Electronic Money
The national availability of airtel money follows the success of service’s first phase of launch in Delhi NCR and Chennai in 2011. Commenting on the rollout, Sanjay Kapoor, CEO – India & South Asia, Bharti Airtel said, "While an estimated 240 million people across India hold bank accounts, more than 90% of country’s population uses cash to pay for its daily needs. Additionally, a majority of customers continue to rely on traditional or time consuming methods like money orders and cheque remittances when it comes to transferring funds. On the other hand, the penetration of mobile telephony currently enriches the lives of over 900 million people in our country and can facilitate a paradigm shift in the way India transacts. We see the national rollout of airtel money playing a pivotal role in accelerating mobile based commerce in India and look forward to further extending the availability of this service
Airtel Money is a mobile commerce service that enables you to use your Airtel mobile to do the following:
· Send and receive money across networks
· Instantly top up your airtime and also send airtime to someone else's phone
· Make payments for utility bills, goods and services
· Link your bank account to your Airtel Money wallet and enable you to do the following : check bank balances,deposit money from your phone to your bank account and vis a vis)
· Make cardless withdrawals from partner ATMs
· GOOGLE WALLET
Google Wallet is a peer-to-peer payments service developed by Google that allows people to send and receive money from a mobile device or desktop computer at no cost to either sender or receiver. When set up, a Google Wallet account must be linked to an existing debit card or bank account in the United States. Google Wallet can be used through the Google Wallet app, Gmail and the Google Wallet Card. The app is available for Android devices running Android 4.0 and above, and for iOS devices running iOS 7.0 and above.[1] Google Wallet also had NFC payment capabilities, until the creation of Android Pay.
The physical Google Wallet Card was an optional addition to the app which allowed users to make purchases at point-of-sale (in stores or online) drawing from funds in their Google Wallet account, attached debit card account, or bank account. The card could also be used to withdraw cash at ATMs with no Google-associated fee, and could be used like a debit card for virtually any purpose, including such things as renting a car. It was discontinued on June 30, 2016.
Google Wallet is structured to allow its patrons to send money to each other. To send money, a Google Wallet user enters the email address or phone number of the recipient. The recipient must then link that phone number or email address to a bank account in order to access those funds. If the recipient also has a Google Wallet account, the funds will post to that account directly.
Users can link up to two U.S. bank accounts when the Wallet account is created.[3] Received money goes to the Google Wallet Balance and stays there until the user decides to cash out to a linked account, or spend it directly from there using a Google Wallet Card.
The Google Wallet app is available for free from either Google Play or the App Store. After downloading the app, the user creates a four-digit personal identification number (PIN) for managing everything within their Google Wallet account. The PIN verifies access to the Wallet app on the user’s mobile device.[4]
Before it was discontinued on June 30, 2016, the Google Wallet Card was recognized by the Cirrus network operated by MasterCard (rather than the Plus network operated by Visa)
Google Wallet protects payment credentials by storing user data on secure servers and encrypting all payment information with industry-standard SSL (secure socket layer) technology. Full credit and debit card information is never shown in the app. All Google Wallet users are also required to have a PIN to protect access to their Wallet account. The payments PIN is used for:
· Gaining access to the Google Wallet app on a mobile device
· Making point-of-sale purchases with a Google Wallet Card
· Withdrawing cash with a Google Wallet Card at an ATM
Google also recommends having a general passcode on mobile devices for additional security.
In some cases, users have to verify their identity in order to make certain transactions. If prompted to do so, the user will visit the Wallet website and follow steps to ensure their accurate identity. This is in adherence with US Federal Deposit Insurance Corporation financial regulations that require payment providers to ensure customer identity.
If a Google Wallet Card is lost or stolen, users can immediately cancel access to it by signing into myaccount.google.com. Google also offers the additional flexibility of temporarily locking the card if a user suspects that the card has simply been misplaced. In the event of unauthorized transactions, Google Wallet Fraud Protection covers 100% of verified unauthorized transactions made in the US reported within 120 days of the transaction. Only US residents who have Wallet accounts associated with a US address are eligible for coverage under this policy.
ROLE OF ECOMMERCE IN ONLINE PAYMENTS
E-commerce is anything that involves an online transaction. This can range from ordering online, through online delivery of paid content, to financial transactions such as movement of money between bank accounts.
The e-business is one of the biggest things that have taken the Indian business by storm. It is creating an entire new economy, which has a huge potential and is fundamentally changing the way businesses are done. It has advantages for both buyers as well as sellers and this win-win situation is at the core of its phenomenal rise.
Rising incomes and a greater variety of goods and services that can be bought over the internet is making buying online more attractive and convenient for consumers all over the country.
