Globally, while the contours of conventional and more established social norms get redrafted amid a health crisis, access to finance in India is activating a new normal through social payments, digital transactions, and increased currency in circulation. Direct Benefit Transfers, Jan Dhan Yojana, Bharat Interface for Money (BHIM) and Unified Payments Interface (UPI), ATM transformations, reforms in cash recycling and more are ushering in the desired metamorphosis that are all set to immensely benefit the economy and empower citizens with simple, secure payment options.

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A few nascent facts bear testimony to this revolution, rather an advanced progression. According to recent news, India has overtaken some rapidly growing economies in recording one of the highest numbers of countrywide digital payments or digital payment transactions. The digital payments industry in India, is expected to grow at a compound annual growth rate of 27 per cent during the FY20-25 period1. On the more conventional currency side, the country’s cash to GDP ratio in the current scenario is at an all-time high. With the RBI increasing the bank interchange charges, it is set to potentially spawn the rise of white-label ATMs, benefiting the populace primarily in rural and semi-urban India with easy access to banking services.

SHARING THE ETHOS OF EMPOWERMENT

Drive for digital, adequate technology deployment to extend cash and other financial access to the rural and unbanked, and world-class innovation are at its forefront. Throughout this successful journey of financially empowering India, Hitachi, a global leader in Social Innovation Businesses, has been partnering with the government and private institutions. Hitachi is extending its core philosophy of ‘Powering good’ the society and strengthening India as a financially inclusive nation. Citizen empowerment in terms of handling cash and transacting digitally has been one of the missions for which Hitachi has leveraged its credible, advanced OT x IT solutions to bring financial equanimity, robustly. Hitachi Payment Services Pvt. Ltd., a Hitachi Group Company, which is creating cutting-edge cash and digital payment solutions, has made Hitachi Payment Services (HPY) one of the cornerstones of collaborations with the government as well as private entities in this empowerment mission.

Hitachi has been leaving an indelible mark in advancement and inclusive growth through key partnerships with public sector as well as private sector financial institutions. On the cash side, Hitachi is setting up and managing White Label ATMs (WLAs), brown Label ATMs and pioneering change through cash recycling machines.

Hitachi Payment Services, under RBI license is a designated non-bank entity, has established and facilitated WLAs under the brand ‘Hitachi Money Spot’ primarily engaging Tier 3 to Tier 6 towns. Today2, Hitachi Payments has a network of over 5,800 WLAs as of August 2021. It also manages over 63,000 ATMs for banks, which include 27,000 cash recyclers.

As per Mr. Bharat Kaushal, Managing Director, Hitachi India, "A robust financial infrastructure forms the core of India’s stride towards economic progress. At Hitachi, our endeavour is to get directed towards making people more empowered. We utilize technology and innovation to bolster financial inclusiveness. We aim to facilitate true freedom. One that entails transacting at will, digitally and in cash, enabling social payments that are prompt and seamless. Our emphasis remains on enriching lives with the currency that can convert needs into fulfilment."

Cash recycling machines (CRMs) offer seamless cash deposits, secure cash withdrawal, efficient interoperability and more. Interoperability enables customers to easily deposit cash at a CRM operated by another bank while for banks, interoperability provides an additional revenue opportunity through interchange income. With CRMs and interoperable cash deposits, banks offer highly automated services enhancing convenience and trust.

The use of ATMs such as cash dispensers (CDs), bunch note acceptors (BNAs), cash deposit machines (CDMs) and CRMs have increased by leaps and bounds and so have challenges around information security. Hitachi Integrated Protection Application (HIPA) offers wide threat detection capability, centralized access control, unique whitelist feature and provides enhanced levels of protection to ATMs.

With such expanding ATM network, the need to maintain and manage them efficiently and to enhance ATM channel profitability also becomes a priority. PRIMA is a remote ATM Management Application that provides greater control over the ATM network and allows efficient management. It facilitates Electronic Journal Management, screen distribution, efficient reconciliation, and customer dispute resolution. It also uses advanced encryption standard, enforces proper user access control mechanisms, and is designed to prevent unauthorised access, thereby ensuring secure operations. On the cash side, these are at the heart of what Hitachi has been building to strengthen India financially.

WHEN THE RIGHT SOLUTIONS MEET THE DEMANDS

On the digital side, Point of Sale (POS) solutions, for one, are expansive and integral to Hitachi’s mission to financial inclusivity and empowerment of both large and small businesses as well as citizens. Hitachi Payment Services is one of the largest POS transaction processors in India. It manages over 1.35 million POS devices, including mobile POS & QR, besides Toll and Transit solutions. Hitachi’s electronic toll collection (ETC) solution enables seamless FASTag payments on toll roads. It also offers transit solution for acquiring and processing open-loop card-based transactions by metro commuters which are based on qSPARC 2.0 National Common Mobility Card (NCMC) specifications.

As per Mr. Rustom Irani, MD & CEO, Hitachi Payment Services Pvt. Ltd., "In both cash and digital payments, India is progressing rapidly. And Hitachi Payment Services is adding to this development by making a substantive contribution in building a robust payment infrastructure, thus also catalysing a deep penetration of its benefits. Hitachi’s Social Innovation Business that has manifested by helping India’s financial service sector to grow faster, drive financial empowerment for the masses, and meet the changing needs of society are today, more far-reaching than ever."

To elaborate more on POS Solutions, Hitachi Payments offers a wide range of solutions apart from traditional POS/MPOS solutions, such as integrated POS solutions for large retailers, government institutions and uniquely the SoftPOS Solution to let businesses accept payment via smartphones. POS value-added services such as Dynamic Currency Conversion (DCC) offers transparent, secure and convenient currency conversion options to cardholders having foreign currency cards, enabling merchants to offer a superior purchase experience while increasing revenue.

Further to accelerate Digital Payments in India, State Bank of India (SBI), the nation’s largest commercial bank and Hitachi Payment Services entered into a JV to build a state-of-the-art card acceptance and future-ready digital payment platform. The JV, SBI Payments offers a comprehensive suite of payment options to customers and merchants focusing on the roll-out of a nationwide card acceptance infrastructure, quick response (QR) code acceptance, Unified Payments Interface (UPI), mass transit sector and e-commerce businesses.

Another advancement is the robust Internet Payment Gateway solution. For businesses, it becomes vital to focus on a convenient, and secure online payment gateway to drive customer retention and satisfaction, thus boosting sales. Hitachi’s Internet Payment Gateway solution, with a combination of secure and reliable transaction processing, gateway services, fraud and risk management, reconciliation and settlement services and analytics, is the most comprehensive. It is agile and secure while offering industry-best success rates and uptime with the capability to handle high volumes.

THE FUTURE IS HERE!

Through cash and digital payment solutions, Hitachi Payment Services has performed relentlessly in key focus areas that have strategic social relevance for the growth of India, particularly its hinterland. Enabling the society and powering good through its Social Innovation Business that leverages technology, security, convenience driving access to cash and digital payments have more empowerment values than mere solutions deployment and support systems. Hitachi has played the role of a true nation builder and partnered with the government in taking forward the progress agenda. It is creating catalysts of development that are making huge social implications.

Know more about Hitachi Social Innovation

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Source:

https://www.financialexpresscom/industry/banking-finance digital-payments-to-skyrocket-3x-to-over-rs-7000-lakh-cr-by-fy25-mobile-payments-to-see-highest-growth/2217233/.com

https://www.hitachi-payments.com/index.html

This is a partnered post.

First Published:Oct 26, 2021 12:30 PM IST