UPI 2.0 – The new and improved Unified Payment Interface

Unified Payment Interface, also called UPI is a payment system where one application controls multiple bank accounts belonging to any participating banks. Numerous banking features like money transfers, merchant payments, etc. are available on a single platform. Moreover, the ‘Peer to Peer’ collection feature executes the scheduled payments according to the convenience of the parties involved.

August 2018 saw the launch of UPI 2.0, a new and upgraded version of UPI by the National Payments Corporation of India (NPCI). The NPCI is an organization that handles retail payments in India, which includes the UPI platform that helps instant fund transfers. UPI does not require any details of the beneficiary, which acts as an advantage. The improved version of UPI is said to be more secure, has an easier authentication process and comprehensive service.

With pre-existing features like all time instant money transfer facility, sharing bills with friends, etc. UPI 2.0 has new features.

  • Pre-Authorized Transaction: The Pre-Authorized UPI transactions allow you to schedule your bill payments. For a regular bill payment like that of a Mobile phone bill or electricity bill, the UPI solution allows customers to authorize payments to the biller on a particular date.
  • Biometric Authentication: UPI payments are set to become more secure with the fingerprint mapping technology along with iris scanner. The Aadhaar card will help with biometric authentication as the UIDAI has the database of biometrics of majority of Indian citizens. Cell phones with a high-resolution cameras and fingerprint scanners can be used to authorize a transaction.
  • Invoice in the Inbox: According to NPCI, this feature is for customers to check invoices sent by merchants to view and verify credentials before proceeding with the payments. Make the payments only after being satisfied with all the details mentioned on the invoice.
  • Check on Speed of Transaction: The NPCI has added a new feature of velocity checks for UPI transactions. These checks will help catch the fraudulent transactions are detected before they are completed. The app allows reporting a suspicious transaction to the bank for them to take necessary actions.
  • Aadhaar Based Payments: UPI solution providers have introduced payments using Aadhaar numbers. Unlike mobile numbers, which have the possibility of being handled by several customers, the Aadhaar number is unique to an individual. The Aadhaar cards can be linked with bank accounts, making transactions directly from the bank accounts easier.
    The UPI 2.0 does not only benefits banks, but also the customers as well as the merchants. It serves banks with a secure platform for universal transactions, and the payment doesn’t require details of the beneficiary. It helps the customer with its availability, single click authentication, and a single platform with access to different multiple bank accounts. The merchants benefit from it as well, UPI serves as a digital payment system for seamless transactions, which helps them tap into a larger pool of customers.

Finacus UPI2.0 solution offers a platform consisting of Application Program Interface (API) with NPCI and a universal mobile interface for the consumers. Their UPI solution supports a scalable architecture and has been developed keeping in account the complex security challenges people face in today’s date. UPI 2.0’s goal is to provide a reliable and simplified payment option with a virtual address for money transactions. A step ahead of the banks, it allows interoperability and presents an opportunity to push for a single interface for all existing retail payment systems in India.

UPI 2.0 is a better and enhanced version of the UPI payment solution. With a pack of new features, it has made UPI more beneficial, comprehensive and easily accessible.

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Internet Banking- Banking Services at Your Fingertips

Internet Banking has literally made life easier by facilitating anytime, anywhere banking on the click of a button. Now, you have all banking services at your fingertips. Whether you need to withdraw cash, transfer funds, deposit cheques, generate bank statements, open fixed deposits, or pay insurance premiums, you can avail all banking services from the comfort of your office or home. Banking services are accessible online at any time from anywhere. Here is a list of banking services facilitated by internet banking solutions:

Easy Bill Payment

Currently, most of the financial institutions have tie-ups with utility companies and service providers. For this reason, you can easily pay your electricity and telephone bills online through your credit/debit cards. Further, you can automatically pay your recurring bills through your bank account. Now, you do not have to miss out on a bill payment due to a shortage of time. You can easily pay your bills with internet banking without any additional charges.

Instant Funds Transfer

With internet banking, you can instantly transfer funds to another account in the same or different bank. You can send instant money almost anywhere in India. All you need to do is to login into your account and add payee details regarding account number, bank, and branch. While money transfer through traditional method takes around three to four working days, money transfer through internet banking is executed with 24 hours.

