Ready to Sneak Peek into Global Cashless Societies

50 Popular Fintech Terms You Must Know

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/pci-dss.webp" alt="M2P Fintech" title="" width="100%" height="253">The payment industry is constantly growing where every upgrade plays an important role in developing trust among users by protecting their sensitive data. So, every business that is an active participator needs to meet few security standards that act as Armour.One such globally recognized standard is PCI DSS.The PCI Security Standards Council came up with a Payment Card Industry Data Security Standard (PCI DSS) framework to protect credit and debit card transactions and card holders’ data from breaches. It is a mandate for every merchant and service provider to abide by this protocol for a smooth customer experience.<h2 class="heading-node" id="e2ee" style="text-align: justify">How was PCI DSS created?</h2>It all began during the internet boom in the late 1990s, when the initial stage of e-commerce brought in many fraudsters and excitement. When the retailers, merchants, card networks, consumers widely accepted the emerging web-driven transactions, they witnessed a steady increase in credit card fraud and scams. That is when the card networks like American Express, MasterCard, and Visa started to dig deep into the issue to create standards for payment processing systems.With Visa taking the lead in 2001 “Cardholder Information Security Program” standard was introduced, followed by the other companies implementing their security standards. But it did not meet the expectations of the merchants and POS terminals as they need to comply individually with the company-specific standards. This resulted in great difficulty for merchants as they have to comply with different standards when they are approaching multiple card networks. So, the collaboration of the major card networks such as American Express, Discover, JCB, Mastercard, and Visa birthed PCI DSS version 1.0 in December 2004.Later in 2006, the Payment Card Industry Security Standards Council (PCI SSC) was formed by a joint venture of MasterCard, American Express, Visa, JCB International, and Discover Financial Services to manage PCI development and alignment of policies to PCI DSS. PCI SSC ensures that the entities are committed to secure credit card data.PCI DSS is now a globally recognized directive where every merchant who accepts card payments must comply with the latest version, PCI DSS 3.2.1, which was released in May 2018.<h2 class="heading-node" id="edca" style="text-align: justify">Why do merchants need to comply with PCI DSS?</h2>Since there are over multiple card transactions taking place in the market, a safe business environment becomes the prime concern for the merchants to lead a long haul. A business compliant with PCI DSS always earns customers’ trust for their sensitive card information and helps boost the sale and customer confidence. As every business relies on partners, acquirers, or fellow industry mates, being a PCI DSS Compliant helps improve one’s reputation and strategies.Data breaches, payment card data theft, can be avoided as it is stored securely and monitored on a regular basis. In addition, PCI DSS even helps in improving IT infrastructure efficiency with its compliance levels and requirements.<h2 class="heading-node" id="de60" style="text-align: justify">PCI DSS Compliance levels</h2>There are four levels of PCI DSS Compliance based on the number of annual payment card transactions a business handle.Level 1:&nbsp;over 6 million TXNLevel 2:&nbsp;1 to 6 million TXNLevel 3:&nbsp;20,000 to 1 million TXNLevel 4:&nbsp;fewer than 20,000 TXNCheck out our guide to the&nbsp;<a class="link au mj" href="https://m2pfintech.com/blog/pci-dss-a-quick-guide-to-its-levels/" rel="noopener">PCI DSS Levels</a>&nbsp;and their impact on compliance.<h2 class="heading-node" id="a8f1" style="text-align: justify">Requirements for PCI DSS Compliance</h2>Every system entity and component associated with Cardholder Data Environment (CDE) must comply with the PCI DSS mandate. It includes requirements for security management, policies, procedures, network architecture, software design, and other critical protective measures.PCI DSS sets forth 12 requirements for every PCI DSS complaint established by the PCI Security Standards Council:<h3 class="heading-node" id="757b" style="text-align: justify">1. Firewall Configuration</h3>Firewalls are installed and configured to protect card holders’ data from any malware. It helps the prevention systems effectively to defend the hackers from unauthorized access to private data.<h3 class="heading-node" id="625d" style="text-align: justify">2. Password Security</h3>Businesses should not use vendor-supplied defaults for system passwords and other security parameters in their routers, modems, point of sale (POS) systems, and other third-party products. Instead, basic precautions and configurations like changing the password should be followed as the public can easily access the generic passwords and security measures.<h3 class="heading-node" id="ad5f" style="text-align: justify">3. Protection of Cardholder Data</h3>The stored cardholders’ data must be encrypted with two-fold protection and certain algorithms. Also, the primary account numbers (PAN) must be regularly scanned and monitored to avoid any unencrypted data.<h3 class="heading-node" id="1dad" style="text-align: justify">4. Encryption of Transmitted Data</h3>The cardholders’ data should be encrypted when transmitted across open, public networks like payment processors, home offices from local stores, etc. Sharing the account numbers to unknown locations must be avoided.<h3 class="heading-node" id="9653" style="text-align: justify">5. Antivirus Software</h3>All the systems used for interacting, sharing, storing PAN must be protected against malware by regularly using and updating antivirus software or programs. Also, POS providers must employ anti-virus measures and maintain up-to-date antivirus programs to prevent systems from malware.