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E commerce cashless payment system
Cashless payments utilize electronic methods instead of physical currency for transactions, gaining prominence in India after the demonetization of larger currency notes. Various systems exist, including bank cards, UPI, AEPS, and e-wallets, each with distinct features and requirements. While cashless transactions offer benefits like cost reduction and increased transparency, they also face challenges such as security risks and a lack of consumer understanding.
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E commerce cashless payment system
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- 2. A Payment OrTransactions which are operated or performed out without the use of COINS or CURRENCY NOTES for Money Transactions, instead using BANK CARDS or ELECTRONIC TRANSFER of Funds for Transactions is known as CASHLESS PAYMENT . After Demonetization in India for currency of 500’s & 1000’s, the Cashless Payments / Digital Payments are given more importance.
- 3. BANK CARDS AADHAR ENABLED PAYMENTSYSTEM (AEPS) UNIFIED PAYMENT INTERFACE (UPI) Unstructured Supplementary Service Data (USSD) E - WALLETS POINT OF SALE (PoS) There are mainly 6 types of Cashless Payments Systems.
- 4. 1. Getting aBank Card -- First of All you need to go to your nearest bank for registration of getting suitable type of Bank Card for your Account. Banks gives a 4 Digit PIN XXXX which is to used to operate the Card Anywhere. 2. Types of Cards & Usage -- Bank Cards are mainly classified into 4 types i.e. ATM Cards, Debit Cards, Credit Cards & Prepaid Cards. DEBIT CARD •Linked To your Bank Account. •Can be Used to at Shops, Online Shopping's, ATM’s. •Amount is directly Debited from your Bank Account. CREDIT CARD • Linked to Bank Account. But here we Use the Bank’s Money. • Can be used at Shops, Online Shopping, ATM’s etc. • Here the Bill of Usage of Card comes at the End of Every Month and the Amount used had to Paid to Bank in Certain Time Limit. ATM CARD •Linked to Bank Account. •It is mainly Used For the Purpose Of ATM’s Transaction. PREPAID CARD •Pre-loaded From Bank Account. •Safe to use, limited amount of transaction. •Can be recharged like mobile recharge.
- 5. • AEPS allowsbank-to-bank transaction at PoS . • Only Aadhar needed. • Aadhar enabled Services : - Balance Enquiry, Cash Withdrawal, Cash Deposit, Aadhaar to Aadhaar Funds Transfer. GO TO A MICRO ATM OR BANKING CORRESPONDENT PROVIDE YOUR BANK NAME AND AADHAAR CHOOSE WHICH TRANSACTION TO DO PROVIDE FINGER PRINT ON SCANNER ON SUCCESSFUL TRANSACTION, TAKE THE PRINT SLIP PROCESS COMPLETD Key Steps for AEPS Transaction
- 6. Requirements for registrationon UPI • Smartphone with internet facility • Bank Account details (only for registration) UPI Registration Process DOWNLOAD ANY BANK’S APP OR 3RD PARTY APP CHOOSE YOUR UNIQUE ID (AADHAR, MOBILE NO.) AS VIRTUAL PAYMENT ADDRESS (VPA) SELECT YOUR BANK GIVE ACCOUNT DETAILS FOR FIRST TIME SET M-PIN FOR VALIDATING TRANSACTIONS REGISTRATION COMPLETED AVAILABLE APPS (28 BANK APPS) SBI app, PNB UPI, UPI Collect (ICICI), Axis Pay, Canara Bank UPI, UCO UPI, Union Bank UPI, OBC UPI and 20 other banks UPI also helps in Sending & Collecting Money.