Credit Card Management

You can effectively manage your credit cards with Internet banking. You can pay your credit card bills online and also apply for a loan on your credit card. Furthermore, you can request an increase in your credit line or apply for an additional card. In case you lose a credit card, you can instantly report about the lost card online.

Investment Management

Now you can easily open a fixed deposit account or FD using internet banking facilities. You can use an interlinked Demat account for trading in the stock market. You can directly purchase mutual funds through the online banking system. Manage all your investment with internet banking on the click of a button.

Mobile Phone Recharge

Is your phone balance running out? No need to rush to your nearby vendor for prepaid phone recharge. Simply login into your internet banking and top-up your balance with prepaid mobile cards. Select your operator’s name, enter your mobile number and select the recharge amount and get your phone back to working within a few minutes.

Easy Shopping At The Comfort Of Your Home

Leading financial institutions have tie-ups with maximum shopping websites. You can shop online, purchase all kinds of products, and conveniently make the payment through internet banking. Furthermore, you can purchase the railway and air tickets using internet banking facilities.

 

The Convenience of Banking Apps and Why Should You Use It

The banking industry is becoming more technology savvy with the progressive increase of smartphone users. More and more people are using banking apps these days. The reasons are quite obvious. Banking apps provide consumers with the convenience of using banking facilities without actually visiting banks. They ensure secure ease of access. Here are some advantages offered by the Banking Apps to the banking industry:

Reduced Expenses

Mobile transactions through Banking Apps increase overall efficiency by saving on operational costs. They help banks go paperless and save huge cost on printing and delivery. Mobile transactions are cheaper than ATM transactions and eliminate the need of hiring additional workers.

Increased Return on Investment (ROI)

Mobile banking through Banking Apps can significantly influence ROI through improved customer engagement. Statistics reveal a steady increase in the adoption of mobile banking over the past few years. It has been observed that mobile banking customers show better engagement to the financial institutions in comparison to branch-only customers. Mobile banking customers hold more products and use more banking services. Furthermore, mobile banking customers stay connected for longer with the financial institutions, thereby decreasing the attrition rate by almost 15% over the past years.

Another research suggests that instant access to financial information through Banking Apps can influence additional transactions. For this reason, mobile banking services generate better average revenue in comparison to non-mobile banking services.

Improved Customer Experience

Mobile banking solutions have significantly contributed to ensuring a positive customer experience which is paramount for successful banking services. Mobile banking apps ensure 24/7 availability. Hence, customers are not limited by fixed working hours or particular branch locations. Mobile banking apps provide round-the-clock services, thereby allowing the customers to access their accounts any time and from anywhere.

Mobile banking puts all banking services at the fingertips of their customers. An instant gratification makes customers more loyal to their banks. Furthermore, banking apps provide a personalized customer experience further increasing their credibility. Customers usually have complete control over their finances through banking apps. They can instantly transfer funds, check their deposits, monitor their balances, and get notifications.

Improved Security

Banking apps are further secured by additional hardware security making them highly reliable. Mobile banking apps use an added layer of security like biometric data and gesture patterns along with traditional two-factor authentication through passwords. Furthermore, financial institutions employ encryption to provide complete privacy of financial information, thereby ensuring worry-free mobile banking.

Use of Artificial Intelligence

Many mobile banking apps use Artificial Intelligence or AI to automate responses to generic customer queries. This further ensures speed, efficiency, and security. AI can be used to improve customer services through personalized notifications. Financial institutions can notify their customers about new services and send personalized offers according to their location, preferences, and buying history. AI services can help in detecting patterns or fraudulent behavior in real time. AI-powered mobile transactions ensure security at multiple layers.

The Digital Banking Essentials in the Indian Financial System

The face of banking in India is rapidly changing in the last few years. More and more businesses are going online with the financial aspects of their operation. Revolutions like the Unified Payment Interface are taking reign. So, where do the online banking solutions come into play within this exciting new era of a cashless society?

With a fast-paced revolution taking place within the Indian financial system, a plethora of new online banking software is on the rise. But what makes and breaks digital banking solutions within such a competitive market? There are several digital banking essentials to take into consideration when you’re about to launch your own online banking services. Even if you’re already going online, these few tips may just improve your overall banking operation.

