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ENTERPRISE INFORMATION SYSTEMS
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ENTERPRISE INFORMATION SYSTEMS
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E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES
payments. All the transactions in digital payments are completed online. It is an
instant and convenient way to make payments.
New digital payment platforms such as UPI and IMPS are becoming increasingly
popular. Using these new platforms, banks have been scaling rapidly. Every Bank
is impacted by new digital disruptions, so new banking services and ways should
be adapted to use various digital channels to interact and provide services to
customers. To reach out to customers at their convenience, banks are aggressively
going digital. For millennials, banking is all about convenience – a seamless user
interface akin to that of games or app. They value transparency and minimal
processes. Convenience can be delivered through mobile apps and digital
banking, the latter is provided by relationship managers, who need to be
proficient in products and process knowledge. A high level of adaptability is a
must for banking sector in this highly digital and tech-savvy age, where banking
transactions can happen even on a mobile or tablet with a few clicks.
4.7.1 Different Types of Digital Payments
From traditional digital payment methods, India is moving towards newer
methods of digital payments.
I. New Methods of Digital Payment
(i) UPI Apps: Unified Payment Interface (UPI) and retail payment banks are
changing the very face of banking in terms of moving most of banking to
digital platforms using mobiles and apps. UPI is a system that powers
multiple bank accounts (of participating banks), several banking services
features like fund transfer, and merchant payments in a single mobile
application. UPI or Unified Payment Interface is a payment mode which is
used to make instant fund transfers from the sender’s bank account to
the receiver’s bank account through the mobile app. User can transfer
funds between two accounts using UPI apps. User must register for
mobile banking to use UPI apps. Since it is completely digital, UPI can be
used 24 hours and even on public holidays. Users need to download a
UPI app and create a VPA or UPI ID. There are too many good UPI apps
available such as BHIM, SBI UPI app, HDFC UPI app, iMobile, PhonePe
app etc. as shown in the Fig. 4.7.1.
Fig. 4.7.1: UPI Apps
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ENTERPRISE INFORMATION SYSTEMS
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4.51
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E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES
payments. All the transactions in digital payments are completed online. It is an
instant and convenient way to make payments.
New digital payment platforms such as UPI and IMPS are becoming increasingly
popular. Using these new platforms, banks have been scaling rapidly. Every Bank
is impacted by new digital disruptions, so new banking services and ways should
be adapted to use various digital channels to interact and provide services to
customers. To reach out to customers at their convenience, banks are aggressively
going digital. For millennials, banking is all about convenience – a seamless user
interface akin to that of games or app. They value transparency and minimal
processes. Convenience can be delivered through mobile apps and digital
banking, the latter is provided by relationship managers, who need to be
proficient in products and process knowledge. A high level of adaptability is a
must for banking sector in this highly digital and tech-savvy age, where banking
transactions can happen even on a mobile or tablet with a few clicks.
4.7.1 Different Types of Digital Payments
From traditional digital payment methods, India is moving towards newer
methods of digital payments.
I. New Methods of Digital Payment
(i) UPI Apps: Unified Payment Interface (UPI) and retail payment banks are
changing the very face of banking in terms of moving most of banking to
digital platforms using mobiles and apps. UPI is a system that powers
multiple bank accounts (of participating banks), several banking services
features like fund transfer, and merchant payments in a single mobile
application. UPI or Unified Payment Interface is a payment mode which is
used to make instant fund transfers from the sender’s bank account to
the receiver’s bank account through the mobile app. User can transfer
funds between two accounts using UPI apps. User must register for
mobile banking to use UPI apps. Since it is completely digital, UPI can be
used 24 hours and even on public holidays. Users need to download a
UPI app and create a VPA or UPI ID. There are too many good UPI apps
available such as BHIM, SBI UPI app, HDFC UPI app, iMobile, PhonePe
app etc. as shown in the Fig. 4.7.1.