<h3 class="heading-node" id="f58e" style="text-align: justify">6. Secure Systems and Applications</h3>To add another layer of protection to the data, the providers must develop and maintain secure systems and applications. These systems and applications that are used as the storage of data for interaction must be updated regularly.<h3 class="heading-node" id="f835" style="text-align: justify">7. Restriction of Access</h3>The cardholders’ data are restricted to access by business need-to-know, and the sensitive data must be accurately documented and updated regularly.<h3 class="heading-node" id="bffa" style="text-align: justify">8. Unique Access ID</h3>Individual credentials and ID are assigned to each person with computer access to card holders’ data. Single access ID and password should not be used as it results in more vulnerability and slow response time.<h3 class="heading-node" id="57e9" style="text-align: justify">9. Restriction of Physical Access</h3>Card holders’ data must be physically stored in a secured location where any physical access is restricted. Physically written, typed, or digitally stored data must be secured in the room, and in case of any access, it should be added to the access logs.<h3 class="heading-node" id="7c0d" style="text-align: justify">10. Maintain Access Logs</h3>As mentioned in the previous requirement, all access to network resources and cardholder data must be tracked and monitored in the access logs. This proper record keeping and documentation must be maintained with utmost accuracy as it is related to sensitive data.<h3 class="heading-node" id="aecf" style="text-align: justify">11. Testing Security Systems and Processes</h3>Regularly testing/scanning security systems and processes result in less vulnerability as it involves many digital data, software programs/products, physical locations, etc.<h3 class="heading-node" id="625c" style="text-align: justify">12. Document Policies</h3>Document policies that address information security for all personnel must be maintained right from storing to transmitting/using data after POS.So, with these twelve requirements, PCI DSS comprises six objectives to ensure optimal security for merchants who accept, process, transmit, or store payment card information.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/image-1.webp" alt="M2P Fintech" title="" id="jxi8l3syj" width="100%" height="253">With PCI DSS’s strong objectives and compliance requirements, the security of the payment industry is strengthened. These measures help and encourage data security and facilitate the adoption globally. So, hereby businesses that handle card payments need to be a part of this global payment card data security solution and focus on increasing the intensity to move forward by becoming ‘PCI DSS Complaint.’Look forward to our upcoming blogs as we uncover PCI SSC’s other standards such as PCI 3 DS, PA DSS, PCI PIN Security, and PCI SSF.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

PCI DSS: The Payments’ Armour

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner-1.webp" alt="M2P Fintech" title="" width="100%" height="383">Sara usually travels around the globe for her official trips quite frequently, and she enjoys shopping at local shops to bring back memorabilia for colleagues and family. Nairobi was on her frequent travel list, and she loves to shop the local markets for their rich handicrafts. The popular currency formats in Nairobi were either M-Pesa or Nairobi Shillings.However, carrying local currency is not a good idea, and M-Pesa requires a local account and sim card for starters. At the same time, using international debit or credit cards will attract too many charges.That’s when Forex Cards came to the rescue.With single or multiple currencies in one card that has safety and comfort as it is a core feature, forex cards were the best solution Sara could ask for, making her travel much easier.<h2 class="heading-node" id="60d6">So, what is a Forex card?</h2>A forex card can hold single or multiple currencies in a single card, prepaid by nature. It is a globally accepted prepaid card with features of ATM withdrawal, just like a debit/credit card. Therefore, it is a safer and fool-proof way of managing finances abroad, be it for professional or personal travel.<h2 class="heading-node" id="fd11">Types of Forex cards</h2>Forex cards come in various types, and they can be chosen as per the traveler’s requirement. The forex cards are typically differentiated as:<h3 class="heading-node" id="537f">Single-Currency Forex card</h3>This card holds a single international currency and is usually available when travelers only intend to visit one country. Furthermore, if the traveler tries to transact in any other currency other than the preloaded currency, they will end up paying high conversion charges along with markup fees and additional applicable charges.<h3 class="heading-node" id="06ae">Multi-Currency Forex card</h3>Best suited for globetrotters, this type of prepaid forex card allows the user to carry multiple international currencies in one card.<h3 class="heading-node" id="b841">Student Forex card</h3>This type of forex card is specifically designed for the new adults embarking on their maiden financial journey on account of their studies. It also doubles up as an identity card known as International Student Identity Cards (ISIC cards). Student forex cards also offer student discounts and can help primarily help in managing living expenses abroad.<h2 class="heading-node" id="7423">How does a Forex card work?