Blog on Rupay

One of the topic which was briefly discussed in the class was of Rupay.

RuPay is an Indian card scheme with a mission to have domestic and multilateral system of payments in India. RuPay was conceived by National Payments Corporation of India (NPCI) and launched on March 26^th , 2012.

Though the challenges in India Market are high, Indian market offers huge potential for cards penetration. The needs of Indian consumers, merchants and banks will be addressed by Rupay, . The benefits of RuPay debit card are the flexibility of the product platform, high levels of acceptance and the strength of the RuPay brand-all of which will contribute to an increased product experience.

Some of the benefits of Rupay as per the NPCI website are:

1. Lower cost and affordability :
   
   Since the transaction processing will happen domestically, it would lead to lower cost of clearing and settlement for each transaction. This will make the transaction cost affordable and will drive usage of cards in the industry.
2. Customized product offering :
   
   RuPay, being a domestic scheme is committed towards development of customized product and service offerings for Indian consumers.
3. Protection of information related to Indian consumers :
   
   Transaction and customer data related to RuPay card transactions will reside in India. 
4. Provide electronic product options to untapped/unexplored consumer segment : 
   
   There are under-penetrated/untapped consumers segments in rural areas that do not have access to banking and financial services. Right pricing of RuPay products would make the RuPay cards more economically feasible for banks to offer to their customers. In addition, relevant product variants would ensure that banks can target the hitherto untapped consumer segments.
5. Inter-operability between payment channels and products : 
   
   RuPay card is uniquely positioned to offer complete inter-operability between various payments channels and products. NPCI currently offers varied solutions across platforms including ATMs, mobile technology, cheques etc and is extremely well placed in nurturing RuPay cards across these platforms

Rupay envisions to increase its acceptance at various retail payment touch points and thus becoming a prominent player. Various stages of Rupay roadmap are:

1.       Acceptance at ATMs and micro-ATMs

2.       Debit card , prepaid card, acceptance of PoS

3.       E-Commerce acceptance

4.       Credit Card

 

Key Features

Some of the key features of RuPay are:

• The solution offers enhanced security measures in addition to the RBI mandated 2-Factor authentication viz. registration, OTP, image based authentication and anti-phishing measures.
• Highly secure with unique anti-phishing properties
• User friendly and smooth adaptability
• Simplified architecture & transaction flow reduces transaction time, resulting in faster transaction processing and reduction in drop-outs
• Customer Experience: During the online payment the cardholder's authentication data is collected in a secured manner. Further, with help of a bank themed (Looks exactly similar to the card that the customer is holding) PIN pad the cardholder has to enter the PIN number while making the payment. The pad shuffles each time a digit is entered as an additional security measure

Thanks and Regards

Ramit Malhotra

12DM-113