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0 7503490984 – kishan maid serviceWEDNESDAY, FEBRUARY 02, 2011 India - Top Issuers of Credit Cards We were the First in Global Media to do metrics on the size of the Plastic Money [Credit / Debit] Market in India. We have received quite a number of e-mails and hence for your convenience, here is the latest update on the Data of the Indian Credit / Debit Card Market. Total Number of Debit Cards - 211.87 Mn Total number of Credit Cards - 18.18 Mn Surprised on the number of Credit Card User base being Shrunk ? It is because of ICICI Bank, which canceled 25% of its Credit Cards. Debit Cards - Almost all the Banks have issued Debit Cards in tie-up with VISA or MasterCard. Here is break-up of Debit Card Issuing by Banks All the PSU Banks - SBI, Canara, PNB etc together have issued - 154.79 Mn Debit Cards Indian Private Sector Banks - HDFC, ICICI, Federal etc together have issued 53.05 Mn Debit Cards. Foreign Banks operating in India - HSBC, Citi etc have issued mere 4.02 Mn Debit Cards Credit Cards - The PSU Banks who have tasted defaults and delinquencies at all levels were extremely careful in issuing credit cards and have thus far issued only 3.03 Mn Cards which is a good move in my view as the industry needs stronger regulations as well as matured customers. Private Sector Indian banks - Somewhat aggressive earlier have turned cautious and have a collective credit card customer base of 9.3 Mn Foreign Banks in India mostly serving the Corporate Sector have managed to issue 5.8 Mn Credit cards thus far. SBI Prunes Customer Base SBI along with GE Finance had introduced the concept of credit cards in late 90s. However, only after a decade the company went aggressive and is still loss making due to defaults and delinquencies. SBI turned cautious and started pruning customers who have defaulted or were on the verge of it. According to Data obtained from RBI, SBI had 2.65 Mn Credit Card users at the end of 2009. However the number has gone down to 2.26 Mn at the end of Dec-2010, a cut of 17% in its customer base. However, the story for Debit Cards linked to Customer Bank Accounts is entirely different. The bank has 67 Mn Debit Card holders at the end of Dec-2010, compared to 51 Mn a year ago, an increase of 31%. The banks strategy off late has been to encourage customers to use Debit card and earn loyalty points which was only existent for the Credit Card customers earlier - A good move in our opinion. You can discuss more about SBI cards on dedicated forum here. Published by CardBhai @ 9:44 PM 1 Reader Comments SATURDAY, FEBRUARY 20, 2010 Debit Loyalty Program a Big Hit SBI's Debit Card Loyalty program is a Big Hit after 9 months into vogue. This is the first time in India that a PSU Bank has taken a lead in introducing a product for the masses well ahead of its private bank competitors. The Debit Card loyalty program began as SBI's Credit Card venture with GE Money suffered massive losses. The bank addressed the hurdles that were in the way of Debit Card not being used by a deeper tie-up with VISA and MasterCard [in India not all cards come with VISA / MasterCard, banks provide plain vanilla ATM cards] and bingo! the outcome is amazing. After the introduction of the program SBI's debit card customer base shot up from 51 million to a whopping 68 million. The average number of swipes at PoS terminals went up from 1.2 mn to 2.2 mn every month. Punjab National Bank which launched its Credit Card a year ago is now planning to copy the SBI model for debit cards. Wait a minute, its not just PNB, but even the big-wigs like Citibank, Deutshce are all set to replicate SBI's debit card loyalty points program. We at CardBhai continuously use lot of data from RBI for internal Research Purpose. Excerpts of this research is made available to you. During the Last Financial Year - Apr-2009 to March-2010, Indians spent a total of Rs 62,872.23 cr [USD 13.97] on Credit Cards and Rs 26,172.45 cr [ USD 5.81 Bn] using their Debit Cards. Most of the transaction was reported on VISA and MASTERCARD. Debit Card Purchases saw big leap from USD 4.1 Bn in FY 2008-09 to USD 5.81 Bn in FY 2009-10. The Total Plastics Card Market in India during the last Financial Year was USD 19.78 Bn marginally up from USD 18.64 Bn in FY 2008-09. Additionally, we wanted to know the size ticket of each of the transactions. Data from RBI suggests us that - The Average Credit Card Transaction was worthy of Rs 2676.54 up from Rs 2517.52 in FY 2008-09. The Average Debit Card Transaction was worthy of Rs 1553.26 up from Rs 1453.52 in FY 2008-09. Indian still transact a lot in Cash due to the failure on the part of successive Governments to encourage an ecosystem for e-money and curb blackmoney, which is running as a parallel economy with support from vested interests within the Government. The number of active credit cards in India has dropped by almost 35 percent in the last three years as banks withdrew cards from defaulters and became cautious in issuing new ones, an industry survey revealed. The number of active credit cards in India has steadily dropped from a peak of 2.75 crore as on March 2008 to 1.85 crore in March 2010. Since then it has further declined to 1.80 crore as on March 2011, according to a survey conducted by Atos Worldline, a firm that specialise in electronic payment services. "The decline is due to clean-up of the credit card portfolio by banks," Sameer Nemavarkar, CEO of Atos Worldline India, said in the survey report. Some major players in the credit card industry like ICICI Bank, Citibank and Standard Chartered have reduced the number of cards and are cautious in issuing new cards. However, some banks like HDFC Bank and Kotak Mahindra Bank are aggressive and are issuing credit cards to new customers at a faster rate, the report said. "The growth in issuance of credit cards by banks is likely to be subdued in the next few years due to prevailing high interest rates and concern for bad debts and recovery," the report said. Although there is drop in card numbers, overall spending through credit cards have increased over the last few years. Average annual spending through per credit card increased to Rs 41,862 in 2010-11 as compared to Rs 33,335 in the previous year, registering a growth of almost 25 percent year-on-year. Banks are shifting their focus from mass marketing and catering to their own premium segments. "With most banks in consolidation phase, it is estimated that the financial year 2011-12 may see a marginal rise in the credit card base or it may remain constant." HDFC Bank is the leader in credit card business in India, with almost 28 percent market share. It is followed by ICICI Bank, with 22 percent market share and State Bank of India with 13 percent share. Four top players - HDFC Bank, ICICI Bank, SBI and Citibank - control almost 71 percent of the credit card market in India. Quantitative Research Project Brief HSBC wants to launch their Visa Card. Market potential is not the problem. Also, Qualitative research has indicated several need gaps, which could be used as positioning options. Suggest how you would test these through further research. Introduction A Credit Card is a mode of cash-less transaction that allows the user to pay for goods or services with the actual payment being made in installments, over a period of time. Most of the credit cards in the market belong to either MasterCard or Visa. For principal services to the industry they are typically paid 0.025% of the transaction by the issuing bank: HSBC wants to launch their Visa Card. Characteristics of the Indian Market The credit card market in India is about 3 million with a value turnover of around Rs.2500 crores. The market is expected to grow by 30% p.a. This would still be a very low penetration of a potential market of 60 million cardholders. The credit card business is a lowmargin, high volume business. Thus, given the low income per card and the high initial investments by the bank, large volumes in terms of cards issued and the transactions financed are required to make the operations profitable. Research Objective Apparent – Test positioning options, which have come up in qualitative research, as a result of need gaps. Real - To identify a