All posts by mindgate@admin

How Mindgate’s QR code payment system is giving more power to the Fintech industry.

Imagine, you went shopping, you bought some great stuff & you are now waiting in a queue for your turn to check out. Your turn comes & you suddenly realise that you forgot your card at home or forgot the PIN! Now what? Does this thought bring nightmares to you? Well, you need not worry because the QR (Quick Response) code payment method has made life quite easier now. You just need to scan a code in your smartphone and the payment is done, bingo!

The pandemic has brought us into a situation where social distancing is the key to stay healthy. In times like these, it is very important to avoid contact and thus has accelerated the rise of digital payments everywhere. With the penetration of smartphones and super-speed internet connectivity, the Reserve Bank of India has started promoting the QR code payment method as they are increasingly being used to ease up mobile payments at the point-of-sale, according to Financial Express.

By far, most of the Fortune 500 including Nike, Puma, Nestle, Emirates and many more companies have already added QR codes to their marketing stack according to Beaconstac, 2019. The world has gotten habituated to many modes of contactless payments among which QR code payments method has brought to you the most comforting experience.

Mindgate is one of the leading financial solution providers striving to make the user experience across consumers, corporates and merchants easy and convenient.

How Mindgate eases user’s experience with its offerings?

Mindgate QR Payments Overlay offers banks, corporates and merchants an end-to-end payment solution using QR code that includes-

  • 1) Scan and Pay using multiple payment options
  • 2) Merchant initiated payment using Dynamic QR.
  • 3) Contactless, safe and secure payment method for the end-user.
  • 4) Real-time Payment processing.

Other benefits of our solution include:

  • 1) Real-time payments:
    Seamless integration for processing real-time payments through integration with real-time payment rails
  • 2) Eliminates overhead expense:
    Eliminates the overhead cost involved in implementing and managing a POS or mPOSterminal for payment acceptance.
  • 3) Secured and safe payment method:
    The QR codes encrypt the data and transfer it to the desired location securely. It also minimizes data loss and security breaches.
  • 4) Easy to set up:
    An extremely easy set up is required for the QR code payment. No overhead cost of infrastructure required. It can also be printed on paper and can be used for scan and pay.
  • 5) Multiple QR standards support:
    Mindgate’s QR platform has been integrated to support multiple QR standards across geographies. The standards include Bharat QR/ UPI QR, PayNow QR (Singapore), SG QR, Ali Pay (Singapore and Hong Kong),WeChat Pay (Singapore and Hong Kong), Fast Payment System (Hong Kong)

The platform is built on an open source technology framework with Micro Services and Cloud readiness and is optimized for high scale and volume.

Merchant initiated QR payment

As there is rapid innovation in digital payment space for retail-corporate/merchant (across various segment like e-commerce, bill payments, insurance payments) to ease their customer’s payment & bill collection experience. Merchant initiated QR payment is prominently becoming part of digital payment with providing contact-less & safe payment experiences and supporting various real-time payment rails in different geographies.

All in all, QR payments are here to stay and each geography is seen innovating use case scenarios with its wide spread adoption.

Re-thinking Payments in the wake of the pandemic

payment
payment

Human lives everywhere have surely experienced a jolt with the recent pandemic outbreak. Lives as well as livelihoods are at stake. But amidst all negative growth in businesses everywhere, there is some exhilarating news hovering. As firms worldwide get together in their endeavor to business continuity, payments companies must show urgency in lending their skills and capabilities to their partners so that they can reinforce their place in the economy.

Data reveals that although the credit cards market leads the show, the growing demand for mobile wallets is likely to enter the fray. Surprisingly, the user base aren’t only the millennials or the Gen Y. With the pandemic spreading its wings, contactless payments have become the new normal. As first-time users for contactless payments keep on piling, Banks and institutions cannot lag. Now when we think of gearing up to take on the storm, we need to know the top things that are going to impact the growth of the payments’ industry in the forthcoming days.

1. All the top global markets for payments industry have been badly affected by the disease. As a result, interest rates have plummeted; job markets have contracted leaving a staggered consumer spending. This is sure to affect the normal growth expected for the payments industry too.

2. The recent restrictions and a lot of trepidation have also led to a slump in all sectors, starting from manufacturing to entertainment and e-commerce. Tourism being vastly hit will surely have a negative effect for both the cards and forex markets. However, e-commerce is the one area which has added some fuel for all modes of digitized payments.

