Digital India - mPOS ( mobile point of sale) – Should it made compulsory for Indian Insurance Agents to carry it?

The success rate of insurance premium collections depend on the mode of the collection. Currently, the most popular mode of insurance premium collection is Cash or Cheques.

 Slowly but steadily insurance premium collection through eMode. The eMode channels are a) Net Banking b) NEFT c) RTGS d) IMPS e) POS Terminals at insurance company offices.

Not all insurance companies prefer eMode, as there is a direct transaction cost involved in completing the transaction. Hence, they still prefer traditional premium collection premium modes like cash or cheques.

 A detailed study between the traditional modes and eModes show that eModes are superior.

Benefit's of premium collection through eMode:-

    01)Immediate credit of the premium.

1. Offers end to end electronic tracking of the transaction.
2. Premium can be collected any time, any where.
3. Reduction of fraudulent log-ins especially during the end of the quarter/month.
4. Reduction of misappropriating cash premiums
5. Reduction in TAT of issuance of policies, where the premium is collected through cheque
6. No fear of cheque bounce i.e no need to issue provisional premium certificates.
7. No need to follow with the bankers for status of the outstation cheques.
8. Reduction of risk ratings of the policy holder.
9. Ease in checking the insurable interest of the payer.

Pain of premium collection through cash:-

a) Movement of physical cash from the collection point to the bank.

b) Reconciliation of balances between the collection point and the collection bank.

c) Replacement of mutiliated notes.
d) Replacement of suspected fraudulent notes.
e) High TAT to process cash transactions.
f) High carbon print to complete the cash processing cycle.

Pain of premium collection through cheques:-

1.  Movement of cheques from the collection point to the collecting bank.
2. Ensure that the cheque is not damaged during movement at various levels.
3. Ensure that the return cheque if any, is safely received and the provisional premium receipt is cancelled.
4. 1. Ensure that outstation cheques are collected without major delay.

Q) What is mPOS?

Ans: Searchcio defines mPOS ( mobile point of sale) as a smartphone, tablet or dedicated wireless device that performs the functions of a cash register or electronic point of sale terminal (POS terminal).

In India, during January 2013/ Reliance General Insurance, a subsidiary of Reliance Capital, launched a mobile point of sales (mPOS) solution. This mPOS solution is designed to allow customers to pay insurance premium using a mobile phone. The main objective of the company is to eliminate payment-related delays, errors and frauds with the launch of this service.

The company will provide an external card reader dongle that will convert any GPRS enabled touchscreen phone into a POS terminal.

The Reliance General Insurance Company (RGIC) agents will carry this mPOS device along with their GPRS enabled devices accept premium collection from the customer.

 

Developments in other countries:

Hungary: During the first week of March 2015, Hungarian insurance company Allianz Hungary chose Ingenico Mobile Solutions' mPOS to fully equip the 800 sales agents of its network. By end 2015 all sales agents of Allianz Hungary will have this mobile payment products in their hand. The main aim of this deployment of this mPOS platform is to enable Allianz Hungary commercial agents to secure insurance contract sales whatever the consumer's location, whenever they decide to subscribe for a service.

In India Allianz insurance has a tie-up with Bajaj Group and the company is known as Bajaj Allianz.

02) Italy: JUSP recently announced that it has just signed up one of the world's largest insurance companies so that the company's agents can use the JUSP chip-and-pin mPOS solution with customers. Following a pilot project, 3,000 insurance agents in Italy will be equipped with mPOS devices as they visit customers and will be able to sell and take credit card payments at a customer’s location.

We Indians are fast adapting LessCash Tools-Card On Delivery

            The new online check-out mantra is not Cash-on-Delivery BUT Card-on-Delivery. As the trust levels between online shoppers and online companies increase, the checkout trend is migrating from Cash-on-Delivery to Card-on-Delivery.

            The rapid growth of COD has been possible due to falling costs of MPOS (Mobile Point of Sales) terminals and enhanced security.

            The below table clearly show growth in POS Transactions in this financial year.

            At present, the data does not differentiate between POS and MPOS transactions.

            Majority of the Indian eCommerce companies have reported an increase in MPOS transactions during the last festival season i.e Dusshera/Diwali.

            The following newspaper article will throw more light on the growth of MPOS transactions in India.

            Another key contributor for MPOS transactions is that customers need not go to the POS Terminal; the MPOS Terminal is brought to the customer. This drastically increases the security of the transactions.

