Wednesday, 31 December 2014

Indian Payment Trends I Expect to Unfold in 2015

Indian Payments marketplace trends will be segment dependent. I have borrowed upon CK Prahalad's Pyramid model, while thinking about market segments.

Top of the Pyramid

At the Top of the Pyramid segment, it will be social commerce, for example Oxicash and ICICI are already providing transactions support over the social networks, others like EKO will be launching their respective products.

The CX (Customer Experience) of Social Commerce will improve.

Middle of the Pyramid

NFC based smart card prepaid wallets will be more popular with the middle of the pyramid. Currently the prepaid smart cards are not inter-operable in India, even though the standards and regulations are in place, the B2B relationships are in search of a robust business model. Recently, I heard about a NFC enabled ICICI Debit cards being co-branded with Delhi Metro, so that it can be used for a seamless travel experience in Metro.

Bottom of the Pyramid

For bottom of the Pyramid it will be card less ATM cash withdrawal, and Aadhar linked no frills accounts that can be transacted using a feature phone using National USSD Payments Gateway.

I wish for a better financially included India in the year 2015.

How ICICI Bank Looses e-Commerce Transactions

Today, ICICI Bank lost an opportunity to fulfill a payment for my evening shopping at Snapdeal.

 I saw a really good deal, with 80% off and decided to go for it. While checking out, I selected the Internet Banking payment option and choose ICICI Bank. However, after the first factor authentication, it's risk profile software, somehow decided to send me a SMS OTP (One Time Password)  on my registered number, which happens to be a prepaid Airtel mobile. Being the end of the year, with SMS traffic on it's peak, the SMS failed to reach me on time and the transaction timed out.

Fortunately, Snapdeal did not loose the transaction, and I could re-order from the shopping cart. I eventually had to pay by my virtual Visa Card.

A few lessons I learned from the CX (Customer Experience) :

  • It's a good idea not to empty the shopping cart before the transaction is fulfilled. I remember, Flipkart cleaned the cart out in past and I lost the full cart.
  • Banks should use more intelligent risk profiling, for example, I had logged into my ICICI Bank account about 15 minutes ago, using the same, IP, browser and the machine. If ICICI had taken a note of it, it could have avoided sending me an OTP and for second factor could have used the  usual means of debit card matrix. 
  • Be aware that SMS is not reliable, so either use USSD or send a backup OTP by mail. HDFC and Amex do this.
  • Having a mobile wallet would make immense sense for e-commerce sites. Flipkart has it.