Prepaid Cards

1
Prepaid Cards Payments
2
PC, Mobile Internet payments

• We are in the business of mobile computer. It is
  no longer a mobile phone.
• (Anssi Vanjoki Executive Vice President, Nokia
  November 25, 2008 New Delhi)
• Gap between what you can do from mobile and from
  PC is diminishing rapidly
• WAP site can have secured access (htpps) like
  websites
• WAP site can also have VeriSign certificate
• Wireless modem on GSM/CDMA are in fact mobiles
  with which one can connect to PC and surf
• ATM connectivity at many places is on wireless .

3
Mobile Payments

• Several new generation mobiles in mid-range to
  top-end have full browsing capabilities
• Several websites are being created to optimise
  experience on mobile
• Software are developed for mobiles to view full
  websites optimally on mobile screens
• Under such circumstances, only SMS/USSD and On
  Device Java/Brew portal can qualify for mobile
  payments where payment service provider can
  detect with certainty payments passing through a
  mobile
• All other access methods (web surfing using
  mobile, connectivity to internet using mobile as
  GPRS/CDMA modem etc.), there is virtually no way
  payment provider can determine, if the
  transactions are coming through a mobile phone

4
Prepaid Payments

• Current draft guidelines for prepaid cards on
  Internet channel under finalisation
• Prepaid mobile payments are restricted for only
  banking channel
• For prepaid card of less than Rs 1000, no KYC is
  required.
• The entire unutilized prepaid balance is to be
  kept with Bank in escrow without interest.
• Mobile wallet/Mobile accounts (Prepaid card
  number mobile number) as prepaid card also
  termed as mobile payments under banking channel

5
Discussion points

• Will there be a viable business model to mass
  market services like Mobile Ticketing for
  unreserved tickets for sub-urban railway with
  ticket size as small as Rs 4 to pass through bank
  account?
• For cards below Rs 1000 where no KYC is required,
  Should the access method (mobile or internet) be
  restricted?
• Transfer of funds once from a bank account to
  prepaid card can be deemed KYC for that card? (It
  is like withdrawing cash from ATM, which are KYC
  accounts)
• Mobile number Card number is more for customer
  convenience. Should it be termed as mobile
  payments just due to the nomenclature?
• There is a case for financial inclusion through
  channel other than banking channel for delivery
  of services relevant to masses. The current
  guidelines should have some initial provision to
  kick-start the process in a phased manner.

6
Thank You