In a move aimed at creating a payments acceptance network for unorganized retail including small merchants and kirana stores where consumers can make payments, India Post Payments Bank (IPPB) has partnered with Financial Software and Systems (FSS), a payments technology company to ensure that micro-merchants are able to accept payments over any channel – online, unified payments interface (UPI), quick-response (QR) codes, Aadhaar and IPPB accounts.
FSS will also provide merchant management and settlement solutions including on-boarding fee calculation, reconciliation and settlement, it said in a statement on Monday.
In an exclusive interview, Suresh Sethi, managing director and chief executive officer of IPPB had discussed the plans of creating a QR based payments acceptance network for unorganized retail sector mainly at the rural parts of the country. He had said the bank was also signing up merchants for so.
“FSS’ technology solutions are powering us towards achieving our objective to build a less cash ecosystem by enabling last mile digital payment services,” Sethi said in a statement on Monday.
The payments bank which was launched on 1 September by Prime Minister Narendra Modi will be using “Payments-in-a-Box solution” by FSS to leverage its postal delivery network comprising of 150,000 access points to cater to financially under-served customer segments – especially rural households, small and medium enterprises and women.
“As a technology company, FSS has a 27-year demonstrable track record of innovation and successful delivery of large-scale payment projects for Central regulators and leading banks globally. We are extremely committed to this prestigious nation building exercise with IPPB that will connect Bharat through digital payments,” Nagaraj Mylandla, chairman and managing director, FSS said.
FSS Payments-in-a-Box enables India Post Payments Bank to digitize every touch point in customers’ financial lives to make payments using a range of channels and instruments, the statement added.
IPPB has been incorporated as a public sector company under the Department of Posts with 100% government equity and is governed by the Reserve Bank of India.
IPPB offers a range of products such as savings and current accounts, money transfer, direct benefit transfer, bill and utility payments and enterprise and merchant payments. Customers are able to access these products and related services across various channels—counter services, micro-ATM, mobile banking app, text messages and phone calls.