positioning option that will help maximise market share in the short term and increased profitability in the long run. Need Gaps As per the research conducted, HSBC’s major problem is low awareness level among consumers caused by their low-key advertising, very stringent credit policies, and absence of direct selling. Lately, they have tried to venture into co-branded (with Shopper’s Shop) and affinity cards (with Top Gun Club) also. They have alliances with Thomas Cook, DBS lounges, DHL tele-express services, Oberoi Hotels and Sita Travels. The bank primarily draws upon its strength from a strong ATM network of 56 ATMs. Credit Card holder behavior According to Visa Internationals latest data, average Indian cardholder uses his card 9.3 times, spending about Rs. 14,700 per year. A number of card owners do not use their cards and almost 20 – 30 % cards are inactive (less than one usage every quarter). An important fact that should be observed is that it is only in the past few years that the Indian customer is beginning to accept ‘Credit’. The Indian culture doesn’t promote credit, and it is this outlook change which is the most important development for the credit card industry. ABN Amro, for instance, backed up their launch of the ‘Freedom Card’ with research that showed that the Indian middle class views the credit card as a potential debt trap. Unmet Needs ‘Unmet needs’ analysis in qualitative research has brought to light benefits which are not currently being offered by the credit card industry and hence present an opportunity. Need for a Card customized for Internet transactions: With rapid growth of business over the Internet, there now exists a great need for a card suitable for transacting safely and conveniently over the Internet. The growing number of Internet users will provide a lucrative market for this product. Need for ‘Premium’ benefits: Even though there are credit cards like Diners in the premium segment, there is a dearth of ‘premium’ benefits. Examples of these are Special airport Lounges etc. These benefits are available to the Indian consumer once he goes abroad, but within India, he doesn’t get all the extra ‘premium’ benefits which can associated with Premium cards. Proliferation of ATMs: The credit card can be used for withdrawing cash from an ATM. This revolving credit facility is also a major revenue earner for the issuing bank (interest charges range from 1.99 % to 3 % per month). There are very few ATMs in the metros, and are not there in most non-metro cities. The lack of the ATMs doesn’t allow the credit card to be used to its potential. Wider Acceptability: Though the numbers of Merchant Enterprises are on the increase, more ME should be included in the credit card framework. Product Characteristics translating into need gaps (as told by consumers) a) Low Credit limit b) High Interest Charges (& interest charges applicable on the interest itself) c) High Annual charge d) Grace period (mentioned, but not much importance given) e) Lost card liability of Rs 1, 000 on non-photo card (eg. Stanchart) as opposed to nil on photo card f) Low Value added benefits and inadequate information updates Other factors affecting sales level · With a parallel economy of the same order as the country’s GDP, for a large number of people, the incentive to use credit card is low. · Lack of a strong telecom network hinders efficient card operations. · Without the full convertibility of the rupee, internationally acceptable cards could not till recently be launched in India and full potential of the card business is still not realized. · The average consumer is more comfortable with cash and is averse towards credit. · Moreover, the problems of reluctant MEs and postal delays may hinder the development of the card market. Target Audience a) Customer Segments: The segmentation of the card industry can be done on the basis of income. Further research can only be conducted after preliminary secondary research of the income profiles in the country. The Indian market reflects considerable diversities in income levels and lifestyles. A World Bank estimate places average annual household incomes (in terms of purchasing power) at US $6452. But there are large segments of people, whose income levels are significantly higher, growing faster and spurring a consumer revolution. It is difficult to obtain correct estimates of this group, as there is a very small percentage of India’s ‘rich’ who pay income tax and their income levels are correctly reported. Therefore to conduct this segmentation, we shall have to make use of National Council of Applied Economic Research (NCAER) data and not the estimates from the income tax department. The segment which have been identified are as follows: Segments Income Group (Rs.) Very Rich 2,15,000+ Consuming Class 45,000 – 2,15,000 Climbers 22,000 – 45,000 Aspirants 16,000 – 22,000 Destitute < 16,000 According to NCAER reports: · The Very Rich (annual income over Rs 215,000) will increase form 1 million to 6.2 million households by 2006-7. · The Consuming Class (annual income of Rs 45,000-215,000) will grow from 28.6 million to 90.9 million households by 2006-7. · The number of households in the Aspirants (Rs 16,000-22,000/year) and Destitute (less than Rs 16,000/year) groups will decrease significantly. Segments with high unrealized potential · Mid-Size cities in India have low credit card penetration. The residents of such cities are affluent and they are good markets for Citibank cards. This low penetration is due to comparatively low acceptance of credit cards. · Rich farmers who live in the rural belt but also spend quite some time in the nearby towns can be tapped. A product can be introduced to serve their specialized needs. · The growing number of netizens represents a segment with high-unrealized potential. b) Customers Motivations Preliminary qualitative research has identified certain motivators differentiated on the basis of the income segments. Further quantitative research shall be conducted keeping this in mind to arrive upon the ideal positioning. Segments Motivations Very Rich Convenience and acceptability, Level of service, Credit Limit Consuming Class ‘Prestige’, Convenience and acceptability, Level of service, Charges Climbers ‘Prestige’, Charges Charges include all commissions, interest rate, annual fees, which are to be paid to the bank. The motivational factor has been derived from the credit card holder behavior and income levels. This shows differentiation as we move along the various segments. Fee charges are not at all important for the ‘Very Rich’ but they assume a fair degree of importance as we move down the segments. In case of ‘Climbers’, Level of service has very little motivation to offer. This segment primarily has either the non-premium cards or cards issued by the nationalized banks. In both the scenarios, level of service is not very high. The other segments have not been considered since they do not fall into the potential customer category. However, with the introduction of ‘Kisan’ Cards (The major issuing banks are: Dena Bank, Punjab National Bank, State Bank of India Benegal Circle, State Bank of Indore, Vijaya Bank), these segments are also being brought into purview of credit card users (assumption: 65% of low-income households are associated with agriculture). Sampling and Research Methodology Stratified Sampling In this random sampling technique, we first divide the whole population into mutually exclusive subgroups or strata on the basis of our three identified target segments (Very Rich, Consuming Class and Climbers) and then units are selected randomly from each stratum. The population herein consists of the urban employed. The segments are based on predetermined criteria, i.e. the demographic characteristic income. It is important that the segments be as heterogeneous as possible. It is considered representative if its features are characteristic or typical of the entire group. With a representative sample, you can make generalizations about the entire population with a measurable degree of precision and confidence. We have thus divided our population into mutually exclusive and exhaustive groups of like elements, or strata, and shall then select a random sample from