</h2>Like a debit/credit card application, the traveler needs to apply for a forex card with the bank or forex service provider. Once the application goes through, the applicant can load their desired currency of GBP, USD, SGD, EUR, and others in the card.Also, certain documents need to be submitted when applying for forex cards:<ul class="list-node" id="1689ax4q6"><li>Forex card application</li><li>Self-attested copies of Visa and Passport</li><li>Copy of confirmed air tickets of the visiting countries</li><li>The usual attachments of Identity and Address proof</li></ul>If the traveler is a student, they need to submit some additional documents like:<ul class="list-node" id="7zz3nxzh8"><li>Admission letter</li><li>University Identity card or</li><li>Letter of appointment</li></ul>Post these documents verification, the forex card gets approved, and it will be either shipped to the applicant’s address, or they can pick the card up from their choice of branch.The traveler can load the card as per their choice of currency by issuing a standing instruction to the service provider. They can specify the international currencies they want along with the amount in each of the currencies. If the currency conversion happens via a bank, their bank account will be automatically debited, and their multi-currency card will be loaded.If it is a forex service provider, the traveler can load the card using the issuer’s <a class="link" href="https://m2pfintech.com/blog/what-is-a-payment-gateway-and-payment-switch-understanding-the-basics-of-payments-architecture/">payment gateway.</a> Then, they can make the payment by using the standard options of debit card, credit card, net banking, etc.At the same time, forex cards also carry a certain number of charges that may differ depending upon the issuer. Some of the common charges are cash withdrawal, balance inquiry, SMS alerts, cross-currency mark-up charges, etc.Even though forex cards come with their share of charges, they still reign supreme over other payment methods like debit cards, credit cards, or travelers cheques. And the popular opinion claims that forex cards are a much better option when compared against these instruments.<h2 class="heading-node" id="bcc0">Advantages of Forex cards over Debit/Credit cards</h2><h3 class="heading-node" id="97c7">ATM withdrawal fee</h3>Forex cards have set ATM withdrawal fee that is usually lower than credit/debit cards, and they are now accompanied by conversion fee as well.Debit/Credit cards come with a withdrawal fee plus a markup fee of 1% to 3% and currency conversion charges. While it may differ between card issuers, the charges remain significantly higher than using a forex card.<h3 class="heading-node" id="9eda">Transaction charges</h3>Swiping prepaid forex cards doesn’t levy extra transaction charges as the local currency is used for the transaction.Swiping a debit/credit card will attract extra charges as the foreign currency will be converted to the local currency and then will be charged to the traveler’s account. Furthermore, it will attract a markup fee along with other applicable tax charges.<h3 class="heading-node" id="745d">Exchange Rates</h3>In forex cards, exchange rates are well locked in advance, which protects the traveler from fluctuations in the exchange rate.There is no exchange rate lock, and the value of the rupee often fluctuates against most of the international currencies in debit or credit cards.<h3 class="heading-node" id="4562">Temptation</h3>Forex cards curbs the temptation to overspend while overseas as it is a prepaid card and comes with an already set limit.Credit cards come with an overdraft facility that will tempt the traveler to overspend and end up with a huge bill.<h2 class="heading-node" id="1f24">Advantages of Forex card over Cash</h2><h3 class="heading-node" id="400f">Better exchange rates</h3>Forex cards come with better exchange rates when compared to cash conversion. Also, the traveler gets to enjoy locked-in exchange rates that do not fluctuate on a daily basis.<h3 class="heading-node" id="6a8f">Safety</h3>Cash is only safe when it is stored in a vault, and it creates an inconvenience when carried in huge amounts, whereas a forex card is a CHIP and PIN enabled card that offers top-of-the-line security to the traveler.<h3 class="heading-node" id="5b55">Theft</h3>In case of cash theft, there is no possible way to get the money back nor reclaim damages. But in case of forex card theft, the traveler can immediately block the card and request a replacement card, no matter their geographical location.<h3 class="heading-node" id="568d">Multi-currency</h3>It is practically impossible to carry around wads of cash in different currencies as it is neither safe nor smart to walk around with cash. It is a hassle to keep and use the right currency without the confusion around the country’s native currency. Whereas when using a forex card, the card will automatically detect the country and carry out transactions using the preloaded local currency.<h2 class="heading-node" id="cfd4">Advantages of Forex cards over traveler’s cheques</h2><h3 class="heading-node" id="6c46">Modernized version</h3>Forex cards are the software upgrade of traveler’s cheques. They are widely used and come with convenience and comfort at their core. Traveler’s cheques are antique, primarily out of use, and are not accepted worldwide anymore.<h3 class="heading-node" id="6875">Associated Fees</h3>Both forex cards and travelers cheques come with their share of fees and charges. But travelers cheques are a bit on the higher side as they involve traveler cheque creation and encashment plus the usual charges.<h3 class="heading-node" id="714c">Handling</h3>Forex cards are easy and convenient to handle; all it takes is a swipe for a transaction and a few clicks to customize the card. Whereas traveler’s cheques are outdated and hold no meaning in the world of <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payments</a>.<h2 class="heading-node" id="b53b">Why a Forex card?</h2>While Forex cards do allow for frictionless travel, they also come with a host of other benefits such as:It is the safest form of carrying cash, and they are PIN-protected prepaid cards. For example, M2P’s Forex cards enable a traveler to load up to 24 currencies in one card, and it also comes with an app that offers a virtual wallet.They also come with an app feature. For example, <a class="link" href="https://m2pfintech.com/">M2P’s</a> digital travel money app offers the feature of configuring spending limits, channels and block/unblock the card. The traveler can lock in the exchange rates, and buying a forex card is cheaper than cash currency conversion. Also, it saves them fluctuating rates when using debit/credit cards.The traveler can save on transaction fees typically charged by debit and credit cards. They range from 2% to 5% and are coupled with markup fees, applicable taxes, and so on.It can be reloaded from any part of the globe and