First Data Corporation !

Good Afternoon and Greetings from First Data Corporation !

It is about First Data Corporation, a global technology and payments processing leader, serving more than 6 million merchant locations, thousands of card issuers and millions of consumers worldwide. The company has released a White Paper on,` How Electronc Payments can support the Growth of Government Services,’ in India. Nitish Asthana, Executive Director of First Data is the author of the White Paper. Attached is the White Paper for your reference. Do let me know if you would want to speak to him for further inputs on the White Paper.

About Electronic payments and its benefits to government services and utilities

Today, India due to changing regulatory reform and growing market demand, are seeing big potential for electronic payments throughout the country. We are seeing a 40 percent growth in actual debit card, credit card and net-banking spends, not forgetting that electronic payments a part of our general DNA. According to the RBI release of "Security and Risk Mitigation Measures for Electronic Payment Transactions" report, revealed that how banks are making electronic payment solutions more secure. Until these standards were released, Indians often doubted their transactions were safe.

In 2011 the Indian Government had launched an e-payment system to facilitate direct credit of dues from the Government of India into the account of beneficiaries using digitally signed electronic advice (e-advice) through the ‘Government e-Payment Gateway’ (GePG). This system was developed by the Controller General of Accounts (CGA), Department of Expenditure, and Ministry of Finance. The Government e-Payment Gateway (GePG) was a portal which enabled the successful delivery of payment services from Pay & Accounts Offices (PAOs) for online payment into beneficiaries’ accounts in a seamless manner under a secured environment.

Utility customers today are looking for quick and easy payment options, while utility companies want on-time payments using simple solutions. Electronic payments offer benefits to both. Whether using web-based solutions or taking payments in-person, accepting electronic payments can help utilities more easily manage customer payments, reduce receivables, and improve cash flow. This in tune will result in growth of government services.

Online payment solutions or electronic payments are becoming a rapidly growing trend for the utility industry be it IRCTC and Income Tax. Along with these other government services like passport, India postal Department, Aadhar card, Visa application, pension calculators, Permanent Account Number also accept payments online. Utilities is witnessing a growth in the number of electronic payments received. Reason being electronic payments of government services provides the customers with real-time access to account information over the internet and allows immediate payment ability. Billing and/or payment inquiries can be addressed at the customer’s convenience.

The Context - India

How electronic payments can support the growth of government payments Below is the synopsis of the White Paper. The entire paper is attached for your reference.  

The growth in internet penetration and electronic payments has the potential to improve governance and make it easier for citizens to interact with government agencies and avail of public services. First Data & ICICI Merchant Services’ Nitish Asthana discusses how electronic payments can be leveraged as part of e-government programs to improve services to citizens across the country.

The e.change is here to stay

One of the biggest beneficiaries of online payments is Indian Railways. Today, online railway ticket booking on its website is a success story. On March 1, 2013 the Indian Railway’s website set a new record by booking over 5 lakh tickets. The Railway Ministry, seeing the growth in traffic on this website, has announced a revamping of the site from financial year 2013-14 to increase the booking rate to 7,200 tickets per minute from its present level of approximately 2,000 tickets per minute. This service gives consumers several e-payment options, including debit and credit cards. By the end of this year, the site will be able to handle 1.2 lakh users at any point compared to the current 40,000 users it handles.

The e-Advantage (alignment)

Consumers experience tangible benefits by paying for services online. They no longer have to visit multiple government offices or stand in queue to pay their bills or seek information. Rather, this very convenience has led to rapid adoption of online payment modes. 

The government benefits from making available consumer-centric services online. This ensures that the necessary process controls are not compromised, productivity and efficiency are increased, and customer service levels are improved. The sheer volume of transactions that can be handled electronically will increasingly allow the government to focus on other development issues and on improving the quality of service. It also helps the government increase its revenues for services that are paid for.

Do let me know how we can take it forward.