each. Since we are going in for a positioning statement that will be targeted at a broad group of individuals, we do not require very high confidence limits and so can conduct the research with a proportionately small sample of the population in the various strata. Quantitative Research Methods Concept Testing Multiple concepts "screened" among a general audience of target consumers In depth evaluation of single concepts using standard, projectible measures Objective: Use a cost effective approach to identify which new ideas have the most potential and are worthy of further development Use the results in combination with product testing results in a sales forecasting model to predict: o Likely sales take-off in year one o Repeat purchasing levels (Multiple credit card users) o The profile of likely buyers (verify qualitative and secondary research) Pricing Research Use multiple price points to develop a simple price/sales curve in early stage concept testing to assess price sensitivity with respect to credit limit, interest charges and annual charges. Use full profile pricing scenarios to develop a much more sophisticated category pricing model which allows us to predict the impact on purchasing when the client or competitors run discount price promotions or introduce new price points/value benefits for existing brands. Objective: Assess alternative return on investment strategies Proprietary Research Methods Laddering Research This research method is designed to determine the rational and emotional basis for brand preference and to identify new brand positioning, equity, extensions and advertising strategy alternatives. It will show how consumers discriminate between products in the category, based upon factors that directly affect their preference. It also shows the means by which these discriminating factors relate to the satisfaction of higher level personal needs. Laddering Research shall give us – o A very detailed and insightful understanding of the rational and emotional reasons people have for choosing specific brands (credit cards) in the category o A framework for discussing and choosing strategic options for positioning and advertising the brand. o A basis for clearly differentiating the brands within the category (rationally and/or emotionally) o A basis for comparing and contrasting the strategies behind the historical advertising and selling of brands within the category (strategies can be "mapped" on the strategic framework that has been developed) o A much more insightful response to new ideas for the brand Strategic Advertising Research A proven assessment method for advertising which measures advertising against it's strategic objectives (not norms) and offers the ability to objectively assess multiple creative approaches and multiple advertising strategies for a brand using "common sense" measures. The method is based on the "accepted" theory of how advertising works to inform and persuade people o We all agree on the specific communication objectives for the advertising before proceeding with the research. o We conduct the research early enough in the advertising development process to make good use of the study results o We conduct the study only with the target audience o We allow people to see the advertising several times - this is not a recall test o We measure delivery of the agreed communications strategy at all levels, both rational and emotional o We measure attitude shift towards purchasing the product o We utilise additional multiple measures of advertising so that we are all in a better position to assess the strengths and weaknesses of the advertising and to improve it o We collect a great deal of information in each interview so that we have the right balance of objectivity in our analysis of the findings Information Areas 1. The bank may offer more than one type of credit card based on the segmentation and the conclusions arrived at as a result of the research. Research needs to identify the profitability of targeting the respective segments and the efficacy of the suggested positioning statements to these segments. 2. The bank should be able, on the basis of the research, to ascertain the profitability of adopting a generic strategy of differentiation, based on the wide range of cards and services it may offer. The bank may then effectively target most segments of the society. 3. A clear cut cost-benefit relationship is desired with respect to the potential customers relative weightage of the provision of various services such as schemes to pay MTNL bills, customs duties, dial-a-draft facility, frequent filer program with Indian Airlines and Air India etc. 4. The ad spend will also be ascertained after testing the effectiveness of various advertising and promotion options in order to increase market share. Consideration should also be taken to the medium of advertisement and promotions so that the bank may decide upon a strategy after weighing the costs and benefits. 5. Qualitative research has indicated that HSBC has an image of non-exclusive membership, but exclusive service and has the largest number of ATMs. Positioning opportunities in this line suggested the card should be targeted at middle to senior business professionals and businessmen, positioning the card on friendly service. Attention must be paid to verify the effectiveness of the same through quantitative research. 6. Test possible Key Success factors that have come up in qualitative research Present: i. Brand recognition ii. Access to major channels iii. Marketing program iv. Reach (target market) Future: i. Level of Service ii. Acceptability iii. Safety of use over the Internet. iv. Value Added Benefits 7. Test Feasibility of recommended innovations and improvements in the product line. 8. Test assumed positioning objectives a) The positioning should be so that it disassociates with the ‘elite’ image associated with the bank. The positioning may be done so as to give an image that the cards can be acquired by people from not only the upper class, but also the middle income categories. This is essentially to counter the strategy of SBI-GE. In other words, it should give a mass appeal to the cards while reinforcing the ‘clean’, and ‘dependable’ image of the bank at the same time. b) The positioning should be such as to imply that HSBC credit cards are a part of the customer’s everyday life. It should lead the customer to keep the card with him whenever he goes out. This in turn, shall lead to more card usage as the card would be handy for the customer to use whenever he wants to make purchases or withdraw cash. For users with multiple cards, such an objective shall bring more usage for the Bank’s card, compared to others. c) It should try to leverage HSBC’s strong perceived ATM network. 9. Test alternatives for positioning On quality of service: After convenience and acceptability of credit cards, the most important thing for customers is quality of service. This can be defined as prompt response in issuing the card, 24 hour customer service and quick complaint and grievance redressal. A positioning based on superior quality of service would create a favorable image in the mind of the consumer leading him to not only buy the card but also use also use it more often. Positioning based on benefits: Such a positioning has not been recommended as differentiation among credit cards fails to provide sustainable competitive advantage, as benefits offered on cards are easy to copy. However, as need gaps arose in the preliminary research, we must also test this, while giving weight to the above. Positioning as a low cost card: This has previously been disregarded as an option as the costs involved are higher than its competitors and also in this industry one cannot gain an SCA by competing on price and advantages can be gained only on the basis of service and innovative product features. Positioning on use: Credit cards in India are most often used while traveling. This can be the main positioning plank because it would increase the credit card usage and as HSBC has a good brand image it won’t be thought of as a card exclusively meant for travel. Positioning on acceptability: Acceptability is the most important factor in the minds of the consumer and so positioning