3. As business houses struggle with reduced sales and inadequate revenues, payment companies could jump in to partner with their clients to bring them back to the road to recovery. There can be various measures to retain liquidity, as waived digital payment fees and providing assistance in distributing government financial aids.

4. It is true that, this pandemic has brought in changes at a much-accelerated pace especially for the online payments. Data shows a steep decline in cash withdrawals as well as check deposits. With cash traditionalists shifting to alternative payment modes, it’s time that Banks as well as Payment companies equip their customers with an array of digital payment options.

5. There will be a surge in tokenized payments such as mobile wallets in an environment which is moving towards remote working. With easy on-boarding process, user-friendly UI and most importantly two-way authentication, this is surely the go-to thing for most customers.

6. Going forward, payment companies should focus more on interoperability between smartphones and payment systems.

7. Lastly, payment companies should prepare themselves for increased fraudulent activities. With increasing disparities and economic uncertainties coupled with first-time users, there is always going to be a risk for losses owing to cyber fraud.

Rebooting Helps

Digital journeys had already opened up horizons that we never experienced before. Now with the recent crisis there’s a lot of re-evaluation that needs to be done. Mid-term and long-term strategies will help us get back to our feet slowly and steadily.

To Know more: www.mindgate.us | www.mindgate.in

Social media payments, a friend or foe?

Social media payments
Social media payments

Social media, like any other innovation, is likely to go through a refinement period, which seems like a never-ending process of updates and improvements. Despite its substantial list of pros and cons, social media sites and apps have been here for more than a decade and their footprints are both profound and undeniable in today's digital payments space.

The social media pioneers that evolved our social behavior, have moved the bar again by implementing a payment gateway within their ecosystem. They have changed the way we approach payments towards our friends, family and associates. Just when we thought that social media was a big disrupter to our social interactions, they are now working on disrupting the payments industry.

We could wonder whether social media payments could be the catalyst for a cashless society in the near future.

Today, social media platforms have all the right ingredients needed for developing a strong payment platform. They can reach across distant and remote locations, hold a mammoth of customer base that increases exponentially, ease of use with far better customized user interface than other mobile or web applications, and most importantly social cohesion across the consumers that easily initiates a channel of communication.

Despite all these benefits, the adoption of social media payments is considerably lower than expected, especially in comparison to the adoption of other recent payment trends like, Real Time Payments(RTP) and Mobile Payments.

PayPal first popularized the trend while other companies have ever since hatched their own versions to it. Some popular names like Apple Pay, Twitter Buy, Google Wallet, WhatsApp Pay, Venom and Snapcash.

Facebook owned WhatsApp, holds an extensive user base of 200 million and growing, easily could prove to be a full-fledged social media payment platform, especially given WhatsApp’s platform strengths like broad set of payment streams, reinforcement of business opportunities via virtual offices & direct sales, ability to personalize selling opportunities based on consumer data and quicker payments via consumer footprints.

Considering the massive database of users that social media possess backed with the payment capabilities readily available, it makes perfect sense to bring the two together.

However there are some of the challenges as well in social media payments space.

In cases where systems are compromised, hackers can potentially access the bank information of every user on that particular platform. It is also quite easy to manipulate the payments on the app, one needs only minimum access to a mobile device with the social media application logged in. The case is similar for mobile banking as well, but in mobile banking the app session logs out after non usage (for a defined time interval). Thus soon the phone’s security features will be more important than ever, as social media payment apps will require not only PIN and Biometrics for authorization but further authentication purposes to access it’s payments functions.

So after much debate, should we view social media payments as a friend or a foe?  If social media payments, like any other innovation, goes through it's refinement period related to cybersecurity, then one day we can surely expect social media payments be considered a friend to drive growth of social payments.

To Know more: www.mindgate.us | www.mindgate.in

The global acquiring landscape redefined

Fintech start-ups are known for being agile and efficient and they now have their eyes on the banks’ revenue sweet spot. These new entrants, have a well-established online presence, they are targeting merchant services and managing to hold on to them through mobile access.