access a 24/7 customer support team. Travel cards are predominantly accepted everywhere without additional charges.Also, many issuers allow the auto-sweep feature when one currency in a multi-currency wallet goes low. For example, M2P will transfer funds from the GBP wallet to the USD wallet if the wallet balance becomes low when initiating a purchase. It doesn’t require any additional confirmations from the user, and they can easily transact at their preferred platform.It also comes with an ATM feature and can be used in any Visa or MasterCard terminal. Upon return, the balance currency can be converted back into INR without any hassle. Most often, the issuers also offer travel insurance cover along with the forex card.Gone are the days when foreign travel mandated carrying around cash hidden inside the layers of dress and goodies as a safety precaution. With the travel ban slowly being eased in many countries across the world and with M2P’s multi-currency forex cards as a travel companion, today’s globetrotters can enjoy secure and hassle-free travel.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Forex cards- International travel made effortless

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/Artboard-1-copy-8-3-1.webp" alt="M2P Fintech" title="" width="100%" height="383">Did you know?PPIs in India grew at a 53% CAGR from 41Cr (May 2017) to 226Cr (May 2021). And the potential for future growth is enormous.New to the PPI world?Here’s a little introduction for you.PPIs are prepaid payment instruments that enable <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payments</a> via mobile wallets, <a class="link" href="https://m2pfintech.com/blog/prepaid-cards-101-a-definitive-guide-for-growth-and-profitability/">prepaid cards,</a> and paper vouchers. They are disruptive business enablers with the ability to accelerate the profitability and growth of enterprises worldwide.But how can you tap into the potential of PPIs?First, you need to understand the dynamics behind PPIs. The infographic below will help you grasp and analyze the evolution of PPIs in India from the era of demonetization to the pandemic. You can tap into its immense potential by comprehending growth factors, current status, thriving possibility, RBI initiatives, and much more.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/PPI-1-aug-11.webp" alt="M2P Fintech" title="" id="xbufzjb8z" width="100%" height="1774"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/PPI-2-aug-11.webp" alt="M2P Fintech" title="" id="46kompytm" width="100%" height="2165"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/PPI-3-aug-11.webp" alt="M2P Fintech" title="" id="fjn663498" width="100%" height="2085">Email us at&nbsp;<a class="link au lg" href="mailto:ping@m2pfintech.in" target="_blank" rel="noopener ugc nofollow">ping@m2pfintech.in</a>&nbsp;to issue customized prepaid cards and wallets incredibly fast.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Disruptive business enablers -Prepaid Payment Instruments (PPIs)

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner1251-8.webp" alt="M2P Fintech" title="" id="rvrudoanq" width="100%" height="317">India has the highest Fintech adoption rate of 87%, significantly higher than the global average rate of 64%.India is rapidly evolving and is one of the fastest-growing Fintech markets globally and has also emerged as Asia’s biggest destination for Fintech deals, leaving behind China. Advanced technologies and a customer-centric approach are what bring this thriving industry its profound growth in this decade.Having witnessed this flourishing industry and its achievements, let’s look back on its evolution rather a revolution. So, gear up as this article throws light on how the fintech industry has steadily evolved over the years.<h2 class="heading-node" id="5995" style="text-align: left">The fintech landscape in India</h2>Ever since the start of modern society, finance and technology were entwined robustly. The beginning of the Fintech industry globally is traced back to the 19th century when technology started to mark its place in history, which made the fintech industry flourish.According to a research paper by Arneris, Barberis &amp; Ross, the significant stages of fintech are differentiated into the following eras, which will help us understand the steady fintech evolution better.<h2 class="heading-node" id="ab20" style="text-align: left">Fintech 1.0</h2>Outmoded technologies like the telegraph and Morse code were first used to transmit financial information across borders to strengthen the infrastructure rapidly. Then, later during the 1950s, the credit card was first introduced and was the first financial product in the industry, and to everyone’s surprise, it is still in the game.In India, many British Raj banks were nationalized post-independence, when the country’s economic growth started to shoot up, and banking services were availed by many citizens.<h2 class="heading-node" id="aff2" style="text-align: left">Fintech 2.0</h2>This era has marked the switch from analog to the digitalization of finances led by traditional financial institutions. People perceived finance management and financial institutions differently after the outbreak of the internet. The 1980s and 1990s were the high point in history when online banking pushed the fintech industry to the limelight with electronic installment framework, web-based business models, web-based shopping, portable banking, and digitization of banks.The banks started to experiment with online banking in the 1980s, got the hang of it by the 1990s, and made it even more popular. In India, ICICI Bank was the first to step into this internet banking space with limited banking services like access to account details and transfers within the bank. Other banks also started to follow the path and rapidly altered the way of banking. It is no wonder banks had faced challenges like technical mishaps, fraud, complex cross-border transactions, payment methods, etc.Fintech 2.0 gave the fintech industry’s modernistic look, and the below listed important events triggered the rise of fintech in India.<ul class="list-node" id="ef0j04wu4"><li>The first Indian ATM to withdraw cash was launched in 1987, Mumbai by HSBC.