Case Study
Case Study
Case Study
Blogs
The role of AePS in driving financial empowerment
As per a report by the World Bank, roughly one-third of adults remain unbanked.
The transformative impact of digital payments in the last few years cannot be overstated. The rise of fintech firms, supported by digital payments infrastructure, has played a crucial role in bridging the gap by offering financial services in rural areas.
In India, through solutions such as Aadhaar-Enabled Payment Systems, we are on the path to empowering unbanked/underserved communities. Just this March, as per the NPCI, AePS reached a staggering 541.74 Mn transactions.
Today, let’s explore how AePS is bringing about financial inclusion and convenience in the country, one payment at a time.
The AePS Revolution
AePS is an inclusive platform that’s transforming banking by granting individuals effortless access to their bank accounts via Aadhaar authentication. This innovation is changing India’s financial landscape by benefitting the rural and underserved regions.
As a bank-driven initiative, AePS enables financial transactions at Point-of-Sale terminals (Micro ATMs) through approved Business Correspondents (BCs). To access AePS, individuals only need to furnish their bank details and Aadhaar number and undergo biometric authentication by the BC. AePS provides various digital financial services, such as fund transfers, BHIM Aadhaar Pay, balance inquiries, and cash withdrawals and deposits, thereby bridging the urban-rural banking divide.
Why Fintech Partners Should Choose Mobileware’s AePS Switch:
-
Comprehensive Platform:
Our AePS Switch integrates seamlessly with core banking systems, enabling fintech partners to offer a wide range of services without additional infrastructure. This versatility helps fintech companies cater to a broader audience and align with diverse banking needs.
-
Fast Implementation:
Mobileware’s AePS Switch is designed for quick and efficient integration, allowing fintech partners to accelerate their time-to-market. This rapid deployment can give you an edge in a highly competitive industry.
-
Scalable Solutions:
As your business grows, our solution scales with you. Our robust connectivity to NPCI ensures that your services remain efficient, even with increased transaction volumes. This scalability is ideal for fintech partners looking to expand their market presence.
-
Data-Driven Insights:
The AePS Switch provides accurate tracking, reporting, and reconciliation, offering valuable insights into customer behavior and transaction trends. This data-driven approach empowers fintech partners to make informed decisions and tailor their services to meet evolving customer demands.
-
Strengthening Interoperability:
AePS facilitates smooth interoperability between financial institutions. This functionality is crucial for fintech partners aiming to offer cross-bank services and streamline customer experiences. By leveraging AePS, you can bridge the gap between various banking systems and deliver a cohesive solution to your clients.
Fintech companies are contributing immensely to financial inclusion in India. This intersection of technology and financial services has revolutionized how we manage our finances, offering unparalleled accessibility and convenience,
As the landscape evolves, AePS stands at the forefront, poised for further growth and innovation. We are proud to be a part of this transformative journey. At Mobileware, we are dedicated to advancing financial inclusion through our commitment to the growth of BBPS. By seamlessly facilitating online interoperable financial services, we empower individuals and communities to access essential financial tools and services.
Explore our AePS switch offerings.
News
Blogs
BBPS – Transforming Bill Payments in India
In a world where conventional methods of bill payment are usually associated with lengthy queues, paperwork, and complicated processes, the necessity for a streamlined and centralized system has become more apparent than ever.
These limitations have led to the development of a more efficient solution, leading to the inception of the Bharat Bill Payments System (BBPS) by the NPCI in 2017. Over the years, it has transformed the bill payments landscape in India, experiencing a remarkable Compound Annual Growth Rate (CAGR) of 73% in volume from 2017-18 to 2022-23. Projections indicate that the transaction volume of BBPS is set to surpass 3 billion by the year 2026! In this blog, we will explore how RBI’s new norms have widened participation in BBPS and the multitude of advantages it offers to the payment ecosystem.
What is BBPS?
BBPS is a centralized platform for bill payments, allowing users to pay and collect bills through various channels, including mobile apps and bank branches. It supports multiple payment methods such as the Unified Payments Interface (UPI), internet banking, and prepaid payment instruments (PPIs), among others.
About NBBL:
NPCI Bharat BillPay Ltd (NBBL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), is authorized to oversee BBPS as the Payment System Provider. It serves as the central platform connecting customers and billers, managing the clearing and settlement of transactions within BBPS.
How RBI Enabling BBPS for wider Participation?
The Reserve Bank of India has updated the Bharat Bill Payment System (BBPS) to allow a broader range of participants and to strengthen customer protection. According to the new guidelines, commercial and cooperative banks, non-bank payment aggregators, and entities authorized as Bharat Bill Payment Operating Units (BBPOUs) can now operate as BBPOUs without needing additional authorization. This update is part of the Reserve Bank of India (Bharat Bill Payment System) Directions, effective from April 1, 2024.
These guidelines enable all PAs, including those with provisional authorization, to operate within BBPS without additional licensing. Non-bank BBPOUs are required to open escrow accounts with a Scheduled Commercial Bank solely for BBPS transactions. Furthermore, banks including scheduled commercial banks, regional rural banks, urban cooperative banks, state cooperative banks, district central cooperative banks, and other existing BBPOUs can operate within BBPS.