To stave off this threat, banks need to work with merchants to strengthen their offerings via new and dynamic merchant solutions. Merchants are striving to keep pace of the payments revolution by developing a comprehensive payment strategy offering, some of these include:

Attaining regional/global reach and acceptance

Regional and global giants like Google, Facebook, Amazon, Apple are dominating the industry, putting pressure on subscale players. The primary objective for banks is to meet the increasingly critical demand of merchants for global reach and acceptance, across all geographies and payments types. Merchant solutions are offering cost effective and low maintenance payment forms that include smartphone payments via merchant apps. One example of merchant app use is the ability to allow customers to place their order via the merchant apps for in-store pick-up, these apps can also collect customer data, which can then be used for driving customer loyalty programs.

Become a digital / Omni channel champion

With increasing consumer expectations, and their demand of products and services that can be integrated into their daily lives, the leading merchants (and service providers) understand that payments (the last step in their purchase cycle) can no longer be controlled by the banks. Today more than ever, an integrated and seamless payments experience is a critical part of a customer’s shopping journey. Amazon is a perfect example of this, they have payment related initiatives like amazon cash, prime rewards, amazon pay UPI (real time payment), and amazon lending. These initiatives have not only enhanced the customer experience but increased their market share and profitability.

Lowering fraud rates and knowing which frauds are prevalent in the industry

Partnerships with digital upstarts and innovators can help merchants get access to better and faster technology (such as real-time fraud detection and monitoring) which allows them to improve their back-office processes without building the capabilities in-house.

Turning acquisition into a competitive advantage

Recently a large global acquirer digitized the on boarding journey, reducing time to market from two and a half weeks to less than four hours. While this is impressive, it is still well short of the capabilities of leading tech-savvy acquirers—PayPal, Stripe, and Square. These companies can accomplish the same feat in as little as five minutes.
Banks need to work with payment Start-ups and Fintech companies who have already invested in merchant acquisition technology, and have an established market-share. There is some healthy scepticism between merchants, retailers and payment fintech firms when it comes to payment transactions. However, through strategic partnerships between larger corporates and banks, these merchant acquisitions can become more seamless and help them keep ahead of the payments revolution and in-line with customer expectations

To know more: www.mindgate.us

Overcoming anxiety around mobile payments and digital payments – In the South Asia Pacific

overcoming-anxiety-around-mobile-payments-compressor
overcoming-anxiety-around-mobile-payments-compressor

Innovation and technology usually go hand in hand. Therefore, for innovation to be fully realized, the technology that enables the innovation must be adopted as well. During the last 5 years, we have had innovations from Google, Apple, Facebook and Amazon, that include Mobile Banking, Payment Gateways, Mobile Wallets and Real-Time Payments Applications, and yet, none of these innovations were broadly adopted.

It was not until the earlier part of 2016, when the environment started to shift. The effect of government policies for financial inclusion, developments in PSD (Payment Service Directives), demonetization, and collaboration with FinTech enablers for developing Real time platforms started showing in Southern Asia Pacific, prominently in the Indian market.

The growth of platforms like UPI (Unified Payment Interface), mobile wallets and mobile payment services atop UPI became a success story and a great case study for many mobile payment and digital payments industries worldwide. The Indian population accepted these payment channels and methods breaking thru the anxiety around mobile payment solutions. Google Tez (now known as Google Pay) acquired the biggest market share in this shift from traditional and card-based transactions to non-card-based transactions.

While millennials are driving and embracing payments innovation, older generations are also shifting their perspective. The unbanked population is also going digital and mobile to gain access basic financial services. In an interview with a mobile commerce publication, Laurence Cook, the CEO of nanoPay ( a Canada-based digital and mobile payments platform) states the types of fear that revolve around the mobile payments the fear of fraud, privacy loss, identity theft and wrong processing. To combat some of these fears, UPI implemented the use of VPA (Virtual Payment Address) which allows consumers to identify themselves with the payee (institution or person receiving payment), without providing card or account details, thus lowering fraud risk. Additionally, the following technologies were also deployed – tokenization for secure tokenized transactions, two factor authentication process and acceptance of mobile payments from merchants and retailers. The anxiety of mobile payments has dramatically lessened with the implementation of these security measures.

The final step to unlock the customer anxiety was when the merchants accepted mobile payments as a valid payment method at their storefronts.