Smooth Operation

Availability of options is key when you’re jumping on the digital banking solutions bandwagon. Essentially, you want to operate everywhere; from the web-based interface to smartphone operation. And you want to integrate services with advertisements on major online platforms such as Google, Facebook, Amazon, and Apple.

It’s all about letting your customers immerse in a wholesome banking experience with your omnipresent digital operation. It’s essential that your online banking software retains compatibility with the bank’s core system.

User-friendliness

A lot of digital banking solutions seem to overlook this important aspect of providing their digital service. Even when your whole system is secure and reliable, there isn’t much for the customers if the new apps they’re using are using are only frustrating them.

Banks want to give extra features that seem interesting to your users, often they can lead to the more sophisticated banking experience you may have on offer. But, an easy-to-understand user interface is essential to give your customers the best experience yet. When online banking solutions become a daily part of life, what you want to do is add value instead of adding to the clutter of everyday life.

Streamlined Banking Technology

Of course, you want your banking solutions to be a widespread use. One major aspect to achieve this is by making sure your online banking software is streamlined across platforms of other financial services. Cooperation with major and minor retail agencies to provide a seamless transaction for your customers is key. You want to provide easy access to payment, such is the case with online purchases, that keeps your users using your solutions.

Fast, Reliable, and Secure Network

Probably the most essential aspect of a digital banking, although it remains hidden from any crowd’s attention. When digital banking becomes all about easy access to making transactions, it’s imperative that methods of security are also increased in order to maintain that ease of use. What the customers want is a secure payment system that won’t drain the energy out of them by worrying, in the quickest way possible. Nobody can go wrong in ensuring maximum data protection when it comes to implementing digital banking.

Top 5 Trends in India’s Digital Payment Landscape

Under the Digital India Campaign, the government has been pushing the Cashless India initiative in the last decade. With the revolution geared towards India turning into a progressive cashless society, financial software solutions are springing forth like fresh saplings. New financial software systems are being offered every day, and many digital payment solutions are competing to gain as much use as possible.

With not only government support to initiate such a major change, but also the excitement of financial technology developers to get on with welcoming the future, we are seeing trends that are reshaping India’s digital payment landscape. The revolution is predicted to bring India into contributing at least 10% in the digital transaction on a global scale.

We are looking at 5 trends in India’s digital payment landscape that are driving the nation forward into much quicker, more convenient payment systems.

Virtual Wallets

Paytm is arguably India’s most popular mobile wallet right now. With just several clicks or a scan of a QR code, people nowadays are able to quickly and securely make purchases without the hassles that used to come with cash payment. These virtual wallets that are easy to operate just from a smartphone make shopping so much more convenient due to record tracking of payment history. With transactions being digitalized, you can be sure the amount of money you pay is always just the right amount.

QR Code-Based Payment

The QR code system installed for mobile wallets is what makes it easy to quickly and securely make payments at retail stores nowadays. Payment through a QR code is simple and secure. All you have to do is scan the QR code present at the store with the camera on your smartphone, enter the amount of purchase, and submit. We’re seeing more of this payment feature being made available at many stores small and big.

Hassle-Free UPI

Developed by the NCPI itself as a means to facilitate interbank transactions, Unified Payment Interface (UPI) is an online payment system that is gaining momentum each day. The system allows for instant, real-time funds transfer between banks by using virtual IDs registered on a bank. With the virtual IDs that work like unique email addresses, transactions no longer need complicated A/C numbers or IFSC codes. Relevant banking information is registered and stored on the smartphone and ready to go at any time.

Aadhaar-Enabled Payment Systems (AEPS)

AEPS allow for basic banking transactions to be carried at a tad higher level of security. Any transactions such as funds transfer, cash withdrawal/deposit, or balance inquiry can be accessed without giving out your banking information. All that is needed is your pre-registered Aadhaar number and you just activate the transaction using a fingerprint/iris scan.

Internet Banking

With the digitalization of financial activities taking place all over India, banks are now required to jump on the same wagon by providing a more seamless internet banking experience. There is a lot for banks to innovate and automate on right now and we’re seeing this trend to completely change India’s payment landscape in the years to come.

