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Delivering The Fundamental Tenants Of Payment System

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Ramki Gaddipati, Co-Founder and CTO, Zeta,,

Ramki is an entrepreneur at heart. He designed, developed and managed delivery of several scalable and distributed services and worked with various data storage engines and designed data storage tier for multiple services. Co-founded Bridal Info & Tech Sol company and later worked in Morgan Stanley as a manager.

Online banking, internet-based activities have increased. It has increased in muscles and bones. It also possesses the much-needed flexibility wherein, the users make their utility payments world-wide. The fundamental requirement of any online banking application is security to protect users’ confidential data. Today’s web-based payment services always require a username and password to authenticate the user identity. This is a significant vulnerability since the password can be captured. The user authentication method used by current online payment system is not adequate and secure. Thus, it is possible for an unscrupulous user to misuse people’s details. As such, the Biometric Payment system is presumed to transform the payment industry.

Though several solutions enabling cardholder authentication using biometrics already exist, yet, a full-fledged biometric payment system is still at large absent. A full-fledged biometric payment system is a platform where a user may make a payment at merchant POS terminal using biometric authentication. Such an application if widely used and accepted in countries like India can become phenomenal.

The immensely progressive moves from RBI and NPCI and various regulators in enabling the ecosystem is helping India make large strides. Coming to global adoption, Tokenization in Payment systems is assuming a powerful role. However, it is yet to become a phenomenon in Indian subcontinent. It is slotted to become an exciting and fantastic technological journey that will not only answer the authentication issue but also privacy and tax benefits. In a broader landscape, Tokenization is a very mature technology that needs to be adopted at a large scale in India.

Seamless Payment System with Benefits
Another aspect of a seamless Payment system is the Tax Saving Reimbursement. The employee tax benefits are very clear. There is a good possibility for every salaried employee to save upto INR 80,000 by just maintaining their day to day expenses properly. How one pays telephone bill, electricity bill and other expenses can be streamlined and if done in a particular way, it can save a fair amount. Earlier, it was not possible due to processes, descriptions and many other procedures. Another concern that remains is the while the internet connects everything; the technology has still not been able to connect payment with various systems. For instance, if you just go and do a transaction for fuel, that system enables the payment, but the transaction is not connective. It is connective to only payments and not to the rest of the system.

Tokenization in payment systems is assuming a powerful role. However, it is yet to become a phenomenon in Indian subcontinent

Filling the Gap between Payment and Information World
This is the biggest hurdle today. Information itself is not being connected and this fundamental issue needs immediate attention. If solved then we can do a lot many things after information is available in terms of helping the HRs and financial executives help people reduce expenses and prepare for certain expenses by helping them save money through tax benefits. Additionally, from the enablement perspective, the payment world and the rest of the information world is quite disconnected at the core. That is the biggest hurdle that we need to overcome.

A High-Impact Move for the World
Payment sector is the first and foremost empowerment that one can do to humanity as it is the core of the commerce sector. And whosoever is pushing and moving in it, is making a impactful move. This move might be taken for themselves, but it has huge significance for the world, too. And in this journey the fundamental tenants of running a payment system are security and privacy. These factors, no matter what, should be held as the core tenants of whatever we are delivering to the people. We should make sure that we have them water-tight and are able to guard these two aspects while delivering fascinating values to the customers.

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