</li><li>In 1980, the Central Bank of India launched the first credit card in India.</li><li>Stanford Federal Credit Union was the first institution to let its customers access banking functions via the new World Wide Web in October 1994.</li><li>PayPal launched in 1998, which took the payment systems further after the internet boom.</li><li>The Global Financial Crisis in 2008.</li></ul><h2 class="heading-node" id="2020" style="text-align: left">Fintech 3.0 — The rise of Indian Fintechverse</h2>By the time the 21st century rolled around, India had emerged as one of the active players in this era with a plethora of smart advancements and entrants. Moreover, the Global Financial Crisis in 2008 paved the way for the fintech industry to gain traction and become ubiquitous. People started to shift from the traditional banking system slowly and developed trust over the new entrants.The release of Bitcoin v0.1 in 2009, Google Wallet in 2011, Apple pay in 2014 was the start that shaped the face of the fintech industry in India. Since India focused on customer-centric financial products and services, it has seen more rise in few years. The 2016 demonetization drive pulled in a lot of significance for the fintech. The Indian government’s move towards Digital India and to turn India into a cashless economy with financial inclusion also hands out immense support to fintech companies.Ever since the traditional banks were struggling to roll out their banking services integrated with the SWIFT system, fintech start-ups started to share the industry space through collaboration. SWIFT system’s initiative like SWIFT GPI provides end-to-end tracking with high security for the transactions. The Indian financial sector opened the door wide open for fintech to offer innovative and cost-efficient financial solutions.The rapid adoption of fintech had many Indian firms establish like Paytm, Phonepe, Mobikwik, Freecharge in few years. This made sure smartphone adoption is here to stay and will become the primary method for people to handle their money wisely.The span of around five years led to more than 2000 fintech companies in India at present and became the era of fintech start-ups. This made even the traditional banks rethink their strategies and welcome more fintech inclusion in their services to get hold of present-day tech-savvy customers. Open Banking, Banking as a Service (BaaS) were adopted by traditional banks that allow third-party service providers to access their financial data. BaaS further fuelled the entry of neo banks and digital banks in India.Fintech applications like mobile payments, automated investment apps (Robo-advisors), online lending businesses, and crowdfunding platforms have taken the financial industry by storm.The following technologies contribute oodles of success to the fintech ecosystem:<ul class="list-node" id="852pkzxgr"><li>Artificial Intelligence (AI)</li><li>Machine Learning (ML)</li><li>Big Data and Data Analytics</li><li>Robotic Process Automation (RPA)</li></ul><h2 class="heading-node" id="4ca4" style="text-align: left">Factors that led to India’s immense Fintech growth</h2>The quick adoption of new solutions and financial services made India, a country with the highest fintech usage. The factors which drive India’s fintech growth to the next level are listed below.<h3 class="heading-node" id="0376" style="text-align: left">Painless payments</h3>Easy digital payment is the key player in the fintech ecosystem, gaining trust and pulling many users in. Since its beginning, the merchants and shoppers have enjoyed this and made it even popular during the coronavirus outbreak. People were concerned about making a physical payment for safety reasons and quickly adapted to these digital payment modes in a jiffy. The demonetization drive in 2016 made every Indian switch to digital payments and online transactions, which was a green flag for fintech entrants at that time. People now make their digital cash flow without any second thoughts as they feel secure and safe more than handling physical cash.<h3 class="heading-node" id="b2cf" style="text-align: left">Payment wallets &amp; UPI apps</h3>This is one of the services which transformed the way people carry cash. Multiple digital payment apps like Google Pay, Apple Pay, Amazon Pay, PhonePe, etc., are definitely a booster for ‘Cashless India’. Features like easy transaction, secure, fast, multiple options benefit these payment wallets to make waves in the Indian fintech industry. Moreover, Artificial Intelligence (AI) and Big Data help users personalize their payments and store multiple bank accounts in a single digital wallet.<h3 class="heading-node" id="2917" style="text-align: left">Digital lending &amp; insurance</h3>Fintech is the cherry on the cake when it comes to market-based lending. When already banks were doing their great job in lending and insurance, fintech collaborated to make it even more feasible by giving enormous options, online availability, customer-centric loans, and speedy approval for businesses and customers.<h3 class="heading-node" id="b7e3" style="text-align: left">Wise finance management</h3>After the fintech boom, people witnessed many changes in the way they handle their finances. As every Indian has started managing finances digitally, it is easy to keep track of their expenses and make a calculative move. Robo-guides or Robo- advisors also help in wise finance management by providing automated, algorithm-driven financial planning services.<h3 class="heading-node" id="d8c7" style="text-align: left">Remittances</h3>Fintech's eases the way banks were making international transfers for decades. The remittance was considered an arduous task in the past, involving high fees, tons of paperwork, no tracking of money, multiple players, and a great deal of time. But now, fintech defines it as a flexible real-time payment with transparent fees, end-to-end payment tracking, multi-currency payments, and so on.Definitely a worthy throwback on this Independence Day 2021?This nostalgic look back at India’s Fintech evolution promises what the busy future holds for the country. The finance industry will flourish, but it demands a little more wait to reveal further episodes. So, let us wait to witness India evolve more and better in the future.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Evolution of the Indian FinTechverse

