Disrupting the digital payments landscape

A new way to engage with customers from across the regions

Vaibhav Kashyap U
mail.kashyap13@gmail.com
+91 95356 06558
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CONFIDENTIAL
 Road Map for the Deck

01 – PRODUCT AND PROBLEM 🤨 02 – BREAKING THE PROBLEM 🤓

• With the loss of mobile
Analysing the product life cycle and identifying the
connectivity one cannot
bottlenecks, also providing potential alternatives
pay digitally.
to the product.
• Cash/Card payments is
still dominant in this
country.

03 – WHAT WHO AND WHY OF THE 04 – CHOOSING THE BEST

SOLUTION 🧐 SOLUTION 😎
Bluetooth Low energy / Near field Communication Deciding the right metrics to use for the
can be used to tackle this problem, which offers a solutions and giving appropriate weightage for
more intuitive and a super fast way to pay. the same.

05 – ONE STEP DEEPER INTO 06 – DISCUSSIONS ON WHAT NEXT 👁️‍🗨️

SOLUTION WITH METRICS 👀
Brief timeline on how to implement the potential
Comparing the solutions with appropriate metrics best solution along with risk analysis.
and giving ratings for the same

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 ARE DIGITAL PAYMENTS METHODS REALLY CONVINIENT? 🤔
% increase (CAGR) between 2015 and 2017 in card
Cash still remains most convenient option as its one step and e-money transactions *A survey conducted
process, existing digital process is 3-4 steps and requires 60 CAGR (%) among 97 people
Problem
mobile network of the client, while the transaction is being 50 (2015-2017) who used Paytm at
Eateries inside
made, which makes it not usable in regions where no mobile 40
institute showed that
network exists and also less convenient. This has reduced 30
73 % people lost
conversion rates at many shops as many people don’t prefer to 20 mobile coverage
stand in long queues. Clearly there is a big problem that needs 10 inside and had to
to be overcome. 0 come out to finish
payment. This made
long queues near
From purchasing groceries via net banking to buying a cup the counter.
of tea using Paytm, Indians are increasingly turning to
digital payments for their daily transactions. Digital Various offline
payments in India have grown rapidly in recent years. payment methods
are tested using QR
Between 2015 and 2017, digital payment transactions codes and OTPs
grew at an average annual pace of more than 50%, which are at least 3
step process
outpacing other major developing countries. 😎 making queues
bigger and bigger 
This leading to user
frustration and also
Yet despite this growth, after adjusting for population, India less productivity,
continues to lag other major countries. Among the BRICS ultimately leading to
countries (Brazil, Russia, India, China and South Africa), low conversion
Russia leads the way with the average adult making rates.

more than 200 non-cash transactions annually, in contrast

India remains at less than 20. 😥 This graph can see an increase if Paytm can get into the 5,000 tier
4 cities and 638,000 villages in India which are not yet been
digitalised. Cash is still the way of payment in these areas.

** CAGR - Compound annual growth rate

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 Analysing the life cycle for the payment procedure :
Select Pay option Scan QR code Enter amount & Pay

Further Analysis :
• This current procedure is 3 step
process.
• At least a minute or two is
required to complete the payment
which is the best case scenario.
Value • QR code scanners have
improved significantly after being
Chain : used for payments, but they still
require a relatively steady hand
and an unobstructed view of the
Customer code and enough time with
internet connection.
• With a significant share in the
market Paytm needs to cater to
the issues with its product which
could be done by exploring other
technologies like Bluetooth Low
Energy payments and NFC Tap
and Pay, which are faster, secure
and an intuitive way to fulfil
payments.

Lack of mobile
connectivity making it
An increase in more difficult to pay at
processing time for the merchant making it
orders is seen which even more difficult to
Bottlenecks leads to increase in
queue length which
use digital payments.
Also inside some
affects the eateries in Institute
productivity and also apparently mobile data
the conversion rate does not work leading
for the merchant. to cancellation of
orders / indefinite
queue.