It is now common to step out of an uber without interacting with the driver, as the taxi fare has been processed from the backend with your linked wallets. Merchants are now implementing cashbacks and discounts programs for mobile payments, which has helped increase the use of digital payments over cash-based payments. There are some creative approaches to drive digital payments; payment apps created games like collecting and sharing stickers, and upon payment milestones, utilities and bill payments are rewarding the milestones. This created an environment of social cohesion, which further helped the consumers adopt to the mobile payments.

To summarize, mobile payment services are growing exponentially in South East Asia, but it is still in its infancy. We expect the rest of the world will shortly follow suit, especially when they consider and adopt all the research being conducted in this domain. One example of a recent research paper on user challenges and successes with Mobile Payment Services, who stated the following “The potential to enhance users experience with faster and more useful transactions is possible with improved user experience ‘designing around users’ routines and behaviours, trust mechanism development, and supporting gamification and social cohesion.”

To know more: www.mindgate.us

Top 5 Digital Banking Myths: Community Banks Need to Abandon

top-5-digital-banking-myths-compressor
top-5-digital-banking-myths-compressor

Digital payments are already here, whether we are ready for it or not. With every passing day, there are FinTech companies continually pushing the digital payment envelope. New ideas and services are created all the time. We also see non-traditional FinTech companies enter the digital payments space, examples are Facebook and Apple (just to name a couple).

WhatsApp, a Facebook company, is currently providing digital payments in various regions around the globe leveraging their social media networks. Apple has partnered with Goldman Sachs to provide a digital wallet here in the U.S. Venmo and Zelle are also popular digital payment platforms for P2P payments in the U.S. As you can see, digital payments are already here, and you can expect it to grow exponentially with continued adoption and newer solutions.

So, why is this market segment growing so rapidly? There are three simple reasons: Firstly, people love using their digital devices; secondly, people also love conveniences; and, thirdly people love the idea of accomplishing tasks quickly. We can all relate to the sense of accomplishment we get when sitting down enjoying a cup of coffee while paying bills and/or making purchases – how convenient and quick! It simply allows us to have more time for other interests.

Thus, with such wide appeal, it is no wonder that digital banking will be the way forward for all financial institutions (small community banks or large global banks). In order to stay relevant, financial institutions will need to evolve to an institution that welcomes the digital | mobile platform with open arms. It is especially crucial for community banks/credit unions to adapt, as this will provide unique growth opportunities.

Below are some myths that community banks/credit unions need to abandon:

Myth 1: Digital payment platforms are more suited for national and global banks

The digital payment platform provides an opportunity to reach consumers in new settings by providing an easy and convenient mode of connecting with customers. The advanced medium is quite fulfilling in building rich and omnichannel brand experiences. Going digital is almost a necessity for small regional banks. Typically, regional banks provide solutions specifically designed to support their community. For example, let’s say you are a community bank that primarily support farmers and have built financial solutions to address their unique needs. Would it not be great if you can take these unique financial products to other farmers around the world? Well, now that we are in the digital world, it is very possible to do just that. Therefore, regional/smaller banks have an opportunity to increase their revenue in the niche markets they serve at a global level.

Along with being technologically forward, what remains necessary is to enhance and enrich the customer experience.

Myth 2: Digital payments platforms are too complex and expensive

Digital Payment Platform does not have to be complex or expensive. There are many digital payment platform providers that offer solutions in the cloud, thereby eliminating the complexity of hosting and maintaining these platforms. Additionally, these cloud solutions are usually priced by services, which allows you to pick and choose which services you need to support your client base. This approach allows you to adopt digital services at the same rate that your business grows. For many banks, digital payment platforms are a new source of revenue and not considered an infrastructure upgrade with no return of investment.

Myth 3: Digital payments are for the younger generation

The rise of smartphones has been astounding far more than anyone predicted in the past decade. With the network speeds exponentially increasing from 3G to 5G, a host of new mobile applications and services are now available through the device. Making many tasks convenient and fast, be it e-commerce or banking, the mobile services are transforming the lives of all people, the usage of smartphones is no longer limited to the younger generations.

Financial Institutions have noticed it is just not the younger generation that is attracted to the benefits and convenience of digital devices. They have observed an uptick in usage from customers belonging to the 40 – 50 age group, it appears they also like to manage their money via mobile devices, i.e. smartphone, tablet.

