The document discusses various cashless payment systems introduced by the Indian government like Bharat QR, IMPS, USSD, BHIM, and upcoming Aadhaar Pay. It notes that while there are currently many options, experts believe they will converge over time. Bharat QR allows scanning a QR code to pay directly from a bank account without needing a POS terminal. UPI through the BHIM app allows transferring money using just a mobile number but has daily transaction limits. While multiple options exist now to boost digital payments, most are aimed at different use cases and the infrastructure will evolve further.

1. BHARAT QR
AND OTHER CASHLESS PAYMENT SYSTEM BY GOVT.
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2. Bharat QR is the latest payment application that will help
people pay digitally. It joins at least half-a-dozen other
options to pay without cash. But it won’t be the last as the
government aims to scale up digital payments to at least
25 billion in the next fiscal from roughly 5 to 8 billion now.
Even as geeks get ready to spew out yet another payment
code, merchants and shoppers are grappling with what’s
best to complete a purchase.
In the short term, there could be more payment options,
but, thankfully, in the longer term, the multiple codes and
platforms will converge, say banking and consulting
experts. Ritesh Pai, senior president & country head,
digital banking, YES Bank said: “Both NPCI/RBI-driven
platforms and proprietary platforms (read wallets) can co-
exist for the next 12 months. With adoption of UPI, the
proportion of wallet transactions will come down to a
large extent in the next two years.” NPCI is the Nat ..
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3. In January, UPI transactions more than
doubled over the previous month even as
credit and debit card use at point of sale
(PoS) terminals declined. Plastic money
transactions dropped from 311 million in
December 2016 to 265.5 million in January,
according to Reserve Bank of India (RBI).
As of now, multiple payment options will
survive. Madhur Singhal, partner, Bain &
Company, said: “Different payment options
will survive but different options will serve
different use cases. So to transfer money,
users could opt for IMPS, and to pay cab fare,
Bharat QR might do — provided the cabbie is
also using the same code.
Sreedhar Prasad, partner, e-commerce &
startups, KPMG India, says: “Too many
confusing payment options linked to a
cashless economy is unique to India.” In US,
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4. So to transfer money, users could opt for IMPS, and to
pay cab fare, Bharat QR might do — provided the cabbie
is also using the same code.
Sreedhar Prasad, partner, e-commerce & startups, KPMG
India, says: “Too many confusing payment options linked
to a cashless economy is unique to India.” In US, Japan
and other countries in Europe, people adopted cashless
options due to the strength of the ecosystem — not
because it was forced on them, as it was back home post
demonetisation. “In other countries, multiple payment
options exist though not with as much variety as in India.
In most developed countries, payment infrastructure was
evolved much before digital technologies evolved,” added
Singhal.
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5. Unified Payments Interface (UPI)
Started in: April 2016
USP: A payment service. reduces steps involved in fund
transfer positive: ease of use. just need internet-enabled
smartphone, along with upi-supported banking app that
supports UPI ..
Negative: Lack of interoperability with mobile wallets.
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6. Immediate Payment Service (IMPS)
Started in: 2010
USP: Make payment by using mobile number or Aadhaar
number.
Positive: To use IMPS, have to register for mobile
banking. Once registered, send money in real time.
Negative: Banks levy a transaction charge to use IMPS.
For transfers up to Rs 10,000, the charge is Rs 2.5 plus
service tax
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7. National Unified USSD Platform based on
Unstructured Supplementary Service Data (USSD)
codes (NUUP)
Started in: 2014
USP: Best solution for those without a smartphone or
internet access.
Positive: Just dial *99# to transact (for English users).
Available in 12 languages. Can be used for checking
account balance, generate mini statement
Negative: Good only for small value transfers up to Rs
5,000. User must be registered for mobile banking.
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8. Bharat QR
Started on: February 21
USP: Scan & pay option. Scan QR code at merchant
outlet and make payment directly from your bank
account.
Positive: Single QR code to connect any bank account to
any merchant. No need for PoS terminals/machines
Negative: Simplicity could be misused & exploited by
hackers.
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9. Bharat Interface for Money (BHIM)
Started on: December 30, 2016
USP: Unifi ed Payment Interface (UPI)-based open
platform app that links to any bank account. 17 million
downloads so far.
Positive: All UPI transactions via a single app
Negative: Only in Hindi & English, unlike mobile wallets,
which support multiple languages. With just name or
mobile num .. With just name or mobile number as
payment address, anyone can request money. Can only
transfer Rs 10,000 per transaction & Rs 20,000 per day.
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10. Aadhaar Pay
Started on: Announced in Budget; yet to start
USP: Android-based merchant version of Aadhaar-
enabled payment system. Aadhaar Pay app enables
consumers to pay without any physical payment
instrument
Positive: Will benefi t those who don’t have debit cards or
mobile wallets. To use, enter bank’s name and Aadhaar
number.
Negative: Fingerprint is password. Needs physical
presence to complete transaction; not suited for online
shopping.
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