Intelligent Deposit

JULY 2015
Intelligent
Cash
Deposit
Disclaimer: “AGS Transact Technologies Ltd. is proposing, subject to applicable statutor y and regulator y requirements, receipt of requisite approvals, market conditions and other considerations,
to make an initial public offer of its equit y shares (“Equit y Shares”) and has filed a Draf t Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is
available on the website of the SEBI at http://www.sebi.gov.in and the websites of the Book Running Lead Managers A xis Capital Limited, Citigroup Global Markets India Private Limited, HDFC Bank
Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroup globalscreen1.htm, www.hdfcbank.com, www.
icicisecurities.com and www.investmentbank.kotak.com respectively. Potential investors should note that investment in equit y shares involves a high degree of risk and for details relating to the
same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP
filed with the SEBI in making any investment decision.”
CONTENTS
6
Cover Story:
Fuel your work efficiency
with Intelligent Cash Deposit
10
Q&A:
Mr. Thomas Fell, Senior VP,
Wincor Nixdorf
13
Spotlight:
Securevalue India Ltd.
18
Product Profile:
Bunch Note Acceptor: C4040
Editor: Suja Mathew-Kulkarni Assistant Editor: Sandeep Kannan
Editorial Team: Shreyas Rege, Vrishali Guthe
Design team: Manasi Kajabaje, Dhiraj Khilari and Nishant Bhoite
Your feedback is important to us. Kindly email us your opinion on our newsletter:
[email protected]
AGS UPDATES
agsindia.com
AGS Updates
Federal bank places cash dispenser ProCash 280. AGS will deploy the ATMs
orders with AGS
at onsite and offsite locations of Union
Kerala based Federal Bank has placed
Bank across India.
order for Cash Dispenser, ProCash 280
for deployment in onsite and offsite
Co-operative Banks place
locations across India. ProCash 280 has
orders for Cash Dispensers
a small footprint with intelligent safety
Co-operative banks have placed orders
features, a flexible architecture and
for Cash Dispenser ProCash 280. These
user-friendly interface.
are repeat orders placed by the banks,
based in Maharashtra and Himachal
AGS wins ACI Innovation Award
Pradesh.
Pro Cash 280
Co-operative banks to install AGS
AGS won ‘Innovation Award’ from ACI
Worldwide, a leading global provider of
AGS installs Cash Recycling system
Banking transaction terminals
electronic payment and banking solutions.
at Indian Bank branch
Some co-operative banks have placed
Chennai’s Egmore branch of Indian
orders for multiple suite of Banking
AGS’ transaction switching ser vices
Bank has installed cash recycling
transaction terminals: Cash Dispenser
c ate r to t h e n e e ds of bank s an d
system (Wincor Nixdorf C4060) by
- ProCash 280, Cash Recycler - C4040,
other financial institutions across the
AGS. C4060 dispenses deposited cash
Through-The-wall ATM - ProCash 285.
payment transactions value chain.
after validation. The system offers
With the installation of these new
Th e s e s er v ice s include as sis t ing
cash management, security as well as
systems, the co-operative bank s in
banks in the issuance of new cards,
transaction processing.
India will b e able to automate
migrating their existing card base and
t h eir business processes thereby
the authorization of cards, enabling
AGS bags order from Chaitanya
giving a new experience to their
improved customer experience. The
Godavari Grameena Bank
customers.
switching ser vices are built around
Chaitanya Godavari Grameena Bank, a
Postilion, ACI’s market-leading consumer
Regional Rural Bank sponsored by Andhra
Andhra Bank order received
payment solution.
Bank has placed orders for ProCash
for Cash Dispenser
280 Cash dispenser. The bank will be
AGS bags order from Andhra Bank for
Union Bank of India grants
deploying the ATMs in Andhra Pradesh
Cash Dispenser ProCash 280. This is
tender for CDs
region and is leveraging technology for
a repeat order received by the bank
The tender was won for supplying and
providing value based services to its
for deployment at onsite and offsite
installation of Cash Dispenser (CD):
customers in its area of operation.
locations all over India.
4 AGS News July 2015
WINCOR NEWS
agsindia.com
WINCOR NEWS
Banco de Chile’s order for 500
to provide an IT managed service to
the Système U stores will install modern
ATMs: An investment in customer
support its existing stores in the UK and
POS terminals from Wincor Nixdorf that
and staff security
six other European countries, as well as
support the omni-channel approach
Security has top priority at Banco de
supporting future expansion throughout
and improve the customer experience
Chile – the second largest financial
Europe. Under the terms of this contract,
Under the large-scale agreement
institution in the Chilean banking
Wincor Nixdorf will provide dedicated
concluded by Système U and Wincor
market, with a strong focus on retail
first level help desk support and
Nixdor f, the French cooperative’s
banking. The bank is currently replacing
hardware maintenance availability
supermarkets will be equipped with an
its automated teller machines with
services for SuperGroup’s entire store
innovative combination of hardware
secure systems from Wincor Nixdorf,
IT infrastructure to improve uptime and
and software solutions that are operated
and as part of this process, it has now
enhance the customer experience.
