August 20, 2021
Evolution for Payments in BFSI – A Quick Capture!
Evolution of payment system in BFSI. The world is moving closer to digital changeover with every passing minute. While consumer goods-selling practices have seen the most digital upper hand, BFSI is not behind!
Fintech is growing tremendously and it’s all because we opened to more technological advancements.
A rising number of solutions targeting different client segments, as well as expanding channels such as web, mobile, and ATM, have illustrated the fast-paced change occurring in the payment and transaction arena during the last five years.
This only emphasizes why banks are investing heavily in upgrading their payment methods to handle increasing quantities of transactions as well as their payment systems.
Let us take a quick look at the recent evolution seen on the BFSI payment system and why we suggest you choose CAMSPay to solve all your payment needs!
Early Stage of Evolution: ECS
- ECS or Electronic Clearing Service is a system that facilitates transactions that are directly linked to your account.
- Introduced and monitored by Reserve Bank of India.
- The system doesn’t give any unique mandate registration reference number to the users.
- Takes around 30 days for registration
- Takes 3-4 days to settle the payments
- No Dispute Management System in place
The Step Ahead: NACH
- The National Automated Clearing House or NACH is a centralized electronic payment system used by banks, corporates, financial institutions, and government agencies.
- Introduced to replace ECS by The National Payment Corporation of India (NPCI).
- Defined workflow with a reduced overall time.
- Less paperwork entails a lesser rejection ratio.
- Well-set dispute management system to resolve any issues easily.
- Takes just about 15 days for registration.
- Payments are settled on the same day.
- 964 banks are linked to NACH
- Payment Cap: Rs.1 crore and No AFA
A Touch of Digital Evolution: E-NACH
- Electronic NACH is superior to NACH in terms of speed and accuracy.
- Customers can issue and confirm mandates through the NACH e-Mandate system, which is an alternative to a paper-based mandate.
- It is completely paperless.
- It only takes 3 days to process when compared to the 15-day NACH process.
- When compared to the 15-day NACH process, the paperless eNACH method has sped up the process to less than three days.
- Linked with 35 (debit), 45(net banking) & 44(eSign) banks in India.
- Payment Cap: Rs.10 lakhs (debit card and Netbanking) & Rs.1 lakh (e Sign) and No AFA
The Ultimate Digital Step-Up: UPI
- Unified Payments Interface (UPI) is an instant payment system built over the IMPS infrastructure and allows to instantly transfer money between any two parties bank accounts.
- Developed by the National Payments Corporation of India (NPCI).
- Allows immediate money transfer 24/7 and all 365 days.
- Need only one application to facilitate money transfer and to access different bank accounts.
- Reducing the need to carry cash or cheque at all times.
- Autopay options for recurring payments.
- Third-Party Account Validation made possible.
Onwards & Upwards: UPI AutoPay
- A feature that allows consumers to enable e-mandate for regular payments such as EMI payments, insurance, and mutual funds without having to enter a PIN using any UPI application.
- One-time, daily, weekly, quarterly, bimonthly, quarterly, half-yearly, and yearly recurring payments can be mandated by a business.
- Allows one-time authorization to activate recurring payments.
- Ensures best success rates for on-boarding and collection of recurring debits.
- Enhances customer experience and ease of monthly transaction.
- Allows real-time affirmation of mandates (Against 15-days NACH / 3-days e-NACH process).
- Instant Settlements
- Linked with 23 banks in India.
- Payment Cap: Rs.2 lakhs and AFA on Rs.5k+ transactions.
Your Finest Choice: CAMSPay
Make your choice now, Choose CAMSPay.
A comprehensive payments suite for BFSI. We offer payments solutions in a number of ways that are simple, secure, and seamless.
We offer customized products developed to satisfy our clients’ needs, with solutions adaptable to evolution and expansion including
- Insta ENACH
- Card Acceptance
- Pay by Link
- IMPS and
- Account Validation
We suggest you to connect with us right away to get all your payment solutions at one place.