Electronic commerce is presently an essential ingredient of India’s trade facilitation policy. Since 1991, after economic reforms explicitly took place in India as a result of opening of the economy with a view to integrate itself with the worldwide economy, the need to facilitate international trade both through policy and procedure reforms has become the foundation stone of India’s trade and fiscal policies. Resultantly, last few years have witnessed a technological revolution accompanied by the wide spread use of the Internet, web technologies and their applications. Electronic Business (e-commerce) as part of the information technology revolution became widely used in the world trade in general and Indian economy in particular.
As a symbol of globalization, e-business represents the cutting edge of success in this digital age and it has changed and is still changing the way business is conducted around the world. The commercialization of the Internet has driven electronic commerce to become one of the most capable channels for inter-organizational business processes.
Greater Economic Efficiency
We have achieved greater economic efficiency (lower cost) and more rapid exchange (high speed, accelerated, or real-time interaction) with the help of electronic business. Key drivers in Indian e-commerce are: 1. Increasing broadband Internet (growing at 20%[ MoM) and 3G penetration.
2. Rising living standards and a growing, upwardly mobile middle class with high disposable incomes.
3. Availability of much wider product range compared to what is available at brick and mortar retailers.
4. Busy lifestyles, urban traffic congestion and lack of time for offline shopping.
5. Lower prices compared to brick and mortar retail driven by disintermediation and reduced inventory and real estate costs.
6. Increased usage of online classified sites, with more consumer buying and selling second-hand goods.
7. Evolution of the online marketplace model with sites like eBay, Flipkart, Snapdeal, Infibeam, qnetindia.in and Tradus. The evolution of ebusiness has come a full circle with marketplace models taking center stage again.
Literature review
India has an internet user base of about 137 million as of June 2012. The access of ebusiness is low as compared to markets like the United States and the United Kingdom but is growing at a much faster rate with a large number of new entrants. Cash on delivery is a unique thing to India and is a preferred payment method. India has a vibrant cash economy as a result of which around 80% of Indian e-business tends to be Cash on Delivery.
E-business in India is still in burgeoning stage but it offers extensive opportunity in developing countries like India. Highly intensed urban areas with very high literacy rates, huge rural population with fast increasing literacy rate, a rapidly growing internet user base, technology advancement and adoption and such other factors make India a dream destination for e-business players. Moreover, squat cost of personal computers, an emergent installed base for Internet use and a progressively more competitive Internet Service Provider (ISP) market has added fuel to the fire in augmenting e-commerce growth in Asia’s second most populous nation. India’s e business industry is on the growth curve and experiencing a surge in growth. The Online Travel Industry is the biggest segment in e business and is flourishing largely due to the Internet-savvy urban population. The other segments, categorized under online non-travel industry, include e-Tailing (online retail), online classifieds and Digital Downloads (still in a blossoming stage). The online travel industry has some private companies such as Makemytrip, Cleartrip and Yatra as well as a strong government presence in terms of IRCTC, which is a successful Indian Railways initiative. The online classifieds segment is broadly divided into three sectors; Jobs, Matrimonial and Real Estate. A description by the Internet and Mobile Association of India has exposed that India’s e-business market is mounting at an average rate of 70 percent annually and has grown over 500 percent since 2007. The current estimate of US$ 6.79 billion for year 2010 is way ahead of the market size in the year 2007 at $1.75 billion. Apparently, more online users in India are willing to make purchases through the Internet. Overall e-commerce industry is on the edge to experience a high growth in the next couple of years.The e-commerce market in India was largely dominated by the online travel industry with 80% market share while electronic retail (E-Tailing) held second place with 6.48% market share.
E-Tailing and digital downloads are expected to grow at a faster rate, while online travel will continue to rule the major proportion of market share. Due to increased ecommerce initiatives and awareness by brands, e-Tailing has experienced decent growth. According to the Indian Ecommerce Report released by Internet and Mobile Association of India (IAMAI) and IMRB International, “ The total online transactions in India was Rs. 7080 crores (approx $1.75 billion) in the year 2006-2007 and it was grown by 30% to touch Rs. 9210 crores (approx $2.15 billion) by the year 2007-2008.
India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012. About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30% CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales.
As per "India Goes Digital", a report by Avendus Capital, a leading Indian Investment Bank specializing in digital media and technology sector, the Indian ecommerce market was estimated at Rs 28,500 Crore ($6.3 billion) for the year 2011. Online travel constitutes a sizable portion (87%) of this market today. Online travel market in India is expected to reach Rs 54,800 Crore ($12.2 billion) in size by 2015. Indian e-tailing industry is estimated to grow to Rs 53,000 Crore ($11.8 billion) in 2015.