- 7. *99# - NationalUnified USSD Platform (NUUP) - • Required for Activation 1. Account in a Bank. 2. Any Mobile Phone on GSM Network. Step 5: In the final step, you have to enter your MPIN to authorize the transaction and last 4 digits of your account number (separated by space), and tap on send. That’s it, once your transaction is authorized, the money will be instantly credited to the recipients account. Step 4: Next, you need to enter amount and remarks (separated by space). Step 3: Enter beneficiary MMID, which you will have to get from the person you are sending money to. Step 2: Enter beneficiary mobile number. Step 1: Dial *99#, type bank name, and when the interface opens, enter ‘3’ and tap send. • Registration Process For USSD. 1. Visit your branch to link mobile number and bank account, Can be done at ATM or online also. 2. You will get your Mobile Money Identifier (MMID) and Mobile PIN (MPIN) upon registration. 3. Remember your MMID and MPIN. Transfer Funds to another Bank Account Can be used for payments upto Rs 5000 per day per customer
- 8. What are e-wallets? •Electronic pre-paid payment system. • Used in purchasing items on-line with a computer or a smartphone at a store. • An individual's account is required to be linked to the digital wallet to load money in it. • Most banks have their e-wallets and some private companies Consumer Wallet Limits: Rs.20,000/month for all. Rs.1 lakh/month with KYC CONSUMER DOWNLOADS THE APP ON SMARTPHONE SIGN UP USING MOBILE LOAD MONEY USING DEBIT CARD/CREDIT CARD OF NETBANKING START USING WALLET TO MAKE PAYMENTS Merchant Wallet Limits: Rs.50,000/month with Self Declaration. Rs.1 lakh/month with KYC SHOPKEEPER /SERVICE PROVIDER DOWNLOADS THE APP SIGN UP USING MOBILE SELF DECLARE ITSELF AS A MERCHANT START ACCEPTING PAYMENT Basic Requirements to Start Using a Wallet: Bank Account, Smartphone, 2G/3G Connection & A Free Wallet App E – Wallet Example – PayTm, FreeCharge, MobikWik, Oxygen, etc.
- 9. Types Of PoS PHYSICALPoS • SWIPE A DEBIT/CREDIT CARD ON THE POS MACHINE • ENTER AMOUNT TO BE PAID AND PIN • GENERATE RECEIPT M – PoS • PLUG-IN THE M-SWIPE • LAUNCH THE APPLICATION • SWIPE YOUR CUSTOMER CARD • ENTER THE CARD HOLDER MOBILE NUMBER & E-MAIL ID • OBTAIN YOUR CUSTOMER SIGNATURE • NOTIFICATION IS RECEIVED ON SUCCESSFUL TRANSACTION V – PoS • No PoS machine required • QR code used for payment to bank account of merchant • Complete privacy of merchant bank account PoS Points To Be Taken Care Of. • Register your mobile number at bank for regular information by SMS for every transaction • Never share your PIN to anyone • Transact at only trusted merchants • While at ATM, ensure no one is looking over your shoulders
- 10. Moving towards aCashless Economy: Here are the advantages 1. Cost of handling cash reduces 2. Brings transparency 3. Help curb the creation of black money 4. Will increase the tax base and add to tax revenues. Hightlights of the incentives announced – 1) Discount on fuel Purchase 2) PoS Machines in Village 3) Discount on Suburban Railway tickets 4) Service Tax Exemption 5) Discount on Highway Toll 6) Discount on Insurance Premiums 7) Rupay Cards to Farmers
- 11. Here are theDisadavntages of Cashless Payment System 1) Poor knowledge about transaction process, India is still ill-literate democracy. 2) Hacking into one's account due to server vulnerability. 3) Mass scale cyber theft into central government account, website, which has chances of deleting your transaction history or government stats about all citizens 4) Mistake by many individuals of entering wrong digits in hurry, believe me it's major drawback 5) Cashless transactions are not guaranteed by sovereign. In absence of sovereign guarantee, people are left at mercy of businesses who have founded these methods and promoting their use. 6) The dispute mechanisms are business and method specific and can leave people in chaos and very confused about what is binding regulation Vs what is a business practice 7) Inconsistency over payment mechanisms - merchants accept only a specific type of cashless method. If consumer is using different method, the capability to conduct transact might be effected.
- 12. India is acountry where 98 per cent of total economic transactions by volume are done through cash. However, this may no longer be the case in future as the government has already steered the country towards cash less society. Prime Minister's demonetisation move has also divided the top economists in and outside the country over its unquantifiable outcomes, at least for now. COUNTRIES CASHLESS TRANSACTIONS 1-Singapore 61% 2-Netherlands 60% 3-France 59% 4-Sweden 59% 5-Canada 57% 6-Belgium 56% 7-United Kingdom 52% 8-USA 45% 9-Australia 35% 10-Germany 33% 11-South Korea 29% 12-Spain 16% 13-Brazil 15% 14-Japan 14% 15-China 10% • Cashless Transactions in India can be taken up by Giving Proper information of its usage to the people. • Govt. should organise a proper Demo of the New Payments systems Launched in Rural & Urban Areas. • The importance & Benefits of Cashless Transaction should be explained to users. • Cashless Transactions Should also take place in Education System, so students are also aware of about it.