using services from Wincor Nixdorf. This
ordered another 500 CINEO ATMs.
will meet Système U’s requirements
SuperGroup awarded this contract to
of a foundation for the rigorous
The Colombian financial institution
Wincor Nixdorf because of its true multi-
evelopment of omni-channel sales and
Bancolombia hands over the
lingual capability, its ability to provide
an improved customer experience.
operation of its self-service
a standard service delivery model
systems to Wincor Nixdorf
internationally, and its solution model
Wincor Nixdorf has received a three-
that demonstrates a real end-to-end
year contract from Bancolombia for
capability whilst being commercially
the operation of its 1,160 self-service
attractive. It also recognised Wincor
systems. The bank also ordered
Nixdorf’s world class team and its ability
800 ProCash 280 automated teller
to provide scalable solutions so that it
machines. In addition to installation
can support SuperGroup as its store
and maintenance, the service contract
network grows.
covers the complete management of
the bank’s self-service device park.
Wincor Nixdorf supports Système
U’s omni-channel strategy
SuperGroup selects Wincor Nixdorf
The French retail chain Système U and
to provide a managed service and
Wincor Nixdorf are realizing an omni-
enhance store IT in seven countries
channel services concept together that
Wincor Nixdorf has been selected by
will include new customer loyalty and
SuperGroup, the UK fashion retailer,
marketing programs. At the same time,
July 2015 AGS News 5
COVER STORY | INTELLIGENT CASH DEPOSIT
agsindia.com
fUEL YOUR WORK
EFFICIENCY WITH
INTELLIGENT
cASH dEPOSIT
Cash handling has been largely a
produce a greater margin of human
improve security and optimally utilise
manual and labor-intensive process.
error and more valuable man hours
every step of the overall cash handling
Traditional cash handling methods
lost in the process. In other words,
process.
not only drain business resources
the correct handover when changing
through increased overheads, but also
shifts, counting and sorting notes
Cash Management has two factors:
create a risk for theft, cash shortages
and packing and booking cash in the
• Cost
and robbery. This process has begun
back-office and the most challenging
• Risk
to change with the introduction of
part is when cash is transported from
cash automation technology strongly
the station to the bank. Depositing
Cost factor
influencing the payments system. Its
the cash in a simple safe in-store or in
• Time spent in counting and depositing
benefits include increased speed of
a 24/7 bank branch isn’t convenient
• Insurance Cost
transactions, accessibility to cash,
or secure because it takes time and
• Presence of Counterfeit Notes
security and control of cash balances.
increases the cash exposure in transit.
• Rejections by Bank
In addition, internal theft is difficult
Since, cash usage remains strong,
to prevent with little control of the in-
Risk factor:
banks, retailers, petrol stations and
house cash process.
• Handling large volume of cash
CIT companies are exploring ways to
• Operational hours of petrol Stations
take advantage of new technologies to
Over and above, there is another
• Gas station lay out are easy to enter
automate their cash handling functions.
challenge - the costs: many banks
and exit
today are charging fees for cash
Robbery at petrol stations and during
deposits. Moreover, the discovery and
A petrol pump would require solution
cash-in-transit has become a common
rejection of counterfeit notes adds up
which would
phenomenon across the world. The
significantly to the operating costs.
• Eliminate the possibility of accepting
mishandling of cash causes for greater
Saving on back office overheads and
counterfeit currency
damage in absolute terms - the loss
more can be achieved by cut ting
• Eliminate the possibility of
of cash through internal pilfering at
o u t manual c a s h co unt ing an d
misappropriation and fraudulent
petrol stations - loss of image of the
management processes.
practices by the station cashier
company. Cash handling is expensive,
• Lessen the reconciliation and
largely because it consumes time
The oil and gas market in India is
EOD process.
which includes the basic cash handling
very competitive and there is a need
• Removes the disconnect between CIT
procedure itself. Business owners
for secure and effective solution to
Station Manager & Bank
need to examine the cost and risk
reduce operating costs and increase
• Secure the currency from the time it is
that traditional cash management
efficiency at petrol stations. Analysts
sent from the retail outlet to the bank
processes pose. These procedures
say that industry requires solutions to
CIT Vault.
6 AGS News July 2015
COVER STORY | INTELLIGENT CASH DEPOSIT
agsindia.com
• Instant credit to the retail outlets thereby
reducing the float liability of the retail outlets.
• Instant MIS on Daily sales revenues
AGS introduces technology based automated
solution for cash management – the Intelligent
Cash Deposit (iCD). iCD is designed to deposit
cash at a retail location such as Petrol stations.
It has the capability to identify unauthorised/
fraudulent banknotes at the time of deposit.
