The Futuristic Payment Solution - E-RUPI
Taking a step forward towards digitalized payment system, PM Modi launched the much-awaited e-RUPI payment solution on 2nd Aug. Contactless and cashless, the one-time payment system is designed to send government monetary benefits directly to the beneficiaries. The flexible framework is also good enough to be utilized by corporate and PSU’s for their relevant use cases.
E-RUPI has been developed by the National Payments Corporation of India on its UPI platform, in collaboration with the Department of Financial Services, Ministry of Health & Family Welfare, and National Health Authority. Representing India’s digital progress, e-RUPI is being viewed as a revolution towards making e-payment solutions easier for the common man.
What is e-RUPI?
It’s an electronic voucher that allows beneficiaries to redeem it when availing of specific services. The digital tokens are transferred on the mobile phones of beneficiaries in the form of QR codes or SMS.
Designed on the lines of an innovative digital payments framework, these vouchers are person, purpose, and service-specific. For instance, an e-RUPI voucher issued for a vaccine shot can be redeemed for that purpose only.
Currently, it is an initiative for Government welfare services coming under schemes meant for providing drugs, nutritional support, and more. However, given the potentials of this e-pay framework, it’s most likely to have a significant role in the payment landscape in the future.
How will e-RUPI work?
- The voucher code is sent to the beneficiary’s phone as SMS or QR codes as per the instructions and funding scheme provided by the government/corporate.
- The service provider scans the QR code or SMS string on the beneficiary’s phone.
- The e-RUPI voucher issuer triggers an OTP to the beneficiary for validation.
- This OTP is used by the service provider to complete the transaction and provide the service.
What are the benefits of e-RUPI?
- A cashless and contactless mode of payment.
- Can be redeemed without any card, payment app, or net banking access.
- e-RUPI’s prepaid feature assures timely payment to the service provider without the involvement of any intermediary.
- Transaction through e-RUPI is faster and reliable as the required amount is already stored in the voucher.
- The beneficiary will not require sharing personal details while redeeming the voucher so privacy is maintained.
- This will simplify the delivery of social welfare schemes and other payouts that are not recurring in nature and are for a specific purpose only.
The most distinguishing feature of e-RUPI that sets it apart from other current payment mechanisms is that it does not require the beneficiary to have a Smartphone with a digital payment app or access to mobile banking solutions. Bringing in the ease and simplicity of UPI, this payment instrument aims to drive down financial exclusions by serving the underprivileged and non-banking demographic sections.
Role of Mindgate with e-RUPI
Mindgate has been at the forefront of delivering E-RUPI solutions to its UPI customer base in India since its time of launch and it’s a pleasure to announce that customers powered by Mindgate solutions are enjoying a major market share of E-RUPI vouchers processed in the country.
Looking at the latest developments and prospects of the e-payment systems, Mindgate is all geared to collaborate and work with various industry stakeholders to leverage the E-RUPI framework and tailor solutions that ease out several real-life business problems.