on this factor will add new consumers. Positioning as a card for transactions on the net: With the impending boom in e-commerce in India, HSBC could position itself as the best and safest medium for payment purposes. The Indian Prepaid Card Market By: VRL Published: September 2010 The number of Indian prepaid cards in issue is incredibly small - only 2% of the total targeted population. This reports incorporates a detailed breakdown of the socio-economic factors expected to drive the growth of Indian credit and debit cards, and gives you the the information you need to successfully enter this growing market. Buy today for only £1297 + p&p for a hard copy or £2197 + vat for a 2 user licence. Industry observers have found that there is a strong correlation between the the growth of the debit and prepaid market in India, and that of the mobile phone market, showing that this region presents phenomenal opportunities. A recent estimate by Visa Inc puts the target population for credit and debit cards in India at 200 million. Yet there are about 400 million Indian people who don't have a bank account. It is this combined 600 million which should be viewed as the true target market for prepaid cards. Providing intelligent insight into the Indian prepaid and debit card industry, this VRL report gives your business the expertise to take advantage of this emerging market. Read this report to:      Follow the correlation between the potential growth of the Indian prepaid market and the successful growth of the Indian mobile phone industry Analyse market share for businesses currently providing the cashless option in India Explore the socio-economic factors contributing to the current and projected Indian prepaid and debit card market Study the facts and figures for the payment infrastructure of Indian banking Investigate the business opportunities Indian prepaid and debit cards present Interested in this report but require a different territory or focus? Contact Jeannie today to discuss a customised version. Email on [email protected] or call +44 (0)20 7563 5605      Overview Report Summary Table of Contents Buy Related Products The target market The number of Indian prepaid cards in issue is almost embarrassingly small. According to the Prepaid International Forum there are around 4 million prepaid cards in India. This comprises a mere 2% of total debit cards (there are 185 million debit cards in India), but the targeted population for prepaid cards by any measure has to be considerably larger. A recent estimate by Visa Inc puts the target population for credit and debit cards in India at 200 million. Yet there are about 400 million adult Indians who don't have a bank account. It is this combined 600 million which should be viewed as the true target market for prepaid cards. The existing market for Indian debit/prepaid cards Unsurprisingly the Indian card market is fast growing, and the pace is accelerating. Industry observers point to strong similarities between the growth of the Indian mobile phone market, and that for Debit and Prepaid cards. The Compound Annual Growth Rate of mobile phone take up in India during 2006-2010 was 52%. By comparison the number of debit cards issued rose from 18.1 million in 2003 to 184.79 million in 2009, +47% CAGR. The transaction value has shown healthy growth of 32% during the period. In 2009-10 fiscal, payments made by debit cards in India stood at US$ 5.87 billion (Rs 264.18 billion) a rise of 44% compared on 2008-09. Payroll cards dominate the prepaid cards market with a 34% share, with travel cards at 24%, and multipurpose cards with a 22% market share. Remittances and other prepaid cards are estimated to account for 14% and 6% of the market respectively. Estimates by ICICI suggest the prepaid cards market is expected to grow by almost 75% in 2010 year-on-year, rising from $2.9 billion to $5 billion. Axis Bank is the domestic leader in prepaid cards, with a 39% market share of followed by Itz cash cards at 22% and ICICI bank at 16%. Other players include SBI, HDFC Bank and Punjab National Bank. In the multipurpose cards market, Itz Cash Card Limited is the leading player. It is the largest firm in the non-banked category for prepaid cards. As for the number of debit cards issued, SBI dominates with a 37% share followed by ICICI bank at 11%. Factors influencing the growth of the industry Important features driving the debit/prepaid card industry include the confident growth trajectory of the Indian economy, the availability of a payment infrastructure embracing both private and public sector banks, and increased penetration of mobile telephony. India‟s economic expansion remains the catalyst for a dramatic change among the country‟s consumers. GDP growth has averaged around 7% since 1997 and India was able to keep its economy growing at a credible rate even during the 2008-2009 slump, managing +5.4% in 2009. This broad based growth is creating a potent middle class, primarily urban based, who are leading the spending and usage of plastic cards. While there is no official definition of how to classify the middle class in India, consensus seems to have settled on a figure of c-200-300 million people. Even using the most aggressive estimates of its size, the middle class comprises less than 30 percent of the population. With sufficient disposable income to spend on goods and services, the middle class is an attractive target for prepaid cards. According to a recent study if India is able to maintain its current growth trajectory, average household incomes will triple over the next two decades and it will become the world‟s 5th-largest consumer economy by 2025, up from 12th now. Private consumption plays a much larger role in India‟s growth than it has in that of other developing countries. In 2005, private spending reached about 17 trillion Indian rupees ($372 billion), accounting for more than 60 percent of India‟s GDP. As for payment infrastructure, most Indian banks have been widening their networks of automated teller machines (ATMs) in order to expand their business. Banks have also been installing increasing numbers of point of sale (POS) terminals (electronic data-capture swipe machines for accepting debit and credit card payments) at retailers. As of 2010, there are 40,000 ATMs and 450,000 POS terminals in India. A majority (more than 70%) of these ATMs and POS terminals are located in cities with the rest in small towns and villages. The key cities which lead in number of ATMs include Mumbai, Delhi, Kolkata, Bangalore, Chennai, Ahmadabad, Hyderabad, Pune, Kanpur, Surat, Jaipur and Lucknow. Another important infrastructure requirement for the development of banking services and prepaid cards business is a credible telecom network. India has been investing heavily in its telecom infrastructure. It is the world's fastest growing telecommunications market (CAGR of 52%), with 671.69 million telephones. Close to 95% of all phones in India are mobile phones, with a penetration rate close to 57%. Potential for expansion in rural areas As telephone ownership in urban areas matures, rural areas are taking the lead in adding new phones. Rural areas added an average of 8.76 million phones monthly during December 2009 to March 2010. By July 2010, the number of mobile phones in rural India had reached 236 million. This number is markedly higher than the 187 million adult population living in rural India with bank accounts. In short there are a significant number of people with mobile phones but without bank accounts in rural India. This gap will only increase as millions of mobile phones are added monthly in rural India. This is an attractive back-drop for starting mobile banking services in rural India. „Mobile wallets‟ would bring low-cost banking & remittance services to millions, for whom banking services are not readily available or easily accessible. The attraction is that the mobile telephony infrastructure is well developed. This offers an attractive opportunity to open new markets and business opportunities for service providers, banks, mobile operators & merchants. Leading domestic banks like SBI, ICICI, HDFC, AXIS and Canara all offer mobile banking services in India. For example, iMobile, a mobile banking application