DIGITAL

PAYMENTS -
PROCESS
AND
SAFEGUARD
CONTENTS
 What is digital payment
 Modes of digital payment
 Pros & Cons of digital payment
 Safeguard digital transactions
Objective

Concept of Modes of Pros & Cons of Safeguard

digital payment digital payment digital payment digital transactions
 Where are we?

Country India China Mexico South Africa Brazil UK Singapore

Non-cash payments 11 26 32 70 142 355 728

transactions by non-
banks per capita per
annum

No. of pay points 1,080 16,602 7,189 7,267 25,241 30,078 31,096
per
million people
What is digital payment?
 Way of making cashless payment

 Transaction between payer and payee takes place online, without physical exchange of money.

 Money exchanged digitally using banking cards, internet, smartphones.

Modes of digital
payment
Internet Mobile Point of Banking
banking wallets USSD Sale Cards
Aadhar
Mobile Enabled Unified
Micro ATMs Payment Payments
Banking
System Interface
(AEPS) (UPI)
Bank cards
Debit Cards Credit Card Prepaid Cards
 Linked to  Issued by  Preloaded
your bank banks based from your
account on credit bank
history account
 Used to pay
 Widely  Safe to use,
at shops, accepted limited
online amount of
shopping transaction
Internet banking

NEFT RTGS IMPS

 Payment  Transferring  Instant interbank
technique for funds on electronic fund
transferring real time on transfer through
gross
funds mobiles
settlement
 Money basis  Beneficiary's
transferred  Fastest way mobile number
within two of remitting & Mobile Money
hours of funds via Identifier is
transaction banking required for
done channel doing
transaction
Unified payments
interface (UPI)
Platform for accessing different bank
accounts by one mobile application

UPI ID and 4-digit PIN are required to

send and receive money

Apps like Google Pay, BHIM, Phone Pe

supports UPI payments
Mobile banking
System that allows customers to
perform a number of financial
transactions through a mobile device

Every bank provides their own mobile

banking App

Scope increasing with introduction of

mobile wallets,digital payment
applications
and other services like the UPI.
Mobile wallet
Virtual wallet service that can be used by
downloading an app for making payments

Services offered includes paying utility bills,

recharging mobile, sending and receiving
money, online shopping

Example are Paytm, Mobikwik, Airtel

Money
USSD based mobile
banking – *99# How do u Register ?
 Mobile banking facility
 Dial *99# from your Registered
for doing mobile Mobile Number (RMN).
banking without  Enter your Bank’s name or
internet connection or Bank IFSC.
using smartphones  Select your Bank Account
 Dial *99# from your  Enter Last 6 digits of your debit
phone and follow the card.
instructions on your  Enter your expiry.
screen  Create your UPI PIN
Point of sale (POS)
 Point-of-sale (POS) terminal captures the card data and secure transfer
of funds from the customer’s account to the merchant’s account. 

 Physical, Mobile & Virtual PoS

 Use in 3 easy steps

Swipe/Scan Input amount Generate receipt

Micro ATMs
 Card swiping machines through
which Business Correspondents (BC)
deliver essential banking services

 Conduct transactions like withdrawing

cash, balance enquiry, cash deposits,
etc.

 Operate via fingerprint scanner

 Portable machines having connectivity

through GSM, makes it possible to
travel from village to village
Aadhar enabled payment
system (AEPS) What can you do?

 AEPS allows Aadhaar-  Account balance

linked bank accounts to
transfer money between  Aadhar to Aadhar fund
two bank accounts
 Prevalent where there are transfer
no branches (rural areas)  Cash deposit
 Can do transactions at  Cash withdrawal
any AEPS point without
any pin or password  Payment transactions
(AEPS points – Micro
ATMs)
Pros and cons of using
digital payments
Advantages Disadvantages
 Ease and  Password Threats
convenience  Risk of Being Hacked
 Instant Payment  Processing fees, set up
 Low risk of theft fees adds to the cost
 Availability of many  Risk of theft or loss of
options Smart Cards
Safeguarding digital payments
– DO’s Change password assigned by bank for the first time

Download app from trusted source

Use trusted Wi-Fi network and computer for digital transactions

Install an antivirus on computer to remove viruses that steal important information

Always clear your browser cache after each session

Log off completely from banking website, close the browser and log off computer, when not in
use
Register for SMS alerts to keep track of transactions in your account
Safeguarding digital payments
–Don’t
DONT’s
disclose your personal or confidential information to anyone over email/SMS/phone call

Don’t enter login or other sensitive information in any pop up window

Avoid accessing Internet banking accounts from cyber cafes or shared computer

Do not share confidential information like PIN with anyone

Never use the ‘Remember Password’ feature provided by browsers to save your net banking
password
Don’t use mobile devices to store User ID, password and other account related sensitive details

Don’t leave your internet banking session unattended. Always logout completely.
THANK YOU