Increasing Queue User Frustration Lack of mobile coverage

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 1 : Near Field Communication (NFC) Tap and Pay : Life Cycle
This is any regular POS
terminal which is capable of
Mobile payments in the NFC-
processing EMV payments or
enabled business model
the receive part of the
use EMV terminals to allow
application which can act as
customers to pay with mobile
the POS for the merchants
wallets. Internet Connection is
without EMV capable POS.
seldom required for this. It
uses technology of Host Card
Android phones / IOS phones
Emulation to get tokens for
with NFC are supported,
specific cards which are
according to statista.com 70-
capable of completing the
payment. 80% of the EMV terminals
can process NFC payments.
Client application POS terminal / Receiver
User opens
the
application
and then taps
at the POS to
complete the
transaction.
**The above screenshots are taken from the android application developed by me and my friend, Since this was a prototype not much effort was put into UI.
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When a customer initiates the
checkout process, he or she
can opt to pay by mobile
wallet which stores payment
tokens. The customer his or
her mobile wallet and then
waves the phone over or taps
it against the terminal. This
action brings the NFC
elements in the phone and
terminal close enough to
initiate a connection and
authorize the payment.
Client application
TAP
When a contactless payment
is, the NFC technology goes
to work. The NFC-enabled
reader and the smartphone
pass encrypted information
back and forth to each other
to complete the payment.
This all takes just milliseconds.
Speed, in fact, is one of the
coolest parts of NFC
payments. They take a
fraction of the time of
magstripe and chip card
transactions—and are leagues
faster than cash.
POS terminal / Receiver
Quick Note :
•This works on principles of
Tokenisation of Credit/Debit
cards.
• The number of NFC enabled
devices have increased
manifold as shown in the
above graph, it stands at
1907.4 mil devices so its high
time we use this technology.
• This is a 1 step process and
according to our application
results it takes only about
300ms to complete the
payment.
• Consecutive payments can be
done with this technology
hassle free.
CONFIDENTIAL
 2 : Bluetooth Low Energy (BLE) Over The Air Pay : Life Cycle
Both customer and merchant have a
device embedded with BLE technology.
In the proposed system design, the
customer uses a BLE-enabled wearable
device such as smartphone and smart-
watch, and the merchant device is a BLE-
enabled POS terminal.
Each POS terminal has its own payment
area, which is equipped with three to four
beacon tags. These beacon tags
broadcast signals and information that
are used by the customer’s smartphone
to detect whether the customer is located
in the payment-enabled area of a specific
POS terminal associated with the
corresponding beacon tags.
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When a user (customer) is going to checkout his
purchase, he invokes the BLE-based payment App
installed in his device. Once a user is positioned inside
a payment-enabled area of the corresponding payment
counter, the App will automatically receive the
advertising signals broadcast by the corresponding
Bluetooth beacon tags within the payment-enabled
area.
Once the user’s smartphone is detected and
determined to be inside the legal payment-enabled
area, the beacon sends a notification to the user
generating a request to authorize the payment.
Once this authorization is complete, there is a secure
exchange of token between the customers device and
the beacon, which is used to fulfill the transaction.
Once the transaction is complete the user can leave,
this allows for payment to be done anywhere inside the
shop which is very convenient.
Quick Note :
• This also works on the principles
of tokenisation.
• This can basically run on all
Bluetooth enabled devices but
requires additional
infrastructure of the Bluetooth
beacons at the merchant shops
which makes this process
feasible.
• This technology also gives extra
information for the merchants
about the products the
customers are interested in by
utilising the beacons to locate
the customers as shown in the
diagram
CONFIDENTIAL
 Choosing the best solution : Analysing the metrics 🤔

Infrastructure

COST
Privacy

Revenue
Stakeholder
Additional Data Target Implementation
for marketing Customers Timeline
Merchants

Customers

Security Convenience

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 One step deeper into solution with metrics
NFC Tap and Pay BLE Over the Air

Infrastructure

Target Customers

Implementation Timeline

Additional Data for Merchants

Security

Privacy

Convenience
Average Rating

Best Good Normal Bad

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 Is the solution guaranteed to work?

• An offline solution to the NFC tap and pay was developed by me and my friend Sharath during the summer holidays
and it could process complete transactions within 350ms. A video demonstration of the product is also linked here.

As we can see the potential of offline payments

Flowchart of the product developed
is bound to increase with the adoption of NFC
Tap and Pay as it has done in some countries like
Japan, where SUICA has enabled tap and pay in
almost all places like metros and convenience
stores.
As of 2018, JR East reports 69.4 million Suica
UID's have been issued, usable at 476,300 point
of sale locations, with 6.6 million daily
transactions. *Source Wiki

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 What Next ? Any Risks associated?

Authorize
All products related to
payments require EMV
certification / Authorities’
approvals
Monetize
This method has the
least transaction costs
and increased
productivity increasing
the volume of
transactions significantly

Risks
Prioritize
Prioritizing work towards
adding additional features to
the application

Road Ahead

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