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We are The Payment Card Industry Data Security Standard (PCI DSS)
We have a strategic tie up with our technology partner, Mine Financial Group(MFG), which has had years of experience in developing payments infrastructure for several economies.
It is a proven and tested system installed in 10 major banks and independents around the world already
Payments infrastructure solution by MFG, has been successfully implemented in:
The M2Pay Gadget is a card or non-card based contactless payment acceptance device, built closely on mobile DNA. A secure mode of transaction. It enables merchants to accept payments anywhere and for consumers to transact anytime without disclosure of personal banking credentials. They also receive optional SMS confirmations that the transaction was completed.
Works with offline and online commerce. The device is distributed via our Telco partner network. With 2 models, the premium version also incorporates LTE Low Energy BlueTooth™ capability.
Merchant’s bank pays merchant for cardholders purchase
Settlement bank facilitates exchange of funds to guarantee payment to merchant’s bank
Merchant’s bank sends clearing data to MasterCard
MasterCard/Visa calculates net settlement position and sends advisement to merchant’s bank and cardholders bank and transfer funds Order to settlement bank
Cardholder’s bank sends payment to settlement Bank
Cardholder’s bank bills cardholder for purchases
Time of Purchase
Customer bills goods worth Rs 100
HDFC Charges ICICI Bank an Interchange Transaction Fee (ITF) of 1.4% of Transaction Amt.
Retailer
(ICICI’s POS device installed at site)
Card Network
(VISA / MasterCard )
ICICI Charges MDF of 1.8% (set by the central govt.) and refunds net amount of Rs 98.20 to Retailer
VISA (ascertains the break-up of the MDF) charges a Fee of 0.1% of transaction Amt., that is borne by the Merchant Bank
ICICI takes home a net benefit of 0.3% on transaction Amt, which it can partly share with Retailer/Merchant
Lower and affordable MDF. This will also encourage to abolish the ‘minimum payment for card use’
Proposed Model
Admin Fee : 0.3 Paisa
Sold Rs. 100 worth goods = Rs 100
Settlement to Retailer / Merchant = Rs 99.7
Fixed Administration Fee = Rs 0.3
Sold Rs. 1000 worth goods = Rs 1000
Settlement to Retailer / Merchant = Rs 999.7
Fixed Administration Fee = Rs 0.3
Current model
Merchant Disc Fee (MDF) : 1.8%
Sold Rs. 100 worth goods = Rs 100
Interchange Transaction Fee @1.4% = (Rs 1.4 )
Switching Fee @ 0.1% = (Rs 0.1 )
Settlement to Merchant Bank = Rs 98.5
Settlement to Retailer/ Merchant = Rs 98.2
Benefit to Merchant Bank = Rs 0.3
Sold Rs. 1000 worth goods = Rs 1000
MDF @ 1.8 % = Rs 1.8
Settlement to Retailer/ Merchant = Rs 998.2
debit card features all the basic services on a card such as
Currently, only Debit Card features are part of the RuPay Card Scheme. Launch of Rupay Credit Cards is awaiting RBI approval.
Online banking
Point of Sale
Acceptance at ATM
is a payment gateway owned by the National Payments Corporation of India (NPCI), a government owned enterprise.
Funds Transfer
The technology was introduced in India in 2012.
RuPay Market Share
Opportunity to work along with Rupay rather than to compete with them. We share the same objective of financial inclusion and to achieve a cashless society.
Further, NPCI has also revised its charges to issuing and acquiring banks.
The highlights of the MDR fee structure
This sub-one rupee switching fee has to be one of the lowest in the world.
1. USSD refers to unstructured supplementary service data. Simply put,
it's a technology that transmits information through GSM network channels
Communication
Govts Financial Inclusion Initiative - Pradhan Mantri Jan-Dhan Yojna
According to the banks, foreign cards charge around USD 30,000-50,000 as one-time fee and around USD 10,000-30,000 quarterly. In FY10, according to RBI, domestic banks coughed out Rs 490 crore in interchange charges to Visa and MasterCard.
Merchant discount rate charges on debit card payments, will be capped at 0.25% for card transactions up to Rs1,000 and 0.5% for Rs1,000 -2,000
However, there is NO RBI cap on MDR on credit card payments.
MDR Fees charged in India
Number of Mobile Connections in India. However only 17% has access to a smart phone
Indonesia
4. Pre-Paid Instruments (Mobile /E-Wallets)
Bankers say there has been a steady rise in installation of POS machines not only in big cities but even in Tier II cities across the country.Reserve Bank of India data shows that between August 2015 and August 2016 the rise has been steep at 25.6 per cent.
1%
0.75%
MDR % for Debit cards
issued in India
MasterCard sends approval to merchant’s bank
and
Two Factor Authentication (2FA ) Compliant
"India needs more than 200 million smart phones to work towards a virtual mPOS solution that converts a merchant's smartphone into a virtual point-of-sale device.“
2.5%
MDR % for all cards outside India
(Applicable to certain category of merchants)
MasterCard / Visa clearing system provides comprehensive reconciliation to both merchant’s bank and to the cardholder’s bank
Indians have an
Aadhar Card out of a population of 1.25Billion
Malaysia
2. Bharat Interface for Money (BHIM) is a UPI (United Payments Interface) based app.
Merchant’s bank sends purchase information to MasterCard network
Cardholder submits MasterCard / Visa account to merchant
2.2%
MDR % for All other cards
issued in India
1.6%
Cardholder completes purchase and receives receipt
Cardholder’s bank approves purchase
Dubai
Initiatives for financial Inclusion
Targeting rural India:
Bank Accounts for digitization of cash transaction have been prioritized by the Government since its launch in August 2014
3. Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
Merchant’s bank sends approval to merchant
Australia
MasterCard / Visa clearing system validates information and approves sending purchase information to cardholder’s bank, which prepares data for cardholder’s statement
You!
Thank
Merchant’s bank asks MasterCard to determine cardholder’s bank
MasterCard/ VISA authorization system validates card security features and approves sending to cardholder’s bank for purchase approval
43 % increase in ATM
More than 50% increase
POS (7.41lakh to 14.96 lakh )
During September 2012 and September 2016