Monday, December 26, 2016

Top 10 Cashless Payment Methods to Deal with Cashless India Challenges

There is great buzz regarding cashless India. Since currency demonetization has created a situation where finding new currency has become a difficult task, Government of India is encouraging people to go cashless. This might be a reason why people are searching for cashless payment options in India. They want to know how they can pay bills or make payment using different types of mobile payment methods. People are curios to learn how to transfer fund using their simple mobile handset. They want to know about UPI app for android devices. Do you also want to know about how to go cashless? If yes, then you should check out stated below top 10 cashless payment methods to deal with cashless India challenges. So, have a detailed look at popular cashless payment options in India for people.


cashless payment methods



What Is Digital Payment Method?


Before you get involved into the actual process of learning how to make payment without using currency, you should first know about digital payment method. Actually, government of India has introduced a digital India program that enables people doing cashless transaction in India. In these methods, users or people don’t need to use currency for making payment, buying products or services, transferring fund from one account to another one, and paying utility bills online.



Let’s check out the given below top 10 cashless payment methods to enjoy cashless transactions.


1 - Banking Cards (Debit/Credit Cards)


Banking cards or debit/credit cards provide customers more security, control and convenience than any other sort of payment method. There are various banking cards available to choose from such as debit cards, credit cards and prepaid cards. These cards come with great flexibility. They are very useful when it comes to making learning cashless payment methods. The best part of using such a card is that it comes incorporated with two-factor authentication for offering better security payment option.


Users need to unveil the power of PIN as well as OTP to enjoy one of the easiest cashless payment options.. Some of the examples of this type of cards are Visa, MasterCard and RuPay cards. With the help of these cards, people can easily buy products or avail services from online stores or service providers. You can easily pay your utility bills or even transfer fund from one bank account to another one bank account. It is easy, fast and reliable option to go with when it comes to making India a cashless society.


How to Grab Banking Cards for Cashless Transactions

  • Submit “know your customer” or KYC documents to open a new account.

  • Now, you can apply for credit or debit card as per your need.

  • Grab a PIN.


Service Activation




  • Activation of banking cards may take 3 to 7 working days.

  • Visit a nearby ATM to activate your credit/debit card PIN.


What Is Needed for Cashless Transaction?




  • Online payment gateway or PoS terminal.

  • You need to provide card details or card physically to make online transaction.

  • Provide card PIN.

  • Provide One Time Password or OTP to make online transaction for various stores online.

  • Available in assisted and self-service mode.


What Is Transaction Cost for Banking Cards?



  • There is no charge to customer if he or she makes transaction through a merchant.

  • Annual charge as well as limits on ATM transaction may vary as per banks.

  • Merchants need to pay between 0.50 to 2025 percent.

  • Customers need to pay 1 to 3.5 percent cash out charges of total transaction value.


What Are the Services?




  • Banking cards may be used at ATMs, PoS machines, shops, online transactions, wallets, for e-commerce portals, and microATMs.

  • If you have an international card, you can use it throughout the world for different currencies.


What Is the Fund Transfer Limit for Banking Cards?




  • Users are free to set up transaction limit as per their financial needs.

  • It can be based on given credit ratings.


2 - USSD (Unstructured Supplementary Service Data) for Mobile Transaction


If you don’t have a smartphone, you can still be able to use one of the cashless payment methods. For this, you need to unveil the features of USSD service for mobile transaction. If you don’t have a handset to download cashless application, you can still avail the benefits of mobile banking. For this, you need to unveil the features of *99#. The main motto behind introducing USSD oriented mobile banking is to help common people availing great benefits of cashless payment system.


Customers or people can easily avail this USSD service by simply dialing *99# from their basic mobile phone. Once they dial this USSD command, they will be given a menu to choose a feature or service to proceed for cashless transaction. With the help of this service, you can transfer fund from one account to another account, check balance, grab mini statement, and various other financial services. All the leading banks in India with the help of GSM service providers are offering USSD based mobile banking to people in India.



How to Grab It?



  • Submit your KYC documents to open a new bank account.

  • You need to link their mobile number with their bank account.

  • Registering the number for mobile/USSD banking is needed.

  • Grab Mobile Money Identifier or MMID.

  • Grab Mobile PIN or MPIN.


Service Activation




  • Hardly 1 to 2 minutes.



What Is Needed for USSD Mobile Banking Transaction?




  • MMID

  • MPIN

  • *99#

  • A registered mobile number

  • It is a self-service option for people looking for cashless payment methods.


What Is the Transaction Cost for USSD Mobile Banking?




  • Customers need to pay INR 0.50.

  • NIL by available system.


What Are the Services Offered By USSD Mobile Banking?




  • Check mini statement

  • Check balance inquiry

  • Funds transfer

  • Aadhaar

  • MMID

  • Account number.

  • Know and change MPIN

  • Generate One Time Password.


What Is the Limit of Fund Transfer When Using USSD Mobile Banking?




  • INR 50000 per annum

  • INR 5000 per day


3 - AEPS (Aadhaar Enabled Payment System)


It is a bank-led payment model that enables online interoperable fund transaction at Micro ATM, PoS via BC (business correspondent) of any bank especially using the Aadhaar card authentication.


