Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the ePanel discussions:
- Mr. Probir Roy, Co-founder, Paymate
- Mr. Shashank Kumar, Co-Founder at Razorpay
- Mr. Sunil Kulkarni, Joint Managing Director, Oxigen Services (India) Pvt Ltd
- Mr. Sony A, Jt. General Manager, South Indian Bank
- Mr. Rahul Dayal, Head- Information Technology, Aditya Birla Sun Life Mutual Fund
- Mr. Neeraj Chandra, Head of Operations and Technology, Abu Dhabi Commercial Bank
- Mr. Subbiaa Olimuthu, Product Manager – Rupay Product
- Mr. Hemal Shah, Technical Product Manager, Mastercard
- Mr. Shirsha Ghosh, Co-Founder Torit Innovations
- Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
You just walk into any eating outlet or shopping store and then while making the payment you hand over your card to the merchant who swipes it and then you enter your PIN and your payment is processed, that’s what you’ve been doing right? Now guess what, a new method NFC based payments have been introduced that is a contactless payment system wherein you just need to place the card in close proximity to the machine and there’s no need to swipe, no need to enter your PIN either and there you go your payment gets processed.
Well, NPCI has clarified that RBI has permitted contactless card payment for amounts above 2000, with PIN being mandatory. For a certain elite class, this PIN entry is still a concern. So here FIAKS community raises these concerns:
Question 1: Firstly, who is deciding that customer needs contactless payment without PIN for a value less than Rs 2000?
Well, 2000 is a big amount for a certain customer segment. And this customer segment requires PIN even for an amount less than 2000. And was there any research done or a kind of survey to decide upon this 2000 figure? Also, imagine the risk factor if this contactless card without a PIN is misused multiple times.
Let’s clarify this concern:
- Well, nobody is deciding if a customer wants. Customer is clearly given an option for either using contactless or contact transaction. It’s all about convenience. Further for simplification of customer experience cards need not be exchanged.
- A member states, “If I am standing in a line and every time I need to insert my card for initiating a transaction then it’s time-consuming. I would rather use contactless or QR based payment. It’s always going to risk even if it’s for transactions less than 2000. It’s an individual’s decision to go for it or not. Customer by default is given a contactless card these days and if they don’t want it then they have a choice to replace the card.”
Question 2: How is it called contactless payment if PIN Entry is required to be entered? REGISTER and READ the complete discussions