<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner-5.webp" alt="M2P Fintech" title="" width="100%" height="284">BNPL, the acronym for Buy Now Pay Later, though a relatively new concept, is slowly becoming the talk of the town. The new-age shopper is now drawn to BNPL products and is ditching the traditional payment options like Credit Cards. The article below explores the “why” of this paradigm shift.Starting from the ease of checkout to personalized offers, BNPL has masked the word and feeling of a “Loan.” It is simply viewed as Buy Now and Pay Later minus the paperwork and as a different IOU avatar. Along with the single-click checkout, BNPL also gets your merchant to bear the cost of No Cost EMIs. The<a class="link" href="https://m2pfintech.com/blog/factors-and-psychology-behind-the-great-bnpl-allure/"> factors and psychology behind the allure of BNPL</a> will sure make this the next big thing in consumer finance.<h2 class="heading-node" id="92eu7wjat">Are credit cards getting left behind?</h2>Traditional <a class="link" href="https://m2pfintech.com/blog/credit-card-processing-a-definitive-guide/">credit cards</a> were once a great choice for credit lines, but they are also perceived as a debt trap. Often, the lack of transparency and complex interest calculations attract heavy penalties and bad credit scores for the customer, leading to difficulties when securing a loan in the future.This is where BNPL holds a massive advantage over traditional credit cards. They offer a clear and transparent checkout option where the consumer is presented with all the factors of applicable charges and due dates upfront.Some BNPL players have even gone a step further and adopted time-tested <a class="link" href="https://m2pfintech.com/blog/six-profitable-bnpl-business-models-to-unlock-infinite-value/">business models</a> and have appended penalties for specific time frames. So, in the end, the new-age shopper not only gets flexible repayment options, but they are also empowered to understand financial nuances in case of late or missed repayment.<h2 class="heading-node" id="hlrx7eya9">BNPL in India</h2>After creating ripples in the US, Canada, Australia, and Europe, BNPL has now started its journey in the Indian <a class="link" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/">fintech</a> ecosystem. And in a country where loans are generally frowned upon, BNPL has captivated customers with ease of payment, right at the checkout page.<h2 class="heading-node" id="njbjh0x7b">What is its premise ?</h2>Even though BNPL applications have adopted different means to facilitate checkout, they center around the issuance of “credit.” It also increases the shopper’s purchase power while completing the transaction with minimum hassle.Moreover, like Credit cards — BNPL applications are powering users for:<ol class="list-node" id="i38mltydk"><li>&nbsp;Consolidating many small expenses in one bill</li><li>Splitting a major expense in multiple repayments</li></ol><h2 class="heading-node" id="8i4r6mnzz">Let’s assess the BNPL options here in India!</h2>For example, Anuj has a list of standard expenses made at different e-commerce and hyperlocal players. He pays them all via a debit/credit card, which means entering card details, OTP, and finally paying the credit bill. With a single BNPL application where there is no need of OTP or card details, Anuj gets to shop without the hassle and gets to settle the bill through his preferred settlement option.So this option of BNPL has and offers the following features:<ul class="list-node" id="sd226xl5k"><li>Suited for small ticket sized purchases</li><li>Monthly or fortnightly settlement cycle</li><li>Single-click checkout</li><li>Late payment charges and penalties applicable on delayed repayments</li></ul>So, next comes the question of big ticket purchases:Let’s assume Anuj wants a new TV that is top of the line in the market and quite expensive. While using a credit card to make a purchase is a traditional method, BNPL offers a much easier way. The TV’s cost will be split into 4 EMIs, while the TV seller/merchant bears the EMI’s interest charge. So, in the end, the merchant gains a loyal customer, and Anuj gets a better way to manage his finance with manageable repayments.In this method, BNPL works this way:<ul class="list-node" id="ojf0e1333"><li>Suited for higher ticket sized purchases</li><li>Bill split into multiple EMIs as provided by the seller</li><li>Seller funded no-cost EMIs up to a time frame</li><li>Late payments penalties accrue if a due date is missed</li></ul><img src="https://miro.medium.com/max/1400/1*0IJebDapK8llqNbqHPZRig.png" alt="Features of Buy now pay later (BNPL)" title="" width="100%" height="227"><h2 class="heading-node" id="e9a4">Who are the users of BNPL?</h2><blockquote class="block-node" id="0m4ltzb7o">Millennials, Bridge Millenials and Generation Z, are the early adopters of BNPL.Source: Pymnts- Buy Now Pay Later Report-2020</blockquote>It is worthwhile noting that the youngest millennial is turning 25 this year, and he can be assumed not to be the ‘reckless spender.’Alternatively, cash transactions are in the lead, followed closely by debit and credit cards. However, with BNPL and digital wallets, this dynamic is slowly shifting, and it is an exciting wait to see who tops the chart. Many users who have never used or have limited exposure to credit cards rely on BNPL applications for credit needs.<img src="https://miro.medium.com/max/1400/1*PP1cOWo5J44sdLX1XpGnAQ.png" alt="Top reasons for using BNPL services" title="" width="100%" height="227"><h2 class="heading-node" id="7886">Well, now the fundamental question arises about the user without a good credit history.