Prepaid Cards 101- A definitive guide for growth and profitability

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/banner.webp" alt="M2P Fintech" title="" width="100%" height="253">Have you ever noticed the numbers on your credit/debit/prepaid card? They have a string of numbers out of which the first six digits are called Bank Identification Number (BIN). The BIN number helps the merchant processor identify the card type, network, and the issuing bank for the transaction’s approval/decline. For instance, a Visa card starts with the number “4.” Master card starts with the number “5” and “2”, Diners starts with the number “3” and so on.They also enable merchants to accept different types of payments like digital and mobile payments.Now with the explosion of payment electronification and many becoming savvy financially, there has been a drastic increase in the number of card users. This, in turn, has led to a shortage of BINs; if we take a rather dim view, it can be observed as depletion of BINs.To stop this from happening, the International Standards Organization (ISO) amended the existing standard of (ISO/IEC 7812–1) Part 1: Numbering system from Six-digit to Eight-digit BIN in 2017. So, card networks such as MasterCard, Discover, American Express, Visa and others have started prepping for the change.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-24-copy.webp" alt="M2P Fintech" title="" id="adfawcve6" width="100%" height="253">Visa has been quite active with this change and regularly issuing updates and ready reference guides for this migration. Visa adopted this standard in 2017 and has urged its partners to migrate to the Eight-digit BIN by the end of April 2022.<h2 class="heading-node" id="69d4" style="text-align: justify">Who will be affected by this migration?</h2><ul class="list-node" id="lbi86ft9q"><li>Acquirers</li><li>Issuers</li><li>Processors</li></ul>MerchantsOn completion of April 2022, the card network’s 100,000 BINs will migrate to 10,000,000 BINs. The first Six-Digits will remain the same in this change, and the following two numbers (00,01,02…) will become part of the Eight-Digit BIN. Also, there will be no need to reissue replacement cards to the customers.Here are the key points that sum up this initiative:<ul class="list-node" id="vxdxnev6w"><li>After April 2022, the existing 6-Digit BINs will continue to function, and requests for new BINs will be assigned in 8-Digits.</li><li>6-Digit BINs will be supported, but they won’t be forced to convert to 8-Digit BINs</li><li>PCI guidance and Visa clearly outline that organizations storing the full 8-digit BINs require additional controls may include expanded scope.</li></ul><h2 class="heading-node" id="f71d" style="text-align: justify">Why the sudden urgency about this migration?</h2>While the standard is out for migrating to Eight-Digit BINs, ISO did say that they are maintaining the other issuing BINs in the six-digit sequence until the deadline of April 2022. The mandate also doesn’t require the removal of Six-Digit BINs. Therefore, the concerned parties must continue supporting both Six and Eight Digit BINs.The time taken for the adoption will significantly vary by the stakeholder. So, even though the deadline is still 10 months away, there is a concern regarding the impact of updating the backend systems. Especially those involved with issuer processing, routing, and other activities need to assess the impact and get ready for the changes.Industry watchers were almost sure that this initiative will call for a longer PAN. Still, Visa has decided to implement the same on the existing 16-digit- PAN structure. It has become quite clear that the decision will affect the PCI compliance of the existing truncation and masking rules. Any organization that stores the full BIN and the last four digits of the card will become non-compliant unless the rules are not modified.The decision did not specify any modification, and it requires organizations to handle 8-digit BIN as cardholder data. But organizations that spent massive efforts over the years to lower their PCI compliance load will face an explosion of responsibilities and remediation efforts. It will probably result in actions, expense, and their own timeline of non-compliance.So, card networks have been encouraging its vendors, agents, partners, and other stakeholders to actively assess the impact they would be experiencing across their systems. This assessment would help them to increase their efficacy and avoid any hurdles when handling transactions.<h2 class="heading-node" id="005c" style="text-align: justify">How does this change impact?</h2>As six-digit BINs are on the decline, it will be challenging to rely on them for authorization, routing, and transaction clearing. The effect might not be immediate but will slowly and surely escalate when Eight-Digit BINs become the norm. Both Merchant and Service providers might face issues in the following scenarios:<ul class="list-node" id="j85h67z8k"><li>Prepaid card’s identity</li><li>Chargeback and Fraud</li><li>Transaction processing</li><li>Merchant services and disputes</li><li>Reporting</li></ul><h2 class="heading-node" id="7198" style="text-align: justify">How to prepare for the change?</h2>Visa has issued directives for both merchants and service providers on how to handle this change. They have explicitly said that the changes are specific and may need to require a timeline extension. So, organizations, service providers, and other stakeholders are encouraged to initiate and pool the resources necessary to prepare for Eight-Digit BINs.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

The BIN Migration|Preparing for 8-Digit BINs