The deposited notes are sealed and stored in a
safe which is accessible through one time OTC
electronic lock.
In a petrol station retail environment, cash
attendants get a user-id for their deposits.
These can be tracked, counted and reconciled,
decreasing the overall TAT of an attendant. The
cash can be deposited as and when required
and a confirmation is received on the amount
deposited. This cash is gathered in the deposit
bag which is sealed and collected by Cash
Management Company for bank deposit.
Intelligent Cash Deposit features at a petrol
station:
• Provide a mechanism to the station attendants
to identify fake currency at the filling points
• Provide a server application that would
provide online connectivity for iCDs
• Provide application software that would
provide online balances and reconciliation
systems.
• Total amount deposited
• Denomination wise
• Depositor details
• Provide a gateway for the banks to extract
balances on a real-time basis
• Provide a web-based monitoring solution
to monitor deposits
July 2015 AGS News 7
COVER STORY | INTELLIGENT CASH DEPOSIT
agsindia.com
Process after implementation of iCD
Detects Fake
Currency
Collects
Cash from
Customers
Deposit slip
generated
automatically
Cash with
Cashier deposited
intermediately
CIT carries
the cash
Cash in iCD
Online
Credit offered
Fully secured seal
opened by
authorised person
iCD Benefits:
Security
Operational efficiency
1.All cash deposited is accounted for, electronically
1.Online credit-to-money collected
2.Rejects unauthenticated banknote
based on banks authorisation
3.All machines can be monitored centrally
2.Instant reports of money deposited
4.Less dependency on manual interferences
3.Single point of contact for all cash management
5.Restricted access to cash
Visual representation of
petroleum forecourt
8 AGS News July 2015
COVER STORY | INTELLIGENT CASH DEPOSIT
agsindia.com
“
We have done a pilot at 10 petrol stations in Delhi and are satisfied with the
result. With Intelligent Cash Deposit (iCD), we found the right solution to
Customer Quote
safeguard cash at petrol stations. Preventing theft has always been a challenge
for us and with the installation of iCD machines, it has minimised the exposure of cash
at petrol stations. Now we will install them in other petrol pumps as well.
- Mr. Ajay Bansal, President, All India Petroleum Dealers Association
Customer Quote
“
“
The petroleum owners and retailers connected with cash on daily basis would
benefit from Intelligent Cash Deposit solution as it helps in streamlining and
securing their cash environment.
“
- Mr. Surya Singh, Head - Retail Business
“
Intelligent cash deposit solution creates convenience of cash reconciliation
for the end user and automates the complete cash handling process. Risk of
“
cash at forecourt is reduced to some extent, deposited cash information is readily
available and counterfeit currency is rejected on the spot.
- Mr. Satish Zope, President – Petroleum Business
“
Globally intelligent cash deposit solution has been successful. This solution
“
secures floating cash and an authorised user can remotely monitor cash
deposited throughout the day optimising cash handling process at petrol stations.
- Mr. Kanti Bhanushali, Head – Currency Technology
July 2015 AGS News 9
agsindia.com
The future
of retail is
seamless
Q&A with Thomas Fell, Senior VP, Wincor Nixdorf
Mr. Thomas Fell
To survive and thrive in the retail industry today calls for a broad overview of
are not seamlessly integrated. So they take back
how consumers are shopping, understanding their needs and demands. The
the article and put it aside, then move it back
reality is that the ‘Age of Digital Disruption’ is upon us and retailers all over
to the logistical warehouse and sort out what to
the world are scrambling to find an enticing consumer interface to engage,
do with it.
entertain and empower their customers in their buying journey. While many
retailers in Asia have risen to meet the new realities of retailing, a key thing to
For now, they can still manage the manual
note is seamless omni-channel retailing is the next big thing — thus, RETAIL
processes involved. In future, they will not be
ASIA brings you this Q&A with Thomas Fell, Wincor Nixdorf’s senior vice-
able to because there will be much more traffic
president of Retail, who declares that ‘The Future of Retail is Seamless’.
[with the rise of online and mobile transactions].
Q. What drives the omni-channel retailing trend?
T h e o mni - c hann e l re t aile r ha s to have a
Thomas Fell: The connected consumer is forcing the retailer to be omni-
seamles sly integrated system to cope. To
channel. The consumer wants to shop simply expects that he can ‘hop’ across
me, it is seamless retail or out of retail. To be
channels in a seamless way. ‘This is the reality for today’s consumers: I can
seamlessly omni-channel, you need all devices
do a search to buy. I can shop the other way around — use the store as online.
and systems to be omni-channel-ready. Our
ambition at Wincor Nixdorf is to help retailers
The interesting question is, in the future, what is online revenue for the
offer customers a seamless experience in this
retailer? Today, online and offline are viewed personally think that in a
evolving omnichannel sales environment.
few years, we will not differentiate online and offl ine revenue because
Q. What is the retailer’s challenge in
we simply cannot separate two. It’s no longer online or offline, but
mobile as well. How do you treat a mobile purchase (transaction done
becoming omni-channel?
through a smartphone) in a physical store — is it online or offline?