Fig. 4.7.1: UPI Apps
ENTERPRISE INFORMATION SYSTEMS
4.52
(ii) Immediate Payment Service (IMPS): It is an instant interbank
electronic fund transfer service through mobile phones. IMPS is an
empathetic tool to transfer money instantly within banks across
India through Mobile, Internet Banking and ATM, which is not only
safe but economical also.
(iii) Mobile Apps: BHIM (Bharat Interface for Money) is a Mobile App
developed by National Payments Corporation of India (NPCI) based on UPI
(Unified Payment Interface). It facilitates e-payments directly through
banks and supports all Indian banks which use that platform. It is built on
the Immediate Payment Service infrastructure and allows the user to
instantly transfer money between the bank accounts of any two parties. It
is also possible to link multiple bank accounts. BHIM works on all mobile
devices and enables users to send or receive money to other UPI payment
addresses by scanning QR code or using account number with Indian
Financial Systems Code (IFSC) code or MMID (Mobile Money Identifier)
Code for users who do not have a UPI-based bank account.
(iv) Mobile Wallets: A mobile wallet or e-wallet is nothing but a digital
version of a physical or real-life wallet, in which one can add money to
purchase various goods and services (both online and offline) and
transfer money with this technology. A mobile wallet is a type of
virtual wallet service that can be used by downloading an app on
smartphone and registering for the service. It is the digital version of
physical wallet with more functionality. User can keep his/her money
in an E-wallet and use it when needed. The digital or mobile wallet
stores bank account or debit/credit card information or bank account
information in an encoded format to allow secure payments. Mobile
Wallets provide a convenient way for a user to make-in-store
payments and can be used that with merchants listed with the mobile
wallet service providers. This eliminates the need to use credit/debit
cards or remember the CVV or 4-digit pin. Mobile wallets are
frequently used to make payments at physical shops/stores, recharge
phone, online purchases, transfer money, and receive offers, cash
backs, and rewards.
These E-Wallets also give additional cashback offers. There are mobile
wallets like Paytm, Freecharge, Buddy, Mobikwik, State bank buddy
etc. as shown in the Fig. 4.7.2.
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ENTERPRISE INFORMATION SYSTEMS
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`
E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES
payments. All the transactions in digital payments are completed online. It is an
instant and convenient way to make payments.
New digital payment platforms such as UPI and IMPS are becoming increasingly
popular. Using these new platforms, banks have been scaling rapidly. Every Bank
is impacted by new digital disruptions, so new banking services and ways should
be adapted to use various digital channels to interact and provide services to
customers. To reach out to customers at their convenience, banks are aggressively
going digital. For millennials, banking is all about convenience – a seamless user
interface akin to that of games or app. They value transparency and minimal
processes. Convenience can be delivered through mobile apps and digital
banking, the latter is provided by relationship managers, who need to be
proficient in products and process knowledge. A high level of adaptability is a
must for banking sector in this highly digital and tech-savvy age, where banking
transactions can happen even on a mobile or tablet with a few clicks.
4.7.1 Different Types of Digital Payments
From traditional digital payment methods, India is moving towards newer
methods of digital payments.
I. New Methods of Digital Payment
(i) UPI Apps: Unified Payment Interface (UPI) and retail payment banks are
changing the very face of banking in terms of moving most of banking to
digital platforms using mobiles and apps. UPI is a system that powers
multiple bank accounts (of participating banks), several banking services
features like fund transfer, and merchant payments in a single mobile
application. UPI or Unified Payment Interface is a payment mode which is
used to make instant fund transfers from the sender’s bank account to
the receiver’s bank account through the mobile app. User can transfer
funds between two accounts using UPI apps. User must register for
mobile banking to use UPI apps. Since it is completely digital, UPI can be
used 24 hours and even on public holidays. Users need to download a
UPI app and create a VPA or UPI ID. There are too many good UPI apps
available such as BHIM, SBI UPI app, HDFC UPI app, iMobile, PhonePe
app etc. as shown in the Fig. 4.7.1.