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/banner1251-13.webp" alt="M2P Fintech" title="" id="hytqs9p1m" width="100%" height="356">We have come a long way in payments starting from the barter system, coins, currencies, paper cheques, and plastic cards to one-click payments, e-wallets, and <a class="link" href="https://m2pfintech.com/blog/blockchain-and-fintech-use-cases-and-applications/">cryptocurrencies</a>. Payment space keeps evolving at breakneck speed with new technologies that focus on bringing more convenience than ever before. Wallets and currencies are now out of action and considered obsolete by the millennials. Ever since the emergence of contactless payments, we are entirely freed from carrying traditional currencies everywhere. Technologies keep providing users with a better payment experience and NFC is one of them.Here is a short story that illustrates the brief above.One sunny morning, the grocery store’s aisle was my runway. I was excitedly grabbing all my favorite drinks and snacks for the ‘Netflix weekend’ scheduled with my friends. So, I head to check out with a happy face and a fully loaded cart. Unfortunately, that is when I found out that I forgot my wallet.So, in this scenario, what was the state of action?Scenario 1:&nbsp;I ran back home to get my wallet.Scenario 2: Got a favor from the shopkeeper to pay him back later.Scenario 3:&nbsp;Forgot all the fuss and used my phone to complete the payment.And nowadays, Scenario 3 is the hero everywhere as people have their cards and applications loaded in their smartphones to make payments anywhere anytime. NFC is one of many such technologies that is smoothing the way.<h2 class="heading-node" id="de52">What is NFC?</h2>The abbreviation stands for Near Field Communication. It is a wireless technology that initiates the communication between two nearby electronic devices to provide the most convenient experience to customers globally. NFC makes the transactions and digital content transfer simpler by connecting the electronic devices using electromagnetic fields.<blockquote class="block-node" id="1eqo4mvgr">NFC initiates the connection at a distance of 4cm or less and operates at the frequency of 13.56 MHz to make secure transfers.</blockquote><h2 class="heading-node" id="ed11">What are NFC payments?</h2>NFC payments are popular contactless payments that use NFC technology to initiate the connection between the reader and the NFC-enabled devices. You can pay using smart devices like mobiles, watches, or simply tapping debit/credit cards. It initiates secured, convenient, fast, encrypted, and touchless transactions at the point of sale.<h2 class="heading-node" id="c903">Mechanism and applications of NFC technology</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-11-3.webp" alt="M2P Fintech" title="" width="100%" height="284">NFC is a specialized branch out of RFID (Radio-Frequency Identification), a widely used technology for asset tracking, access control, attendee tracking, and much more.NFC creates a short-range communication using electromagnetic radio fields between two devices — one to transit and another to receive a signal, just like how you connect your Bluetooth device.The devices are differentiated into two- Passive and Active. Tags and other small transmitters are considered passive devices since they contain data that other devices can read, whereas active devices can read and transmit data. Such active devices are your smartphone that reads and helps share necessary data with other compatible devices if required.NFC is now introduced in a chip format as well. A beauty salon in Dubai recently introduced ‘chipped nails’ where a tiny chip is embedded in the nails and used to transfer information such as your digital business card or social media handles by just tapping your fingernails on the device. These services can expand to contactless payment systems too.NFC is used in three simple modes:<ul class="list-node" id="wqfacotvm"><li>Peer-to-peer mode:&nbsp;Two active NFC-enabled devices can initiate a connection to read or transmit information between each other. The Android Beam Technology uses this mode to transfer information and enable Bluetooth devices.</li><li>Reader/writer mode:&nbsp;We can read/write information from a passive device (contactless smart card or RFID tags) using an active device(smartphones/smartwatches).</li><li>Card emulation mode:&nbsp;Here, NFC acts as a contactless card, and we can use our smart devices in place of debit or credit cards to make digital payments.</li></ul><h2 class="heading-node" id="9a7f">How do NFC payments work?</h2>Contactless payments are now mushrooming with its wide range of options like EMV chip cards, mobile wallets, QR codes, and digital payment apps for the customers to experience ‘touchless and effortless’ check out and save time during their shopping spree. Moreover, they are a faster and secure mode of payments as there is no need to enter a PIN as it transfers the encrypted data to the NFC device instantaneously.NFC links the payment and reader devices wirelessly when they are closer to each other. Once connected, the payment can be initiated from the payer’s devices like smartphones and smartwatches through the installed payment applications like Google Pay, Samsung Pay, Apple Pay, etc. Then, the payer must just hover the device near the payment terminal, and NFC chips exchange encrypted data for completing the transaction within few seconds.<h2 class="heading-node" id="3528">How do merchants accept NFC payments?</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-9-2.webp" alt="M2P Fintech" title="" width="100%" height="284">All a merchant needs is an NFC-enabled reader to accept the payments, and that’s that. The shopper can make NFC payments through smartphones, smartwatches, and NFC-enabled accessories — wristbands, phone cases, or rings. These devices have a small chip that communicates with the merchant’s NFC reader via radio waves.The shoppers have now picked their goodies - CURTAINS UP!Now, the merchant ensures the NFC reader’s connection is good to go. The shoppers bring their NFC-enabled device closer, typically within two inches, or simply tap the cards (with contactless indicator displayed on them) on the reader. The shopper unlocks the app with the PIN/use biometrics and selects the card to complete the payment.<h2 class="heading-node" id="32bd">How are NFC and EMV connected?