Indian payments council enables mobile merchant payments
13 September 2012 | 1618 views | 1
Source: National Payments Corporation of India
Inter-Bank Mobile Payment Service (IMPS) is a payments platform created by NPCI (National Payments Corporation of India) in collaboration with Member Banks. IMPS enables Bank customers to make payments instantly, 24*7, anytime, anywhere via mobile phones. Currently, 50 Banks are enabled for IMPS P2P (Person-to-Person) service.
IMPS now enables Mobile Banking customers to make payments to merchants / enterprises via mobile phone, through value added service called 'IMPS Merchant Payments'. 7 Banks are currently enabled on the IMPS Merchant Payments service, which include State Bank of India, Union Bank of India, Canara Bank, ICICI Bank, Kotak Mahindra Bank, HSBC Bank, Standard Chartered Bank. 5 Banks are in the process of getting enabled viz. Axis Bank, Yes Bank, Federal Bank, Dombivli Nagari Sahakari Bank, Greater Bombay Bank, and are expected to go-live shortly.
Various services and merchants are currently enabled on IMPS merchant payments, which include Railway Ticket Booking through IRCTC, Mobile / DTH Recharge, Mutual Funds, Credit Card Bill Payments, Insurance Premium, Online Shopping, Postpaid Mobile Bill Payment, Donations, Electricity Bill Payment, Travel & Ticketing, Gas Bill Payment, Airlines ticketing.
Using IMPS Merchant Payments, Merchants can receive payments from customers through various channels. IMPS can be integrated with merchant website. Merchants can integrate IMPS with their mobile application or mobile site, and offer anytime, anywhere service to customers. Major merchants are contemplating offering services on mobile applications that shall offer convenience to customers, and widen the reach. In addition, merchants can integrate payment facility with their call center through IVR, so that customers can place order and make payment via IMPS.
Many merchants today offer 'Cash on Delivery' payment option, for products delivered at Home. IMPS can be used to receive such payments via mobile phone, at the time of delivery. Retail chains can use IMPS for receiving payments over-the-counter. IMPS can be used for payments by retailers to their distributors for major distribution networks such as Coca-cola, HUL, Asian Paints, etc. This shall help in faster settlement, reduce risk of fraud, and reduce cost of transaction.
Shri A. P. Hota, Managing Director & CEO of the NPCI commented on IMPS Merchant Payments Launch: "IMPS Merchant Payments further enhances the value that IMPS offers as one-of-a-kind instant, 24*7, inter-operable payment system in the country.
Merchants can use IMPS to receive payments from customers conveniently, safely, anytime, anywhere. With over 600 million active mobile subscribers in India, and over 10 million merchants in the country, there is immense potential for a product like IMPS to dramatically improve the payment system in the country". Currently, the retail merchants use Point of Sale (POS) terminals to receive payments via credit / debit cards. There are only 600,000 POS terminals in the country, whereas it is reported that there are over 10 million merchants in the country. Most POS terminals are in the metro and urban areas and have not been able to penetrate in semi-urban and rural areas. Using IMPS, merchants can receive payments via mobile phones. There is no investment required for POS terminal installation and in issuance of credit / debit cards, and payments can be made / received conveniently, safely, anytime, anywhere.