            As Banks and other industry players spread the benefits of LessCash transactions, the migration from Cash to LessCash modes will speed up.

            

Key Takeaways from Andhra Banks’ MDs' walkathon

            Readers must have read this article-offline or online on Andhra Banks MD’s walkathon to gauge the pulse of his prospective customers

            The Andhra Bank walkathon is not aimed at fundraising but raising awareness about the various banking products on offer.

            The following are the key takeaways:-

01) Walkathon is a great tool to gather information about the target audience

02)The target audience gets an opportunity to interact with the decision makers

03)The decision makers get neutral feedback

04)The feedback so obtained can be the foundations for a focused campaign

05)Majority of the target audience are familiar with LessCash modes

06)The preferred LessCash mode is POS (Point of Sales) Terminals

07) Cash Deposit Machines too are preferred but not over POS (Point of Sales) Terminals

08)In the near future, Andhra Bank will focus on rolling out a large number of POS (Point of Sales) Terminals

Rupay Cards – Authentication of online transactions via PaySecure online PIN Pad.

Well, the PIN Pad is not a physical instrument, it is a visual online i.e virtual Pin Pad.

Acculynk and National  Payments Corporation of India (NPCI) have announced an Internet PIN Debit Partnership, for Rupay Debit Cards.

Top 10 points’ of this tie-up

1. RuPay is a PIN (Personal Identification Number) - only based debit card. This means at POS Terminals, to execute a transaction a PIN is required.
   
   
2. Separate technology is required to integrate the PIN Based option for eCommerce. Towards this end, NPCI has partnered with Acculynk.
   
   
3. The same PIN number is valid for all ATM/POS/eCommerce transactions.
   
   
4. Now eCommerce Rupay Debit Card purchases will have the additional and mandatory safety of two factor authentication.
   
   
5. RuPay debit card was launched on 26th March 2012 with 4 Banks i.e State Bank of India, Bank of Baroda, Bank of India and Union Bank of India.
   
   
6. In the initial phase banks accepting RuPay Debit cards on their POS terminals are Axis Bank, Bank of Baroda, Corporation Bank and State Bank of India.
   
   
7. As on Feb 12, the number of POS Terminals the above Banks had are Axis Bank (1,98,297), Bank of Baroda (4558), Corporation Bank (14,480), State Bank of India (0).,
   
   
8. With Acculynk’s PaySecure®, online shoppers enter their PIN on a virtual PIN-pad at the merchant checkout, and only need their existing debit card and a PIN number to complete the transaction. There are no hardware devices, additional passwords, or redirection to another website for payment.
   
   
9. RuPay logo is already there on most of the ATMs in the country, and very shortly it will be visible in most POS Terminals across the nation.
   
   
10. It will take another couple of months, before you can obtain a Rupay Debit Card and start swiping it for transactions.

Preserve your Charge Slips-Do not destroy them immediately

Preserve your Charge Slips-Do not destroy them immediately

The Indian Banking retail customers are swiftly migrating from cash to credit/debit cards payments via the online mode/mobile mode/POS mode.

Charge Slips are the connecting node between the Payment and the Bank Account in case of POS mode.

Charge slip refers to the voucher printed after swiping and charging a debit or credit card.

With multiple Debit/Credit cards, becoming common ‘Charge Slips’ play an important role in reconciliation of the multiple Debit/Credit Cards

Majority of the POS Paper rolls are thermal based. As such, the Data printed on the POS Paper Rolls fades over a period of time. Hence, in case permanent record of the POS Slip is required, scanning is the best option.

However, it is wise to preserve the Charge Slips, till at least the Credit Card Statement or the Bank Account Statement is received. 

Once the Statement is reconciled and you are satisfied that all the Debits are genuine debits, the charge slips can be destroyed.

Tips for Storage and Image Stability

1.     Keep Dry

2.     Avoid Plastics/Solvents

3.     Avoid Sunlight

4.     Avoid Hot/Humid temperature

5.     Avoid Diaso Papers

6.     Do not Iron/Deface

Interesting Trends in ATM Withdrawals

Interesting Trends in ATM Withdrawals in India.