offered by ICICI Bank, assists its customers to carry out mobile money transfers, bill payments and check credit card balance through their mobile. This mobile application covers savings bank, Credit Card and Loan accounts. By using iMobile almost all internet :: Background banking transactions can be done on mobile phones. >> Organisation Reserve Bank of India, after setting up of the Board for Payment and Settlement Systems in 2005, released a vision document incorporating a proposal to set up an umbrella institution for all the RETAIL PAYMENT SYSTEMS in the country. The core objective was to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems. The other objective was to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion. IBA's untiring efforts during the last three years helped turning this vision a reality. National Payments Corporation of India (NPCI) was incorporated in December 2008 and the Certificate of Commencement of Business was issued in April 2009. It has been incorporated as a Section 25 company under Companies Act and is aimed to operate for the benefit of all the member banks and their customers. The authorized capital has been pegged at Rs 300 crore and paid up capital is Rs 60 crore so that the company can create infrastructure of large dimension and operate on high volume resulting payment services at fraction of the present cost structure. Presently, there are ten core promoter banks ( State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC). The Board constitutes of Shri N. R. Narayana Murthy, Chairman, Infosys Technologies Ltd as the Chairman, Nominee from Reserve Bank of India, Nominees from ten core promoter banks and Shri A.P.Hota, Managing Director and Chief Executive Officer, NPCI. The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) at its meeting held on September 24,2009 has approved in-principle to issue authorisation to NPCI for operating various retail payment systems in the country and granted Certificate of Authorisation for operation of National Financial Switch (NFS) ATM Network with effect from October 15, 2009. NPCI has deputed its officials to IDRBT Hyderabad and NPCI has taken over NFS operations from December 14, 2009. Membership regulations & rules are being framed for enrolling all banks in the country as members so that when the nation-wide payment systems are launched, all would get included on a standardised platform. A Technical Advisory Committee has also been constituted with two eminent professors of IIT, Mumbai. Prof. N.L.Sarda is the Chairman and Prof. G.Sivakumar is the Co-Chairman of the Technical Advisory Committee. Members in this committees are drawn from banks at the level of Deputy General Manager/ Asst. General Manager. NPCI would function as a hub in all electronic retail payment systems which is ever growing in terms of varieties of products, delivery channels, number of service providers and diverse Technology solutions. NPCI has a mandate to create a domestic card scheme. The Brand name finalised for the same is RuPay. This scheme would be similar to domestic card schemes one of which is China UnionPay in China. China UnionPay (CUP) was a national agenda for a few years by mandating all domestic transactions to be routed through the national card system. Now China UnionPay cards are accepted in 26 countries. The card base is 1.8 billion. Bulk of the payments are made in China by CUP cards. Although it may not be possible to mandate such transaction flow in India, a domestic card is not a distant dream if all banks work in a co-operative framework. NPCI can reach the scale of China UnionPay by excelling in service quality and by placing the next generation products and services. Vocalink in UK provides another benchmark for NPCI. Vocalink facilitates money transfer from any bank account to any other bank account in UK on a real time 24 x 7 basis. This implies that the experience of RTGS has been extended to retail payment segment. Now that more than 60,000 bank branches in the country are covered under Core Banking Solution, this is very much a feasible proposition in India and would be known as India MoneyLine. NPCI would also benchmark against Bankserv in South Africa and KFTC in South Korea in terms of operational efficiency, reach across the country and range of products and services. RBIN GUIDELINES: FINANCIAL INCLUSION Financial Inclusion Financial Inclusion by Extension of Banking Services - Use of Business Correspondents (BCs) • • Know Your Customer Norms – Letter issued by Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number • • Financial Inclusion-Opening of Aadhaar Enabled Bank Accounts (AEBA) Know Your Customer Norms – Letter issued by Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number • Resolution of issues regarding allocation of villages under Electronic Benefit Transfer (EBT) scheme and roadmap for providing banking services in villages with population above 2000 under Financial Inclusion Plan (FIP) • Operational Guidelines on implementation of Electronic Benefit Transfer (EBT) and its convergence with Financial Inclusion Plan (FIP) • Resolution of issues regarding allocation of villages under Electronic Benefit Transfer (EBT) scheme and roadmap for providing banking services in villages with population above 2000 under Financial Inclusion Plan (FIP) • Financial Inclusion by Extension of Banking Services - Use of Business Facilitators (BFs) and Business Correspondents (BCs) (30 Km) - 24th April 2009 • • • Financial Inclusion by Extension of Banking Services – Use of Business Correspondents (BCs) Financial Inclusion by Extension of Banking Services – Use of Business Correspondents (BCs) Financial Inclusion by Extension of Banking Services – Use of Business Correspondents / Business Facilitators by Urban Co-operative Banks • Opening of "Small Account" RBI GUIDELINES - Electronic Payment Systems Dishonour of electronic funds transfer for insufficiency of funds in the bank account – clarification • • • Discretion to customers for selection between RTGS and NEFT Retail Electronic Payment Systems –NEFT / NECS / RECS / ECS – Levy of Processing Charges- Collection & Settlement of Inter-bank Charges • • Retail Electronic Payment Systems – NEFT / NECS / RECS / ECS – Levy of Processing Charges Furnishing remitter details in pass book / pass sheet / account statement for credits received by customers through NEFT / NECS / ECS • • • • • • Permissible period for remittance of e-payments into Government account by Public Sector Banks Uniformity in penal interest payable by banks for delays in credit / return of NEFT / NECS / ECS transactions RTGS / NEFT Return Transactions – Information for Account Statement RTGS / NEFT / NECS / ECS - Delays in affording credits and / or return of transactions by member banks Use of RTGS/NEFT/NECS/ECS for Credit to NRE Accounts Directions for opening and operation of Accounts and settlement of payments for electronic payment transactions involving intermediaries • • Electronic payment products - Processing inward transactions based solely on account number information UCBs - Furnishing Remitter Details in Pass Book/Pass Sheet/Account Statement for Credits received by Customers through NEFT/NECS/ECS • • • • • Electronic Funds Transfer Infrastructure in India - Usage of RTGS and NEFT Electronic Funds Transfer Infrastructure in India – Usage of RTGS and NEFT(recent) Electronic Funds Transfer Infrastructure in India – Usage of RTGS and NEFT Levy of Service Charges for Electronic Payment Products and Outstation Cheque Collection Credit to NRE account through RTGS / NEFT / NECS / ECS-- Issuance of Foreign Inward Remittance Certificate (FIRC) • Directions for opening and operation of Accounts and settlement of payment for electronic payment transactions involving intermediaries SCBs 2 • Directions for opening and operation of Accounts and settlement of payment for electronic payment transactions involving intermediaries SCBs World Payments Report 2011 Rate this news: (3 Votes) Wednesday, September 14, 2011: Growth in global payments volumes during 2009 and 2010 is proving the continued resiliency of payments to the effects of the global financial crisis. This growth was sustained by strong performance of the emerging and