Relieving e-commerce merchants, of threats that have hindered optimum utilization of rewards and loyalty programs, payment aggregator, PayUbiz, announces the launch of its Device Fingerprinting Technology. The technology is aimed at countering the long-existing malpractices in the realm of e-commerce loyalty program for customers. This technology captures distinctive details of a user’s Internet connecting device like computer, mobile phone and tablet.
Device Fingerprinting enables detection of fraudulent transactions without the need of acquiring personally identifiable information. This solution captures more than thirty parameters through a web browser (mobile and internet). These parameters are updated and customized to keep the technology ahead of the curve regularly. It is a powerful tool for recognizing a returning fraudster even if they use multiple identities by using different contact numbers, identities, IP Address or cookies.
With the Modi led Government, ‘digital’ has been abuzz across all the corners of the country. In this entire process of making everything digital, we may have missed the significance of the word and the process of ‘digital transactions’.
In India overall time spent on mobile payment apps has increased by nearly 1.5x, with users spending an hour and a half on mobile payment apps every month.
Interestingly, mobile payment apps are 1.2x more popular among men than women and men are 2x more engaged with these apps than women.
What’s Driving Mobile Wallets?
According to U.K-based Juniper Research, more than one in three mobile wallets and over 50% in developed markets, will feature contactless payment by 2018. With the proliferation of mobile payment apps, the Indian smartphone user has increasingly begun to go cashless. The popularity of such apps has risen from over one-in-five active users last year to over one in every two users this year.
With a small targeted market right now for digital transactions and many players plunging into it with various business models, it has only asserted on the ample opportunities and scope lying ahead in the future.
An analysis of real time metered smartphone usage data with Nielsen Informate Mobile Insights reveals how Indian consumers are using mobile payment apps:
Alibaba backed Paytm leads the market followed by Freecharge which is owned by Snapdeal.
According to data with Nielsen Informate Mobile Insights, the most popular mobile payment apps in terms of time spent, are those that provide services over and above pure payment like mobile recharging, ability to book movie tickets, shopping and so on.
Current Scenario
Nitin Misra
Highlighting the existing scenario, Nitin Misra, VP of Product, Paytm, says m-wallet transactions have crossed the mobile banking transactions which shows the growing preference.
“Paytm with 120mn wallets has seen tremendous growth in the past 12 months. We currently clock around 60-65 million transactions monthly. Interestingly, 80% of the transactions are from mobile devices and 50-55% transactions are from metros while the rest is from non-metros,” he added.
“But only 5% of transactions is online, 95% is still in cash. And that is our biggest competitor.”
Paytm plans to increase its PoS presence by 2-3X by end of this year.
Freecharge’s Chief Operating Officer, Govind Rajan, said, “The acquisition by Snapdeal led us to focus on wallet business. And as we already had 6-7 million recharge users and an overall user base of more that 20 million, expanding to wallet was easy.”
Govind Rajan
“In wallet business you need to have partnerships and in the next 4 months we will have a significant reach and we plan to complete 7 million transactions by end of this year.”
Is Cashback Sustainable?
Oxigen believes that unlike other players in market, where cashback is a massive hit, they believe in bringing loyalty to the brand.
Sunil Kulkarni
“Cash back in not a way to do transactions. Industry is going through distortion where cashback is the reason for having wallet, which is wrong reason. Cashback is not sustainable,” says, Sunil Kulkarni, MD, Oxigen.
Industry experts say the key to rapid acceleration of mobile payment app adoption is to make the payment process simple for the consumer. The less information the consumer has to manually enter, the better the adoption rate.
According to Nitin Gupta, CEO, PayU, “Businesses are built on Fundamentals. If your business is not based on Fundamentals, it won’t work. Working on cashback and discounting is delaying your problem, because you will need to solve the problem of why a user is using a wallet. Today, uber has forced users to use Paytm, if tomorrow they bring any change then it won’t work.”
Nitin Gupta
He further added, “We have three value props: 1) Convenience, 2) Reliability: If any “gadbad”, reliability is 100% 3) Rewards: Sustainable for me. How long will Cashback system?”
“In POS systems we are bringing a game changing stuff and we’ll give something only in April. POS is under-penetrated, cannot afford machines. It’s a different problem to solve,” he added.