</h2><a class="link" href="https://m2pfintech.com/blog/how-can-lenders-overcome-challenges-in-deploying-bnpl-solutions/">BNPL lenders</a> give credit lines to shoppers based on secondary data. For example:· They analyze the data points like shopper’s history with the merchant<ul class="list-node" id="nmesbiiog"><li>· Average order size, time of association</li><li>· Order behavior like the number of prepaid, canceled, or COD orders.</li><li>· Order history and other available digital footprints of the shopper.</li></ul>Based on this data, <a class="link" href="https://m2pfintech.com/blog/winning-business-models-for-bnpl-lenders/">BNPL lending business models</a> enable credit to a user, and it gets enhanced as he/she makes timely repayments of the offered credit.<h2 class="heading-node" id="tpb0fu2ew">Connection between COVID and BNPL</h2>The ongoing pandemic has certainly accelerated BNPL adoption across the globe. With employees being laid off, being furloughed, and the uncertainty about their income, consumers are inclined towards budget-friendly payment options in which BNPL certainly takes the lead. Merchants are also more receptive to BNPL applications than they have ever been as it increases their consumers’ purchase power.<h2 class="heading-node" id="a0c0">How does the future look for BNPL?</h2>BNPL, in a decade, has taken the lead even though banks have been lending for hundreds of years. Today, banks are trying to keep up and switch to a digital-centric approach, such as providing their BNPL offerings and partnering with a Fintech to co-create solutions for consumers. BNPL, for banks, is an excellent medium for portfolio diversification.In India, BNPL has been scratching the surface, and it has a long way to go. Internet penetration has created the market where BNPL could fly in the coming years with FinTech’s, Banks, and Merchants’ necessary push.We can expect regulators also to fence BNPL offerings in the coming years. One thing is for sure, BNPL is here to stay, and it’ll keep on luring consumers. We are yet to watch its full potential and need to wait to see how BNPL shapes commerce in the future.To know more about BNPL, write to business@m2pfintech.com.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

BNPL - The Rising Fintech Star

Ready to Sneak Peek into Global Cashless Societies

50 Popular Fintech Terms You Must Know

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/pci-dss.webp" alt="M2P Fintech" title="" width="100%" height="253">The payment industry is constantly growing where every upgrade plays an important role in developing trust among users by protecting their sensitive data. So, every business that is an active participator needs to meet few security standards that act as Armour.One such globally recognized standard is PCI DSS.The PCI Security Standards Council came up with a Payment Card Industry Data Security Standard (PCI DSS) framework to protect credit and debit card transactions and card holders’ data from breaches. It is a mandate for every merchant and service provider to abide by this protocol for a smooth customer experience.<h2 class="heading-node" id="e2ee" style="text-align: justify">How was PCI DSS created?</h2>It all began during the internet boom in the late 1990s, when the initial stage of e-commerce brought in many fraudsters and excitement. When the retailers, merchants, card networks, consumers widely accepted the emerging web-driven transactions, they witnessed a steady increase in credit card fraud and scams. That is when the card networks like American Express, MasterCard, and Visa started to dig deep into the issue to create standards for payment processing systems.With Visa taking the lead in 2001 “Cardholder Information Security Program” standard was introduced, followed by the other companies implementing their security standards. But it did not meet the expectations of the merchants and POS terminals as they need to comply individually with the company-specific standards. This resulted in great difficulty for merchants as they have to comply with different standards when they are approaching multiple card networks. So, the collaboration of the major card networks such as American Express, Discover, JCB, Mastercard, and Visa birthed PCI DSS version 1.0 in December 2004.Later in 2006, the Payment Card Industry Security Standards Council (PCI SSC) was formed by a joint venture of MasterCard, American Express, Visa, JCB International, and Discover Financial Services to manage PCI development and alignment of policies to PCI DSS. PCI SSC ensures that the entities are committed to secure credit card data.PCI DSS is now a globally recognized directive where every merchant who accepts card payments must comply with the latest version, PCI DSS 3.2.1, which was released in May 2018.<h2 class="heading-node" id="edca" style="text-align: justify">Why do merchants need to comply with PCI DSS?</h2>Since there are over multiple card transactions taking place in the market, a safe business environment becomes the prime concern for the merchants to lead a long haul. A business compliant with PCI DSS always earns customers’ trust for their sensitive card information and helps boost the sale and customer confidence. As every business relies on partners, acquirers, or fellow industry mates, being a PCI DSS Compliant helps improve one’s reputation and strategies.Data breaches, payment card data theft, can be avoided as it is stored securely and monitored on a regular basis. In addition, PCI DSS even helps in improving IT infrastructure efficiency with its compliance levels and requirements.