Fig. 4.7.1: UPI Apps
ENTERPRISE INFORMATION SYSTEMS
4.52
(ii) Immediate Payment Service (IMPS): It is an instant interbank
electronic fund transfer service through mobile phones. IMPS is an
empathetic tool to transfer money instantly within banks across
India through Mobile, Internet Banking and ATM, which is not only
safe but economical also.
(iii) Mobile Apps: BHIM (Bharat Interface for Money) is a Mobile App
developed by National Payments Corporation of India (NPCI) based on UPI
(Unified Payment Interface). It facilitates e-payments directly through
banks and supports all Indian banks which use that platform. It is built on
the Immediate Payment Service infrastructure and allows the user to
instantly transfer money between the bank accounts of any two parties. It
is also possible to link multiple bank accounts. BHIM works on all mobile
devices and enables users to send or receive money to other UPI payment
addresses by scanning QR code or using account number with Indian
Financial Systems Code (IFSC) code or MMID (Mobile Money Identifier)
Code for users who do not have a UPI-based bank account.
(iv) Mobile Wallets: A mobile wallet or e-wallet is nothing but a digital
version of a physical or real-life wallet, in which one can add money to
purchase various goods and services (both online and offline) and
transfer money with this technology. A mobile wallet is a type of
virtual wallet service that can be used by downloading an app on
smartphone and registering for the service. It is the digital version of
physical wallet with more functionality. User can keep his/her money
in an E-wallet and use it when needed. The digital or mobile wallet
stores bank account or debit/credit card information or bank account
information in an encoded format to allow secure payments. Mobile
Wallets provide a convenient way for a user to make-in-store
payments and can be used that with merchants listed with the mobile
wallet service providers. This eliminates the need to use credit/debit
cards or remember the CVV or 4-digit pin. Mobile wallets are
frequently used to make payments at physical shops/stores, recharge
phone, online purchases, transfer money, and receive offers, cash
backs, and rewards.
These E-Wallets also give additional cashback offers. There are mobile
wallets like Paytm, Freecharge, Buddy, Mobikwik, State bank buddy
etc. as shown in the Fig. 4.7.2.
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E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES
Fig. 4.7.2: E-Wallets
(v) Aadhar Enabled Payment Service (AEPS): AEPS is an Aadhaar based
digital payment mode. Customer needs only his or her Aadhaar
number to pay to any merchant. AEPS allows bank to bank
transactions. It means the money you pay will be deducted from your
account and credited to the payee’s account directly. Customers will
need to link their AADHAR numbers to their bank accounts. AEPS once
launched can be used at POS terminals also. AEPS can be used for all
banking transactions such as balance enquiry, cash withdrawal, cash
deposit, payment transactions, Aadhaar to Aadhaar fund transfers, etc.
All transactions are carried out through a banking correspondent
based on Aadhaar verification. There is no need to physically visit a
branch, provide debit or credit cards, or even make a signature on a
document.
(vi) Unstructured Supplementary Service Data (USSD): A revolutionary
idea, where to make payments through mobiles there is neither any
need for internet nor any smart phone. USSD banking or *99# Banking
is a mobile banking based digital payment mode. User does not need
to have a smartphone or internet connection to use USSD banking.
S/he can easily use it with any normal feature phone. USSD banking is
as easy as checking of mobile balance. S/he can use this service for
many financial and non-financial operations such as checking balance,
sending money, changing Mobile Banking Personal Identification
number (MPIN) and getting Mobile Money Identifier (MMID).
(vii) Mobile Banking: It is a service provided by a bank or other financial
institution that allows its customers to conduct different types of
financial transactions remotely using a mobile device such as a mobile
phone or tablet. It uses software, usually called an app, provided by
the banks or financial institution for the purpose. Each Bank provides
its own mobile banking App for Android, Windows and iOS mobile
platform(s).
