Wednesday, 12 February 2020

From “ E-pay “ to ” E-play “



Context :


Extract :

Ø  The Reserve Bank of India (RBI) has prepared the ground for allowing competition to the National Payments Corporation of India ( NPCI )
Ø  The new entity will set up, manage and operate NEW PAYMENT SYSTEMS, especially in retail space, comprising but not limited to ATMs, white-label point-of-sales ( POS ) machines, Aadhar based payments, and remittance services

Ø  It will also develop NEW PAYMENT METHODS, STANDARDS and TECHNOLOGIES and spend on raising awareness of payment systems

Ø  The NPCI operates the RuPay and the Unified Payments Interface ( UPI ) networks

Ø  It links all the ATMs of different banks to ONE NETWORK and manages other forms of electronic payments
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Some 3 years ago, I wrote :

[ source :    A Matter of Time    /     03 Jan 2017   ]

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Today's Mantra  :  Competition is the Mother of Innovation


Just wait to find out which Mobile Wallet comes up with the following " innovations " first :

*  All bank accounts of a person ( in different banks ) become inter- operable / fungible ,
   through seamless interlinking , using Aadhar / UPI Interface in a Mobile Wallet
   No need to " select " a particular bank name

  
*  All transactions using a Mobile Wallet, automatically entered in BLOCK-CHAIN database
   commonly shared by ALL banks


*  Wallet based algorithm will  move funds across different bank accounts  for best yield ,
   constantly searching for best interest rates offered by banks on Fixed Deposits

   This will happen automatically , much like algorithm-based share trading , taking
   advantage of price differences in two bourses located 300 km apart ( in one thousandths
   of a second ! )

   No rocket science here considering availability of " BEST PRICE " apps for thousands of
   goods and services


   And since computing power of mobiles are doubling every 18 months ( Moore's Law ),
  nothing will stop algo-trading through a Mobile Wallet , as well ! ( Demat A/C on Wallet ? )

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It is very likely that the RBI-inspired COMPETITION ( to NPCI ) may come from technology companies like TCS – INFOSYS – WIPRO – L&T INFOTECH etc

And though the selected entity will set up a payment network ( similar to NPCI ), as mandated by RBI, it will not be just another “ also ran “ !

Directors of these companies would want to go from “ E – Pay “  to  “ E – Play “ , described above

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12 Feb 2020

hcp@RecruitGuru.com


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