<h2 class="heading-node" id="de60" style="text-align: justify">PCI DSS Compliance levels</h2>There are four levels of PCI DSS Compliance based on the number of annual payment card transactions a business handle.Level 1:&nbsp;over 6 million TXNLevel 2:&nbsp;1 to 6 million TXNLevel 3:&nbsp;20,000 to 1 million TXNLevel 4:&nbsp;fewer than 20,000 TXNCheck out our guide to the&nbsp;<a class="link au mj" href="https://m2pfintech.com/blog/pci-dss-a-quick-guide-to-its-levels/" rel="noopener">PCI DSS Levels</a>&nbsp;and their impact on compliance.<h2 class="heading-node" id="a8f1" style="text-align: justify">Requirements for PCI DSS Compliance</h2>Every system entity and component associated with Cardholder Data Environment (CDE) must comply with the PCI DSS mandate. It includes requirements for security management, policies, procedures, network architecture, software design, and other critical protective measures.PCI DSS sets forth 12 requirements for every PCI DSS complaint established by the PCI Security Standards Council:<h3 class="heading-node" id="757b" style="text-align: justify">1. Firewall Configuration</h3>Firewalls are installed and configured to protect card holders’ data from any malware. It helps the prevention systems effectively to defend the hackers from unauthorized access to private data.<h3 class="heading-node" id="625d" style="text-align: justify">2. Password Security</h3>Businesses should not use vendor-supplied defaults for system passwords and other security parameters in their routers, modems, point of sale (POS) systems, and other third-party products. Instead, basic precautions and configurations like changing the password should be followed as the public can easily access the generic passwords and security measures.<h3 class="heading-node" id="ad5f" style="text-align: justify">3. Protection of Cardholder Data</h3>The stored cardholders’ data must be encrypted with two-fold protection and certain algorithms. Also, the primary account numbers (PAN) must be regularly scanned and monitored to avoid any unencrypted data.<h3 class="heading-node" id="1dad" style="text-align: justify">4. Encryption of Transmitted Data</h3>The cardholders’ data should be encrypted when transmitted across open, public networks like payment processors, home offices from local stores, etc. Sharing the account numbers to unknown locations must be avoided.<h3 class="heading-node" id="9653" style="text-align: justify">5. Antivirus Software</h3>All the systems used for interacting, sharing, storing PAN must be protected against malware by regularly using and updating antivirus software or programs. Also, POS providers must employ anti-virus measures and maintain up-to-date antivirus programs to prevent systems from malware.<h3 class="heading-node" id="f58e" style="text-align: justify">6. Secure Systems and Applications</h3>To add another layer of protection to the data, the providers must develop and maintain secure systems and applications. These systems and applications that are used as the storage of data for interaction must be updated regularly.<h3 class="heading-node" id="f835" style="text-align: justify">7. Restriction of Access</h3>The cardholders’ data are restricted to access by business need-to-know, and the sensitive data must be accurately documented and updated regularly.<h3 class="heading-node" id="bffa" style="text-align: justify">8. Unique Access ID</h3>Individual credentials and ID are assigned to each person with computer access to card holders’ data. Single access ID and password should not be used as it results in more vulnerability and slow response time.<h3 class="heading-node" id="57e9" style="text-align: justify">9. Restriction of Physical Access</h3>Card holders’ data must be physically stored in a secured location where any physical access is restricted. Physically written, typed, or digitally stored data must be secured in the room, and in case of any access, it should be added to the access logs.<h3 class="heading-node" id="7c0d" style="text-align: justify">10. Maintain Access Logs</h3>As mentioned in the previous requirement, all access to network resources and cardholder data must be tracked and monitored in the access logs. This proper record keeping and documentation must be maintained with utmost accuracy as it is related to sensitive data.<h3 class="heading-node" id="aecf" style="text-align: justify">11. Testing Security Systems and Processes</h3>Regularly testing/scanning security systems and processes result in less vulnerability as it involves many digital data, software programs/products, physical locations, etc.<h3 class="heading-node" id="625c" style="text-align: justify">12. Document Policies</h3>Document policies that address information security for all personnel must be maintained right from storing to transmitting/using data after POS.So, with these twelve requirements, PCI DSS comprises six objectives to ensure optimal security for merchants who accept, process, transmit, or store payment card information.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/image-1.webp" alt="M2P Fintech" title="" id="jxi8l3syj" width="100%" height="253">With PCI DSS’s strong objectives and compliance requirements, the security of the payment industry is strengthened. These measures help and encourage data security and facilitate the adoption globally. So, hereby businesses that handle card payments need to be a part of this global payment card data security solution and focus on increasing the intensity to move forward by becoming ‘PCI DSS Complaint.’Look forward to our upcoming blogs as we uncover PCI SSC’s other standards such as PCI 3 DS, PA DSS, PCI PIN Security, and PCI SSF.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

