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Mastercard Incorporated MA recently joined forces with RBL Bank in a bid to introduce a mobile based innovative payment solution to aid the latter’s account holders. Notably, RBL Bank is one of India’s most rapidly expanding private sector banks.
Through advanced security features, the digital payment solution named Pay by Bank App paves way for secured transactions. This will make sure that payment credentials of the bank consumers are not revealed to the merchant. Further, the solution is equipped with personalized transaction controls that can be utilized by bank customers to issue directions and state circumstances under which their payment credentials can be disclosed. Through the mobile banking application, customers can make bill payments and personal payments with the help of the solution. All these features make the Pay by Bank App an unparalleled one in India.
Notably, the solution is likely to benefit both the account holders of RBL Bank as well as merchants. Case in point, account holders can make use of the solution and utilize their mobile banking application to conduct seamless contactless transactions worldwide. The transactions can be undertaken either through in-store or online means at all global Mastercard accepting merchants equipped with the provision of accepting touch-free and online payments. Additionally, Mastercard consumer protection benefits, which the bank’s customers could previously avail on debit cards, will be available as well.
As more account holders utilize the mobile app while making payments, the newly launched solution will generate higher revenues for merchants by bolstering the volume of contactless transactions. As the solution leads to each transaction being validated by the account holders themselves, merchants also gain from higher approval rates and lower transaction declines or fraud. Considering a growing digital economy and majority of companies are making concerted efforts to digitize their processes, cyber risks are likely to witness an uptick. Thereby, the Pay by Bank App seems to be a time opportune solution as well.
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Moreover, the latest move reinforces Mastercard’s efforts to tap growth opportunities prevalent in the digital payments space in India. And RBL Bank seems to be the apt partner for complementing the company’s endeavor. Over the passage of time, the bank has been making concerted efforts to evolve itself into a digital hybrid bank comprising both traditional infrastructure and digital capabilities. The Pay by Bank App is a testament to both the companies’ joint efforts. The solution has received widespread response from numerous banks and digital players across South East Asian markets interested in enhancing their mobile apps with improved digital payment capabilities.
The COVID-19 pandemic has highlighted the need to undertake contactless payments, considering that minimum physical contact and stringent social distancing measures are likely to minimize the chances of virus spread. This has resulted in most nations coming under the ambit of a digital economy and India is no exception to the trend. There has been a number of factors that have provided a boost to the country’s e-commerce market growth including inclination of people toward online shopping, launch of advanced technologies, elevated internet usage and increased smartphone shipments to India leading to higher smartphone usage. Also, several initiatives announced by the Indian Government namely Digital India and others have been adding fuel to the growth of digital payments across the nation.
Case in point, the e-commerce market of India is anticipated to witness a CAGR of 27% over the 2019-2024 period, per India Brand Equity Foundation. Also, a recent Mastercard survey indicates that the trend of shifting to contactless payments will continue to prevail even beyond the pandemic. Per the survey, 49% of people in India intend to conduct more online purchases while 77% of them are of the opinion that this shift to digital means is permanent.
Time and again, Mastercard’ has undertaken extensive investments aimed at upgrading the digital payments space in India. It has undertaken a host of initiatives to bolster its reach across the nation. In February 2021, the company collaborated with Razorpay for enhancing digital capabilities of micro, small and medium enterprises (MSMEs) in India.
Other payment processors making efforts to help small businesses include Visa Inc. V, which has been catering to the unique needs of small and medium-sized businesses through the Small Business Hub launched last year. While American Express Company AXP came out with back-to-business offers for small business card members, Global Payments Inc. GPN has been working closely with numerous small businesses by rolling out enhanced and secured payments technology solutions.
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