UPI 2.0 Masterclass - NPC 2018

This talk was given at NASSCOM Product conclave 2018

Transcript

1. UPI 2.0_ Masterclass_ NPC 2018 .
2. • We built the BHIM App with NPCI • Part of building the UPI infrastructure • Enabling Merchants and Banks to provide a seamless payments experience on Mobile and scale to the Billion people in India Intro Vimal Kumar, Dilip Jain
3. Real-time Interbank Payment System Unique in the World Mobile first, 2FA Innovation Designed & Made In India What is UPI?
4. • Mobile First OTP less Innovative 2FA for mobile, Hardware-less offline pay • 4 party model Enables Hi-tech B2C companies to distribute • Secure Secrets are encrypted at source, in user device • Unified Online & Offline payments • Building blocks Extensible Highly extensible building blocks to support varied use cases & framework itself extensible to include features like mandates. Why is UPI Succeeding BIG?
5. Destination Account CORE BANKING Switch PSP UPI Architecture - 4 Party Model PSP PSP PSP Source Account CORE BANKING (From) In PhonePe | vimal.kumar@ybl | Linked to Axis (To) In Tez dilipjain@oksbi linked to Kotak
6. Common Lib and Cred Block An Essence of • Device Secret (1FA) • MPIN (2FA) • Order details • Other misc info Encrypted and Signed at source! @user’s device
7. UPI 1.0 Features P2P, P2M - Online, Offline • P2P - Online ◦ VPA to VPA, VPA to Account IFSC ◦ The collect request ◦ Enabled in all bank Apps ◦ Provided as a container inside B2C apps • P2M - Online ◦ App2App switch - Intent or Collect request ◦ PSP within merchant app as an SDK • P2M - Offline - Using QR code
8. App-App Intent Call - New User 1. Customer at checkout page can choose UPI option to pay from. 2. Customer can choose to pay via BoB app or any other UPI App 4. Customer enters UPI PIN to complete the transaction 3. UPI app opens up and the user enters his UPI Pin to complete payment App to App switch - Intent Call Bank of Baroda BoB
9. 1. User scans QR code on website on Desktop or Laptop or Mobile 2.a Customer scans the QR code 2.b Enters MPIN and approves 3. Merchant receives confirmation and Confirms purchase on website. CONFIDENTIAL BoB Web QR Code - User Scans QR Code
10. 1. User enters VPA on website on Desktop or Laptop or Mobile 2.a Customer Receives Notification to authorize the payment 2.b Enters MPIN and approves 3. Merchant receives confirmation and Confirms purchase on website. CONFIDENTIAL Web Collect - User enters VPA
11. SDK allows the user to register for a VPA inside the Merchant App User sets his UPI Pin inside the Merchant App User successfully completes registration User can set UPI PIN for the bank account chosen In-App SDK - Registration
12. 3. Capture MPIN with NPCI Common Library within merchant ap 1. Auto-retrieve user VPA with SDK APIs 4. User successfully completes payment 2. Redirection to Common Library Page SDK - Bank PSP inside Merchant app
13. QR based offline Payments
14. UPI Growth Metrics UPI has seen the greatest growth among payment instruments in the last 2 years. 405M transactions in Sep 2018 compared to 30M in Sep 2017. >1000% increase! Aug 2018 comparison Debit Card POS ~ 357M Debit Card ATM ~ 805M Credit Cards POS ~ 144M Credit Card ATM ~ 839K *Source - https://www.rbi.org.in/Scripts/Statistics.aspx
15. UPI Growth Metrics Month No. of Banks live on UPI Volume (in Mn) Amount (Rs. in Cr.) Sep-18 122 405.87 59,835.36 Aug-18 114 312.02 54,212.26 July-18 114 235.65 45,845.64 June-18 110 246.37 40,834.03 May-18 101 189.48 33,288.51 Apr-18 97 190.08 27,021.85 Mar-18 91 178.05 24,172.6 Feb-18 86 171.40 19,126.2 Jan-18 71 151.833 15,571.2 Dec-17 67 145.463 13144.3 Nov-17 61 104.841 9640.6 Oct-17 60 76.772 7057.8 Sep-17 57 30.778 5293.4 *Source - https://www.npci.org.in/product-statistics/upi-product-statistics
16. Introducing UPI 2.0 UPI Mandates The objective of the UPI-Mandate is to replace the paper work in the Mandate Flow, allowing the customer/corporate to issue/revoke in a real time manner, while the collection process remains the same as the existing collect process in UPI.
17. UPI 2.0 - Other features Signed Intent Enhanced security for App2App switch flows, UPI apps should warn if the requester doesn’t authenticate themself with a signature. Enabling Overdraft Accounts In addition to Savings & Current accounts, UPI now includes overdraft accounts.
18. UPI 2.0 - Other features Invoice in Inbox Merchants can attach invoice details as part of collect request for Customers to view the invoice before paying.
19. Mandate = CredBlock++ Auth Info • Device Secret (1FA) • MPIN (2FA) • Order details • Other misc info Contains Mandate details in addition to Auth information Mandate Agreement • Max Amount • Validity Time Range • Usage #times limit • etc..
20. Recurring Mandate Example Creating a mandate in Swiggy for 1-click payment Set -> Limit per transaction : Rs. 300 Validity of mandate : from 20-July-2018 to 19-Jan-2019 Sign -> The mandate is authorized by entering UPI PIN in users PSP app e.g BHIM,Phonepe
21. Single-Use Mandate Example • Zoomcar requests single use mandate with an expiry (end of trip) for the refundable deposit • Deposit amount blocked in customer’s account • Zoomcar can claim the amount, either fully or partially as per use case • At the time of expiry set in the mandate, the balance amount is released
22. UPI Mandates - Current status Only Single-Use mandates are supported as of now. Recurring mandates are awaiting RBI for approval. • Single-Use mandates can be useful for separating authorizing and capturing steps. They are especially useful when you can’t block inventory before the payment. You take an authorization, and then capture when needed.
23. Single-Use Mandate Benefits & Use cases Benefits Merchant - No need to capture until necessary, refund cycle is reduced and saves MDR Customer - Amount is not debited upfront, faster refunds Use cases There are varied use cases for single-use mandate such as IPOs, Hotel reservations, Capture on Delivery for E-commerce etc.
24. Mandates - Possibilities UPI mandates is one of the most anticipated features that will enable • Recurring payments for utilities bills, EMI etc. • 0-Click or 1-Click payment experience for trusted merchants + risk and fraud control systems. • Easy management of mandates through Agreement modification / cancellation via PSP apps.
25. • Integrate UPI in a simple webapp • Develop and launch in minutes Developer Workshop
26. HandsOn - Build UPI collect on web
27. HandsOn - Build UPI collect on web
28. Developer - Setup instructions • Clone or download code from github repository https://github.com/juspay/upi-masterclass-demo • Open collect.html in your browser
29. Developer - API review Initiate Payment Request • Sends payment request to the customer on the (Virtual Payment Address) vpa entered by him. • Input Parameters - customerVpa, expiryTime, remarks and requestId.
30. Developer - API review Transaction Status • Check the status of the payment request • Input Parameters - requestId • Responds with status as PENDING, SUCCESS, DECLINED, FAILED
31. vimal@juspay.in dilip.jain@juspay.in Thank You