PCI DSS: The Payments’ Armour

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner-1.webp" alt="M2P Fintech" title="" width="100%" height="383">Sara usually travels around the globe for her official trips quite frequently, and she enjoys shopping at local shops to bring back memorabilia for colleagues and family. Nairobi was on her frequent travel list, and she loves to shop the local markets for their rich handicrafts. The popular currency formats in Nairobi were either M-Pesa or Nairobi Shillings.However, carrying local currency is not a good idea, and M-Pesa requires a local account and sim card for starters. At the same time, using international debit or credit cards will attract too many charges.That’s when Forex Cards came to the rescue.With single or multiple currencies in one card that has safety and comfort as it is a core feature, forex cards were the best solution Sara could ask for, making her travel much easier.<h2 class="heading-node" id="60d6">So, what is a Forex card?</h2>A forex card can hold single or multiple currencies in a single card, prepaid by nature. It is a globally accepted prepaid card with features of ATM withdrawal, just like a debit/credit card. Therefore, it is a safer and fool-proof way of managing finances abroad, be it for professional or personal travel.<h2 class="heading-node" id="fd11">Types of Forex cards</h2>Forex cards come in various types, and they can be chosen as per the traveler’s requirement. The forex cards are typically differentiated as:<h3 class="heading-node" id="537f">Single-Currency Forex card</h3>This card holds a single international currency and is usually available when travelers only intend to visit one country. Furthermore, if the traveler tries to transact in any other currency other than the preloaded currency, they will end up paying high conversion charges along with markup fees and additional applicable charges.<h3 class="heading-node" id="06ae">Multi-Currency Forex card</h3>Best suited for globetrotters, this type of prepaid forex card allows the user to carry multiple international currencies in one card.<h3 class="heading-node" id="b841">Student Forex card</h3>This type of forex card is specifically designed for the new adults embarking on their maiden financial journey on account of their studies. It also doubles up as an identity card known as International Student Identity Cards (ISIC cards). Student forex cards also offer student discounts and can help primarily help in managing living expenses abroad.<h2 class="heading-node" id="7423">How does a Forex card work?</h2>Like a debit/credit card application, the traveler needs to apply for a forex card with the bank or forex service provider. Once the application goes through, the applicant can load their desired currency of GBP, USD, SGD, EUR, and others in the card.Also, certain documents need to be submitted when applying for forex cards:<ul class="list-node" id="1689ax4q6"><li>Forex card application</li><li>Self-attested copies of Visa and Passport</li><li>Copy of confirmed air tickets of the visiting countries</li><li>The usual attachments of Identity and Address proof</li></ul>If the traveler is a student, they need to submit some additional documents like:<ul class="list-node" id="7zz3nxzh8"><li>Admission letter</li><li>University Identity card or</li><li>Letter of appointment</li></ul>Post these documents verification, the forex card gets approved, and it will be either shipped to the applicant’s address, or they can pick the card up from their choice of branch.The traveler can load the card as per their choice of currency by issuing a standing instruction to the service provider. They can specify the international currencies they want along with the amount in each of the currencies. If the currency conversion happens via a bank, their bank account will be automatically debited, and their multi-currency card will be loaded.If it is a forex service provider, the traveler can load the card using the issuer’s <a class="link" href="https://m2pfintech.com/blog/what-is-a-payment-gateway-and-payment-switch-understanding-the-basics-of-payments-architecture/">payment gateway.</a> Then, they can make the payment by using the standard options of debit card, credit card, net banking, etc.At the same time, forex cards also carry a certain number of charges that may differ depending upon the issuer. Some of the common charges are cash withdrawal, balance inquiry, SMS alerts, cross-currency mark-up charges, etc.Even though forex cards come with their share of charges, they still reign supreme over other payment methods like debit cards, credit cards, or travelers cheques. And the popular opinion claims that forex cards are a much better option when compared against these instruments.<h2 class="heading-node" id="bcc0">Advantages of Forex cards over Debit/Credit cards</h2><h3 class="heading-node" id="97c7">ATM withdrawal fee</h3>Forex cards have set ATM withdrawal fee that is usually lower than credit/debit cards, and they are now accompanied by conversion fee as well.Debit/Credit cards come with a withdrawal fee plus a markup fee of 1% to 3% and currency conversion charges. While it may differ between card issuers, the charges remain significantly higher than using a forex card.