Overall e-commerce market is expected to reach Rs 1,07,800 crores (US$ 24 billion) by the year 2015 with both online travel and e-tailing contributing equally. Another big segment in e-commerce is mobile/DTH recharge with nearly 1 million transactions daily by operator websites.
CRITICISM OF ONLINE PAYMENTS
Despite the advantages of e business in India, there are certain challenges to be faced which are as follows
1. Indian customers return much of the commodities they purchase online
E business in India has many first time buyers. This means that they have not yet made up their mind about what to expect from e-business websites. As a result, buyers sometimes fall prey to hard sell. But by the time the product is actually delivered, they reveal remorse and return the goods. Though consumer remorse is a global problem, but it is all the more prevalent in a country like India, where much of the growth comes from new buyers. Returns are expensive for e-business companies, as reverse logistics presents unique challenges. This becomes all the more complex in crossborder e-business.
2. Cash on delivery is the preferred payment mode.
Low credit card access and low trust in online transactions has led to cash on delivery being the preferred payment choice in India. Unlike electronic payments, manual cash collection is painstaking, risky, and expensive
3. Payment gateways have a high failure rate
As if the preference for cash on delivery was not bad enough, Indian payment gateways have an unusually high failure rate by global standards. E-business companies using Indian payment gateways are losing out on business, as several customers do not attempt making payment again after a transaction fails.
4.Internet penetration is low.
Internet penetration in India is still a small fraction of what is there in a number of western countries. On top of that, the quality of connectivity is poor in several regions. But both these problems are on their last legs. The day is not far when connectivity issues would not feature in a list of challenges to e-business in India.
5. Feature phones still rule the roost
Though the total number of mobile phone users in India is very high, a significant majority still use feature phones, and not smartphones. As a result this consumer group is unable to make e-business purchases on the move. Though India is still a couple of years away from the scales tipping in favor of smartphones, the rapid downward spiral in the price of entry-level smartphones is an encouraging indication. I expect that the next few quarters will witness announcements of new smartphones in India at the $30-40 price point. That should stimulate growth in smartphone ownership. As a result E-Business market will also rise further.
RISKS INVOLVED IN MAKING PAYMENTS ONLINE
In the past decade, the Internet has evolved from a specific resource for IT pros and computer geeks to a daily destination for people all over the world. Recent years have also seen an explosive growth in the online retail arena. These days, many people are just as willing to order a book from Amazon.com as they are to stop by their local bookstore.
Those same people have embraced the Internet as an easy, effective method for paying bills and other banking. However, it's important to remember that there's a vast difference between making technology available and making it secure and reliable.
In an age when people regularly use corporate networks to access Internet banking and payment systems from work, visiting a fraudulent Web site or running a hostile e-mail attachment can result in a compromise of a corporate network behind a firewall system.
In the early days of online retailing, more than a few significant security breaches with online retailers occurred, most of which were credit-card-related. Frankly, I'm still reluctant to do my banking or buy anything online.
It's less than comforting to consider how few users really understand how easy it is to forge an e-mail message, much less an official-looking Web site. Many online vendors require users to register their credit card and banking information, which is really the only way they can operate to prevent massive fraud. Users may assume that this information will remain secure, but history has proven that assumption wrong several times.
If your organization's employees use any online services that require them to register banking or credit card information, they're exposing themselves—and the company—to risk. In addition to just losing account information, falling victim to a worm, virus, or keystroke logger may cost someone his or her job at many companies.
Hackers can often easily dupe users accessing online payment systems and banking systems into revealing their account information after receiving official-looking e-mails. But again, e-mail is pretty easy to forge. And even an intelligent user may have difficulty discerning an official e-mail from a forgery.
A number of e-mail-based online banking frauds are currently circulating the Internet. PayPal, MBNA, eBay, Citibank, and a number of British banks are popular targets.
Don't assume your company's employees are immune to these fraudulent campaigns—they can be quite convincing to a lot of people. Short of implementing a corporate policy that forbids accessing online banking services at work, education is the best solution.
Inform your users about the risks of disclosing account information. In addition, encourage them to investigate the policies of a corporation before using its online financial services.
Online fraud efforts will likely continue to increase, and it wouldn't surprise me to see many corporations begin to establish policies prohibiting any type of online banking from the corporate network. Given the current scams, it's not going out on a limb to say that this is probably the best policy for the near future.
Author Name
DEEPAK DAYAL
(MBA, LLB) | Managing Partner,
Dayal Legal Associates .India.
Advocate, Supreme Court Of India.
http://www.dayallegal.in
M : +919560732244
O: +919069113331
0 notes