ConvenienceinMobilityPayments
TheIndianpaymentecosystemhasevolvedsignificantlyoverthelastfewyears, especiallypostdemonetisationandthepandemic.Consumerstodayprefer makingdigitalpaymentsacrossalltouchpointssuchaspaymentcountersat retailoutlets,petrolpumps,transitmodes,e-commercewebsites,Kiosksetc. Whiledigitalpaymentsareprevalentinalmosteverysector,anewwaveof digitaltransformationislikelytobeseeninmobilitypayments.
Fordecades,cashhasbeenthepreferredmodefortransit/mobilitypayments. However,postdemonetisationandpost-pandemicera,digitalmodesof paymentshavewitnessedanunprecedentedgrowth.Oneofthemostimportant reasonsforthisisconsumers’growingpreferencetowardssafe,secureand convenientpayments.Tocatertothisdemand,variousmobilityservice providersarecollaboratingwithpaymentplayerstoofferhassle-freedigital paymentsolutions.
Letusunderstandhowconvenienceinmobilitypaymentsisshapingthewayfor amoreseamlesstransit/mobilitypaymentecosysteminIndia:
Riseofsuperapps
Indiahaswitnessedtheproliferationof‘superapps’inthelastdecade.These areall-in-onemobileapplicationsthatcanbeusedfororderingfood,hailing taxis,onlineshopping,buyingtravelticketslikeMetro,flightsetc.,recharging phonesandsoon.InthecontextofIndianmobility,theseapplicationsletyou makepaymentsforsuchserviceson-the-gobywayofQRcodes,UPIetc.This reducesthehassleofnavigatingthroughazillionapplications,thusenhancing overalluser-experienceandprovidingaddedconvenience.
Fuelpaymentsbecomingmore‘swift’
Fuellingisanimportantpartofthemobilityecosystemofourcountry. Traditionally,fuelRetailOutletsi.e.ROshavebeencashintensive.However, postpandemicthereisanincreasedadoptionincontactless/digitalpayments acrossOMC’sfuelretailoutlets.Thisisevidentbythevariousdigitalmodesof paymentssuchascardpayments,UPIQRonPoSorotherwiseofferedacross fuelretailoutlets.VarioustechnologysolutionssuchasAGSTransact Technologies’IntegratedPaymentSolutionorIPS,providesmerchants additionalcontrolovertransactions,greatertransparencytoendconsumers,thus encouragingdigitalpaymentsviaPoSatfuelretailoutlets.
Growingawareness,theGovernmentofIndia’sinitiativesofincentivising digitalpaymentshaveencouragedboththeconsumers&merchantstooptfor digitalmodesofpayments,especiallyatfuelretailoutlets.Accordingtoan industrysurveyconductedin2020,around90%ofthepetrolpumpcustomersin Mumbaiusewalletsandotherdigitalpaymentmodessuchascardswitnessed over50%increaseinpetrolpumpsoutsidebigcities.
Digitalpaymentsarecontinuouslyenhancingcustomerexperiencebyoffering addedconvenienceintheformofreducedtimespentattheRO(needforexact changeincashpaymentisnegated),greatertransparencyintheoverallprocess andhassle-freemanagementofe-receiptsandtransactionhistory.Further,the reward/loyaltypointsearnedaddtothisexperience.
Asexperience&convenience-basedofferingsgainmomentum,manypayment playershaverenewedtheirvalueproposition. Forinstance,AGSTTLthrough itsdigitalpaymentsbrandOngo,ispilot-testingRFID-basedrefuellingacrossa leadingOMC’sfuelretailoutlets.Thissolutionaimstoenhanceoverallfuelling experienceofthebyoffering‘convenience’.
IntroductionofmobilitycardsortheNationalCommonMobilityCard
WithinteroperabilitygainingmomentumandtheGOI’sintroductionofNational CommonMobilityCard(NCMC),Indiaissettobeatparwithitscounterparts. TheNationalCommonMobilityCard,supportedbyRuPaynetworkenables paymentsformulti-modaltransitinIndia.Thiscardallowsconsumerstomake paymentsatRuPay-acceptedtouchpointsacrosssectorslikethemetro,bus, suburbanrailways,retail,toll,andparking.Suchservicesareexpectedtoboost cross-platformpaymentsinasafe&securemanner.Apaymentmodesuchas thisimprovescustomerexperienceandintegrates‘convenience’deeplyinthe valuechainofmobilitypayments.
Recently,Hon’blePrimeMinisterNarendraModisymbolicallyinaugurated BangaloreMetroanditsRupayNationalCommonMobilityCard,issuedby RBLBankandpoweredbyAGSTransactTechnologies.Inadditionto BangaloreMetrostations,theNCMCcardcanalsobeusedatanyNCMC enabledmetrostationsacrossthecountrysuchasKochiMetro,DelhiMetroand MumbaiMetro.Beinganopen-loopcard,itcanbealsousedtoshopandpayfor parking.
Tollpaymentsgoingdigital
FASTag,theGOI’sproductforelectronictollcollectioninIndia,speaks volumesabouthowconveniencehasfoundhomeeveninthemosttraditional paymentchannelssuchastollcollection.BasedonRFIDtechnology,thistagis affixedonthewindscreenofuser’svehicle,anditisscannedthemoment passesthroughthetollgates.Thishasresultedinreducedwaittimeattoll plazasandnegatedthehassleofexchangingexactchange,therebyenhancing theoverallconvenienceinvolvedinanindividual’sday-to-daycommute.
Thesebenefitshaveledtoanexponentialincrease–withthenumberof transactionsusingFASTagwitnessingagrowthofapproximately48%in2022 ascomparedto2021.Inaddition,FASTagisextendedforanothercrucial componentofthemobilityecosystem–parking.Beinginteroperable,FASTag
issuedbyanymemberbankisacceptedatallNETCenabledparkingspaces. Thisfacilityeliminatestheneedforcashtransactions,resultinginquicker entry/exit.
Toconclude,whilecashistoutedtobethemostconvenientandthuspreferred modeofpaymentacrosssectors,thegrowingneedforconveniencewillbethe primary/drivingforceinmobilitypayments.Thiscouldbeachievedby innovation,integration,andcollaborationtooffer‘payments-on-the-go’,with theaimtoprovideaseamless,swiftertravellingexperience. Hence,ina cut-throatworld,whatwilltrulydifferentiateoneofferingfromtheotheristhe levelofconveniencethattheuserwillgettoenjoy.