<h3 class="heading-node" id="9eda">Transaction charges</h3>Swiping prepaid forex cards doesn’t levy extra transaction charges as the local currency is used for the transaction.Swiping a debit/credit card will attract extra charges as the foreign currency will be converted to the local currency and then will be charged to the traveler’s account. Furthermore, it will attract a markup fee along with other applicable tax charges.<h3 class="heading-node" id="745d">Exchange Rates</h3>In forex cards, exchange rates are well locked in advance, which protects the traveler from fluctuations in the exchange rate.There is no exchange rate lock, and the value of the rupee often fluctuates against most of the international currencies in debit or credit cards.<h3 class="heading-node" id="4562">Temptation</h3>Forex cards curbs the temptation to overspend while overseas as it is a prepaid card and comes with an already set limit.Credit cards come with an overdraft facility that will tempt the traveler to overspend and end up with a huge bill.<h2 class="heading-node" id="1f24">Advantages of Forex card over Cash</h2><h3 class="heading-node" id="400f">Better exchange rates</h3>Forex cards come with better exchange rates when compared to cash conversion. Also, the traveler gets to enjoy locked-in exchange rates that do not fluctuate on a daily basis.<h3 class="heading-node" id="6a8f">Safety</h3>Cash is only safe when it is stored in a vault, and it creates an inconvenience when carried in huge amounts, whereas a forex card is a CHIP and PIN enabled card that offers top-of-the-line security to the traveler.<h3 class="heading-node" id="5b55">Theft</h3>In case of cash theft, there is no possible way to get the money back nor reclaim damages. But in case of forex card theft, the traveler can immediately block the card and request a replacement card, no matter their geographical location.<h3 class="heading-node" id="568d">Multi-currency</h3>It is practically impossible to carry around wads of cash in different currencies as it is neither safe nor smart to walk around with cash. It is a hassle to keep and use the right currency without the confusion around the country’s native currency. Whereas when using a forex card, the card will automatically detect the country and carry out transactions using the preloaded local currency.<h2 class="heading-node" id="cfd4">Advantages of Forex cards over traveler’s cheques</h2><h3 class="heading-node" id="6c46">Modernized version</h3>Forex cards are the software upgrade of traveler’s cheques. They are widely used and come with convenience and comfort at their core. Traveler’s cheques are antique, primarily out of use, and are not accepted worldwide anymore.<h3 class="heading-node" id="6875">Associated Fees</h3>Both forex cards and travelers cheques come with their share of fees and charges. But travelers cheques are a bit on the higher side as they involve traveler cheque creation and encashment plus the usual charges.<h3 class="heading-node" id="714c">Handling</h3>Forex cards are easy and convenient to handle; all it takes is a swipe for a transaction and a few clicks to customize the card. Whereas traveler’s cheques are outdated and hold no meaning in the world of <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payments</a>.<h2 class="heading-node" id="b53b">Why a Forex card?</h2>While Forex cards do allow for frictionless travel, they also come with a host of other benefits such as:It is the safest form of carrying cash, and they are PIN-protected prepaid cards. For example, M2P’s Forex cards enable a traveler to load up to 24 currencies in one card, and it also comes with an app that offers a virtual wallet.They also come with an app feature. For example, <a class="link" href="https://m2pfintech.com/">M2P’s</a> digital travel money app offers the feature of configuring spending limits, channels and block/unblock the card. The traveler can lock in the exchange rates, and buying a forex card is cheaper than cash currency conversion. Also, it saves them fluctuating rates when using debit/credit cards.The traveler can save on transaction fees typically charged by debit and credit cards. They range from 2% to 5% and are coupled with markup fees, applicable taxes, and so on.It can be reloaded from any part of the globe and access a 24/7 customer support team. Travel cards are predominantly accepted everywhere without additional charges.Also, many issuers allow the auto-sweep feature when one currency in a multi-currency wallet goes low. For example, M2P will transfer funds from the GBP wallet to the USD wallet if the wallet balance becomes low when initiating a purchase. It doesn’t require any additional confirmations from the user, and they can easily transact at their preferred platform.It also comes with an ATM feature and can be used in any Visa or MasterCard terminal. Upon return, the balance currency can be converted back into INR without any hassle. Most often, the issuers also offer travel insurance cover along with the forex card.Gone are the days when foreign travel mandated carrying around cash hidden inside the layers of dress and goodies as a safety precaution. With the travel ban slowly being eased in many countries across the world and with M2P’s multi-currency forex cards as a travel companion, today’s globetrotters can enjoy secure and hassle-free travel.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Forex cards- International travel made effortless