more mature markets in the Asia-Pacific region according to findings from the World Payments Report 2011, released today by Capgemini, The Royal Bank of Scotland (RBS) and Efma. Overall non-cash payments volumes grew by five percent in 2009 to 260 billion, continuing the growth trend from 2008 of nine percent, albeit at a slower pace. The growth rate was lowest but still positive in North America and Europe (less than two and five percent respectively), compared to over ten percent in emerging markets and the Asia-Pacific region. The World Payments Report 2011 examines the latest developments in the global payments landscape, including trends in payments volumes and instrument usage (such as cards and cheques), key paymentsrelated regulatory initiatives and the strategic considerations and options for banks as a result. Globally, cards remain the preferred non-cash payment instrument,with global transaction volumes up almost 10 percent and a market share of more than 40 percent in most markets. However mobile payments are growing even faster than predicted in our last report reflecting strong user adoption. Mobile payments will represent 15% of all cards transactions by 2013, and will overcome cards volumes within 10 years if growth continues at the same rate. The report found the use of e-payments and mpayments is expanding, accounting for an estimated 22.5 billion transactions worldwide in 2010. Epayments are expected to grow globally from 17.9 to 30.3 billion transactions between 2010 and 2013 according to the report, and m-payments from 4.6 to 15.3 billion transactions over the same period. At present, the proportion of these transactions handled outside bank payments systems remains relatively small, but is growing rapidly. The use of cheques continues to lessen, accounting for just 16 percent of all non-cash global transactions in 2009, down from 22 percent in 2005, and remains in demand in key markets. "Payments volumes showed resilience during the global financial crisis with volumes growing in all regions, said Scott Barton, CEO, Global Transaction Services, RBS. "Banks face challenges from the rapidly changing payments landscape including the need to respond to new regulatory initiatives and we can expect to see changes to business strategies and models as a result. However, these changes will also present new opportunities." Key regulatory and industry initiatives are combining to gradually transform complexities in the payments landscape Through analysis of a wide range of global and regional regulatory and industry initiatives, ranging from Basel III to the Digital Agenda for Europe, from the Dodd-Frank Act to the work of the National Payments Corporation of India, the report identifies five key industry transformation trends which together are reshaping, or soon will, aspects of the payments market and the positioning of the players who operate within it: · Systemic-risk reduction and control: In the wake of the financial crisis, regulators are seeking to reduce systemic risk by asking for stricter requirements on capital and liquidity · Standardisation initiatives aimed at improving efficiency, streamlining processes and reducing costs continue: Some payments instruments and aspects of the value chain are commoditised in the process, making it more difficult for banks to differentiate themselves · A drive for higher levels of transparency: Several initiatives are concentrating on making service fees to clients more transparent, with potential implications for current business models, such as cards · Convergence: Developments in technology and evolving user and regulatory requirements are contributing to a gradual blurring of the lines between traditional payments activities supplied by infrastructure providers, potentially increasing competition between Real-Time Gross Settlement (RTGS) and Automated Clearing Houses (ACHs) for certain types of low-value payments. · Innovation: This remains a critical success factor within the payments industry, allowing players to harness emerging technologies and trends, such as mobile devices and contactless payments, to deliver state-of-the-art solutions to meet evolving user needs. "Regulatory pressure has increased since the economic crisis and, together with the drive toward standardization and commoditization, is fuelling a fundamental transformation in the payments landscape," said Jean Lassignardie, Global Head of Sales and Marketing, Capgemini Financial Services. "Banks and financial institutions faced with this combination of challenges may wish to look at the examples of the energy and telecoms industries which have responded to similar external pressures by enhancing the level of specialization amongst key players to differentiate their propositions." Evolving standardisation in the payments landscape: Deriving value from payments As the trend towards further standardisation in the payments market continues, it is driving increased commoditisation of many aspects of the value chain. Banks and other Payment Services Providers (PSPs) face a heightened challenge to distinguish their propositions and may increasingly need to specialize to demonstrate their ongoing value to their customers. Innovation in this area remains vital for banks/PSPs, allowing qthem to differentiate their propositions and prove their value. In the mid to long term, the traditional fully-integrated payments model (from supply to delivery) may no longer be optimal for most PSPs. We could see the emergence of two specialist roles: Wholesale Payments Provider (WPP) and Retail Payment Services Provider (RPSP), with very few players in the market able to support the investments needed to play both roles. Evolving into a WPP, RPSP, or both requires important strategic decisions to be made, and will drive banks to understand the role(s) they wish to play in such a future and prepare for this potentially radical shift. "The evolution of the payments sector is accelerating," said Patrick Desmarès, Secretary General, Efma. "As banks and PSPs consider this reality, they will need to find ways to thrive in the payments market in the nearer-term while positioning themselves to mitigate the risks and capitalize on the opportunities created by the industry's transformation in the longer-term." "India is currently ranked as the 11th largest non-cash payments market. One of the prominent trends pertaining to the Indian market which the report highlights is how the long-time reliance on checks in the Business to Business (B2B) sphere has kept check usage high, but it is declining (to 65% of all transactions in 2009 from 93% in 2001) while during the same tenure, the market share of cards has increased from 6% to 19%. The Interbank Mobile Payment Scheme launched by the National Payments Corporation of India (NPCI) in 2011 is an important milestone for further developing the usage of secure, inexpensive and efficient electronic payments, m-payments experiencing two digit growth globally as the report reveals", said Christophe Vergne, Leader of the Cards and Payments Center of Excellence, Financial Services Global Business Unit, Capgemini. The report is available for download at www.capgemini.com/wpr11, or to attend a local presentation in your area visit www.wpr11.com for a schedule of local events. World Payments Report The 7th annual World Payments Report 2011 Transforming Payments: Evolution or Revolution? Explore the latest developments in the global payments landscape, including trends in payments volumes and instrument usage and how key paymentsrelated regulatory initiatives are driving banks to innovate and adopt new business strategies and models, to differentiate their value propositions in the World Payments Report 2011 from Capgemini, RBS and Efma. With special features on mobile payments, regulatory landscape and Chip n Pin Technology.          