Thomas Fell: If we look at what retailers have
Q. What is Wincor Nixdorf’s ‘seamless omni-channel retailing’ initiative?
done in the e-commerce arena 10-15 years ago,
Thomas Fell: ‘Seamless’ for Wincor Nixdorf means that we can work across
sales channel. Their e-commerce platform was
all the different sales channels and we enable the retailer to identify and
run independently of the brick-and-mor tar
execute customer transactions over all these channels.
operation, simply because their people running
they have mainly built up an independent online
the online channel said that to be fast and
This is my qualification for omnichannel retailers. I buy four articles online
agile in the online world they have to keep the
and I want to return one of these articles in your store. I come with the
channels separate.
article and I only have my name. Can you identify the online transaction in
the store and are you able to execute the return transaction in the store,
And this is causing some of the problems today
and then perhaps do a new transaction, all in a seamless way?
— they have different merchandise management
systems, different sales channels, most of the
At present most of the retailers I speak with are not able to do so. Even if
time different logistical systems, sometimes even
they do, most of the time their processes are manual because their systems
different assortments. So, if the retailer does not
10 AGS News July 2015
Q & A | MR. THOMAS FELL
agsindia.com
have the article you bought online in the
discussion was about the functionality
important. We are working on how to
store, you cannot return it. Questions
of the retail POS system; seamlessly can
generate good consumer experiences
like that are coming out more and more.
you integrate the POS systems. Linking
in the s elf- che ckout proce s s . The
The retailer has two big systems in
all the systems and processes between
user interface has to be much simpler
place — one for the brick-and-mortar
the physical and online channels poses
and easy to use as the customer is
operation and one for the online shop.
huge IT challenges for many brick-and-
doing the checkout himself. The next
How to bring them together now? You
mortar retailers whose IT infrastructures
level of our POS development is to
cannot throw away one or the other, but
have been designed for physical store
focus on the user e xper ience and
have to intelligently integrate them at
operations and have grown over the
the personalisation element, that is,
the transaction level.
years to include highly heterogeneous
making the checkout system more
systems. Omni-channel software is
intelligent and intuitive. For example,
This is where Wincor Nixdorf’s vision for
essential for integrated control of the
the checkout machine may learn from
omni-channel retailing software starts.
various processes that are running in
the transaction history data that the
Our core customers are retailers who have
“silos” today.
customer does self-checkout regularly
Metro and Carrefour. Many of them face
Q. What is Wincor Nixdorf ’s omni
and therefore would not need to be
channel solution?
this online-offline integration challenge.
Thomas Fell: Our latest software,
A b ig area of o ur d e ve lo p m e nt is
Q. How does Wincor Nixdorf help?
TP.net 5.5, is a truly omni-channel
mobile enablement . Our declared
platform. The new release features
goal is to expand business with mobile
Thomas Fell: Sof t ware is the key
a cross- channel, merchandise
and cashless payment systems. For
to enabling omni-channel retailing.
manage m e nt f un c t io nalit y t hat
us, mobility in the retail environment
From a hardware perspective, all the
ensures a consistent link between
encompasses three areas: Mobilit y
technology pieces are there. The new
sales, merchandise and customer data
of store staff in managing inventor y,
part is mobile, how to build a mobile
flows and allows cross-channel order
ordering, customer service; mobility of
POS system. So there is some new
processing, item availability checks and
consumers in using their own devices
mobile hardware innovation to adopt.
mobile functionalities. A new software
in stores or devices provided to them to
But beyond that, it’s a lot to do with
component, called TPCustomer360, not
order, scan and pay for products; and
software integration.
only off ers greater effi ciency but also
mobile payment solutions. The openness
allows a 360-degree view of consumers’
to integration will stay a big topic for
E s sentially the retailer s have
behaviour across all channels and has
the future. If retailers are to be able to
implemented in their brick-and-mortar
a customer relationship management
manage sales, orders and deliveries
business an EPOS system, a store
solution in place that enables targeted
across all channels in a seamless manner,
merchandise management system
promotions. TP.net 5.5 also features
they have to be able to get data from all
that are connected to the central
Countr y Packages which facilitate
sources and bring data to all sources.
