UPI

UPI

•Unified Payments Interface (UPI) is an instant real-

time payment system developed by National Payments
Corporation of Indiafacilitating inter-bank transactions. The
interface is regulated by the Reserve Bank of India and works by
instantly transferring funds between two bank accounts on
a mobile platform. As of March 2019 there are 142 banks live on
UPI with a monthly volume of 799.54 million transactions and a
value of ₹1.334 trillion (US$19 billion) [1]
 SERVICE

• Unified Payments Interface is a real time inter bank payment system that allows sending
or requesting money. Any UPI client app may be used and multiple bank accounts may
be linked to single app. Money can be sent or requested with the following methods:
• Virtual Payment Address (VPA) or UPI ID: Send or request money from/to bank account
mapped using VPA.
• Mobile number: Send or request money from/to the bank account mapped using
mobile number.
• Account number & IFSC: Send money to the bank account.
• Aadhaar: Send money to the bank account mapped using Aadhaar number.
• QR code: Send money by QR code which has enclosed VPA, Account number and IFSC or
Mobile number.
 NCPI

• Founded in 2008, the NPCI is a not-for-profit organisation registered under section 8 of

the Companies Act 2013. The organisation is owned by a consortium of major
banks,[5] and has been promoted by the country's central bank, the Reserve Bank of India.
The NPCI was incorporated in December 2008 and the Certificate of Commencement of
Business was issued in April 2009. The authorised capital has been pegged at ₹3
billion(US$43 million) and paid-up capital is ₹1 billion (US$14 million).
• Presently, there are ten core promoter banks (State Bank of India, Punjab National
Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI
Bank, HDFC Bank, Citibank and HSBC). The Board consists of Biswamohan Mahapatra
as the Non Executive Chairman, Nominees from Reserve Bank of India and Nominees
from ten core promoter banks.[6] Dilip Asbe is the current managing director and chief
executive officer of the NPCI after A. P. Hota, who retired from the post on August 10,
2017. [7]
 BHARAT BILL PAY

• The Bharat bill payment system is a Reserve Bank of India (RBI) conceptualised system driven
by the NPCI. It is a one-stop ecosystem for payment of all bills, providing an interoperable and
accessible “Anytime Anywhere” bill payment service to all customers across India with certainty,
reliability and safety.
• Bharat BillPay has multiple modes of payment and provides instant confirmation of payment via
an SMS or receipt. It offers myriad bill collection categories like electricity, telecom, DTH, gas,
water bills etc. through a single window. More categories may be added in the future, to include
insurance premium, mutual funds, school fees, institution fees, credit cards, local taxes, invoice
payments, etc. An effective mechanism for handling consumer complaints has also been put in
place.
• Bharat BillPay transactions can be initiated through multiple payment channels like Internet,
Internet Banking, Mobile, Mobile-Banking, POS (Point of Sale terminal), Mobile Wallets, MPOS
(Mobile Point of Sale terminal), Kiosk, ATM, Bank Branch, Agents and Business Correspondents.
• Bharat BillPay supports multiple payment modes. This includes Cards (Credit, Debit and
Prepaid), NEFT Internet Banking, UPI, Wallets, Aadhaar based Payments and Cash.
Aadhaar Enabled Payment System

Services offered

Balance Enquiry

Cash Deposit

Cash Withdrawal

Aadhaar to Aadhaar Fund Transfer

Mini statement

Mobile number update

eKYC

Internal -
How AePS works?

Go to a Micro ATM or Micro ATM Provide Bank Name, Aadhaar

Banking Correspondent Number and transaction to be done

Transaction is successful Provide Fingerprint on the scanner

BHIM (Bharat Interface for Money)

• Simple, easy and quick payment transactions using UPI

BHIM App • Account to Account payment instantly
• Collect money using Mobile number or Payment address

• Send money
• Request Money
• Scan and Pay
Services offered
• Transactions
• Profile
• Bank Account

• Single app for sending and receiving money

• 12 Regional languages, single interface
• QR Code based payments
Benefits
• Mobile no and VPA used for Payments
• Monetary Benefits of Referral Scheme
• 24x7, 365 days instantaneous money transfer
How BHIM works ?
 BHIM Referral Scheme
• Scheme introduced by Government of India
• Incentivise existing BHIM user to bring new users on the BHIM platform
• Referee (who successfully enters the referral code) has to perform 3 successful financial
transactions upto Rs. 50 (to any valid UPI user)
• Total transaction value should be equal to or more than Rs. 50.
• Maximum referral amount that can be won is Rs. 25,000
• Bonus amount will be credited to the respective bank accounts of referrer and referee after
meeting eligibility criteria
*99# (BHIM without Internet)