</h2>EMV and NFC are closely connected in changing the payment landscape to hit the big time with secure and encrypted payments. EMV stands for Europay, MasterCard, and Visa — named after the organizations found. EMV is the payment technology that enables transactions with chip-embedded cards, whereas NFC is the digital version of EMV offering contactless payments.EMV payment is carried through the small computer chip embedded in the debit and credit cards. This chip communicates with the POS when dipped to authenticate the transaction successfully. These highly secured payments can be made using EMV-enabled devices and readers. To avoid any fraudulent activity, for every EMV transaction, a unique transaction ID is created, which cannot be replicated. Additionally, the cardholder must enter a PIN/ sign the receipt to complete the transaction. NFC is the technology that facilitates EMV transactions digitally using smartphones giving the ease of not carrying a physical card.On the flip side, NFC payments are contactless and follow tap-and-go technology. As said, gestures like hover or tap are all you need to complete the transaction.EMV is a bit slower when compared to NFC in processing a transaction. So, most customers still prefer opting for NFC to save time in a big queue as it is also as secure as EMV. So, merchants can opt for readers that accept both NFC and EMV payments to provide customers with a seamless checkout offering the latest and stress-free payment options.<h2 class="heading-node" id="bb30">Benefits of NFC Payments</h2>These wireless innovations give a better user experience and prove anything can happen at our fingertips. NFC has changed how merchants and shoppers look at making payments. It has also made both merchants’ and shoppers’ life simpler.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-10-1-1.webp" alt="M2P Fintech" title="" width="100%" height="284"><h3 class="heading-node" id="6ae9">(i) High-level security</h3>NFC payments are incredibly secure when compared with cash or magnetic-stripe cards. This is because the payment transactions are end-to-end encrypted, and details are highly secured.The customer can pay only at the POS terminal using their devices by providing the PIN/biometrics to unlock the payment screen. Another added security is that NFC payment readers can connect only one device at a time. This can prevent situations like customers paying for the wrong bill.<a class="link au nf" href="https://medium.com/m2p-yap-fintech/how-does-payment-tokenisation-work-d2f47186f718" rel="noopener">Tokenization</a>&nbsp;also plays a major role here. When people use apps like Apple Pay to carry their transactions, their sensitive payment credentials are masked with random strings of characters (tokens) to battle online and digital breaches. This new token is generated whenever you make a new transaction.<h3 class="heading-node" id="ce00">(ii) Comfort and convenience</h3>Shoppers don’t have to carry their wallets everywhere. They can simply use their smart devices for an easy checkout process. Another added functionality is to store multiple debit/credit cards in the payment apps and personalize the transaction according to their needs. Simple gestures like tap, wave, and hover are needed, and the payment is complete.<h3 class="heading-node" id="7719">(iii) Saves time at checkout</h3>Dealing with cash or using magnetic stripe cards consumes more time for both merchants and shoppers. Sometimes, shoppers skip purchasing in a few stores with a long queue in the POS terminal. To avoid such situations, merchants need to upgrade their POS terminal by providing a smooth experience to their customers, which increases their sales. So that, shoppers can save time in the checkout process when they opt for NFC payments. The less time it takes to complete the transaction, the more the customer is satisfied.<h3 class="heading-node" id="86b0">(iv) Touchless &amp; contactless</h3>The corona pandemic triggered the urge for contactless payments. This resulted in a steady increase rate of people opting for contactless payments. As a result, people are slowly opting for contactless payments that guard them against the spread of viruses when dealing with cash or card receipts.<h3 class="heading-node" id="8d5c">(v) Cost-efficient</h3>Since everyone’s best friends is their mobile phones in their everyday lives, NFC payments are cost-efficient for payee and payer sectors. So, the merchants must get an NFC reader and upgrade their payment terminal to seamlessly carry out the NFC payments. This even a small business merchant can afford to uplift their business. NFC reader is the better choice for merchants as it consumes less power too.<h2 class="heading-node" id="z3arn9s6q">NFC payments and its rapid evolution</h2>Contactless payments are omnipresent post the pandemic even though they were already a popular payment method before. Even exchanging money was considered a perilous task during this pandemic, but NFC has come to the rescue with its touchless feature. As a result, most people have upgraded to NFC payments helping businesses to drive their sales and ensure safety at the same time.The stats further strengthen the payment space with all positive predictions.<ul class="list-node" id="qlq2muew4"><li>The global market value of NFC payments is estimated to exceed $10.4 billion by 2026, with more than 14.5% CAGR from 2021 to 2026.</li><li>According to the report by Payments Journal, 30% of the consumers are making their payments contactless after the pandemic. Moreover, 70% who are new to this payment space wanted to continue making their payments contactless even after the pandemic abates.</li><li>The NFC’s market size is flourishing and is expected to touch $30 billion by 2023.</li></ul>The future of NFC payments, as predicted, will remain on the rise and will shape the payment space for the better over the next few years. Fintechs further mold it by offering innovative resources to provide the most convenient payment method for customers.One thing is sure, the NFC payments are here to stay, and the future holds more for payment space.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Tag: "Digital Payments (63)"

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