Digital Financial Tools expand the delivery of basic financial services to the people through new technologies like Internet, mobile phone and transfer of money through new digital channels. These channels have significantly driven down the costs for customers and service providers, Opening the door to provide 20 hours service for 365 days.
The invention of computers and smart phones has created a huge impact on financial services. Today using computers and mobile phones, a person can access his/her bank account, verify account details, transfer funds, deposit cash, renew deposit, pay bills, book tickets etc.
A type of digital platform that derives primary value from facilitating the exchange of goods and services between distinct buyers and sellers
Storing values electronically with a bank or any such non-bank institution allowing to store electronic values. The important thing is not cash contribution in this.
A retail agent works in the insurance industry and acquires insurance coverage from companies or brokers for clients. As a retail agent, you may work with auto, health, life, or other types of insurance.
Retail agents use a digital service connected to communications infrastructure to transmit and receive transaction details.
It enables customers to convert cash in to electronically stored value and to transform stored value back to cash.
A device is a unit of physical hardware or equipment that provides one or more computing functions within a computer system. It can provide input to the computer, accept output or both.
The customer’s device can be digital like mobile phones that is mean of transmitting data and information or an instrument like payment card machines that connect to a digital device like POS terminal.
OTP stands for One-time password, also known as One Time Pin.
A OTP is an automatically generated numeric or alphanumeric string of characters that authenticates a user for a single transaction or login session. An OTP is more secure than a static password, especially a user-created password, which can be weak and reused across multiple accounts.
A one-time password (OTP), also known as one-time pin or dynamic password.
A QR code is a type of barcode that can be scanned by a digital device and which stores information as a series of pixels in a square-shaped grid.
QR codes were created by Denso Wave, a Toyota subsidiary, in 1994. Although they were initially used to track parts in vehicle manufacturing, their use in mobile phone applications continues to grow. They are often found on signs, in print publications, on business cards or in any context where users might seek additional information.
A Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing & merchant payments into one hood.
It is a single-window mobile payment system developed by the National Payments Corporation of India (NPCI). It eliminates the need to enter bank details or other sensitive information each time a customer initiates a transaction.
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The participants of UPI are
Aadhaar Enabled Payment System (AEPS) is a payment service that allows a bank customer to use Aadhaar as his/her identity to access his/her Aadhaar enabled bank account and perform basic banking transactions like balance enquiry, cash withdrawal, remittances through a Business Correspondent.
Through the Aadhaar enabled Payment System or AEPS, all Aadhaar card holders can make payments, transfer funds, make withdrawals, deposit cash and other bank related activities by using Aadhaar based authentication.
The AEPS machine works similar to the Point of sale machine but instead of using a debit or credit card, the retailer needs to enter the customer’s Aadhaar number and biometric information.
Step 1: Go to a mini ATM or a banking representative.
Step 2: Enter your Aadhaar number.
Step 3: Select the ‘type of transaction‘ and specify the bank name.
Step 4: Enter the transaction amount to proceed with the transaction.
Step 5: Authenticate your biometrics to confirm the payment. A receipt will be generated upon successful completion of the transaction.
USSD is short for “Unstructured Supplementary Service Data” and is a real-time interaction service that allows your business to display text on a user’s handset. It is a mobile communication technology that is used around the world to send text between a mobile phone and an application in the network. USSD is most commonly used by consumers to check available mobile airtime and conduct data balance enquiries, or in mobile marketing competitions.
USSD messages are up to 182 alphanumeric characters long. Unlike short message service (SMS) messages, USSD messages create a real-time connection during a USSD session. The connection remains open, allowing a two-way exchange of a sequence of data. This makes USSD faster than services that use SMS.
While GSM is being phased out in the 2020s with 2G and 3G technologies, USSD services can be supported over LTE, 5G, and IMS.