OTHER SOLUTIONS Payments Hub Single Euro Payments Area End Date / Migration Platform Consolidation SWIFT Services and Refresh Payments Analytics Payments Sourcing Project Implementation Mobile & Electronic Payments World Payments Report: Methodology RELATED CONTENT THOUGHT LEADERSHIP World Payments Report 2011 » Latest Headlines       Press Release: Emerging markets and the Asia Pacific region fuel continued growth in global payments volumes; key regulatory and industry initiatives are driving significant change across the global payments landscape Overall non-cash payments volumes grew by 5% in 2009 to 260 billion, with increases estimated again in 2010 at 7.8%, proving continued payments resiliency to the effects of the global financial crisis. This growth was driven by sustained performance of emerging and more mature markets in the Asia-Pacific region. Compared to over 10% growth in the Asia-Pacific region, the growth rate was lowest in the developed economies, with volumes growing at less than 2% and 5% in North America and Europe respectively. Spotlight on key regulatory and industry initiatives: Discover five key industry transformation trends that are reshaping aspects of the payments market and the positioning of the players. View the comprehensive map of Key Regulatory and Industry initiatives. Spotlight on mobile payments: Review today‟s achievements, tomorrow‟s opportunities, potential barriers to mobile-payments adoption, and ways to drive value. Spotlight on card fraud: chip-and-PIN technology: Explore how the payments industry is pursuing various innovations to tackle fraud and better secure non-cash transactions—and thereby bolster consumer confidence. Key Findings from the 2011 World Payments Report In collaboration with RBS and Efma, the World Payments Report 2011 examines the latest developments in the global payments landscape, including trends in payments volumes and instrument usage (such as cards and cheques), key payments-related regulatory initiatives and the strategic considerations and options for banks in a payments landscape where commoditization, specialization, and regulatory pressures are peaking: Other selected key findings include:      The use of credit and debit cards continued to grow in most markets in 2009 and global transaction volumes were up 9.7%. Cards remain the preferred non-cash payment instrument globally, with a market share of more than 40% in most markets and a high of 68% in Canada. Learn more about the mix of payments instruments including the decline of check usage across the globe in the report. E-payments and m-payments collectively accounted for an estimated 22.5 billion transactions in 2010. Mobile payments are growing even faster than predicted in our last report reflecting strong user adoption. Mobile payments will represent 15% of all cards transactions by 2013, and will overcome cards volumes within 10 years if growth continues at the same rate. eGovernment initiatives are emerging as a key enabler of non-cash payments. Key Regulatory and Industry Initiatives (KRIIs) are fuelling five main industry transformation trends (ITTs): Systemic-risk reduction and control, Standardization, Transparency, Convergence, and Innovation, which are combining to drive change far into the future. Industry players will need to gauge the effects and reshape their business (and delivery) models accordingly. Market conditions and trends are driving standardization in the payments landscape, increasing commoditization in most payments instruments. In this environment, the imperative for banks and PSPs is to distinguish their propositions and prove their value through specialization. Learn more about two potentially evolving roles of Wholesale Payments Providers (WPP) and Retail Payments Services Providers (RSPP) in the report. The report includes spotlights on key regulatory and industry initiatives, card fraud: chip-and-PIN technology, and mobile payments. Contact Us To discuss the findings of the World Payments Report in more detail and find out how the SEPA will impact your financial institution, contact us [email protected]. ABOUT THIS REPORT Samples (FAQs about samples): Sample Financial Cards and Payments Market Research Report Sample Financial Cards and Payments Data Delivery: Files are delivered directly into your account within a few minutes of purchase. Overview Discover the latest market trends and uncover sources of future market growth for the Financial Cards and Payments industry in India with research from Euromonitor's team of in-country analysts. Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections. If you're in the Financial Cards and Payments industry in India, our research will save you time and money while empowering you to make informed, profitable decisions. The Financial Cards and Payments in India market research report includes:     Analysis of key supply-side and demand trends Historic volumes and values, company and brand market shares Five year forecasts of market trends and market growth Robust and transparent market research methodology, conducted in-country Our market research reports answer questions such as:     What is the market size of Financial Cards and Payments in India? What are the major operators and issuers in India? How will regulation impact the market? What is the current state of emerging payment technologies such as mobile commerce? Why buy this report?    Gain competitive intelligence about market leaders Track key industry trends, opportunities and threats Inform your marketing, brand, strategy and market development, sales and supply functions Euromonitor’s industry reports, including Financial Cards and Payments in India, originate from our database within our Consumer Finance market share and market size database, Passport, a platform which analyses Consumer Finance in 46 countries and globally. SAMPLE ANALYSIS EXECUTIVE SUMMARY Revival of Indian economy stimulates consumer spending The category as a whole saw improvement as the Indian economy showed robust growth and confidence in spending continued to increase. After the 2009 recession, card payment transactions had declined in constant value terms as consumers reined in their expenditure. However by the end of the review period consumers’ confidence in their capacity to pay has increased with the rising Indian economy, a trend reflected in increased expenditure. Risk-free products being promoted aggressively Issuers and operators have started to promote debit cards very aggressively. Advertising for any other card or card function remains relatively subdued. Debit cards are perceived as “zero-risk” cards for banks. Additionally, the cost of setting up an ATM terminal is much higher than that of setting POS terminals at merchant establishments. Hence, both the issuers and operators are seeking to benefit from the increased use of debit function. Recession blues affect competition As a result of losses incurred during the recession, issuers are very cautious in terms of giving out new credit cards and the days of aggressive pushing of cards and capturing a competitor’s customers appear to be over for the time being. As a result, competition is considerably muted as companies remain reluctant to compete for liabilities. Vehicles to have RFID systems The Indian Government is planning to mandate radio frequency identification devices on all vehicles in the country, which would be a first step towards rolling out pre-paid toll cards countrywide. These would allow vehicles with the pre-paid card to pass through all the toll plazas in India without stopping, the toll being automatically deducted from the vehicle’s RFID account. The future looks promising The financial cards and payments category is forecast to grow at a stronger rate than that seen in 2011 as the economy is expected to see robust growth and consumer confidence increase. The fear among consumers of losing their jobs is easing and consumers are more confident of their ability to meet payments. As a result spending through card payments is set to increase. Additionally, the younger generation is more comfortable making purchases with cards rather than cash, a factor that will further drive growth in the forecast period. my pages How will Indian consumers pay in the future? Mayur Patel, Country Manager, PayPal India 1 Comments With all the innovation in technology and business, as well as new consumer behavior, it’s sometimes difficult to separate what will shape the future of payments from what is just hype. By closely examining where new technology and consumer simplicity intersect it may be possible to tell which payment