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/Artboard-1-copy-8-3-1.webp" alt="M2P Fintech" title="" width="100%" height="383">Did you know?PPIs in India grew at a 53% CAGR from 41Cr (May 2017) to 226Cr (May 2021). And the potential for future growth is enormous.New to the PPI world?Here’s a little introduction for you.PPIs are prepaid payment instruments that enable <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payments</a> via mobile wallets, <a class="link" href="https://m2pfintech.com/blog/prepaid-cards-101-a-definitive-guide-for-growth-and-profitability/">prepaid cards,</a> and paper vouchers. They are disruptive business enablers with the ability to accelerate the profitability and growth of enterprises worldwide.But how can you tap into the potential of PPIs?First, you need to understand the dynamics behind PPIs. The infographic below will help you grasp and analyze the evolution of PPIs in India from the era of demonetization to the pandemic. You can tap into its immense potential by comprehending growth factors, current status, thriving possibility, RBI initiatives, and much more.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/PPI-1-aug-11.webp" alt="M2P Fintech" title="" id="xbufzjb8z" width="100%" height="1774"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/PPI-2-aug-11.webp" alt="M2P Fintech" title="" id="46kompytm" width="100%" height="2165"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/PPI-3-aug-11.webp" alt="M2P Fintech" title="" id="fjn663498" width="100%" height="2085">Email us at&nbsp;<a class="link au lg" href="mailto:ping@m2pfintech.in" target="_blank" rel="noopener ugc nofollow">ping@m2pfintech.in</a>&nbsp;to issue customized prepaid cards and wallets incredibly fast.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Disruptive business enablers -Prepaid Payment Instruments (PPIs)

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner1251-8.webp" alt="M2P Fintech" title="" id="rvrudoanq" width="100%" height="317">India has the highest Fintech adoption rate of 87%, significantly higher than the global average rate of 64%.India is rapidly evolving and is one of the fastest-growing Fintech markets globally and has also emerged as Asia’s biggest destination for Fintech deals, leaving behind China. Advanced technologies and a customer-centric approach are what bring this thriving industry its profound growth in this decade.Having witnessed this flourishing industry and its achievements, let’s look back on its evolution rather a revolution. So, gear up as this article throws light on how the fintech industry has steadily evolved over the years.<h2 class="heading-node" id="5995" style="text-align: left">The fintech landscape in India</h2>Ever since the start of modern society, finance and technology were entwined robustly. The beginning of the Fintech industry globally is traced back to the 19th century when technology started to mark its place in history, which made the fintech industry flourish.According to a research paper by Arneris, Barberis &amp; Ross, the significant stages of fintech are differentiated into the following eras, which will help us understand the steady fintech evolution better.<h2 class="heading-node" id="ab20" style="text-align: left">Fintech 1.0</h2>Outmoded technologies like the telegraph and Morse code were first used to transmit financial information across borders to strengthen the infrastructure rapidly. Then, later during the 1950s, the credit card was first introduced and was the first financial product in the industry, and to everyone’s surprise, it is still in the game.In India, many British Raj banks were nationalized post-independence, when the country’s economic growth started to shoot up, and banking services were availed by many citizens.<h2 class="heading-node" id="aff2" style="text-align: left">Fintech 2.0</h2>This era has marked the switch from analog to the digitalization of finances led by traditional financial institutions. People perceived finance management and financial institutions differently after the outbreak of the internet. The 1980s and 1990s were the high point in history when online banking pushed the fintech industry to the limelight with electronic installment framework, web-based business models, web-based shopping, portable banking, and digitization of banks.The banks started to experiment with online banking in the 1980s, got the hang of it by the 1990s, and made it even more popular. In India, ICICI Bank was the first to step into this internet banking space with limited banking services like access to account details and transfers within the bank. Other banks also started to follow the path and rapidly altered the way of banking. It is no wonder banks had faced challenges like technical mishaps, fraud, complex cross-border transactions, payment methods, etc.Fintech 2.0 gave the fintech industry’s modernistic look, and the below listed important events triggered the rise of fintech in India.<ul class="list-node" id="ef0j04wu4"><li>The first Indian ATM to withdraw cash was launched in 1987, Mumbai by HSBC.</li><li>In 1980, the Central Bank of India launched the first credit card in India.</li><li>Stanford Federal Credit Union was the first institution to let its customers access banking functions via the new World Wide Web in October 1994.</li><li>PayPal launched in 1998, which took the payment systems further after the internet boom.</li><li>The Global Financial Crisis in 2008.