FSS solves India’s financial exclusion problem with launch of UPI eVoucher

FSSThe Unified Payment Interface (UPI) suite of (software and financial systems) will now support electronic vouchers; an initiative that is expected to accelerate the adoption of digital payments among India’s financially underserved people.

The addition of eVouchers to the UPI FFS is intended to allow customers to transfer funds to any mobile number, for a specific purpose in real time, whether or not the beneficiary has a bank account.

How electronic voucher works

For low-income, unbanked customers, the eVoucher functions as a source of funds and serves as an entry point into the digital system.

The operation of the service is simple:

  1. Customers can generate an eVoucher by calling the payment service provider’s UPI app or mobile banking app.
  2. They must then specify the mobile details of the beneficiary, the amount and the merchant, where the voucher can be used.
  3. In the backend, the FSS UPI system authorizes the transaction and transmits the voucher to the beneficiary’s mobile device in the form of a QR or an SMS digital string.

In India, the pandemic has accelerated the adoption of digital payments by about five to ten years. Highlighting the growing demand for digital payment, India’s UPI processes a record 3.5 billion transactions per month and represents the fastest growing payment rails in India.

Currently, uptake of UPI services is limited among customers of participating banks. But with the introduction of the eVoucher, payment service providers for banks will be able to harness the ubiquity of mobile telephony to reach unbanked users.

India currently has around 1.1 billion active mobile users, of which 500 million are in rural areas. Since it is possible to send the electronic vouchers by SMS or QR codes, customers or traders no longer need to invest in additional infrastructure.

With that in mind, it will allow payment service providers to start launching new customer-centric propositions, including payroll services, vendor payments and gift certificates, all of which can exist and operate through a single device. mobile.

Jaishankar AL, CEO, FSS Paytech

Speaking at the launch, Jaishankar AL, CEO of FSS Paytech, said: “India’s UPI is globally recognized as the most advanced real-time payment infrastructure and accounts for approximately 73% of the total digital transaction volume in the country. The UPI platform is one of FSS’s flagship products and we are excited to launch the UPI eVoucher, enabling banking PSPs to bring new innovations that benefit multiple customer segments and strengthen the digital economy of the world. ‘India.

The FSS UPI platform is approved by the major banking PSPs in the country. The FSS UPI platform supports standard interfaces for integration with third-party fintech systems. In addition, the FSS UPI Mobile SDK provides third-party vendors – banks, fintechs, retailers, wallet providers – with fast, out-of-the-box integration capability to integrate UPI payments into existing applications.

Continue reading: Bank of Postal Payments in India partners with the FSS to help the unbanked

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