Mobile Banking Apps gain market reach owing to its feasibility

As mobile banking services are becoming more popular, financial organizations are now aiming to hire service providers to have their own apps developed. There are plenty of reasons behind such high popularity of these apps:

Reaching more people every day

The growth of mobile apps can’t be neglected. As the data costs are getting lower and the number of smartphones is increasing, mobile apps are becoming more popular. People rely on their mobile for a large number of tasks. From fixing a schedule to ordering groceries, there is a mobile app for every task. That’s why the need for mobile banking apps was felt.

When an institution releases a mobile banking app of itself, it connects with more customers without putting in much effort. Numerous banks have released their mobile banking apps, through mobile banking app providers in the past few years and the results have been extremely positive. Mobile banking services enable your business to reach more customers. Moreover, downloading and using these apps are easy.

This makes it easier for people to become your customers. They don’t have to undergo any hassle in order to avail your services when you are providing them with digital banking solutions. These apps enable people to find their accounts’ balance, handle transactions and make transfers with ease.

Increasing brand awareness

Mobile banking apps help the respective organizations in boosting their brand awareness. Banks that are entering the digital banking market right now, are able to capitalize on the huge demand for high-quality digital banking solutions.

People want good banking apps so they can make transactions on the go, without facing any difficulties or wasting any time. Providing a mobile app advertises itself on the digital platforms easily. Online advertising helps the institution in reaching new customers and enhancing the popularity of the brand name. It has a broader reach in comparison to offline advertising and so it can help in elevating the number of available customers.

Future growth prospects

The number of mobile banking apps has risen significantly in the past few years. Moreover, the growth prospects of mobile banking apps look quite positive. The users of these apps are increasing rapidly and experts say that the users are only going to increase in the future.

Therefore, institutions are now focusing on taking the help of mobile banking solution providers. These solution providers handle all the technical tasks and ensure that the organization has a high-quality and powerful mobile banking app for its brand.

Conclusion

With the increasing number of users, it is clear that mobile banking apps are going to dominate the banking industry. It is necessary for current organizations to seize this opportunity to grow.

Key things to avoid with financial software solutions

The popularity of financial software systems has risen significantly because of their large number of benefits and advantages. A great solution can help your organization get ahead in the market and increase your customers without putting much effort.

Still, there are some precautions you should follow with these solutions. The following points will help you in this regard:

The experience of the provider

The most important to keep in mind is the experience of the software provider. A common mistake among major organizations is overlooking the experience of the service provider due to the running costs. While a small difference in experience might not influence the results, a more experienced service provider would have better knowledge of the market and the solutions you would require.

You will not have to worry about the occurrence of any mistakes when you will be availing the services of an experienced service provider. Finding such a service provider is not a hard task as well because you can find a number of great options online without any hassle.

Ignoring arising issues

It is necessary for your organization to stay in touch with the technical team of the service provider. Ignoring an arising issue within the software solution could lead to some serious losses in data or performance. That’s why businesses spend heavily on the security and updates of the financial software solutions they utilize. One would want to avoid any risks associated with such a crucial part of the organization.

Moreover, staying in touch with the technical team will help you find out about the latest updates. Consulting with them and taking their help to overcome these issues will make sure that your organization does not have to compromise with the productivity and performance. With a good service provider, you will be able to contact the technical team with ease as well.

Less accommodation of funds

Some financial organizations do not recognize the importance of the financial software systems they use. Due to this reason, they cut the expenses and spend less on the software solution. However, this leads to the development of a number of issues because of the lack of funds, the provider becomes unable to offer proper services.

While a great software solution can help the organization in optimizing its productivity, the opposite is also true. A bad quality software solution can hurt the growth prospects of the organization and that’s why it is essential to choose the software provider carefully.

A poor quality solution might not have the latest tools and services which your organization may require to operate properly. This could lead to the development of a considerable number of problems due to which, you should try to avoid low-quality solutions present in the market.

Conclusion

As you can see there are not many things to keep in mind while using these software solutions. Moreover, the service provider will help you in every way possible and you will not have to handle many technical tasks.