(viii) Cryptocurrency: Cryptocurrency is another electronic payment
method that is steadily growing in popularity. Cryptocurrency is a
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E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES
payments. All the transactions in digital payments are completed online. It is an
instant and convenient way to make payments.
New digital payment platforms such as UPI and IMPS are becoming increasingly
popular. Using these new platforms, banks have been scaling rapidly. Every Bank
is impacted by new digital disruptions, so new banking services and ways should
be adapted to use various digital channels to interact and provide services to
customers. To reach out to customers at their convenience, banks are aggressively
going digital. For millennials, banking is all about convenience – a seamless user
interface akin to that of games or app. They value transparency and minimal
processes. Convenience can be delivered through mobile apps and digital
banking, the latter is provided by relationship managers, who need to be
proficient in products and process knowledge. A high level of adaptability is a
must for banking sector in this highly digital and tech-savvy age, where banking
transactions can happen even on a mobile or tablet with a few clicks.
4.7.1 Different Types of Digital Payments
From traditional digital payment methods, India is moving towards newer
methods of digital payments.
I. New Methods of Digital Payment
(i) UPI Apps: Unified Payment Interface (UPI) and retail payment banks are
changing the very face of banking in terms of moving most of banking to
digital platforms using mobiles and apps. UPI is a system that powers
multiple bank accounts (of participating banks), several banking services
features like fund transfer, and merchant payments in a single mobile
application. UPI or Unified Payment Interface is a payment mode which is
used to make instant fund transfers from the sender’s bank account to
the receiver’s bank account through the mobile app. User can transfer
funds between two accounts using UPI apps. User must register for
mobile banking to use UPI apps. Since it is completely digital, UPI can be
used 24 hours and even on public holidays. Users need to download a
UPI app and create a VPA or UPI ID. There are too many good UPI apps
available such as BHIM, SBI UPI app, HDFC UPI app, iMobile, PhonePe
app etc. as shown in the Fig. 4.7.1.
Fig. 4.7.1: UPI Apps
ENTERPRISE INFORMATION SYSTEMS
4.52
(ii) Immediate Payment Service (IMPS): It is an instant interbank
electronic fund transfer service through mobile phones. IMPS is an
empathetic tool to transfer money instantly within banks across
India through Mobile, Internet Banking and ATM, which is not only
safe but economical also.
(iii) Mobile Apps: BHIM (Bharat Interface for Money) is a Mobile App
developed by National Payments Corporation of India (NPCI) based on UPI
(Unified Payment Interface). It facilitates e-payments directly through
banks and supports all Indian banks which use that platform. It is built on
the Immediate Payment Service infrastructure and allows the user to
instantly transfer money between the bank accounts of any two parties. It
is also possible to link multiple bank accounts. BHIM works on all mobile
devices and enables users to send or receive money to other UPI payment
addresses by scanning QR code or using account number with Indian
Financial Systems Code (IFSC) code or MMID (Mobile Money Identifier)
Code for users who do not have a UPI-based bank account.
(iv) Mobile Wallets: A mobile wallet or e-wallet is nothing but a digital
version of a physical or real-life wallet, in which one can add money to
purchase various goods and services (both online and offline) and
transfer money with this technology. A mobile wallet is a type of
virtual wallet service that can be used by downloading an app on
smartphone and registering for the service. It is the digital version of
physical wallet with more functionality. User can keep his/her money
in an E-wallet and use it when needed. The digital or mobile wallet
stores bank account or debit/credit card information or bank account
information in an encoded format to allow secure payments. Mobile
Wallets provide a convenient way for a user to make-in-store
payments and can be used that with merchants listed with the mobile
wallet service providers. This eliminates the need to use credit/debit
cards or remember the CVV or 4-digit pin. Mobile wallets are
frequently used to make payments at physical shops/stores, recharge
phone, online purchases, transfer money, and receive offers, cash
backs, and rewards.