Additionally, under the new regulations, NBBL must establish a dispute resolution framework for managing customer complaints, in line with RBI’s guidelines on online dispute resolution for digital payments. All customer operating units and biller operating units must be connected to the central system, allowing customers and billers to raise and resolve disputes according to NBBL’s dispute resolution framework.
The reference number generated during a BBPS transaction must be used for tracking and resolving disputes. Customer operating units and biller operating units must also address failed transactions within the timelines specified in RBI’s circular on Harmonisation of Turn Around Time and customer compensation for failed transactions using authorized payment systems.
The Future of Bill Payments
The updated guidelines aim to modernize BBPS regulations in light of ongoing changes in payment practices. These changes are designed to simplify bill payments, encourage broader participation, and enhance customer safety. The RBI anticipates that these adjustments will lead to a smoother and more secure bill payment experience.
BBPS is continuously evolving to offer more advanced services and features, paving the way for a promising future. It plans to roll out enhanced features such as personalized notifications to keep users informed, along with more payment channels to increase flexibility.
Another potential benefit on the horizon is a reduction in fees. As BBPS gains wider adoption and economies of scale, transaction costs could decrease, making the platform even more accessible to a broader user base. BBPS is also exploring integration with emerging technologies like artificial intelligence and blockchain, which could boost security and improve user experience. These advancements could lead to smarter payment systems with increased reliability and protection against fraud, further solidifying BBPS’s role in transforming India’s digital payment landscape.
Blogs
Understanding the Latest UPI Innovations
In today’s time and age, the Unified Payments Interface has emerged as a game-changer, revolutionizing the way individuals and businesses transfer funds in India. Launched in 2016, UPI has undergone significant advancements, with its latest innovations further enhancing its efficiency, security, and user experience. In January 2024 alone, UPI reached a record-high value of 18.41 trillion! The surge in these transactions indicates a fundamental transformation in Indian digital payment methods.
The digital payments landscape is constantly evolving, and UPI is no exception. To stay ahead of the curve, NPCI continuously enhances UPI through innovative advancements. Let’s delve into some of these innovations.
- Credit Card on UPI:RuPay Credit Cards integrated with UPI offer customers a streamlined credit card experience, facilitating safe and convenient payment transactions. By linking their RuPay Credit Cards to a UPI ID via the BHIM app or any UPI app, customers can easily discover their credit card accounts and make payments to merchants using UPI QR codes, with authentication through their UPI PIN. This integration enhances the usage of credit cards, benefiting both customers and merchants. While customers enjoy increased convenience and accessibility, merchants witness a rise in consumption by participating in the credit ecosystem through the acceptance of credit cards via asset-lite QR codes.
- Interoperable Card-less Card Withdrawals (ICCW):The implementation of ICCW allows users to withdraw money from ATMs using their UPI apps. By scanning the ATM’s QR code with any UPI app and authorizing the transaction with their UPI PIN on their smartphone, users can conduct transactions with ease.
This innovation comes with a plethora of advantages. Primarily, it caters to the needs of millions of customers who either don’t possess or carry a debit card. These individuals typically resort to visiting a bank branch for cash withdrawals. ICCW eliminates this inconvenience by enabling them to transact at any interoperable ATM. Secondly, the absence of physical cards in this process eliminates the risks associated with card skimming or cloning. As ICCW operates through a contactless mechanism with dual authentication, it substantially enhances transaction security. - Overdraft on UPI:NPCI has unveiled that UPI 2.0 will enable customers to connect their overdraft accounts with UPI, granting them the ability to conduct immediate transactions from these accounts and take advantage of their full range of benefits. Through the integration of overdraft accounts into UPI 2.0, NPCI aims to provide supplementary digital services that empower users to conveniently utilize and oversee their overdraft facilities.
- UPI 3.0:Building upon the success of its predecessors, UPI 3.0 represents the next phase of innovation in digital payments. It promises to introduce several groundbreaking features, including:
- International Transactions: facilitates cross-border transactions, allowing users to send and receive payments internationally through the UPI platform. The recent partnerships forged between India and countries like Singapore, the UAE, Mauritius, Nepal, Bhutan, and Oman mark a significant step towards global integration. These collaborations empower Indian travelers to seamlessly utilize BHIM UPI for international purchases, streamlining cross-border transactions effortlessly.
- Enhanced Security:With a focus on enhancing security measures, UPI 3.0 aims to incorporate advanced authentication protocols and encryption standards to safeguard users’ financial data.
- Merchant Payments: UPI 3.0 will streamline the process of merchant payments, enabling seamless transactions between consumers and businesses.
Seamless transactions, limitless possibilities
UPI continues evolving, showcasing a transformation in India’s financial landscape. This innovation promises to reshape the future of digital payments, promising users unmatched convenience, security, and efficiency. With each advancement, UPI is solidifying its position as a cornerstone in India’s transition towards a cashless economy, advocating for financial inclusion across.
As we look ahead, the possibilities with UPI are endless and we at Mobileware are excited to be a part of this journey. We are proud to innovate, integrate, and elevate UPI with our technology.
Explore our range of UPI Switch offerings.