Payments Bank and Unified Payment Interface with Change the Shape of Mobile Wallet Market

There is large proportion population in India who do not have banking facilities due to India’s geographical spread, regional disparities, reach and connectivity. Thus in the need to help in expanding financial inclusion mission by bringing small and low Income households into ambit of financial services, RBI has announced the introduction of concept of Payment Bank in India. It is expected that these payment banks can use the mobile platform to provide basic banking transactions, in particular, payment for services and subsidies through mobile phones. Thus, there is still lot of opportunity available in India for this type of banking provided they get their technology solutions right. These banks are likely to help expand banking services to the remotest corner of the country.

Amid the rise in mobile banking transactions and lenders focusing on building mobile applications for these, the National Payments Corporation of India (NPCI) has developed a unified payment interface to connect payments across smartphones. With this, consumers will be able to send and receive money through smartphones without revealing their bank account details. Transactions can be undertaken with the help of details such as Aadhaar number, mobile number or a virtual payment address. Will this pose threat to mobile wallets? Our report explores and answers the question and changes which UPI will bring in the market along with its potential. The publication is anticipated to complete in the month of April 2016.

1. Executive Summary

2. India Payment Bank Market Introduction
   2.1 Need for Payment Bank in India

3. How Payment Bank will Change Banking Landscape in India
   3.1 Comparison of Payment Banks with Commercial Banks (Parameters: Customers, Channels, Culture, Cost, Collaborations)

4. Guidelines of RBI for Payment Bank Licenses in India Payment bank Market

5. Procedure for Obtaining License in India Payment Bank Market

6. Evaluation of Guidelines on Payment bank Licenses in India Payment Bank Market

7. Case Study Analysis of Entities being offered Payment Bank License in India Payment Bank Market
   7.1 Aditya Birla Nuvo Limited
   7.2 Airtel M Commerce Limited (Bharti Airtel)
   7.3 Cholamandalam Distribution Service Limited
   7.4 Department of Posts
   7.5 Fino Paytech Limited
   7.6 National Securities Depository Limited
   7.7 Reliance Industries Limited
   7.8 Sun Pharma (Shri Dilip Shantilal Shanghvi)
   7.9 Paytm (Shri Vijay Shekar Sharma)
   7.10 Mahindra Comviva (Tech Mahindra Limited)
   7.11 Vodafone m-Pesa Limited

8. Factors to be Considered during setting up of Business Model for a Payment Bank
   8.1 Focus on Banked and Unbanked Population
   8.2 Reach in Rural Areas
   8.3 Experience in Payment related to Product and Services

9. Business Model or Approach of Players to Step into India Payment Bank Market 

10. Strategic Considerations for Payment Banks in India Payment Bank Market
    10.1 Payment bank can serve both Banked and Non-Banked Population
    10.2 Digitization
    10.3 Mobile First Technology can provide a Edge
    10.4 Merchant Acquisition and Attracting New Customers
    10.5 Special Norms to deter fraud and Money Laundering (KYC to FYC)

11. Factors Determining the Success of a Payment Bank in India Payment Bank Market
    11.1 Servicing Cost
    11.2 Customer Acquisition Cost
    11.3 Transaction Intake

12. Analyzing the impact of Payment Bank on Customers in India

13. Challenges to be faced by Payment Banks in India

14. Growth Drivers for Payment Banks in India

15. Impact of Payment Banks on India M-Wallet Market

16. Future Prospects for Payment Banks in India

17. Concept of Unified Payment Interface in India
    17.1 Introduction to Unified Payment Interface (This will include Objective, Core Features, Benefits of Unifies Payment Interface to Banks and Customers )
    17.2 Unified Payment Interface Model in India
    17.3 Key Drivers of Unified Payment Interface
             17.3.1 Mobile Adoption Rate
             17.3.2 Aadhaar and Digital Identity
             17.3.3 Emergence of Payment Banks
             17.3.4 Regulatory Support
    17.4 Case Study Analysis of Usage Scenarios of Unified Payment Interface
             17.4.1 Direct Pay to Push Money 
             17.4.2 Collect Pay to Pull money from one account to another 
    (This will include Studies on using UPI for different purposes such as: Sending money to another person, Collecting money from someone, Online purchasing on e-commerce website, Buying ticket from Government websites such as IRCTC, Use for Bill and Insurance Payments)
    17.5 Transaction Flow Analysis on Case of Direct Pay 
    (This would include complete process of how transaction happens, also include how failures may happen at different steps) 
    17.6 Transaction Flow Analysis in Case of Collect Pay
    (This would include complete process of how transaction happens, also include how failures may happen at different steps)
    17.7 Security Consideration under Unified Payment Interface in India
    17.8 Impact of Unified Payment Interface on Mobile Wallet Players
    17.9 Drivers and Challenges for Unified Payment Interface in India
    17.10 Future Prospects for Unified Payment Interface in India

18. Macro Economic Factors Affecting Payment Bank Market in India
    18.1 Rural Population of India
    18.2 Banked and Unbanked Population of India
    18.3 Number of Credit Cards and Debit card Holders in India
    18.4 Number of Internet Users 
    18.5 India M Wallet Market Size
    18.6 India Domestic Remittances Market

19. Recommendations
    19.1 Industry Expert take on the market
    19.2 Analyst Recommendations