IT system, plus a separate online
easy international expansion with the
The retailer’s IT systems must be able to
platform. Our idea is we can take the
inclusion of localisation techniques
integrate merchandising and customer
checkout logic that is used for physical
taking into account in-country fiscal
data, as well as the status of personalised
store checkout and put it onto the
laws and regulations. We already have
marketing campaigns across all channels.
e-commerce platform as a checkout
retailers starting to implement TP.net
Cash and non-cash payment processing
engine. If you put articles on a belt for
5.5 with roll-out projects explicitly
needs to be processed as well as clearing
physical checkout or if you put articles
based on this software advantage.
of downpayments, final payments and
and transaction logic from that point
Q. In what ways is Wincor Nixdorf
refunds. A consistent database of
ahead of the game?
customer data is essential throughout
on should be the same. So we put in
Thomas Fell: We have invested a lot
all shopping channels.
the same checkout logic to enable
of R&D eff ort in the EPOS technology
seamless transactions. The crux is
to enable seamles s checkout . The
-Article was published as cover story in
the POS system. Five years back, the
user inter face is becoming ver y
Retail Asia (April 2015)
hundreds of stores. They are the No.1 or
No.2 retailer in their markets, like IKEA,
in an online basket on the e-commerce
platform for checkout, the process
shown a demonstration video.
produc t s, prices, promotions and
July 2015 AGS News 11
SPOTLIGHT | SECUREVALUE
agsindia.com
Securevalue
India LTD.
Within over 2.5 years of its inception,
cash. The cash is carried in vehicles,
Cash Vault Services:
Securevalue India Ltd. (SVIL) a Cash
which are monitore d through an
Cash vault ser vices enable better
Management Services company and
in-house GPS tracking system. These
management of cash operations and
w h o ll y o w n e d s u b s i d ia r y o f A G S
vehicles are guarded by armed security
delivers complete cash processing
Transact Technologies has crossed
personnel and are equipped with speed
outsourcing solution for financial
ser vicing more than 10,000+ ATMs.
jammers and geo-fencing devices.
institutions. Cash vault services include
Securevalue (S VIL) focuses on the
currency inventor y management,
transit, safe keeping (in vaults) and
ATM Services:
including maintaining currency in secure
management of currency and valuables
The ATM ser vices of fere d by SVIL
vaults and managing the inventory for
for banks, financial institutions and
include ATM cash replenishment, ATM
cash shipment and consolidation and
retailer s (including other entitie s
maintenance and repair, deposit pick-
branch deposit processing.
dealing in cash and other valuables).
up and cash processing. SVIL trains
employees in providing first and second
Cash Pick-up Services:
SVIL also provides cash replenishing,
line maintenance and basic repair to
Cash pick-up services comprises picking
monitor ing , counting and s or ting
ATM hardware, thereby enabling SVIL to
up cash from our customers’ outlets,
ser vices, vaulting ser vices and
provide complete line maintenance of
which include bank vaults and entities
reconciliation services. The customers
ATMs for cash management customers
who handle large volumes of cash as
include bank s , such as ICICI Bank
and minimizing ATM downtimes.
part of their day-to-day operations,
Limited, Axis Bank Limited, HDFC Bank
such as large retailers and petrol
Limited and Ratnakar Bank Limited,
Cash Processing Services:
stations. SVIL picks up cash from such
non-bank ATM deployers, such as BTI
Cash processing services offered by
outlets in a safe and secure manner,
Payments Private Limited, Muthoot
SVIL include counting and sorting
processes the cash, and deposits it at
Finance Limited, and large retailers,
services and reconciliation services.
the customer’s designated location,
such as Future Retail Limited.
S V IL has tr aine d p e r s onne l and
such as the customer’s bank.
facilities to handle large volumes of
The services offered by SVIL include:
cash and ensure cash processing
For Cash Management Services,
Cash in Transit Services:
speed and accuracy.
contact: Mr. Vijay Iyer
As part of its cash-in-transit services,
SVIL provides for the safe transport of
12 AGS News July 2015
([email protected])
agsindia.com
Disclaimer: “AGS Transact Technologies Ltd. is proposing, subject to applicable statutor y and regulator y requirements, receipt of requisite approvals, market conditions and other considerations,
to make an initial public offer of its equit y shares (“Equit y Shares”) and has filed a Draf t Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is
available on the website of the SEBI at http://www.sebi.gov.in and the websites of the Book Running Lead Managers A xis Capital Limited, Citigroup Global Markets India Private Limited, HDFC Bank
Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroup globalscreen1.htm, www.hdfcbank.com, www.
icicisecurities.com and www.investmentbank.kotak.com respectively. Potential investors should note that investment in equit y shares involves a high degree of risk and for details relating to the
same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP
filed with the SEBI in making any investment decision.”
KNOW HOW | ELECTRONIC PAYMENTS
UPI will
leverage
on mobile,
Aadhaar
Visualize this scenario: You had engaged a taxi and
have just reached your destination. Instead of paying the
fare in hard currency, you quote your Aadhaar number or
your mobile number or just apayment address to the cab
driver. He then keys in the required details into his mobile
and the fare, which will instantaneously land on your
agsindia.com
{
Electronic payment system in the country is poised
to leapfrog into the future. The Unified Payments
Interface developed by the National Payments
Corporation of India is going to be a game changer
mobile. You then make the approval for the payment.
Payment Service (IMPS) or Aadhaar-enabled Payment
The fare gets transferred into the driver’s account.
