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Payment Systems

Presented to: Dr. Talha Salam


Rohab Shafiq l18-3100
Muneeb Suhail l18-3082
Sana Mehr l18-3123
Introduction

Agenda 01 How the payment industry in India has undergone great expansion and
transformed itself at the same time.

The New Age of Payment


02 How new banks a.k.a. the challengers are giving the old timers a hard
run for their money by bringing in innovations in the payment systems.

Traditional Way Vs. The Digital Way


03 The different methods of how people used to pay back in the days
versus the current digital age.

Opportunities and Challenges


04 What steps did the government of India take to digitalize its payment
systems and the challenges it had to face.

Success Factors
05 What factors have played their role in the making of “Digital India” and
how those factors can be mimicked for Pakistan
Electronic Payment Systems

EPS !
An e-payment system is a way of
making transactions or paying for
goods and services through an
electronic medium without the use
of checks or cash.
Electronic Payment Systems

Cash Payment Credit Payment


Pay for Systems Systems
Goods • Direct Debit • Credit card
• E-Check • E-Wallet
• E-Cash • Smart Card
• Stored Value
card
EPS Timeline

2013 2014 2015 2016

Master Card Adoption of Increase in Online Money


Launch mobile mobile transfers
payments payments
Pros and Cons
Risk of being hacked ! More Clients
The worse situation when the system of Reaching more clients from all over the
processing company has been broken, world, which results in increased sales
because it leads to the leak of personal
data on cards and its owners.

The need for internet access Efficient transactions


It’s impossible to complete transaction More effective and efficient transactions
without a proper internet connection because they are made with just one
click.

Lack of anonymity Convenience


Text Here
Personal data is stored in the database Customers can pay for items on an e-
of the payment system. commerce website at anytime and
anywhere.

Fraud Expense control for customers


E-commerce fraud is growing 30% per They can always check their virtual
year. account where they can find transaction
history
The New Age of Payment
• Operate on a brick and mortar model
Legacy Banks • Huge staff and Costs
• Multiple layers of hierarchy

• Rapid technology adoption


Challengers banks • Better customer orientation
• Favorable cost-income ratios
Developments

Liberalization Foreign banks FinTech Mergers


Ease in the issuance in Enjoy on par treatment Emerging as strong Merger of the larger
the banking license with other banks contenders to banks banks with the smaller
and inefficient players
Traditional Vs Digital
Clearing House concept

Cards used for Online Payments

ATM withdrawals with Debit Cards

Unified payment interface

Desktop for payment transaction


Opportunities

Platforms to
accept mobile
payments 02 04
03 Digitization
provides
Partnership accessibility
Opportunities
Efficient
Checkouts 01
Challenges

Understanding the process


Security of data and
payments

Acceptance of multi High processing fees


currency payments

Technical Systems
Integration
Success Factors
Top exporter
of IT Products
Macro
Economic
Factors

Internet usage penetration


Secure Authentication
Voice
Innovative ways Recognition
of
Authentication
Face
Recognition

IRIS Verification

Biometric
Verification
Thank you