The National Payments Corporation of India (NPCI) is reportedly running a pilot project with three companies that will help them enable proximity payments on the Unified Payments Interface (UPI). According to a report on the Economic Times, the NPCI has shortlisted three startups — PhonePe, ToneTag and Ultra Cash — for the pilot. Proximity payments will enable consumers to make digital payments at merchant outlets without any physical contact with the acceptance terminal, theoretically, this should ensure higher levels of security and speed for such transactions. For example, in a contactless payment scenario, the payer won’t have to physically type in a merchant’s phone number, bank account details or Virtual Payment Address. Rather a contactless system like an ultrasonic sound or bluetooth would be used to pair two devices and initiate a transaction via UPI. This could also serve as a potentially inexpensive way for merchants to accept digital payments without the need for expensive point of sale devices. Though it must be noted that BharatQR based UPI payments technically allows merchants to do the same already. QR based payments are both contactless and extremely inexpensive. Highlighting the benefits of proximity payments, in a bid document that was made public, NPCI had said that in case of UPI transactions since customers need to manually type in the beneficiary’s virtual ID or bank account number it is prone to manual errors. These can be solved with proximity payments solutions which can identify the beneficiary without any manual typing of names or…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...