The National Payments Corporation of India (NPCI) has teamed with PayCore, a Turkish global payment solutions firm, as a certified partner for RuPay SoftPOS. The arrangement is to encourage contactless payments across India.
In a press note released on Monday, NPCI stated that “This solution may be incorporated into bank or aggregator acquiring systems to enable RuPay acquiring via mobile phones with NFC (near field communication) capability or add-ons”.
Earlier, NPCI had partnered with SBI Payments to launch NFC based ‘Rupay SoftPOS‘ systems for merchants. With this, merchants can accept contactless payments up to Rs. 5000 through a simple tap and pay mechanism on their smartphones.
The RuPay SoftPos System
RuPay is Indian multinational financial services and payment service system developed and launched by the National Payments Corporation of India (NPCI) in 2012. It was established to realise the Reserve Bank of India’s objective of creating a local, open, and multilateral payments system.
By the RuPay SoftPoS system, merchants will be able to accept contactless payments of up to INR 5,000. This system will work as a simple tap and pay mechanism on their cellphones. At a low cost, this solution will provide shops with a cost-effective acceptance of the infrastructure. This would also allow millions of Indian MSMEs who are now underserved to receive digital payments. Merchants will be able to convert their Android smartphone devices into payment terminals using the method by simply downloading the supported app.
Revamping the Payment Infrastructure
This development is significant for the Indian government’s Digital India Initiative. This system encourages cash-based merchants to accept a safe, contactless, and digital payment option.
NPCI is looking to revamp its technical infrastructure for all of its payment channels, including the Unified Payments Interface (UPI), Immediate Payment Service (IMPS), Aadhaar-enabled Payment System (AePS), and National Automated Clearing House (NACH). This is in order to manage the increased volume of digital payments. The NPCI intends to execute over a billion transactions per day by the end of 2021, thus it plans to improve these systems and finish the transfer by then.
In April 2021, NPCI introduced NPCI Bharat BillPay Limited to process recurring payments. NPCI also introduced New Umbrella Entity License which helps an entity to gain more control in handling digital payments in India. In July 2020, NPCI launched The RuPay business credit card. With this SMEs and startups are offered a 30-day credit period on business purchases, bill payments, travel expenses, automated GST, rental payments, supplier payments, and online software purchases with the corporate credit card.
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