These E-Wallets also give additional cashback offers. There are mobile
wallets like Paytm, Freecharge, Buddy, Mobikwik, State bank buddy
etc. as shown in the Fig. 4.7.2.
4.53
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E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES
Fig. 4.7.2: E-Wallets
(v) Aadhar Enabled Payment Service (AEPS): AEPS is an Aadhaar based
digital payment mode. Customer needs only his or her Aadhaar
number to pay to any merchant. AEPS allows bank to bank
transactions. It means the money you pay will be deducted from your
account and credited to the payee’s account directly. Customers will
need to link their AADHAR numbers to their bank accounts. AEPS once
launched can be used at POS terminals also. AEPS can be used for all
banking transactions such as balance enquiry, cash withdrawal, cash
deposit, payment transactions, Aadhaar to Aadhaar fund transfers, etc.
All transactions are carried out through a banking correspondent
based on Aadhaar verification. There is no need to physically visit a
branch, provide debit or credit cards, or even make a signature on a
document.
(vi) Unstructured Supplementary Service Data (USSD): A revolutionary
idea, where to make payments through mobiles there is neither any
need for internet nor any smart phone. USSD banking or *99# Banking
is a mobile banking based digital payment mode. User does not need
to have a smartphone or internet connection to use USSD banking.
S/he can easily use it with any normal feature phone. USSD banking is
as easy as checking of mobile balance. S/he can use this service for
many financial and non-financial operations such as checking balance,
sending money, changing Mobile Banking Personal Identification
number (MPIN) and getting Mobile Money Identifier (MMID).
(vii) Mobile Banking: It is a service provided by a bank or other financial
institution that allows its customers to conduct different types of
financial transactions remotely using a mobile device such as a mobile
phone or tablet. It uses software, usually called an app, provided by
the banks or financial institution for the purpose. Each Bank provides
its own mobile banking App for Android, Windows and iOS mobile
platform(s).
(viii) Cryptocurrency: Cryptocurrency is another electronic payment
method that is steadily growing in popularity. Cryptocurrency is a
ENTERPRISE INFORMATION SYSTEMS
4.54
digital currency produced by a public network, rather than any
government, that uses cryptography to ensure that payments are sent
and received safely. A cryptocurrency is a medium of exchange
wherein records of individual coin ownership are stored in a
computerized database using strong cryptography.
Cryptocurrency is called so because all the data is ensured with strong
cryptography. The strong cryptography makes it almost impossible to
counterfeit or double spend. The other digital currencies such as
DigiCash utilizes a Trusted Third Party approach in which a third party
verifies and facilitates the transactions. Cryptocurrency is completely
decentralized, which means that there are no servers involved and no
central controlling authority.
Cryptocurrency is a digital money which does not involve any
physical coin. Since it is all online, the user can transfer
cryptocurrency to someone online without going to the bank. It
can be used for making quick payments without any transaction
fees. Cryptocurrency is stored in a digital wallet either on the
computer or on other hardware. The first cryptocurrency was
Bitcoin which was launched in 2009. The other cryptocurrencies
prevailing in the world today include Litecoin, Peercoin, Namecoin,
as well as Ethereum.
II. Traditional Methods of Digital Payment
(i) Cards: Cards are provided by banks to their account holders. These
have been the most used digital payment modes till now. Various
types of cards are as follows:
o Credit Cards: A small plastic card issued by a bank, or issuer
etc., allowing the holder to purchase goods or services on
credit. It contains a unique number linked with an account. It
has also a magnetic strip embedded in it which is used to
read credit card via card readers. In this mode of payment,
the buyer’s cash flow is not immediately impacted. User of
the card makes payment to card issuer at end of billing cycle.
Credit Card issuer charge customers per transactions / fixed
amount as transaction fees.
o Debits Cards: Debit card, is also a small plastic card with a
unique number linked with bank account number. It is
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