Mumbai

Building a payments ecosystem in India

April 21, 2016

A collaborative approach

Indian landscapeTotal Population

1.25 bn

No. of Bank Accounts: 702 mn

No. of Debit Cards:

394 mnNo. of

Credit Cards 22 mn

Source: RBI Payment system indicator

Low Penetration of banking and traditional electronic transaction services

Indian Landscape

All nos. in Mn

Source: TRAI PR January 2016

Mobile telecom penetration is deeper then banking

Typical payment requirements

Domestic remittance

SalariesInterest/Dividends

LoansRefunds etc.

Tax refundsSocial benefits

Salaries

InvestmentsBill payments

FeesOver the counter Pymt

Commercial paymentsInvoicing

Supply chain payments

Tax refundsProject and service

payments

TaxesFines

TaxesStatutory fees

Earnest money etc.

Inter govt.flows

FROM

TOConsumers Business Govt.

Consumers

Business

Govt.

Three dimensions of Financial inclusion

Source: G2o Global Partnership for Financial Inclusion

A Collaborative Digital Finance Framework

6Source: ASSOCHAM PWC India: Logging into digital banking

A Collaborative Digital Framework

Collaborative ModelsBanks and Telecom collaboration

Government led Model - JAM

Unified Payment Interface (UPI)

Bharat Bill Payment System (BBPS)

Bank and Telco Collaboration

Amount

Service enables opening of no frills bank accounts over mobile phone and offer basic transaction services like

• Cash in/ Cash out• Remittance• Recharges• Payments• Direct Benefit transfers• Access Channels: Distribution network of telecom

operators

• Migrated workers [ Working in industry such as construction, textile ,diamond etc.]

Payment System/s

Target Customer Segment

Key Players

• IMPS• NEFT • AEPS [Pilot]

Brief Description

Government led Model- JAM

Unified Payment Interface

Unified Payment Interface- UPI

Bharat Bill Payment System

11

BBPS is proposed to be a pan India system for running the bill payment

system in the country

Entire system running under one brand name to ensure customer confidence

BBPS aims to provide

Convenience of anywhere anytime bill payments

An interoperable bill payment engine for millions of customers in the country

Replace the segmented bill payment taking place in Silos at present

The operating units will link up billers and collection agents and

provide interoperability that is lacking today

Thank You