</li></ul><h2 class="heading-node" id="2020" style="text-align: left">Fintech 3.0 — The rise of Indian Fintechverse</h2>By the time the 21st century rolled around, India had emerged as one of the active players in this era with a plethora of smart advancements and entrants. Moreover, the Global Financial Crisis in 2008 paved the way for the fintech industry to gain traction and become ubiquitous. People started to shift from the traditional banking system slowly and developed trust over the new entrants.The release of Bitcoin v0.1 in 2009, Google Wallet in 2011, Apple pay in 2014 was the start that shaped the face of the fintech industry in India. Since India focused on customer-centric financial products and services, it has seen more rise in few years. The 2016 demonetization drive pulled in a lot of significance for the fintech. The Indian government’s move towards Digital India and to turn India into a cashless economy with financial inclusion also hands out immense support to fintech companies.Ever since the traditional banks were struggling to roll out their banking services integrated with the SWIFT system, fintech start-ups started to share the industry space through collaboration. SWIFT system’s initiative like SWIFT GPI provides end-to-end tracking with high security for the transactions. The Indian financial sector opened the door wide open for fintech to offer innovative and cost-efficient financial solutions.The rapid adoption of fintech had many Indian firms establish like Paytm, Phonepe, Mobikwik, Freecharge in few years. This made sure smartphone adoption is here to stay and will become the primary method for people to handle their money wisely.The span of around five years led to more than 2000 fintech companies in India at present and became the era of fintech start-ups. This made even the traditional banks rethink their strategies and welcome more fintech inclusion in their services to get hold of present-day tech-savvy customers. Open Banking, Banking as a Service (BaaS) were adopted by traditional banks that allow third-party service providers to access their financial data. BaaS further fuelled the entry of neo banks and digital banks in India.Fintech applications like mobile payments, automated investment apps (Robo-advisors), online lending businesses, and crowdfunding platforms have taken the financial industry by storm.The following technologies contribute oodles of success to the fintech ecosystem:<ul class="list-node" id="852pkzxgr"><li>Artificial Intelligence (AI)</li><li>Machine Learning (ML)</li><li>Big Data and Data Analytics</li><li>Robotic Process Automation (RPA)</li></ul><h2 class="heading-node" id="4ca4" style="text-align: left">Factors that led to India’s immense Fintech growth</h2>The quick adoption of new solutions and financial services made India, a country with the highest fintech usage. The factors which drive India’s fintech growth to the next level are listed below.<h3 class="heading-node" id="0376" style="text-align: left">Painless payments</h3>Easy digital payment is the key player in the fintech ecosystem, gaining trust and pulling many users in. Since its beginning, the merchants and shoppers have enjoyed this and made it even popular during the coronavirus outbreak. People were concerned about making a physical payment for safety reasons and quickly adapted to these digital payment modes in a jiffy. The demonetization drive in 2016 made every Indian switch to digital payments and online transactions, which was a green flag for fintech entrants at that time. People now make their digital cash flow without any second thoughts as they feel secure and safe more than handling physical cash.<h3 class="heading-node" id="b2cf" style="text-align: left">Payment wallets &amp; UPI apps</h3>This is one of the services which transformed the way people carry cash. Multiple digital payment apps like Google Pay, Apple Pay, Amazon Pay, PhonePe, etc., are definitely a booster for ‘Cashless India’. Features like easy transaction, secure, fast, multiple options benefit these payment wallets to make waves in the Indian fintech industry. Moreover, Artificial Intelligence (AI) and Big Data help users personalize their payments and store multiple bank accounts in a single digital wallet.<h3 class="heading-node" id="2917" style="text-align: left">Digital lending &amp; insurance</h3>Fintech is the cherry on the cake when it comes to market-based lending. When already banks were doing their great job in lending and insurance, fintech collaborated to make it even more feasible by giving enormous options, online availability, customer-centric loans, and speedy approval for businesses and customers.<h3 class="heading-node" id="b7e3" style="text-align: left">Wise finance management</h3>After the fintech boom, people witnessed many changes in the way they handle their finances. As every Indian has started managing finances digitally, it is easy to keep track of their expenses and make a calculative move. Robo-guides or Robo- advisors also help in wise finance management by providing automated, algorithm-driven financial planning services.<h3 class="heading-node" id="d8c7" style="text-align: left">Remittances</h3>Fintech's eases the way banks were making international transfers for decades. The remittance was considered an arduous task in the past, involving high fees, tons of paperwork, no tracking of money, multiple players, and a great deal of time. But now, fintech defines it as a flexible real-time payment with transparent fees, end-to-end payment tracking, multi-currency payments, and so on.Definitely a worthy throwback on this Independence Day 2021?This nostalgic look back at India’s Fintech evolution promises what the busy future holds for the country. The finance industry will flourish, but it demands a little more wait to reveal further episodes. So, let us wait to witness India evolve more and better in the future.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Evolution of the Indian FinTechverse

Prepaid Cards 101- A definitive guide for growth and profitability