• Mobile Banking Service for Financial and non-Financial Transactions

*99# • Mobile Number linked to Bank Account
• Mobile phone on GSM network

• Fund Transfer
• Check Balance
• My Profile
Services offered
• Pending Requests
• Transactions
• QSAM Services -*99*99#

• Simplicity – User required to dial short code

• Available in 12 regional languages
Benefits
• Works without Internet – uses voice connectivity
• 24x7, 365 days instantaneous money transfer
 BHIM Aadhaar

• Facilitates digital payments using thumb imprint on a merchant’s biometric

enabled device
BHIM Aadhaar
• App is based on UPI
• App made for merchants and shopkeepers but payers enjoy the benefits

• Only Aadhaar number linked to Bank account required for making

payments.
Features • Fingerprints used for authentication.
• No need to remember passwords, Card PIN and wait for OTP.

• No need to carry any credit/debit card, cash, cheque or mobile wallets.

• Reduction of PoS terminals.
Benefits • Customer does not need to download any app when making payments.
• Mobile phone not required while making payments.
• More secured than cash, card, mobile wallets as customer needs to be
physically present for making payments.
BHIM Aadhaar
Requirements for using BHIM Aadhaar app

Customer Merchant

• Aadhaar Number • Smartphone

• Bank account linked to the Aadhaar • Reliable Internet connection
number • BHIM Aadhaar App
• Clean fingers (for making finger • Fingerprint scanner
imprint) • Bank Account
Bharat QR

Multiple QR Codes

Common Bharat QR Code

Bharat QR
• Interoperability among QR based payment products of different
networks: RuPay, Visa, MasterCard and Amex.
• Substitute for PoS Terminals.
Features
• Low cost acceptance payment solution.
• Push based transaction i.e. transaction originates from card holder.
• No need to share physical card with merchant.

• Bank application which supports Bharat QR code (Required for the card
holder to make payment)
Requirement
• Merchant’s Bharat QR code (Provided by bank to receive payment)

• 22 Acquiring Banks and 12 Issuing Banks live on Bharat QR

• Future ready to accept payments from other channels like UPI,
Way forward
Aadhaar Pay, IMPS, BBPS
THANK YOU
 Paytm

•Uses UPI Transfer connected to bank

•Provides e- wallet
•Penetrated most parts of india
•Provides variety of cash back offers
•Bill /credit card payment services
 Phone pe

•Provides E-WALLET
•UPI based payment and fund transfer services
•Provides attractive referral and opening bonus
•Provides bill/credit card payment services
•Allows balance enquiry ,fund transfer across different bank
accounts.
 Google pay

• Unlike” Paytm “and “Phone Pe “here is no e wallets

• UPI based payment and fund transfer services
• Provides attractive referral and opening bonus
• Provides bill/credit card payment services
• Allows balance enquiry ,fund transfer across different bank accounts.
 Other familiar APPS

• AMAZON PAY provides cash back bill payment and other offers
• Freecharge
• Airtel money , jio money etc.

Amazon Pay (India) has allotted 45 crore shares of Rs 10 each aggregating to Rs 450 crore to Amazon Corporate Holdings and Amazon.com.incs Ltd,
documents filed with Corporate Affairs Ministry showed.
The funding comes at a time when companies like Paytm, Flipkart-owned PhonePe, Google Pay, and others are making
significant investments to tap the booming digital payments market in India. Many of these firms have been offering
significant cashbacks to woo customers to use their platforms to make payments for utilities and shopping.
• In January, Amazon pumped in Rs 300 crore into Amazon Pay, documents filed with Registrar of Companies (RoC) show.
The funding came through Singapore and Mauritius-based group entities – Amazon Corporate Holdings Private Ltd and
Amazon.com.Incs Limited.
• Amazon Pay (India) Private Ltd incurred a loss of Rs 334.2 crore in FY18, an increase of 88 percent, compared to the Rs
178 crore it incurred in the previous financial year. The increase in loss incurred by the fintech company was despite a
whopping increase in its operational revenue to Rs 389 crore in FY18, from a meagre revenue of Rs 4.1 crore in FY17.
E-Cash
• Electronic money is paperless cash. This money is either stored on a
card itself or in an account associated with the card
• The most common examples are transit cards, meal plans, and
PayPal. E-Cash can also mean any kind of electronic payment.
• Electronic payment systems come in many forms including virtual
cheques, ATM cards, credit cards, and stored value cards. The usual
security features for such systems are privacy, authenticity , and no
repudiation.