Ruling Trends
Bipin Preet Singh
Bipin Preet Singh, CEO and co founder of MobiKwik, commenting on the average Ticket size for the wallet payment,said, “In the last 3 months, the average spend on MobiKwik has grown from Rs 500 to around Rs 1000. Currently most wallets have a monthly transaction limit of Rs 10,000. But with the introduction of KYC norms, many users are now increasing their wallet limit to Rs 100,000 and starting to make higher spends every month.”
Highlighting the drawback of cashback model, he said, “Since we are in the business of money and give away a lot of incentives in the form of cashbacks, we do come across users who try to game the system. In the past, we have seen users creating several accounts on our system to claim cashbacks multiple times. We introduced card checks and device id checks as a counter measure and it worked.”
Ashutosh Upadhyay
Social Perspective
Ashutosh Upadhyay from Udio which in Croatia means ‘share’, believes that other than commercial transactions, a wallet should also address user behavior around peer-to-peer transactions where one needs to share the bill or request or send the money to someone.
Differentiating Udio’s business model, he says, “If user chooses wallet over your credit card only because of cashback, you have clearly lost the game. Currently in the wallet marketplace, the consumers are being driven only by cashback and not experience but we clearly want to avoid the routes of heavy cashbacks.”
Our Take
With different perspectives and different business models, it will be interesting to see who survives the competition in the consolidation phase. The problem will crop up when the venture capitalist fundings starts drying and companies will need to sustain themselves and turn to profits.
Hope it grows beyond just a nutshell experience and offers a great personal experience. For now just lets order food, watch movie, hail taxis and get a lot of cashbacks till they work!
PayUbiz has launched CVV less technology to improvise user experience and enhance transaction success rates for online payments.
The new feature gives CVV-less payment flow to consumers making payments online on PayUbiz partner merchants who are using this technology. The feature is platform agnostic and works for both Web (Desktop and mobile) and Mobile Apps (android & iOS).
“We aim at giving a seamless payment experience to buyers and therefore, have developed innovative technology for our partner merchants. This is an effort towards extending the benefits of our innovative fin-tech to the merchants who are expanding on various platforms, be it mobile or desktop. Our innovation removes the need for entering CVV and enables a CVV less payment flow. [Rahul Kothari, Head of Business, PayUbiz
PayUbiz has also filed a patent for this innovation. The CVV-less technology is already being used by PepperTap, Goibibo, redBus, Twigly, PayUmoney and the process of integration is on with more industry leaders. This is an absolutely secure & convenient digital payment solution, which is PCI-DSS certified, a highest standard in payment industry. Moreover it complies with RBI payment and Settlement systems act 2007.
PayUbiz has launched ‘one tap’ technology, which by the looks of it definitely revolutionizes the way mobile payments are made.
The One Tap Technology enables all mobile payments being made through debit or credit card to happen by just tapping ‘once’ on to the screen.The integration of this unique tech innovation by merchants will drastically enhance the mobile shopping experience of an Indian shopper.
The One Tap Technology : How Does It Work
The PCI-DSS complaint and patent pending ‘one tap technology’ is a combination of 4 different tech innovations that together provide a seamless online payments experience to the users.
The store card feature that starts the seamless payment journey, ensures that the consumers don’t have to go through the pain of putting in the 16 digit card number repeatedly. The first factor authentication of putting the CVV each time while making an online payment is dispelled by the No-CVV feature.
Furthermore the second factor authentication of OTP, gets auto read and submitted leading to the completion of a seamless one tap payment experience.
However, the process continues even when there is a network issue and the magic retry feature picks up the transaction from the point where it stopped.
“Consumers can presently experience this technology on apps such as PayUmoney and Twigly. We are working with other partner ecommerce companies to get this live as soon as possible on their platforms. Some of the other apps where users will experience it in next few weeks are Peppertap, Redbus, Goibibo, Grofers, Big basket, Just dial, xiaomi, Musafir and nearbuy.” Rahul Kothari, Business Head, PayUbiz
» Wanna know more about PayUBiz’s OneTap technology? Meet Rahul Kothari @UnPluggd, happening this Saturday!
