The Future of Real Time Payment in India

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The Future of Real Time Payments in India
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• The recent times have witnessed an exponential
  rise in the globalization of businesses. As such,
  thesolutions demand for easier and faster
  payment has catapulted. It is estimated that
  India alone would have yearly digital
  transactions worth 1 trillion by 2025. Indias
  smartphone usability will double by 2022 and
  reach up to 600 million. With commercialization
  at its peak, there is a need for an instant deal
  between consumers and merchants.

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• Why cash may soon become obsolete

The use of cash poses several challenges to the
people as well as government. Since cash is a
physical instrument, it requires printing,
storage, transport, and security. All of these
functions require maintenance and hence the
expenses which come with it. Even the banks have
to install ATM counters which require security
and maintenance. Also, with the digitization of
currency and the hassles that come with the
owning of hard cash, real-time transactions have
become very popular. The only hurdle now remains
the availability of internet in every corner of
the country. With that being taken care of too, a
cash-free India does not seem a distant reality.
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• What is RTP or UPI?

Research the POS provider. Look for
well-established companies that are known to the
business community as reliable and honest. The
company should have references, provide
after-hours technical support, provide warranty
protection, assist with incorporating the system
in the business, and are up-to-date on software
and new features. Software, hardware, and
services should be from one company. This avoids
any future problems when trying to get glitches
resolved. You may also be offered a deal.
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• How Real-time payments work

A typical Person to person real-time payment is
carried out through a series of payment messages.
The sender sends a payment instruction via a
payment channel approved by the financial
organization or bank.  This instruction then goes
to the bank where it is ensured that the funds
requested are available. The instruction is then
sent to the receivers bank via a secure RTP core
infrastructure which validates the transaction.
The receiving bank acknowledges the message and
sends a message back to the RTP core
infrastructure accepting or rejecting the
transaction. When approved, the bank initiates
the payment to the receivers account and the
transaction is complete. All this happens in real
time.
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• Potential benefits of real-time payments

Apart from the obvious benefits of instant money
transfer, there are many other advantages of RTP.
Real-time payments improve liquidity. It helps
businesses in their daily operation by speeding
up the process and making transaction simple,
safe and secure. RTP ensures better cash
management of merchants and consumers as well as
financial institutions.
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