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2.  Payments are made using payment
instruments.
 Cash for example, is a payment instrument. So
too are cheques.
 Digital/ Cash Less: Every instrument other
than cash(Non Cash) and which does not rely
on paper(Non Paper) for its transaction.
 Simply in other words, transaction that mainly
use Electronic medium are considered as
Digital.

3. A Unified Payment Interface (UPI) is a single
window mobile payment system launched by the
National Payments Corporation of India (NPCI).
The system is designed to provide a simple,
secure and convenient “single interface” to
enable sending and receiving of money using
smart phones through a "single identifier" which
can be a virtual address like an email ID, mobile
number or Aadhaar number (like the Social
Security Number). It eliminates the need to enter
bank details or other sensitive information each
time a customer initiates a transaction.

4. Registration
• Download a UPI app of your bank.
• Register with your account details and create a virtual ID with your
name or phone number.
• One-time process
Online
Purchase
• Add the item to be purchased to your cart.
• Go to payment options and select Payment through UPI
• Provide only your Virtual ID to the merchant.
Mobile
Authentication
• You will receive a pop-up window on your phone’s UPI app
requesting your approval for online purchase.
• Enter the secure pin
• A confirmation of successful payment will be sent on your phone.

5.  UPI eliminates the need to share your name, your bank account
number, IFSC code, or bank branch.
 UPI also eliminates the use of physical tools like debit cards.
 It also eliminates the need to use multi-step processes like net-
banking, which are prone to phishing due to insecure frameworks.
 It is a very simple application and can be used by anyone.
 The authentication is instant and secure and can be initiated
anywhere.
 It opens up the pathway for a completely cashless digital society.
 The UPI (as it stands now) is the foundation for future innovations
to make all transactions more fluid, natural and secure.

6.  The number of non-cash transactions per person per year is only 6. This is
bad because cash transactions are often hard to trace. Cashless
transactions can be tracked, eventually eliminating black money from
society.
 Only a fraction of retailers (6 lakh) in India have card payment facilities.
The biggest sufferers in these are local and small shops. However, the
ubiquity and ever-falling prices of smart phones is making it an attractive
and convenient option to facilitate transactions
 Of the six lakh villages in the country, fewer than one lakh villages have
banking services (as of May 2011). Financial inclusion has also been hard
to achieve. It is only through recent innovations like Direct Benefits
Transfer (DBT) and Pradhan Mantri Jan Dhan Yojana (PMJDY) that
financial inclusion has become a reality.
 There are more than 150 million smart phone users in the country, a
number set to more than triple within 5 years. Here was a readymade
solution that wasn’t being addressed

7.  E-wallet is a type of electronic card which is used for
transactions made online through a computer or a smart
phone. Its utility is same as a credit or debit card. An E-
wallet needs to be linked with the individual's bank
account to make payments.

8. First of all, as it is a Wallet, we have to load
money into that for using our money online.
We can load money from various sources.
1) Debit Cards/Credit Cards/ Prepaid Cards
2) Directly from Bank Accounts using internet
Banking
3) Requesting money from Parents, Relatives
and Friends

9.  Digital wallets enable you to pay your electricity bill,
telephone bill, recharge of prepaid mobile, booking of
bus and movie tickets etc.
 It is safe, easy to use and fast. You don’t have to
carry your leather wallet full of credit and debit cards.
 Every time you don’t have to put your credit card
details to every payment which is actually minimizing
the risk of exposing your credit card details to every
merchant.
 When you pay through these wallets you will get
cash back according to the offers it runs.

10. Closed e-
wallets
• These are wallets issued by an entity for facilitating the
purchase of goods and services from it. These instruments do
not permit cash withdrawal or redemption. Hence, RBI
approval is not required for issuing them.
• E.g. Cab services, e-commerce and mobile companies create
e-wallets for making payments towards purchase of products
from them /for usage of their services
Semi-Closed
e-wallets
• These are wallets which can be used for purchase of
goods and services, including financial services at
merchant locations establishments which have a specific
contract with the issuer to accept them. These wallets do
not permit cash withdrawal or redemption by the holder.
Open e-
wallets
• These are wallets which can be used for purchase of goods and
services, including financial services like funds transfer at any card
accepting merchant locations [point of sale (POS) terminals] and
also permit cash withdrawal at ATMs / Banking Correspondents
(BCs). However, cash withdrawal at POS is permitted only up to a
limit of Rs.1000/- per day subject to the same conditions as
applicable to debit cards (for cash withdrawal at POS).

11.  The “point” where a transaction is finalized or the
moment where a customer tenders payment in
exchange for goods and services. Any form of
payment can be , used such as cash, debit cards,
credit cards, mobile payments and even bitcoin.
Types of PoS
1) Physical PoS
2) M-PoS
3) V-PoS

12. Open / identify current account for transactions
Fill in the application form(online/ at the branch)
Identify type of PoS required ( landline/ GPRS)
Submit Following documents:
1)Proof of business (any one)
2) Proof of address
3)Photo identity proof
4)Financial Period
Acceptance of MDR by merchant
Execution of Merchant Establishment Agreement

13.  Speed up check-out and return lines. Using mobile POS keeps your
customers moving through the check-out line as efficiently as possible even
during sales rush times. Using mPOS can also avoid back-ups at the sales
registers due to returns. Improve customer satisfaction and help avoid lost
sales with mPOS solutions.
 Cashiers become sales consultants. Improve customer service with
mPOS. It enables your salespeople to better inform consumers. Helping
your customers make faster purchasing decisions can drive higher
revenues.
 Drive sales in different parts of your store. You can sell to customers
anywhere in your store using mobile POS in new ways. Hold an in-store
demonstration to promote a product or service and then close the deal
when your customers are excited and ready to buy.
 Always know price and availability. Customers get frustrated when there
is a question about a price or availability of an item and a store employee
doesn’t have the tools to provide a quick answer.

14.  Security: VPOS meets the strictest security standards and
complies with the highest international standards set by the
ecommerce industry for processing, handling and transferring
confidential data and information.
 Speed: Authorization and authentication of purchases is made
in real time the payment is accepted in a few seconds and the
customer can check the online purchase price once the
transaction has been accepted.
 Versatility: VPOS is a multicurrency and multilingual platform, it
accepts most credit cards, integrates with all financial entities
and adapts to any activity or sector.
 Functionality and efficiency: With VPOS, purchases can be
made hours a day, 365 days a year from anywhere in the world
with internet connection.

15. Inertia of
Non-cash
methods
Reach
Fraud/
hidden
charges
Digital
Payments:
Barriers to
trying
Habit to
use cash
Lack of
compelling
value
proposition
Incentive/
offers from
other
methods
Complexity
of using