How to Grab AEPS




  • Submit KYC documents to open an account.

  • Users need to get their Aadhaar number linked to their bank account.


Service Activation Time for AEPS




  • None

  • Hardly 1-2 minutes after Aadhaar linking.


What Is Needed for AEPS Transaction?




  • Aadhaar

  • Micro ATM

  • Provide bank name

  • Present Aadhaar holder with legal bio-metrics i.e. IRIS or finger authentication.

  • Assisted mode.


What Is the Transaction Cost for AEPS?




  • Customer need not to pay charge.

  • BC or merchants may get paid or charged especially based on current bank discretion.


What Are the Services Offered By AEPS?



  • Cash withdrawal

  • Balance enquiry

  • Cash deposit

  • Funds transfer from one Aadhaar to another Aadhaar.

  • C2B AND C2G payment transactions.


What Is the Fund Transfer Limit for AEPS?




  • However, RBI has not defined limit but banks define certain limit for AEPS.


4 - UPI (Unified Payments Interface)


UPI is a kind of system that enables several bank accounts into a single platform i.e. mobile application. It is used for availing different types of banking solutions – from fund transfer to making payment online. However, there are several banks that have already introduced their specific UPI app, but still users can use RBI app for all banks.


How to Grab UPI App




  • Bank account

  • You need to link their mobile number with their bank account.

  • Users must have  a smartphone with internet connection.

  •  A debit card especially for re-setting or changing MPIN.


How to Activate UPI App




  • First, download an application for UPI.

  • Now, users need to go through a registration process.

  • Users need to generate a virtual ID or address.

  • Generate MPIN

  • It takes 5 to 7 minutes.


What Is Needed for Transaction through UPI App?



  • Users need to have a smartphone with an internet connection.

  • Users can use only registered device.

  • Registered MPIN should be used.

  • It is a self-service option.


What Is the Transaction Cost for UPI App?




  • Customers need to pay for certain data charges.

  • There is no fee or cost by various banks.


What Are the Services Provided By UPI App?




  • Do balance enquiry

  • Check transaction history

  • Virtual address

  • Pay/send money

  • MMID and mobile number

  • Account number as well as IFSC code

  • Collect money

  • Aadhaar

  • Add bank accounts

  • Set or change MPIN


  • And yes account management


What Is the Fund Transfer Limit for UPI App?




  • 100000 per transaction.


5 – Mobile Wallets


It is a kind of system that enables users to carry digital cash. For this, users need to link their credit or debit card information in a mobile phone to mobile wallet app. You may also transfer money or fund online to your mobile wallet. It is certainly a great option to enjoy digital currency. Instead of making payment using your plastic credit or debit card, you can make payment using your mobile wallet. For unveiling the mesmerizing features of digital wallet, you just need to link your bank account to available digital wallet app. It is one of the significant cashless payment methods in India.  Most of the leading banks offer e-wallets. There are also a few leading companies that offer digital wallets facility to end users such as Mobikwik, Freecharge, mRupee, Oxigen, SBI Buddy, Paytm, and many more.


How to Get Mobile Wallet?




  • There are two options for users to go with i.e. full KYC and zero KYC wallet.

  • You may choose between merchant and consumer wallet.

  • Mobile number

  • You need to download an app in your smartphone.


How to Activate Mobile Wallet



  • First, you need to transfer money to your mobile wallet app using merchant locations or internet banking.

  • Cash-in

  • All cards

  • Bank account.


What Is Needed for Mobile Wallet Transaction?




  • A smartphone with internet connection

  • MPIN

  • Assisted and self-service mode.


What Is the Transaction Cost for Mobile Wallets?



  • Customers need to pay for remittances to their respective bank at 0.5 to 2.5 percent, which is a fixed charge.

  • In case of using self-service mode, users need to pay for data expenses.


What Are the Services Provided by Mobile Wallets?




  • Balance enquiry

  • Pay money

  • Accept money

  • Transaction history for all cards, cash-in and bank account.

  • Pay merchant

  • Notifications

  • Manage profile


What Is the Fund Transfer Limit for Mobile Wallets?




  • For customers with no KYC is INR 20000 per month

  • Users with full KYC is INR 100000 per month

  • Merchants with self-declared is INR 50000 per month

  • For merchants with KYC is INR 100000 per month.


6 - Banks Pre-paid Cards


It is certainly a great option for users looking for cashless payment methods in India.


How to Grab Banks Prepaid Cards




  • Submit KYC documents to open a new bank account.

  • Apply online for prepaid or wallet card

  • Grab a PIN or MPIN


How to Activate Banks Prepaid Cards



  • First, you need to load fund using internet or branch banking.

  • Bank account.

  • All cards

  • It takes 1 to 2days for cards.

  • It takes only 5 to 7 minutes for an e-wallet.


What Is Needed for Banks Prepaid Card Transaction?




  • A smartphone with internet connection.

  • MPIN

  • Assisted and self-service mode


What Is the Transaction Cost for Banks Prepaid Cards?




  • If you load prepaid card, you need to pay service charges or fixed fee for every transaction.