The Document can be accessed at
http://www.npci.org.in/documents/Publications.pdf

The Highlights are:
01) The average Withdrawal size in NPCI managed ATM's is growing.
         In November 2009, it was Rs2,766/- whereas in May 10 it increased to Rs2,982/-

02) 37% of the withdrawals are below Rs.1000/-, though this share is coming down slowly.
         This 37% of the transactions can be shifted to the POS route, as already announced by Reserve Bank of India.         
                My earlier post on this is @
http://prashantnepayments.blogspot.com/2009/08/cash-withdrawal-from-pos-terminals.html


One recent trend which I have come across, is bank customers are not eager to withdraw small amounts through ATM's, especially in the Rs2,000/- to Rs4,000/- range. This is because the ATM's dispense a majority of Rs.500/- notes, whereas folks prefer Rs100/- notes.
This is pushing back the such customers from ATM's to Bank counters!!

eMagic-Withdraw Cash from POS(Point of Sales)-Union Bank is the first Bank in this Arena

eMagic-Withdraw Cash from POS(Point of Sales)-Union Bank is the first Bank in this Arena

Union Bank is planning to be the first bank in the country to offer Cash Withdrawal Facilities at its Point of Sales (POS) Terminals, as per newspaper reports.

This facility is in accordance with : -

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5184&Mode=0

My earlier Post on this can be accessed at

http://prashantnepayments.blogspot.com/2009/07/emagic-withdraw-cash-from-pospoint-of_24.html

The highlights of Union Bank of India announcement is

01)                      Launch the product by end of December 2009.

02)                     Initial target is Rural India, with 25,000 POS terminals to have this facility.

03)                     In the initial stages, this Product is accessible to only Union Bank of India Account Holders.

04)                     On stabilization, the Product to be rolled out to other Bank Account Holders too.

Union Bank of India, has again taken the lead, in introduction of new Products

Cheers, UNION BANK OF INDIA

Debit Card Volumes @ POS Terminals

Debit Card Volumes @ POS Terminals

Today’s Post is an occasional view on the growth of Debit Card Volumes @ POS Terminals.

It can be observed that there is a steady growth in the transactions.

As compared to the corresponding period in 2008, there has been a 27% jump in the volumes.

However, the full potential of the Debit Cards has not reached in India.

As I keep mentioning, a concerted marketing effort by all the stakeholders, will do wonders.

Debit Card-Better than Paper Money  

Nature’s Fury-Karnataka and Andhra Pradesh

Nature’s Fury-Karnataka and Andhra Pradesh

In the last one month, floods have hit many parts of Karnataka and Andhra Pradesh, leading to wide-scale destruction.

Media Houses, NGO’s, Government of Andhra Pradesh and Karnataka, have appealed to the public to donate in cheques/demand drafts or in kind, to aid the relief efforts. And, as usual, the public have responded overwhelmingly.

It is observed that the majority have requested the public to donate through Cheque/Demand Draft.

Government of Andhra Pradesh has also provided a Payment Gateway, for donations through Credit Cards and also provided details for Wire Transfer’s from abroad.

However, no organization has thought of the POS Terminals as a Donation Tool.
http://prashantnepayments.blogspot.com/2009/09/pos-terminals-aid-to-impulse-donations.html

Few Organizations, have had the fore-thought to provide IFSC Details for donations through NEFT.

Eg:- Eenaudu Relief Fund.

Kudos to the Eenadu Team-Members, for this brilliant idea.

As can be seen, only 4 fields are required for a successfully NEFT Transaction

01) Beneficiary Name

02) Beneficiary Account Number

03) Beneficiary Bank Branch Name

04) IFSC of Beneficiary Bank Branch Name

Nothing more, nothing less.

Donations through NEFT are safe, and very cost-effective as compared to donations through Payment Gateway or Cheques.

Cheques have to be sent for collection and the reconcialtion time from collection to realizations is 4-7 working days. And, the burden on the Banking System, in collection on Cheques is also high as compared to NEFT Transactions.

Reconcialtion time for NEFT Transactions is comparatively less, as the NEFT Transaction Voucher contains the requisite information.

And the best part is that the courier charges/postal charges in mailing the Cheque/Demand Draft, is NIL for NEFT Transactions.

Moreover, this is also an opportunity for the donors/public to become aware of the ePayments, and their immense possibilities.

Donor Agencies- Connect to NEFT for ease of processing

ATM withdrawal fees from 15/10/2009-15th October 12, 2009

ATM withdrawal fees from 15/10/2009-15^th October 12, 2009

One of the major news items in today’s Newspapers was on the Curbs on ATM use from Oct. 15.