Systems (AEPS) and ensure settlement across accounts.
Or this scenario: You want to buy a train ticket through
Says Dr N. Rajendran, Chief Technology Officer at NPCI,
IRCTC. You log in to irctc.co.in and enter the travel
who is the chief mover behind the interface: “We at NPCI
details. Once itinerary is finalized simply enter the
believe that UPI will simplify the disparate payment
payment address and authorize the payment. With
systems in the country even as it will revolutionize the
couple of entries your ticketing will be completed. The
e-commerce space. The remittances and payment
process is instantaneous.
inclusion leveraging the growing smart phone schemes
will get a big boost with this simple and hassle free
Or this one: You have an account with a wallet provider,
payments system.”
say for example, myWallet, which is a PSP. You regularly
book cabs via Meru. As part of your profile with Meru,
LEVERAGING ON IMPS
booking application, you have provided your payment
UPI leverages on IMPS, which now allows a customer
address at myWallet. You just use myWallet mobile
to transfer money in an instant, anytime. “In fact it is a
application and authorize Meru payee address to auto
kind of a unified layer that will allow interoperability,”
charge you, say within Rs. 1500. Now, every time you
says Dr. Rajendran. “It will sit on the existing payments
travel using Meru cabs, you can simply walk out of the
infras tr uc ture of bank s and allow money to be
cab and Meru can charge you automatically within the
transferred from a bank to any other bank using a
set limit. You and Meru can be on two different PSP
mobile phone. It will allow account holders across
networks too.
all bank s to send and receive money from their
smar tphones using their Aadhaar number, mobile
These and several other similar scenarios are not just bits
number and a virtual payment address. The user does
of imagination. These can very well happen in about six
not need to enter any bank account information. When
months’ time, when the National Payments Corporation
biometrics becomes standard on smartphones in the
of India (NPCI) formally launches its highly efficient
near future, the customers can initiate a transaction
Unified Payment Interface (UPI), the next generation
using his fingerprints, which will be cross-checked
peer-to-peer immediate payment system just by using
with the biometric database with the UIDAI and once
personal phone and existing systems like Immediate
verified, the transaction will be executed in an instant.”
14 AGS News July 2015
{
KNOW HOW | ELECTRONIC PAYMENTS
agsindia.com
Dr. N. Rajendran emphasizes UPI
recognizes smartphones as an
integral part of people’s identity
Even though it is mobile based, UPI is
authentication scheme. Account
authentications,” says he. There are
as secure as EFT. In every transaction
management (KYC, opening account,
advantages. Today, authentication
between individuals, the system will
managing transactions, etc) were tightly
and authorization are part of the
authenticate the profile using the
coupled with internal authentication
same transaction flow and inline.
Aadhaar card or mobile number of
schemes. The account management
But, in newer systems like AEPS,
the sender and receiver. In addition,
including K YC etc may be loosely
use of third party authentication is
none of the information such as PIN,
coupled with authentication. Aadhaar
followed where authorization is still
passwords, biometrics, etc, is allowed
authentication is one such trusted
done within the banking system.
to be stored by the PSBs and all
external authentication scheme used
Adopting 3rd party authentication
information are securely captured,
today within the payment systems.
and using token less payment scheme
encrypted and transmitted to issuer.
Micro-ATMs (hand-held with biometric
allows banks to reduce the overall
sensors) used by BCs take advantage
issuance (card, PIN, etc) cost while still
“Authentication is t ypically done at
of Aadhaar authentication via NPCI
keeping authorization and account
the account provider domain,” says Dr
which, in turn, is trusted by banks
management within its control.
Rajendran. ”Authentication schemes
to conduct payment transactions.
are separately evolved as new payment
Digital signatures, especially proposed
UNIFIED LAYER
c hann e l s e vo l ve d . W hile num e r ic
Aadhaar enabled DSCs, can also play
You are talking about a unified layer.
or alpha-numeric PIN/ password is
an impor tant role to identif y the
Can you explain the system in terms
the dominant authentication factor,
authenticity of the request and bring
of convenience, in terms of universal
different PINs were issued for different
out new ways of issuing e-mandates
application?
c hann e l s (inte r n e t PIN , ATM PIN ,
and other payment instruments.
mobile PIN, etc.). In addition, OTP
“UPI allow s integr ation of US SD,
based authentication is used heavily
“In this unified architec ture, the
smartphone, internet banking and
these days to offer 2-FA authentication
o bje c t i ve is to e nab le mult ip le
other channels onto a common layer at
s c h e m e s . O n e au t h e nt ic at io n is
authentication schemes (account
NPCI. This common layer uses existing
re quire d to b e p e r fo r m e d b y t h e
provider as well as trusted 3rd party
systems such as IMPS or AEPS to initiate
Payment Service Provider while the
like UIDAI’s Aadhaar authentication)
transactions and ensure settlement
other is performed within the domain
without tightly coupling with account
across accounts. Usages of existing
of the account provider.”