  • Loading e-wallets is usually free.

  • Merchants are charged a fee between 0.50 to 2.50 percent.

  • Cash out is normally charged to users as fixed charge or 1 to 2.5 percent of value of given transaction.


What Are the Services Provided by Banks Prepaid Cards?




  • Balance enquiry

  • Add money to bank account, all cards.

  • Transaction history

  • Pay money

  • Accept money

  • Pay merchant

  • Cash withdrawal

  • Touch to pay

  • Manage profile

  • Grab notifications


What Is the Fund Transfer Limit for Banks Prepaid Cards?




  • For users – INR 100000

  • Self-declared merchants – INR 50000 per month

  • KYC merchants – INR 100000 per month.


7 – Point of Sale (PoS)


PoS machines are best option for making sales. you can use these machines to perform sales. These machines are available in market, city and malls. Usually retailers use these machines to encourage cashless transaction for people searching for cashless payment methods. There are different types of PoS options available to choose from. So, have a detailed look at them.


Physical PoS


What Is Essential for Availing Physical PoS Service?




  • Handheld machine with bio-metric or card option.

  • Merchant bank account.

  • Internet connectivity either through landline or GPRS.


How to Activate Physical PoS




  • submision of legal documents for grabbing merchant bank account.

  • Deposit required amount

  • Grab device

  • Now, configure it


What Is Needed for Physical PoS Transaction?



  • A card

  • AEPS or bio-metric authentication

  • Available in assisted mode


What Is the Fund Transfer Limit for Physical PoS?




  • However, payee and merchant’s bank may define a transaction limit based on their discretion, but there is no transaction limit for a regulator.


Mobile PoS


What Are the Essential Conditions for Mobile PoS Service Initiation?




  • A smartphone

  • Application from certain bank

  • External or integrated card and, or a bio-metric reader

  • Bluetooth or jack connects reader.

  • Internet connection

  • Bard code or QR code reader


How to Activate Mobile PoS Service?




  • Download an app for your merchant bank account.

  • Now, register your mobile or device with your merchant bank account.

  • You may need to go through readable instructions or training.


What Is Needed for Mobile PoS Transaction?



  • A card

  • AEPS for legal or registered devices

  • Mobile wallet account

  • A scanner for understanding bar or QR code.

  • Available in assisted and self-service mode.


What Is the Fund Transfer Limit for Mobile PoS?




  • There is no limit for a regulator.

  • Payee as well as merchant bank can define their transaction limit according to their discretion.


Virtual PoS


What Is Essential for Availing Virtual PoS Service?




  • A web browser or smartphone

  • Internet connection

  • A virtual or cloud account for cashless transactions

  • E-payment gateway

  • QR code


How to Activate Virtual PoS?




  • A merchant bank account with adequate merchant credentials

  • If you need pull transactions, you need to provide QR code.

  • A system to identify user for financial service delivery.


What Is Needed for Virtual PoS Transaction?




  • A Card

  • Mobile wallet A/C

  • Scanner for recognizing bar and QR code


What Is the Fund Transfer Limit for Virtual PoS?




  • There is no transaction limit for a regulator.

  • Payee as well as merchant bank may determine a transaction limit as per their discretion.


8 - Internet Banking


Online banking, also called e-banking, internet banking and virtual banking, is a kind of electronic payment system that allows customers or users of a financial institution or bank to conduct different types of financial transactions through a website.



How Many Types of Internet Banking Transactions Available to Use?


Internet banking or online banking comes among the most popular cashless payment methods in India. Whether you want to transfer or receive the fund, you can easily do it using an online banking site. You may also buy products or avail services by unveiling the mesmerizing features of e-banking. There are various types of online or internet financial transactions available to use.




  • National Electronic Fund or NEFT

  • RTGS (Real Time Gross Settlement)

  • ECS (Electronic Clearing System)

  • IMPS (Immediate Payment Service)


9 – Mobile Banking



  • a financial institution or bank offer mobile banking services to users to perform a range of financial transactions through a mobile phone, tablet, etc.

  • Mobile banking comes with software i.e. mobile banking app, which is provided by a bank.

  • Each bank comes with its own specific mobile banking application for Windows, Android, iOS, and various other platforms.


10 – Micro ATMs  



  • the device helps business correspondents to offer fundamental banking solutions.

  • This platform can enable small Business Correspondents or BC such as a general store owner to perform instant transactions.

  • A micro platform enables function via low cost machines or devices such as micro ATMs. This platform connects with a bank or financial organization in the country.

  • The system helps people depositing and withdrawing fund irrespective of the bank linked with a certain BC.

  • the mobile based machine is available at every Business correspondent.

  • Customers or users need to go through identity authentication process to put or withdraw money.

  • The same money can then come from the cash system of your chosen BC.

  • Here, BC should act just like a bank for the end users or customers. Hence, a BC needs to just verify the legal authenticity of customers using given customer’s UID.

  • you can avail the benefits of fundamental transactions such as deposit, fund transfer, balance enquiry, and yes withdrawal of money.


These are top 10 most popular cashless payment methods to deal with current cashless India challenges.

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