NPCI wants to establish a unified payment network based on mobile technology
The National Payments Corporation of India (NPCI) has launched a new initiative that calls for the unification of payment interfaces throughout the country. The initiative aims to give consumers more access to financial services through their mobile devices in order to accommodate the growing demand for mobile commerce. India is considered one of the fastest growing mobile payments markets, with a massive number of consumers beginning to rely on their smartphones for shopping online and physical stores.
A unified payment network could make mobile commerce more attractive to consumers
NPCI aims to help establish a Unified Payment Interface (UPI), which will allow consumers to collect and send funds through a mobile network. Such a network would leverage a consumer’s actual identity, providing some degree of security when participating in mobile commerce. Consumers would be able to use a password associated with their mobile devices to authenticate their identity and can use the UPI network to send and receive money in real-time. The demand for such money transfer services has grown as more consumers have begun to gain access to smartphones.
India is home to one of the fastest growing mobile shopping markets
India is home to one of the fastest growing smartphone markets in the world. Currently, only 53% of Indians have bank accounts, but more consumers are opting to side with financial institutions in order to take advantage of mobile payments services. Approximately 80% of Indians currently have access to smartphones, which has created a significant opportunity for banks, especially those that seek to break into the mobile sector. As banks begin to enter the mobile market, more consumers are expected to participate in the mobile commerce space.
Merchants could find new opportunities by engaging the mobile commerce market
A unified payment network could unlock new economic opportunities for merchants in India. These merchants are beginning to feel pressure to engage mobile consumers, but few have been able to do so. In the coming years, new mobile services are expected to enhance the ability of merchants to engage consumers, especially those that rely heavily on mobile shopping.
As retailers become more invested in mobile commerce, they will have to find ways to engage millennials specifically. The problem, however, is that this demographic has shown itself to be somewhat fickle, unlikely to support a singular payment or retail platform for any significant length of time. Loyalty programs may ensure consumer dedication for a time, but businesses will have to find other ways to effectively engage consumers in order to secure their loyalty.