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/banner.webp" alt="M2P Fintech" title="" width="100%" height="253">Have you ever noticed the numbers on your credit/debit/prepaid card? They have a string of numbers out of which the first six digits are called Bank Identification Number (BIN). The BIN number helps the merchant processor identify the card type, network, and the issuing bank for the transaction’s approval/decline. For instance, a Visa card starts with the number “4.” Master card starts with the number “5” and “2”, Diners starts with the number “3” and so on.They also enable merchants to accept different types of payments like digital and mobile payments.Now with the explosion of payment electronification and many becoming savvy financially, there has been a drastic increase in the number of card users. This, in turn, has led to a shortage of BINs; if we take a rather dim view, it can be observed as depletion of BINs.To stop this from happening, the International Standards Organization (ISO) amended the existing standard of (ISO/IEC 7812–1) Part 1: Numbering system from Six-digit to Eight-digit BIN in 2017. So, card networks such as MasterCard, Discover, American Express, Visa and others have started prepping for the change.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-24-copy.webp" alt="M2P Fintech" title="" id="adfawcve6" width="100%" height="253">Visa has been quite active with this change and regularly issuing updates and ready reference guides for this migration. Visa adopted this standard in 2017 and has urged its partners to migrate to the Eight-digit BIN by the end of April 2022.<h2 class="heading-node" id="69d4" style="text-align: justify">Who will be affected by this migration?</h2><ul class="list-node" id="lbi86ft9q"><li>Acquirers</li><li>Issuers</li><li>Processors</li></ul>MerchantsOn completion of April 2022, the card network’s 100,000 BINs will migrate to 10,000,000 BINs. The first Six-Digits will remain the same in this change, and the following two numbers (00,01,02…) will become part of the Eight-Digit BIN. Also, there will be no need to reissue replacement cards to the customers.Here are the key points that sum up this initiative:<ul class="list-node" id="vxdxnev6w"><li>After April 2022, the existing 6-Digit BINs will continue to function, and requests for new BINs will be assigned in 8-Digits.</li><li>6-Digit BINs will be supported, but they won’t be forced to convert to 8-Digit BINs</li><li>PCI guidance and Visa clearly outline that organizations storing the full 8-digit BINs require additional controls may include expanded scope.</li></ul><h2 class="heading-node" id="f71d" style="text-align: justify">Why the sudden urgency about this migration?</h2>While the standard is out for migrating to Eight-Digit BINs, ISO did say that they are maintaining the other issuing BINs in the six-digit sequence until the deadline of April 2022. The mandate also doesn’t require the removal of Six-Digit BINs. Therefore, the concerned parties must continue supporting both Six and Eight Digit BINs.The time taken for the adoption will significantly vary by the stakeholder. So, even though the deadline is still 10 months away, there is a concern regarding the impact of updating the backend systems. Especially those involved with issuer processing, routing, and other activities need to assess the impact and get ready for the changes.Industry watchers were almost sure that this initiative will call for a longer PAN. Still, Visa has decided to implement the same on the existing 16-digit- PAN structure. It has become quite clear that the decision will affect the PCI compliance of the existing truncation and masking rules. Any organization that stores the full BIN and the last four digits of the card will become non-compliant unless the rules are not modified.The decision did not specify any modification, and it requires organizations to handle 8-digit BIN as cardholder data. But organizations that spent massive efforts over the years to lower their PCI compliance load will face an explosion of responsibilities and remediation efforts. It will probably result in actions, expense, and their own timeline of non-compliance.So, card networks have been encouraging its vendors, agents, partners, and other stakeholders to actively assess the impact they would be experiencing across their systems. This assessment would help them to increase their efficacy and avoid any hurdles when handling transactions.<h2 class="heading-node" id="005c" style="text-align: justify">How does this change impact?</h2>As six-digit BINs are on the decline, it will be challenging to rely on them for authorization, routing, and transaction clearing. The effect might not be immediate but will slowly and surely escalate when Eight-Digit BINs become the norm. Both Merchant and Service providers might face issues in the following scenarios:<ul class="list-node" id="j85h67z8k"><li>Prepaid card’s identity</li><li>Chargeback and Fraud</li><li>Transaction processing</li><li>Merchant services and disputes</li><li>Reporting</li></ul><h2 class="heading-node" id="7198" style="text-align: justify">How to prepare for the change?</h2>Visa has issued directives for both merchants and service providers on how to handle this change. They have explicitly said that the changes are specific and may need to require a timeline extension. So, organizations, service providers, and other stakeholders are encouraged to initiate and pool the resources necessary to prepare for Eight-Digit BINs.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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