RuPay Contactless Product Overview

EXECUTIVE SUMMARY

NPCI is the country’s only national scheme in retail payment which caters to the domestic market requirements and launches products as per their needs. NPCI’s vision is to bring standardisation in technology and processes associated with the payments industry in India. NPCI developed RuPay Contactless specifications are open standards, interoperable and scalable and can be adopted by all card schemes.

The key feature of the NPCI specification is that it enables Acquirers or Operators to own independent blocks on the payment card. These blocks of are referred to as “Service “. An acquirer who wishes to implement special function along with the EMV based payments on specific terminals can do so using empty storages area called as “service compartment“. Service compartments may contain data which is specific to a particular operator. The specification will enable service owners to create/modify and use their own space on the card. RuPay Contactless specifications have been developed to offer vendor agnostic, scalable, inter-operable, secured, user friendly and cost effective ecosystem of low value payments to facilitate building a cashless transaction environment. The specifications will allow member banks and any other RuPay service provider/issuer to bring out open loop RuPay products while providing them the option of offering inbuilt stored value and stored data functionalities. 

Objectives of RuPay Contactless

The contactless payments landscape is in its nascence in India. NPCI could sense a huge undercurrent of excitement for contactless solutions especially in areas such as low value payments, hence, took appropriate steps. The objective of RuPay Contactless specification is RuPay Contactless product is the first of its kind in the country on many counts.

  1. To provide a mechanism for including Low Value Payments (LVPs) within the gambit of electronic payments.
  2. To deliver a product that addresses the concerns of Indian customers taking into consideration the Indian Banks & Merchants.
  3. To motivate Indian customers to switch from cash to electronic payments.

RuPay Contactless Use Cases

RuPay Contactless offers the unique proposition of One Card for all Payments. This card can be used for transit payments (Bus, Metro, Cab etc.), toll, parking, small value offline retail payments as well as normal day to day retail payments.

Key features are as mentioned below:

Key Functionalities/Particulars

RuPay Contactless Proposition

Transaction Type

Supports online (contact & contactless) & off-line (contactless) transactions

Provision for multiple service areas

Multiple service areas (optional to use with mutual concurrence) to support acquirer/operator specific programs e.g. Passes/Season Tickets/Smart City Specific application/ Loyalty points etc.

Card usage

Same card to be used at ATMs, Merchant establishments & online (e-commerce) payments in addition to other areas of contactless payments viz., Toll, parking & other small value merchant payments.

Card issuance

  • Can be issued by any member authorized by RBI

  • On the platform of Debit/Prepaid/Credit Cards as per the option of issuing entity

Information storage

Requisite information required by acquirer/operators & Banks can be stored on the card or the back-end as per the preference and mutual concurrence of participating entities.

Multilevel Wallets

Provision of 2 types of wallets to store balance on card – Issuer controlled Global Wallet and operator/acquirer controlled local balance.

up the stored value

Provision of Topping up the stored value through any mode of payment viz., Online using card, Internet Banking, IVR, ATM, Cash at customer service point at the option of the issuing entity.

Offline Transaction Risk

Since the offline transaction is permitted against available balance, there is minimal risk of any loss either to the bank or the merchant.

Security

Underlying technology i.e. EMV is best available globally and has been adopted to safeguard against frauds.

Cost of providing contactless card to the customer

RBI has mandated that effective Feb 01, 2016, all cards issued by banks in India would be EMV. Therefore, cost of providing contactless card to the customer will be only marginal as against steep increase in territories where mag-stripe ecosystem exists.

Synergy with existing technology

RuPay Contactless specifications can co-exist with the existing technology being used by acquirer/operator and migration to common standards may be achieved gradually to suit the convenience of PTO.

RuPay Contactless as NCMC specifications

NPCI is working with Ministry of Urban Development (MoUD), Government of India for implementation of National Common Mobility Card (NCMC) program across the country with the vision of ‘One Card for all Payments (Transit as well as Retail)’. This program envisages the development of a cashless fare payment mechanism, which will work across all the public transport systems in the country such as metros, buses, cabs etc.; leading to establishment of an Interoperable Fare Management System (IFMS).

This would provide seamless connectivity to passengers across all transit systems in the country bringing convenience and ease of payment for them. Moreover, this card can be used for day to day retail payments as well. This will also lead to huge economies of scale for the Acquirer/Operators due to removal of duplicity of efforts as well as standardization across issuance, acceptance, networking interfaces, clearing, settlement and dispute management systems.

RuPay Contactless specification creates the synergy with the vision of MoUD and offers the solution for NCMC program.