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Security Standards

We are The Payment Card Industry Data Security Standard (PCI DSS)

Our Technology Partners

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:

Mission &

Vision

http://www.berrebi.org/2012/01/17/guide-how-to-present-your-startups-pitch-deck/

JEREMIE BERREBI

CONTENT BY

http://www.prezmaker.com

  • Our focus is also to provide Debit Card capabilities and contactless payments together with Credit transactions through multiple channels including Eftpos and what the commensurate devices require. We also have the ability to drive ATM traffic on behalf of sponsor banks as a white label solution.

Business Objective

TEMPLATE BY

WHO WE

  • Innovative electronic payment enabling technology company
  • Core infrastructure player in advanced independent switching solutions and managed services
  • Developed a series of inter-related technologies

ARE

I

Bharat Payment Switching System

for a Cashless Society

The M2Pay Gadget

Standard operating system

creating a fundamental payment platform,

which can seamlessly connect to all legacy systems,

and virtually any further conceivable payment device or application

Introducing The Switch

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. 

Usually within two days

SETTLEMENT

Merchant’s bank pays merchant for cardholders purchase

Settlement bank facilitates exchange of funds to guarantee payment to merchant’s bank

The Current Framework

The Proposed Solution– Process Flow

Settlement Process Flow

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

AUTHORIZATION

Cardholder’s bank sends payment to settlement Bank

Cardholder’s bank bills cardholder for purchases

Time of Purchase

Authentication Process Flow

Clearing Process Flow

CLEARING

Usually within one day

Customer bills goods worth Rs 100

HDFC Charges ICICI Bank an Interchange Transaction Fee (ITF) of 1.4% of Transaction Amt.

Cash Flow

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

  • Hot parallel processing and redundancy support.
  • Amex, Diners and CUP support.
  • Full Merchant on-boarding and Reporting functionality including settlement.
  • Visa and Mastercard Certified.
  • Capable of up to 1000 TPS.
  • Support up to 1 Million Devices.
  • POS Handler and TMS (inbuilt).
  • Full POS/ATM/Mobile-API driving capability.
  • High performance independent switching platform
  • HSM support.
  • Multi Bank support.

Key benefits/Features of our system

What are the benefits?

A more Efficient Electronic Payment Infrastructure!

  • Loss of value due to counterfeiting, pilferage and Parallel economies (black markets)

Resolves the issues with handling cash –

  • Lower cost than cash handling
  • Costs of printing notes & coins avoided
  • Loss of value due to handling wear and tear etc.

Lower and affordable MDF. This will also encourage to abolish the ‘minimum payment for card use’

  • Will encourage high volume low value transactions to be digitized as more merchants will accept cards
  • Improved safety and lower risks – lower chargeback, reversals and frauds
  • Tracking expenditures is difficult with cash transactions
  • Quicker processing of transactions
  • High volume, low value transactions, such as train tickets waste time, requiring people to stand in long queues
  • Improvement of credit access and financial inclusion, which will benefit the growth of SME’s in the medium/long run
  • Managing odd value transactions require merchants to have exact change
  • Removes all the different parties and unnecessary steps in the current transactions framework and removes the need to bear the unnecessary high costs of Interchange Transaction Fees (ITF).
  • The instructions are directly from you to your Issuing bank to pay the Merchant Bank, which removes the complexities of routing of transactions and the necessity of inter-bank bilateral links.

"The issuance gap in POS terminals is glaringly high. For more than 25 million retail outlets currently, we have about 1.2 million POS terminals in India. Going forward, the POS gap will only increase leading to major acceptance problems”

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

The Proposed Solution

SLSComptech‘s Multi-Channel Partner Platform

Cash Flow

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

The way Forward for SLS Comptech

SLSComptech‘s Partner Platform

  • Support from Bandhan Bank and the regulator to proceed with implementation of our solution.
  • We need approval to implement this system as a white-labelled solution much the same way the Paymark solution was implemented in new Zealand to resolve the very same issues.
  • We will establish a ”Global Best Practice” payments switching network based inside India and run by Indians.
  • We are adequately funded to ensure we can achieve effective implementation and launch
  • We will submit a highly detailed plan for how we intend to achieve what we are planning and how it will meet the standards required.
  • We will be implementing the latest technology used by several banks around the world.

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

Competition :

is a payment gateway owned by the National Payments Corporation of India (NPCI), a government owned enterprise.

