lakh per customer maximum. Further, payments banks have a minimum capital of 100 crores.
  • SMALL FINANCE BANKS: Small finance banks service the needs of the small and marginal entities like small farmers, traders, businesses, etc. Small finance bank has 100 crores paid-up capital and a priority sector lending of 75%. Further, they do not lend to big corporates or groups.

2. COOPERATIVE BANKS

Cooperative banks function on the basis of cooperative principles. The ownership of cooperative banks lies with the customers. In India, cooperative bank categorization takes place on the basis of Short term and Long term lending options. Short term lending takes the form of Primary Agricultural Cooperative Societies (PACCS) at the village level, District Central Cooperative Banks at the District level and State Cooperative Bank at the State level. The long term lending is a two-tier structure with Primary Agriculture and Rural Development Banks (PARDBs) at the village level and State Agriculture and Rural Development Banks.

  • URBAN COOPERATIVE BANKS: Urban cooperative banks finances the needs of urban areas, registered under the cooperative societies act. They largely cater to small businesses in urban areas like small traders, low and middle-income groups, etc. UCB regulation happens via both the State Government and the Central bank. State government laws cater to the UCB’s administration while the central bank laws apply in case of regulation.
  • RURAL COOPERATIVE BANKS: Rural cooperative banks finances the needs of rural areas. It caters to agriculture, livestock, rural employment sector, etc.

For more blogs, visit http://blog.sabpaisa.in

YOU ARE READING THE ARTICLE COURTESY: SabPaisa (SRS Live Technologies) – headquartered in New Delhi with eight regional offices including Mumbai, Bangalore & Kolkata – is a rapidly growing fintech company having developed one of India’s most advanced AI-driven recurring payments platform bolstered by another of SabPaisa’s unique products: world’s first hybrid payment platform which has all the payment modes in a single checkout page, online and offline, from UPI to Cards to e-NEFT to e-Cash. Businesses that take SabPaisa’s payment gateway get real-time reconciliation and consolidated reports for all payments, recurring or one-time, online or offline, in a single dashboard, whether the payer is an 18-year-old in Kashmir paying through UPI or a 70 year paying through Cash in Kanyakumari. SabPaisa’s payments and collection application suite have already processed more than INR 12 Billion to date. Learn more about SabPaisa here:https://sabpaisa.in

 

Categories
banking digital payments Financial intermediary fintech payment gateway startup Uncategorized

Frauds in online payments explained

Simple tips to avoid frauds

A study conducted by the Center for Strategy and International Studies (CSIS) & McAfee show that online fraud is equivalent to 0.8% of the world’s GDP. Most importantly, payment frauds form a major part of this figure.

Online payment frauds connote the illegal transaction by fraudulently acquiring the customer’s credentials. For example, it takes the form of credit/debit card fraud, data theft, friendly fraud, phishing, etc. Incidentally, the advance of technology has advanced the fraud involved as well. Also, fraudsters have devised complex techniques to come out with sophisticated frauds which are very difficult to detect.

Online payment frauds
Some time tested techniques to handle online frauds
Learn the simple tips for combating online payment frauds

In this blog, I will take you through some simple yet time-tested methods to tackle online payment frauds. As they say, prevention is always better than cure.

1. Data Theft frauds

This most common mode of online payment fraud involves stealing digital information of customers like banking account details, credit/debit card information, PIN, etc. For example, in 2017, 1 in 15 people had their identities stolen. Subsequently, the hacking of the credential holder’s account takes place with the stolen data. Further, data theft is also a result of employee negligence in handling an organization’s data. 

Data theft prevention techniques:

  • Regular malware check on the computer system.
  • Use of debit/credit card with pin-chip technology.
  • Frequent change of password every 1-2 months.
  • Regular installation of updated software on systems.
  • Ensuring a secure and protected wifi connection.
  • Do not respond to unauthorized and spam emails.

2. Phishing frauds

In Phishing, hackers camouflage as financial institutions and contact the target victims. In doing so, the various adopted modes are email, telephone, text, etc. For example, the potential target luring happens with fake offers, false email links, attachments and emails from unknown senders. Further, studies show that phishing accounts for 90% of all the data breaches.

Phishing frauds prevention techniques:

  • Use of email filters.
  • Change in browser settings. Do not autosave passwords for payment sites.
  • Timely fraud report to banks to ensure speedy action cum monitoring.
  • Keep a track of URL of links in an email. It is a potent outlet to fraudulent sites that steal user data.

3. Friendly fraud

Friendly fraud is one of the toughest fraud to detect. Herein, a customer makes an online payment and then disputes the purchase by contacting the credit card issuer. Going ahead, the fraudster is refunded while the fraud continues on different payment platforms. Studies show that friendly fraud increases at a rate of 41% every two years. It is on the rise due to the increasing presence of e-commerce companies. Moreover, it is very challenging to detect friendly fraud due to the favoring of customers by credit card companies.

Nevertheless, an estimate of friendly fraud is made by observing a larger than usual average transaction. Also, a high frequency of order coupled with a high amount of stolen orders suggests the presence of friendly fraud.

Friendly fraud prevention techniques:

  • Call recording to verify the veracity of the order.
  • Saving the product delivery information by confirming the signature verification.
  • Blacklisting of suspicious, fraudulent customers.
  • Building cordial relations with customers to maintain a positive brand image.
  • Interconnectivity with online payment peers to obtain updated information about fraudulent customers.

4. Triangulation fraud

This fraud primarily involves three parties involved in a transaction. Firstly, a customer places an order with an e-commerce site. Secondly, the e-commerce site is a fraudulent seller which takes the order and reorders on another website using stolen payment credentials. Lastly, the legitimate e-commerce website unsuspectingly processes the fraudulent order. For example, triangulation fraud is common in the trade of electronics appliances, pet supplies, tools, etc.

Triangulation fraud prevention techniques:

  • Keep a track of repeated product selling behavior of the retailer.
  • Connect with triangulation fraud victims to ascertain the fraud strategy
  • Be in touch with auctions/marketplaces that are known to host fraudulent sellers.

5. Refund fraud

Refund fraud occurs in a situation wherein a customer engages in the frequent return of ineligible items without any concrete reasons. For example, stolen or damaged goods are frequently returned. It often results in e-commerce sites hiking prices to recover the loss due to fraudulent returns.

Refund fraud prevention techniques:

  • Flagging customers resorting to frequent returns.
  • Stricter return policies like discouraging returns without a valid receipt.
  • Serial numbers on goods for verification.

On the whole, payment frauds are an inevitable part of transactions in a digital era. However, the tips and tricks mentioned above can be used to reduce it considerably, if not eliminate it. In addition, be well prepared for any unforeseen scenarios during online payments. Always, keep in touch with the concerned banking and regulatory authorities to safeguard your business and buyings.

For more blog posts, visit http://blog.sabpaisa.in