Myth 4: Digital payments Increase a Consumers’ Chance of Fraud

Digital payment methods include payments carried on via electronic devices and channels. The most common methods of making electronic payments include credit/debit cards, mobile payment gateways and mobile payment apps. Due to preconceived notions, merchants and customers have hesitated to adopt the latest, digital payment systems. The misconception in their mind that digital payments are prone to frauds, doesn’t hold much value. These e-wallets and digital payment gateways are equipped with robust security features like data encryption, address verification system and Payment Card Industry Data Security Standards (PCI DSS) that make them a safe medium for transferring cash.

In summary, community banks/credit unions need not be concerned and should feel confident about adopting new digital payment platforms. Especially, digital platforms that integrate merchants and customers through a single platform making the process of transferring and receiving cash both contactless and seamless.

Myth 5: Digital payments and Local Payment Methods (LPMs) make global payments riskier

Digital payment technologies and global payment networks are armed with security features like multi-factor authentication that are linked to the specific banks that the individual customers belong to. These payment features can help the U.S.-based online retailers reach the global market. U.S. retailers should no longer restrict their market and continue to root in traditional payment methods.

Conclusion

Thus, by embracing digital technologies, regional banks/credit unions can widen their reach and expand their client base across varied geographical locations. In addition, they can help support their clients’ global aspirations as well. Digital technology is indeed advantageous for community banks/credit unions, which increases their scope and their chances of success.

To know more: www.mindgate.us

How to help your customers eliminate the ‘Go to the Bank’ from their to-do list

Digital Payment solutions
Digital Payment solutions

When most people think about the term “Bank” they probably envision a retail branch with long queues, behind a rope waiting to seek the services of a teller or branch representative. Well those days are becoming more and more obsolete, as Gen Y and Millennials are seeking convenient, innovative, digital means of banking.

Banks need to elevate their game if they want to compete against the Neobanks by restructuring their organizations around how to provide flexible solutions to consumer needs instead of the traditional methods, which often meant working with isolated teams that worked within defined product mandates.

In the recent years, banks have tried to be more accommodating by unbundling banking services and improving their front end for retail customers via better customer care, new branding and pricing models. They have also started to change their business model from revenue driven to data driven and developing new services around real time payments. Additionally, they have adopted mobile technology – built bank apps and have enabled some digital banking services – and yet it’s still not enough. There is more the banks can do, to further improve the customer experience.

Banks in future, or to be precise ‘Banks of the future’ need to let go of their customers (not literally of course). What I mean is less hand-holding by providing more self-servicing capabilities. With fingerprint readers embedded in smartphones, card readers via NFC technology, and other new and emerging financial technologies, which ensure privacy and reduce fraud concerns, banks can empower their clientele with increasingly innovative technologies to facilitate the customer experience and improve customer satisfaction. Here are a few ways that can help the modern banks accomplish just that:

  • Add digital payment options to mobile banking services to cut through standard banking red tape.
  • Improve the Kiosks channels to do most of the functions with intuitive and easy to use steps for transaction processing
  • Rather than compete with FinTech, learn to partner with them. Integrate with start-ups and fintech. Set up independent innovation labs that thrive on making customer experience with banking institutions contactless.
  • Learn from Neobanks on how to provide digital and mobile first financial solutions, payments, money transfer, money lending and more.
  • Amalgamate with social media payments to complete peer-to-peer transactions using virtual accounts at front-end, while keeping the banking information centralized to itself.
  • Improve the physical card segments by completing transactions internationally without the need of card upgrades or getting a new card altogether when transacting across borders. Working on approaches like One Card for all transactions globally will take time and a lot of infrastructural and integrational changes, but the idea is not unlikely, considering a decade ago no one would have thought of sending money via Facebook or Twitter.

Indeed, technology will remove much of the face-to-face bank-customer interactions, which will be a convenience for customers, however, this may negatively impact customer loyalty. As it will be easy to open a new account at another bank, it will be easy to download a new app and it will be easy to walk away. As with any new approach, new problems will also arise, understanding the impact of these new solutions will go a long way in minimizing the impact to your customers and make the transition seem worthwhile and seamless.

To know more: How to help your customers eliminate the go to the bank from their to-do list

Your customers have adopted digital payments. Have you?

Digital Payment

From being a cash-oriented economy, India has transformed its payment sector to a large extent. The boom in digital payments is attributed to various factors like smartphone penetration and progressive regulatory policies. Especially after the Government of India passed the Demonetization Act in 2016, both the urban and rural population have adopted digital payment solutions in large numbers.