provisioning and management.
systems ensure reliability of payment
T h i s a ll o w s o n e o r m u l t i - f a c t o r
transaction across various channels
TRUSTED AUTHENTICATION
authentication schemes to be plugged
and also take full advantage of all the
He says traditionally, payment account
into the architecture as long as account
investments so far. This unified layer
providers themselves provided the
providers allow such trusted external
offers next generation peer-to-peer
July 2015 AGS News 15
KNOW HOW | ELECTRONIC PAYMENTS
agsindia.com
immediate payment just by using a
someone (push) as well as ‘collect’
a one-time secure authentication and
personal phone,” says Dr Rajendran.
from someone (pull)
rule based access
•Ability to use Aadhaar number, mobile
•Ability for all payment system players
He cites an example: “The third party
number, card number, and account
to use a standard set of APIs for any
API integration (merchant sites, etc)
number in a unified way. In addition,
to-any push and pull payments
can ‘collect’ payment from ‘an address’
ability to pay and collect using ‘virtual
•Ability to have PSP provided mobile
avoiding the need to share account
payment addresses that are aliases to
applications that allow paying from
details or credentials on third party
accounts that may be payee/amount
any account using any number of
applications or websites. Within this
time limited providing further security
virtual addresses using credentials
solution, payment authentication and
features
such as passwords, PINs, or
authorization are always done using
•Abilit y to make payments only by
biometrics (on phone)
personal phone. Since this layer offers
providing an address with others
•Ability to use a fully interoperable
a unified interface, any-to-any (Aadhaar
without having ever provide account
system across all payment system
number, mobile, account, vir tual
details or credentials on 3rd party
players without having silos and
addresses) payments can be done using
applications or websites
closed systems
standard set of APIs.”
•Ability for sending collect requests
•Ability to make payments using 1-click
to others (person to person or entity
2-factor authentication all using just
“I can list at least 10 unique features
to person) with ‘pay by’ date to allow
a personal phone without having any
of UPI:
payment requests to be ‘snoozed’ and
acquiring devices or having any
•Ability to use personal mobile as
paid later before expiry date without
physical tokens”
the primary device for all payments
having to block the money in the
including person to person, person
account until customer is ready to pay
SIMPLE
to entity, and entity to person
•Abilit y to pre-authorize multiple
The whole concept, says he, is so
recurring payments similar to ECS with
simple that any transaction can be
•Ability to use personal mobile to ‘pay’
16 AGS News July 2015
KNOW HOW | ELECTRONIC PAYMENTS
agsindia.com
USSD, IMPS, AEPS, RuPay and NFS
adoption is seamless and easy across
with disparate frontend payment
platforms. Another unique feature
system players (PSPs) like PPI/MM/
is that APIs are integral to the whole
wallet providers, banks and payment
system. So we have ensured that
banks , services provided through
all APIs are asynchronous in nature
*99# for USSD, mobile applications
meaning once the request is sent,
and internet.“
response is sent back separately via
easily executed through the UPI. Users
corresponding response API. This
can send and receive money with just
UPI recognizes smart phones as an
allows same APIs to be used for
an identifier without having any other
integral part of the people’s identity. It
instant payment as well as delayed
bank/account details. Identifiers are
is with this that payments are initiated.
payments. This also allows APIs to
Aadhaar number, mobile number and
The Aadhaar number constitutes a form
scale without having to wait in a
virtual payment address. Paying and
of online verifiable identity, which can
blocking mode. Callers are expected
receiving payments are as easy as
be authenticated by a third party.
to call the API with a unique transaction
making a call on mobile. Taxi booking,
ID for which response is sent via a
online shopping, paying school fees,
“When you ask me about the
response API exposed by the caller.
transfer of money are all at your
advantages of the technology platform,
All APIs are expected to work in
fingertips. “It is virtually an ability to use
in one word I say it is a ‘unified’
asynchronous mode. This allows
a fully interoperable system across all
platform. It virtually eliminates the
the response to API call to return to
payment system players without having
complexity of handling disparate
the caller immediately after queuing
silos and closed systems,” he adds.
systems - some of them internal to
the request. All request-response
NPCI and some of them resident at
correlation must be done via the
Will the system finally facilitate in creating
the PSPs. It allows customers to enter
transaction ID set by the originating
cashless transactions in the country?
credentials on their own device. It
point. Exactly same set of APIs are
functions in a real-time environment,
exposed by NPCI and PSPs. All APIs
“UPI will help in bringing down cash
allowing banks to provide real-time
must be exposed via HTTPS using
transactions,” says Dr Rajendran. “In a
experience for interactive transactions.
XML input and output. When calling
country like ours, it is difficult to have
Much more than all these, it is secure,
APIs via a synchronous protocol like
a purely cashless society. There are
allows traceability through the entire
HTTP, listening server should push the
several factors including prevalence
transaction chain and facilitates
message into a queue and send an
of cards, POS machines, etc, which
monitoring of the system centrally by
acknowledgement response.”
contribute to cashless transactions.