The news articles state that as per Indian Bank’s Association recommendation, Reserve Bank of India has asked the banks to impose the restrictions on third-party ATM usage from mid-October.

As a result, the number of free cash-withdrawals from third-party ATM’s will attract a charge.

The highlights are

01) The transaction limit is set at Rs10,000/-

02) Saving Account Holders can withdraw five times in a month free –of-cost.

03) From the sixth transaction, the fees is Rs20/-

04) Current Account Holders will be charged from the first transaction itself.

05) BALANCE ENQUIRY is still free.

However, each bank basing on the account profile/product type can decide not to charge its customers, but absorb the interchange fee.

The market will be the deciding factor.

I have been searching the Internet for the relevant Indian Bank’s Association/Reserve Bank of India Notification. No such luck.

I feel that this Notification should be in public domain, for the lay public to understand the rationale for the fees.

Tips for easier ATM Transactions after 15/10/2009-15^th October 12, 2009

01) In case your Bank’s ATM, is out-of-order or you are unable to withdraw cash for any reason, immediately lodge a complaint with your Bank. This will aid the bank to provide a superior customer service.

02) As people will tend to withdraw in higher amounts now, ATM’s will dispense High Denomination Notes. To avoid this issue, swipe your Card in POS Terminals at Merchant Establishments, for purchases.(Of course the basic safety measures are to kept in mind)

03) Avoid withdrawing large amounts in cash at night, or unfamiliar locations.

 Once the facility of withdrawing cash (up to Rs1000/-) is introduced at POS Terminals, life might become a little easier.

ATM's-The free tour is over

POS Terminals-An Aid to Impulse Donation’s.

POS Terminals-An Aid to Impulse Donation’s.

Donations to Religious Institutions/Charitable Institutions/Hospitals/NGO’s on Internet via Online Banking /Credit Cards/Debit Cards are common.

This method of Payment is also catching up amongst Indians, and is a very popular method of Donations for NRI’s.

However, to my surprise, so far no one has understood the potential of Point of Sales Terminals(POS), as an aid for Donations.

Walk into any Religious Institutions/Charitable Institutions/Hospitals/NGO’s, and the mode of Donation is Cash/Kind or at the most Cheque.

Have you ever seen a POS Terminal to swipe the money from your Credit Card/Bank Account and complete the Donation Cycle.

Religious Institutions/Charitable Institutions/Hospitals/NGO’s, can install POS Terminals at their office’s, and see their Income via Donations zoom.

I go to a temple, and come to know that for a Donation of Rs5116/- Lunch Sponsor, for a particular day, every year, suits me. But, unless the visit and intention to donate are planned in Advance, I will not carry that much cash. So the temple has lost a donation of Rs5116/-, unless I visit the temple again, with the express purpose of Donating Rs5116/-.

A POS Terminal at the temple, would have made my job easier of Donating, and the Temple too would have gained a Donor,.

It is observed, that in supermarkets, 20% Buying is Impulse Buying i.e there is scope of Impulse Donation too!!!!.

Impulse-(Whim, Urge, Fancy) emotions can be tapped by Religious Institutions/Charitable Institutions/Hospitals/NGO’s, to attract Donations. And, the best tool is POS Terminals.

I go a Religious Institution, with my friends, offer prayers, and I observe my friend making a Donation. Impulsively I too make a donation.

But, if I am making a Donation through POS Terminal, the Donation size will be bigger!!

The Benefits of POS Terminals at Religious Institutions/Charitable Institutions/Hospitals/NGO’s are

• Tap into the Impulse Emotions.
• Increase the ADPV(Average Donation Per Visitor). A new term coined by me.
• Enhance credibility amongst Visitors, as Donations through POS Terminals, will be accounted for.
• Reflect a Modern Outlook, to Visitors. 

The Benefits of POS Terminals at Religious Institutions/Charitable Institutions/Hospitals/NGO’s for Banks are

• Religious Institutions/Charitable Institutions/Hospitals/NGO’s, saving accouant with the Banks. A sure way to increase the CASA of the Bank.
• Indirect Marketing of the Bank, by way of Bank’s Logo being displayed at the Religious Institutions/Charitable Institutions/Hospitals/NGO’s.
•  A simple method to minimize cash handling of Religious Institutions/Charitable Institutions/Hospitals/NGO’s.

 Which Bank will be first  in this new Wave of ePayments