The Unified Payment Interface (UPI), an instant payment mode between bank accounts, has enabled the success of India’s digital payment system. In fact, Google has detailed the successful example of UPI-based digital system to the US Federal Reserve Board to build a new inter-bank Real Time Gross Settlement ( RTGS) service for faster digital payments in the US. “We've had a lot of traction with our payments product over the past 18 months. We had a tremendously successful launch in India from which we learned a lot of features, and we are bringing that and we are revamping our payments products globally,” said Sundar Pichai the CEO of Alphabet speaking to analysts after the company’s fourth quarter earnings. Alphabet is the parent company of Google.

The growth of e-commerce followed by the emergence of digital payment wallets like Google Pay, have lured the customers to opt for digital payment solutions. Apart from this, the convenience of going digital has attracted the youth to opt for such payment systems. According to a committee formed by the Reserve Bank of India, digital payment users in India are expected to grow from 100 million to 300 million and the per capita income is expected to reach 220 by 2022. Refer the link to know more: https://yourstory.com/2019/09/digital-payments-upi

The figures, thus, prove that digital payments have been widely accepted by customers. On the other hand, the change has tasked businessmen and retailers to accept the latest payment processes and accordingly revamp their systems. For retailers, upgrading to a system accepting digital payments could be difficult due to lack of industry standardization and cost of implementation. However, to keep up with the latest technology and survive the competition, businesses need to alter their systems. India has seen the emergence of few cutting edge PayTech firms that have built innovative use cases around UPI and Real Time Payments and also help business adapt their legacy systems to cater to the new world of Digital Payments.

Future Banking – Taking a Peek

Future Banking – Taking a Peek

The future of banking will be so much more than just banking. It will go beyond digital offerings such as real time payments, checking balances, paying bills and making mobile check deposits. The future banks will be data houses that will utilize a customer’s data to weave a financial and personal information avatar of each customer. This will enable banks to work beyond their traditional roles as financial advisors and keepers and become value providers rendering tailor-made solutions for all needs.  Let us explore a few key trends in the changing digital transaction banking landscape:

Future Banking – Taking a Peek

  • Financial suggestions & warnings using artificial intelligence: AI & ML will be able to deliver advanced warnings, recommendations, and advice to change course to avoid a difficult situation instead of providing post facto notifications. In many ways, the future of banks will be about providing solutions instead of selling.
  • Workplace developments at Banks & Institutes: As financial institutes embrace the various advantages of AI &ML over human limitations, they are discovering the competitive edge provided by automation urging them to rethink their talent-scape. An efficient future should probably see a successful integration of digital human workforce with the benefits of both. 
  • Integration of data & use of automation to combat CyFi: Newer Banks are always at risk of cyber risk and financial crime (CyFi) resulting from automation & digitization and massive growth in digital payment volumes within countries and internationally. With time, fraudsters have become more electronically sophisticated and impersonal too. Meanwhile, regulators continually revise rules to account for illegal trafficking and money laundering. A traditional siloed approach to these interconnected risks is becoming increasingly obsolete lending the need to rethink the operating model. As such, banks should utilize and integrate data from different functions to intensify customer identification and verification. This can be achieved using data, automation and analytics along with the power of Artificial intelligence and machine learning. 
  • Collaboration of banks with multiple sectors: In order to sink deeper into the customer’s lives, banks should partner with government, doctors, hospitals, merchants, retailers, telecom & other businesses, to deliver the best and most accurate transaction banking solutions with enhanced customer experience. 
  • Tapping the untapped segments: Banks can serve various segments such as the currently banked, underbanked, unbanked or unhappily-banked populations. 
  • Power to consumers: Increasing digitization will also lead to greater transparency, enabling the consumers to compare and choose from among several products & services in real-time. 
  • A single ecosystem to manage all government agencies: Today, governments of developed and developing economies are promoting financial inclusion and seeking for themselves a centralised database for citizens, including payments, transfers, personal data and more. The Public financial management system(PFMS) is one such platform by Mindgate – a leading online payment solutions provider in India – integrates with the banking ecosystem for fund management as well as enables a DBT (Direct Beneficiary Transfer) mechanism for faster and efficient disbursement of benefits. 