NPCI.”What about the development
RBI’s aim is to cut down the number of
aspects of the system? How long did
D r Raje n dr an s ay s NP CI ha s jus t
cash transactions and not completely
it take for NPCI to conceptualize and
developed the front-end of the system
eliminate these. “
design the system?
and a pilot has succe s s f ully b e e n
conduc te d. S e ve r al bank s , which
TECHNOLOGY
Says Dr Rajendran: “It took us around
participated in the pilot, are happy with
What is the technology behind the
three months to conceptualize
the results and they would certainly
system - the platform, the software,
and develop UPI. It is an in-house
participate in the program. “I am sure as
hardware, etc? How will this change the
development. There are certain
we implement UPI say six months from
payments system horizon in the country?
refinements that are required to be
now, after RBI approves the system,
done before we are able to deploy it
almost all the banks would be on board.”
“In short, UPI can be described as
and this will take some six months.
a standardized, secure and cost
In developing the system, what NPCI
- This article was published in May in
effective middleware that interfaces
has emphasized is that it should be
2015 in Banking Frontier
the backend payment systems like
built on open standards so that its
July 2015 AGS News 17
PRODUCT PROFILE | BUNCH NOTE ACCEPTOR: C4040
agsindia.com
Bunch Note Acceptor:
COMPACT
C4040
SECURE
The C4040 cash recycling system is based on
a technology approach, which has banknote
storage concept as its core element.
Being 45 cm in width, it has a 15 -inch
monitor, recycles up to four denominations
and is suitable for large deposit volumes
and can also be used as a pure deposit or
dispensing system.
For example, the cash deposited at C4040 in
the self-service zone can be used to replenish
other ATMs or refill automated teller safes at
the bank counter.
This makes it possible for banks and retailers
to interchange one and the same cassette
between all systems in the CINEO cash series.
The technology platform optimizes cash
replenishment and pick-up processes. Cash
cycles can be networked across sectors and
integrated in cash center processes.
With optimized cash handling, the C4040
enables operators to cut their costs and
improve on security.
Features:
•Deposit/withdrawal of upto 200 notes
•Foreign object detection in the input
output tray
•Recycles upto four denominations
•Scalable cassette concept
•Serial number recognition
For more information email to:
[email protected]
For more information email:
[email protected]
18 AGS News July 2015
The new weatherised ATM from Wincor Nixdorf
ProCash 285
with simple and intuitive design allows easy cash
withdrawals. Designed for through-the-wall installations,
the compact system fits easily into wall openings.
With features like a rear-load system compliant to
volatile environmental conditions, tamper-preventive
systems, and the ability to integrate biometric sensors
and cameras to identify users, the ProCash 285 is
an ideal solution where space is a limiting factor.
agsindia.com
COMPACT
SECURE
The new weatherised ATM from Wincor Nixdorf
ProCash 285
with simple and intuitive design allows easy cash
withdrawals. Designed for through-the-wall installations,
the compact system fits easily into wall openings.
With features like a rear-load system compliant to
volatile environmental conditions, tamper-preventive
systems, and the ability to integrate biometric sensors
and cameras to identify users, the ProCash 285 is
an ideal solution where space is a limiting factor.
For more information email:
[email protected]
Disclaimer: “AGS Transact Technologies Ltd. is proposing, subject to applicable statutor y and regulator y requirements, receipt of requisite approvals, market conditions and other considerations,
to make an initial public offer of its equit y shares (“Equit y Shares”) and has filed a Draf t Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is
available on the website of the SEBI at http://www.sebi.gov.in and the websites of the Book Running Lead Managers A xis Capital Limited, Citigroup Global Markets India Private Limited, HDFC Bank
Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroup globalscreen1.htm, www.hdfcbank.com, www.
icicisecurities.com and www.investmentbank.kotak.com respectively. Potential investors should note that investment in equit y shares involves a high degree of risk and for details relating to the
same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP
filed with the SEBI in making any investment decision.”
Disclaimer: “AGS Transact Technologies Ltd. is proposing, subject to applicable statutor y and regulator y requirements, receipt of requisite approvals, market conditions and other considerations,
to make an initial public offer of its equit y shares (“Equit y Shares”) and has filed a Draf t Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is
available on the website of the SEBI at http://www.sebi.gov.in and the websites of the Book Running Lead Managers A xis Capital Limited, Citigroup Global Markets India Private Limited, HDFC Bank
Limited, ICICI Securities Limited and Kotak Mahindra Capital Company Limited at www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroup globalscreen1.htm, www.hdfcbank.com, www.
icicisecurities.com and www.investmentbank.kotak.com respectively. Potential investors should note that investment in equit y shares involves a high degree of risk and for details relating to the
same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP
filed with the SEBI in making any investment decision.”