Empowering Small Time Merchant (‘s)-Using Digital Wallet/IMPS Method

Abstract

Payment collection system forms the core of any business. Different types of software, hardware and other technologies have been introduced for paying bills electronically, with banking industry introducing technologies like ATMs, Debit Cards, Credit Cards, Mobile Banking, IMPS, Merchant payments, digital wallet. In spite of all the advancements made, the payment collection system still remains a Herculean task. This research paper focuses on the study of current bank centric mobile payments app and the proposed model. With the advent of M-commerce, the payment collection systems are also being moved to mobile devices. After the introduction of the digital wallet, there is a drastic change in the payment collections, however the current payment collection system in our country is yet to reach the masses. In most of the cases, merchants/vendors are bound to visit the customers multiple time to collect the fee/charges in the form of cash. For example a newspaper or milk vendor may visit customer multiple times to collect their service charges/fee. In today’s world of technology with latest advancements, where different type of facilities like IMPS* PULL, digital wallet are available for customer, the same could be used to avoid the delay in payment receipt and such transactions being made cashless transactions. This will also ensure secure transaction and provide ‘End to End’ security to both vendor & customer and same can be recorded digitally for future reference. Our objective is to explore a user friendly mobile payment fee collection system, which would enable to collect fee/service charges from different modes like IMPS, digital wallet in real time. NPCI launched IMPS merchant payments (IMPS PULL/PUSH) during 2012. The proposed model extends the services from IMPS PULL model.