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 eCash

• eCash, also known as electronic cash, it is a digital money product that provides a way to pay for products and services
without resorting to paper or coin currency. Two models emerged for e-cash transactions:
– The online form of eCash, which was introduced by the now defunct DigiCash, worked for all types of Internet transactions.
– The offline form of e-cash involved a digitally encoded card that replaced paper money. Mondex developed and tested this model with
different banks, but the company has now transitioned into the development and management of smart cards also used for financial
transactions.
 E-cash Concept

Merchant
1. Consumer buys e-cash from Bank
2. Bank sends e-cash bits to consumer (after
5 charging that amount plus fee)
4 3. Consumer sends e-cash to merchant
4. Merchant checks with Bank that e-cash
Bank 3 is valid (check for forgery or fraud)
5. Bank verifies that e-cash is valid
6. Parties complete transaction: e.g., merchant
2 present e-cash to issuing back for deposit
1 once goods or services are delivered

Consumer

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 Token vs. Notational Money
• Token money
–Represented by a physical article (e.g. cash, traveler’s check, gift
certificate, coupon)
–Can be lost
–Used for instantaneous value transfer
• Notational money (account ledger entries)
–Examples: bank accounts, frequent flyer miles
–Can’t be lost
–Transfer by order to account holder, usually not immediate
–Requires “clearance” and “settlement”

WHAT IS THE NET EFFECT OF ALL THE ORDERS? ACTUAL PAYMENT IN “REAL” MONEY
(HOW MUCH DOES EACH PARTY HAVE TO PAY?)
 Smart Cards

• Smart card
–Card with computer chip embedded on its face, holds more information than ordinary credit
card with magnetic strip
–Contact smart cards
• To read information on smart cards and update information, contact smart cards need to be
placed in a smart card reader
–Contactless smart cards
• Have both a coiled antenna and a computer chip inside, enabling the cards to transmit
information
–Can require the user to have a password, giving the smart card a security advantage over credit
cards
• Information can be designated as "read only" or as "no access"
• Possibility of personal identity theft
Smart Cards

Use phone like a contactless credit

card
• Stores credit card, electronic cash, owner identification and
address
–Makes shopping easier and more efficient
•Eliminates need to repeatedly enter identifying information into
forms to purchase
•Works in many different stores to speed checkout
–Amazon.com one of the first online merchants to eliminate repeat
form-filling for purchases

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• Credit card
• Used for the majority of Internet purchases
• Has a preset spending limit
• Currently most convenient method
• Most expensive e-payment mechanism
• MasterCard: $0.29 + 2% of transaction value
• Disadvantages
• Does not work for small amount (too expensive)

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• Debit cards
–Offer an alternative for card-holders to access their accounts
–Funds are instantly deducted from checking account
–Can withdraw cash from Automatic Teller Machines (ATMs)
• A debit card is a plastic card which provides an alternative payment method
to cash when making purchases. Physically the card is an ISO 7810 card like
a credit card;
• Depending on the store or merchant, the customer may swipe or insert their
card into the terminal, or they may hand it to the merchant who will do so.

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 Credit card Debit card

• You can obtain credit in credit card but not in debit card.
• Credit card charges interest for using the bank's money. (debit
card is free from this problem)
Smart Card Vs Debit card
• The main difference between the two is: Debit cards are
magnetic strip and chip enabled cards, issued to customers by
their respective banks. A smart card contains a special
embedded microprocessor, which is a computer processor or a
microchip. These are more secure.

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 Electronic Wallets

• An electronic wallet serves a function similar to a physical wallet, also:

–Holds credit cards, electronic cash, owner identification, and owner contact
information
–Provides owner contact information at an electronic commerce site’s checkout counter
–Contains an address book

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 Electronic Wallets

• Electronic wallets make shopping more efficient.

• Electronic wallets fall into two categories based on where they are stored:
–Server-side electronic wallet
–Client-side electronic wallet

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 Electronic Wallets

• Electronic wallets are particularly useful and save a lot of time to fill out
electronic checkout counter form.
• Electronic wallets can enter required information into checkout forms
automatically.
• MasterCard offers its own electronic wallet, called the MasterCard e-wallet.
Click to see Figure 7-13:

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 eWallet

• EntryPoint produces eWallet, a free wallet software that consumers download and install
on their computer.
• eWallet stores personal and payment information inside the electronic wallet.
• To protect your information, eWallet is encrypted and password protected.
Click to see Figure 7-14:

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 Online Transactions

• Physical cash
–Non-traceable (well, mostly!)
–Secure (mostly)
–Low inflation

• Can’t be used online directly

Electronic credit or debit transactions
Bank sees all transactions
Merchants can track/profile customers

CS660 - Advanced Information Assurance - UMassAmherst 36

 E-Cash

• Secure
–Single use
–Reliable
• Low inflation
• Privacy-preserving