In this era of digital disruption, banks should speed up now to not only expand but retain their market share. They must embrace this revolution with the alliance of an efficient software provider such as Mindgate, which is more than equipped to handle the ongoing digital challenges.  It is now up to the banks to determine whether they want to be industry pioneers, swift followers, or just reactors to whatever the future holds!

 

Mobile Wallets – The New Way to Transact

Mobile Wallets – The New Way to Transact

Gone are the days when the core purpose of a wallet was to hold your cash and cards apart from stuff like a license or a random bill paper. With the advent of digital wallets, the physical wallet is now boiling down to being mainly a fashion accessory.

In case you are still wondering what a mobile wallet exactly is, a mobile wallet is a digital wallet on your mobile phone.  It simulates the regular wallet replacing the cash with digital money and physical cards with the card details. A Payment gateway is integrated with a mobile wallet to help a user load and send money to and from their wallet with the help of their credit or debit card or your digital bank account. To start using a digital wallet, you just have to register your account details in your e-wallet application which are securely stored and used for all transactions. So the next time you are at the grocery store or at the mall, instead of using your physical card to make purchases, you can simply scan a QR code at the counter with your phone camera, enter the amount and voila – your digital payment is done!

Mobile Wallets – The New Way to Transact

The Evolution of Mobile Wallets

Mobile wallets entered the market with basic offerings such as mobile recharge and bill payments and as a payment option on a few e-commerce portals. Today, mobile wallet solutions have evolved and can be used for various transactions such as to recharge mobile phone, pay utility bills, book a hotel, secure loans, buy movie tickets, travel on the metro or by a flight, and even buy & sell gold. Cheaper handsets and increasingly economical data plans have fuelled the growth of smartphone users in India leading to further usage of mobile wallets. To top it, digital wallets provide a simplified transaction experience while offering a host of other value-added services to the users. It is estimated that in the next 5 years, the Indian mobile wallet market is set to grow by 150% with transactions recording at some $4.4 billion.

Why use Mobile Payments?

Mobile payments can be used in a peer-to-peer transfer or for paying at a brick-and-mortar business. Mobile transfers are quick and allow you to forgo the hassle of dealing in cash and checks. The other reasons can be cited such as:

  • Saves Time: Contactless Mobile payments are by far the fastest way to pay, consuming only a few seconds. To compare, they’re slightly faster than swipe payments and much more so than the sluggish EMV chip payments. For businesses such as retailers that have checkout lines, such contactless payments enable the queue to move faster resulting in shorter pay time.
  • Provides Convenience: Urban Indians prefer carrying lesser cash, and with the ubiquity of mobile phones instant payments happen to be the most viable medium.
  • Secure: Mobile payments have multiple layers of dynamic encryption, making them an extremely secure way to pay. They’re far more secure than magstripe payments and just as secure as EMV chip card payments. In fact, if you’re using a mobile payments app with fingerprint ID, it’s arguably more secure than an EMV chip card payment.

Types of Mobile Wallets

Depending on the services offered, wallets are of different types:

  • Closed Wallet: Companies such as Bookmyshow, Ola and Amazon have frequent online purchases. As such, it is convenient and more intuitive for the users to pay if the payment wallet is present on the application itself. Such wallets are called Closed Wallets. The money stored in these wallets can only be used to transact with the companies who issue them.
  • Semi-Closed Wallet: Wallets like Paytm Wallet, Freecharge Wallet, Citrus, Oxygen, etc. are labelled as semi-closed wallets. These wallets, which require an RBI approval, can be used for both online and offline transactions which include buying goods and services, financial services, payment of fees, premiums, etc.
  • Open Wallet: These wallets can be used to perform all the transactions of semi-closed wallets plus withdraw cash at ATMs or banks and transfer funds. M-Pesa by Vodafone and ICICI bank, Pay Zapp by HDFC Bank, etc. are few open wallets in India.

Mindgate Mobile Payments Solutions – The Way Forward

Mobile payments have revolutionized the way businesses think about payments processing. We are moving toward a more secure, authenticated and faster way to process payment. Mindgate mobile wallet solutions help banks fulfil this need with the ability to engage even the unbanked customers to leverage the facility for financial transactions. The Mindgate prepaid solutions platform is built on open source technology framework and is optimized for high scale and volume. The platform enables to open up their service offerings for all participants across channels with incredibly quick TAT!