innovations are ready for prime time – making the picture a bit clearer. Hundreds of great ideas are generated every day, but only a few may have the right combination to get traction and scale right now. With that in mind, here are a few predictions for the payments industry in 2012. Mobile payments to ring louder The mobile industry is shifting into ―third gear,‖ with smartphone penetration reaching global scale and well on the way to becoming the dominant connected device for 2 billion+ people over the next few years. The smartphone market in India saw a growth of 21.4 per cent, over the last quarter and 51.5 percent year-on-year (IDC Q3 2011 India Mobile Phone Tracker Report). With the increasing adoption of smartphones and 3G becoming a reality, the outlook for mobile payments is optimistic for India. A global mobile payments study by McKinsey & Company in 2011 revealed that of those surveyed in India – 11 per cent said they were likely to make mobile payments once to several times a day, 30 per cent said they use mobile payments once a week and only 8 per cent said they would not use mobile payments in 2012. Add mobile innovations like the iPad, which has already become the fastest adopted electronic device in history, and mobile is really hitting its stride. The future of computing is happening now, and quickly reaching a level of scale to enable global innovation. The true power of the connected mobile device lies in how dramatically it is changing consumer behaviour and disrupting existing franchises. Mobile applications are redefining the way we interact with service providers, for e.g. to plan our travel. Previously, travelling across cities by train would mean standing in a queue with hundreds of others to buy your tickets. Indian Railways first launched their IRCTC online portal to help consumers book their train tickets from the comfort of their homes. Now with IRCTC’s mobile app for train ticket bookings, you can plan your holiday on the move and pay anytime anywhere. Don’t think that mobile devices will be your future identity? Try spending an hour walking around without your phone, wallet, or keys. I barely made it to the end of the street before panic set in. That was not the case just two years ago. A fuller integration of the online and offline commerce worlds Indian infrastructure has leapfrogged their western counterparts in installing and adopting new mobile infrastructure, and now quickly adopting range of use cases for mobile phone. We are in the era of the connected consumer. All of us are now rarely more than few feet from a connected device at any given time – and we are taking full advantage of this connectivity. We are using the internet to do everything from check cricket score, download ringtones, compare prices, pounce on deals and read reviews in real time before we ever set foot in a store to make a purchase. All this disrupts conventional retailing, but the news is not all bad. Merchants who can cater to these connected shoppers can developer deeper, more loyal and more profitable relationships with their customers. But this blurring of lines between offline and online commerce is about more than just letting people use their mobile devices to shop. Social commerce has seen some exciting developments recently that show more ways that the online and offline worlds are becoming more closely integrated. We just watched Louis C.K. disrupt the media industry by profitably producing and selling a comedy special directly to his audience through his website, clearing more than $1 million in 12 days. Zynga, the creator of FarmVille went public at a multi-billion dollar valuation, thanks to its ability to sell digital tractors and barns to its ever-expanding user base. It’s also not hard to imagine more social commerce innovation, such as person-to-person payments of non-cash currencies (―Help me fly for my grandmother’s 90th birthday by lending me your miles‖) or creating fundraising movements (―Take a photo of me running the Mumbai Marathon so you can donate directly to my cause‖). The possibilities seem endless — and are incredibly powerful if you think about it. As our online and offline worlds continue to merge, the war of commerce will land right on the doorstep of Indian merchants who have resisted taking the leap into online. Local retailers should understand that as their customers spend more of their life online they will be increasingly comfortable buying from retailers who do not have a physical presence in India – as long as they can find the best selection, the best price and the most convenience. Indian merchants of all sizes will need to adapt, while at the same time making sure the online world doesn’t drown them in fraud. Louis C.K. isn’t crazy to go direct to his fans — those who don’t know their customers and communicate with them regularly will take a beating from competing on margins in this connected economy. Birth of alternate commerce devices I’m a big believer that a key driver of payment innovation is going to be the enabling of alternate commerce devices. We’re seeing requests for payment capabilities on everything from gas pumps to refrigerators. As all devices become ―smart and connected,‖ it provides more consumer choice and enables the digital wallet in the cloud to show its true value. Imaging a day when our wallet intelligently figures out how you should pay for things. In the near future, we will see this come to life in many forms globally, and the ―a-ha‖ moment around digital wallets will make sense to many. As payments move to the cloud, essentially anything with an ―on‖ switch and an IP address can become a payment device. Think about Samsung’s Wi-Fi enabled refrigerator or Wi-FI enabled cars from manufacturers like BMW and Audi. It’s a small jump to turn them from Internet enabled to Internet-payment enabled. And, this experience is already making its way into living rooms of consumers in western markets with t-commerce (commerce from your television).Yes, teleshopping has been around but In the near future, you should be able to buy from your TV as easily as changing the channel Imagine the ability to watch a Chennai Super Kings game with an option to buy your favorite team’s cricket jersey from the comfort of your couch. These are exciting times for consumers, and it’s bringing a ferocious level of change to a payment industry that needs it. 2012 will provide enough innovation to give this industry a good shake. It’s exciting to have a front row seat! India: 39 mln users to transact online by 2015 – studyMonday 28 November 2011 | 01:44 PM CET The number of internet users making transactions online is expected to reach 39 million by 2015, a recent study has unveiled. According to the study released by financial services company Avendus, the Indian online commerce market is also expected to increase from USD 6.3 billion in 2011 to USD 24 billion by 2015. The “Indian Digital Consumer Industry” study, cited by ibnlive.in.com, has also indicated that currently there are almost 8 to 10 million of Indian users who make online transactions, representing about 11 percent of the 80 million internet users in the c ountry. The figure represents 7 percent of the entire Indian population and 17 percent of the urban population. According to the research, travel-related websites are the most popular when it comes to online transactions. Most online travel revenues come from ticket bookings, with air and train bookings registering almost 90 percent of the segment's revenues. In 2011, the Indian online travel market has been estimated at USD 5.5 billion, according to the source. The same study has mentioned that, between 2010 and 2011, 57 percent of total online travel revenues came from air travel, while 37 percent came from train packages, 5 percent from hotel and only 1 percent from bus bookings. Online travel is also expected to increase by 22 percent. In addition, the online train ticket bookings are expected to hit USD 1.8 billion for the period 2010-2011, accounting for almost 32 percent of the overall ticket bookings. The data has also indicated that e-tailing will also witness a significant increase by 2015 and contribute with almost USD 12 billion to the total e-commerce market in the same year.