Need of the hour – we are positioned to capitalize the current gap in PoS and MPoS Infrastructure

Funds Transfer

The technology was introduced in India in 2012.

RuPay Market Share

  • More than 20% of the transactions in India is done through RuPay cards in India today.
  •  RuPay's Parent Organization, National Payments Corporation of India has been backed by 11 leading banks, of which 7 are public sector banks namely State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Andhra Bank and Bank of India
  • 2 private sector banks ICICI Bank and HDFC Bank with 2 foreign banks namely Citi Bank and HSBC

  • Kotak Mahindra Bank in partnership with RuPay rolled out an initiative for financial inclusion, where the dairy farmers across 75 cooperative societies of AMUL in regions of Burdwan and Hooghly of West Bengal will be able to get their payments directly into their account on the same day of sale of milk.
  • The same model is planned to be adopted in the state of Gujarat where 1200 cooperative societies comprising over 300,000 dairy farmers will be the part of the programme.

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.

& Us : Work as Partners not Competitors

  • RuPay will help in extending payment network in rural and semi-rural areas also. RuPay currently provides a unified "Kisan Card", issued by banks across the country under Kisan Credit Card, enabling farmers to transact business on ATMs and PoS terminals.
  • PUNGRAIN (Punjab Grains Procurement Corporation Ltd), pays commission agents through the RuPay Debit Card, and developed a commission agents network called the Kisan Arhtia Information and Remittance Online Network (KAIRON) with the help of the National Payments Corporation of India.

Fee Structure

  • Special transactions ie. Mutual Fund, Insurance, Education and Government – Flat fee of Rs10/-
  • Normal  transactions  up to Rs.2000/-(up to Rupees two thousands only) – 0.45%
  • Normal transactions above  Rs.2000/-(above  Rupees two thousands only) – 0.65%

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.

  • 60 paise per transaction to the customer’s bank (issuing bank)
  • 30 paise per transaction to the acquiring bank

Govts Financial Inclusion Initiative

Payment Systems authorized by the RBI to achieve the objective of a cashless society.

1. USSD refers to unstructured supplementary service data. Simply put,

it's a technology that transmits information through GSM network channels

Business Opportunity

Communication

  • Modules are supplied by software and hardware suppliers selected as partners by us.
  • The Infrastructure is modular.
  • A Switching System Jigsaw: We are equipped and capable to deliver and manage on all fronts.

Case Study India :

How do we pay for Goods & Services in India

Electronic Payments : Cash substitutes

  • Cheques, Debit/Credit Cards, Online payments, ATM transactions.

Traditional Cash

  • Over 97 % of all retail transactions are made in Cash and cheques in India. 85% of all workers paid in cash. 70% of all orders made online were done on ‘Casjh on Delivery’ basis
  • Cash in circulation is apprx Rs 10,000 crores and Cash-to-GDP ratio at 12% , highest amongst developing nations
  • Cost of operating cash is approx Rs 2100 crore ( $3.5 billion). According to the World Bank, India could save upto 1% of its GDP by digitizing its cash based subsidies only.

Electronic Payments : Cash substitutes

Cheques, Debit/Credit Cards, Online payments, ATM transactions.

Cashless transactions exceeded paper based (Cheques , RTGS , NEFT) transactions (85 lakh crores) in India, in 2015

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

  • Trinity of scaling up number of Bank a/c’s, Aadhar Cards & Smart Phones presents a huge opportunity for India to realize long-lasting financial inclusion and places our product well.
  • Over 35 key Indian, American, and international organizations have partnered with the MoF and USAID on this initiative. The goal of the Partnership is to identify, test, and scale innovative approaches that will drive greater use of digital payments at the point of sale.

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.

> Rs 2000/-

<=Rs 2000/-

1%

0.75%

MDR % for Debit cards

issued in India

  • Provide developing markets with core payments architecture as a managed service so they can participate in Card Present (CP), Card Not present (CNP), Mobile and E-commerce capability

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.“

Per Transaction fee Rs 2/-

2.5%

MDR % for all cards outside India

(Applicable to certain category of merchants)

The Advantage Of LOW

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

for Premium Cards

for Non Premium Cards

2.2%

MDR % for All other cards

issued in India

1.6%

Cardholder completes purchase and receives receipt

Cardholder’s bank approves purchase

Dubai

  • Cashless transactions exceeded paper based (Cheques , RTGS , NEFT) transactions (85 lakh crores) in India, in 2015

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

Emphasis is on encouraging merchants to accept cards

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

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