Interbank Mobile Payment Service (IMPS) Merchant Payments Process Flow and Use Cases

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1 Interbank Mobile Payment Service (IMPS) Merchant Payments Process Flow and Use Cases

2 IMPS merchant payments Allows customers to make instant, 24*7, interbank payments to merchants or enterprises via mobile phone

3 How does it work? Two ways in which IMPS merchant payments (P2M Person-to-Merchant) transaction can be performed: Customer Initiated Transaction (P2M PUSH) Merchant Initiated Transaction (P2M PULL)

4 IMPS merchant payments PUSH transaction Customer can initiate transaction through mobile banking application and through SMS facility provided by bank

5 Transaction through mobile banking

6 Transaction through mobile banking

7 Transaction through SMS banking The SMS syntax : MIMPS <Merchant mobile number> <Merchant MMID> <Amount> <M-PIN> <Payment Reference>

8 Flow for Customer Initiated Transactions Merchant Mobile No. Merchant MMID Amount Payment Reference MPIN MPIN validation Sender a/c identification Debit to the Sender s a/c Generate and send transaction SMS confirmation to the sender Receiver a/c identification Credit to the Receiver s a/c Generate and send transaction response Online Validation with Merchant SMS confirmation to the receiver

9 Use cases Insurance DTH Fee payments Credit card payments Utility Bill payments Over-the-counter payments Face-to-face payments Pizza delivery, Courier, Cabs, Retail

10 Face-to-face payments Pizza delivery, courier, Cabs, retail POS Customer enters the pizza delivery or courier agents mobile number and MMID, amount and payment reference Agents mobile number and MMID linked with merchants account at the back-end (multiple mobile numbers and MMIDs can be linked to one merchant account) Customer account debited and merchants account credited Customer and agent gets confirmation SMS

11 IMPS merchant payments PULL transaction Step 1 Generate OTP before transaction Step 2 Make payment using OTP

12 OTP validity OTP can be generated through mobile banking application and through SMS facility provided by the Bank OTP generation is 2-factor authentication process Only one OTP is valid at a time OTP valid for only one transaction successful or failure OTP is valid for 1 hour OTP is 6-digit numeric Transaction limit unlimited (subject to bank discretion) for OTP generated through mobile application, and Rs 5,000/- for OTP generated through SMS

13 OTP generation through mobile banking application

14 OTP generation through SMS

15 Make payment using OTP Can make payment using OTP at merchant application Website IVR Mobile application Mobile POS

16 Make payment using OTP

17 Flow for Merchant Initiated Transactions Customer Mobile No. Customer MMID OTP Customer logs on to Merchant Website In the request Acquirer bank sends the transaction to NPCI In response Acquirer bank credits the merchant account Sends the confirmation on the merchant website Issuer Identifies and validates the Customer a/c and the OTP Debits the Customer a/c Generates and sends transaction response to NPCI SMS confirmation to the customer

18 Use cases Mobile POS Merchant aggregators Retailers, FMCG, Food chains E-commerce, movies, classifieds, courier Travel & Ticketing, radio taxi Mutual funds Insurance Utility bill payments Mobile / DTH recharge Trading / NBFC Credit cards Fees payments Donation

19 Mobile POS Enterprise agent has mobile POS application on the phone Opens up form Receive payment from customer Enters payment reference, amount Asks customer to enter mobile number, MMID and OTP Agents mobile number (through which payment is initiated) is linked with merchant account Merchant account is credited and customer account is debited Customer and agent get confirmation SMS Facility to link multiple mobile numbers and MMID with one account, so payments can be received in single account of merchant / aggregator

20 Merchant aggregator Aggregator can offer IMPS as payment option to their merchants IMPS can be added as payment option at following access channels Website WAP site IVR Mobile application

21 Retailers Retailers can provide mobile application (mobile POS) at cash counters for receiving payment via IMPS Cash counter agent opens up form Receive payment from customer Enters payment reference, amount Asks customer to enter mobile number, MMID and OTP Agents mobile number (through which payment is initiated) is linked with merchant account. Multiple mobile numbers can be linked with one merchant account Merchant account is credited and customer account is debited Customer and agent get confirmation SMS

22 Virtual POS At cash counters in retail chains Customer swipes card at the cash counter Linked with billing system at cash counter Option to pay via IMPS can be provided at Virtual POS Customer enters mobile number, MMID, and OTP Customer account is debited and retail chains account is credited

23 E-Commerce company - Cash on delivery Cash on delivery preferred mode for physical delivery items IMPS as replacement of cash on delivery Customer places an order and opts to pay via IMPS on delivery E-commerce company ties up with courier company Courier company opens account with acquiring bank The delivery agent s mobile number is linked with courier company Customer makes payment using delivery agent s number Payment is received in courier company account SMS is received by customer as well as delivery agent

24 Insurance Agent can collect payment via agent mobile POS application. Credit directly into insurance company account No investment on POS machines for insurance company No need for agents to visit branch office to submit cash, cheques Agents promote this method because of above advantage

25 Mutual funds Currently, in financial services, only Rs 2,000 crores worth of transactions through online methods In mutual funds, no transactions through credit cards Only debit cards and net banking methods allowed Payment through distributors also possible through distributor mobile POS method

26 Advantages Number of mobile users is lot more. Mobile number can be linked to bank account for everyone Replacement of cash Remote payments via website, IVR, mobile application Mobile POS No investment on POS machine for receiving payment via IMPS Convenience, anytime, anywhere payments