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One solution to drive India towards Cashless Transactions
Cellular payment system allows us to make digital payments using phone calls with all mobile phones which have a calling facility.According to a report by World bank, there are almost 115 Crore subscriptions are active in India. Since the only requirement for Cellular payment system is an active SIM card, it is expected that almost 60Cr – 70Cr people will move towards cashless payments.
This implementation does not require any additional hardware to be purchased by the user. The only cost that exists is of the management of databases by banks and telecom operators, but this can be a very minimal cost since banks and telecom operators already have existing database management solutions.
In the current UPI System, there are around 15 Crore monthly active users. If the Cellular payment system is implemented, around 50 crore people who rely on basic phones will be facilitated with a digital payment solution.
The users need to register their mobile number with their bank account in their nearest bank. Then they need to set and remember a PIN number to secure their account. Whenever the user wants to transfer money, they need to dial the CPS number and enter their credentials and give the confirmation. If the credentials are correct and confirmation is given then the transaction will be processed successfully.
Underlying Technology Used
The underlying technology used in this solution includes an AI chatbot that handles calls and a backend server that collects, encrypts and stores this information.
The existing infrastructure of the Cellular network can be leveraged to implement this system and the existing servers and database management solutions in banks can be extended to manage the transactions of new users. The APIs that are required are for implementing a Call bot, an API to receive calls and number pad input from the user, some Toll-Free numbers, and an API to record these transactions in banks.
Privacy & Security
In order to protect customer privacy, all the data will be encrypted in secure servers and the call system being implemented makes sure all the data will be cleared from the number pad after the transaction is over.
Advantages
All the other methods of online transactions required the internet and smartphone or any additional devices, but our system is unique in the way it doesn’t require any additional software and hardware.
This system, in some cases, be safer than the other competing payment solutions as calls are harder to intercept than HTTP internet.
If this system gets implemented, it will be like encouragement to digital payments in India. Since each transaction gets recorded it benefits in income tax and also in regulating the welfare schemes. If a user is having more transactions or balances in his bank account, then his name will be removed from the central welfare scheme index. The money thus saved (approx. 1 lakh crore according to the 2016 survey) can be used for various developmental purposes.Challenges
The biggest challenge in implementing this system is in bringing awareness to people about this mode of payment. This task can be accomplished by incentivizing people if they use CPS by implementing zero-fee payments and occasional cash-backs
To bring this idea to life, Telecom operators and bank authorities should work with cooperation. The timeline for implementation mainly depends on people’s cooperation in going cashless
Demo Prototype
Note: It shows up as dangerous because the developer of the app (Adi Vishnu A) is still a student and his works are not digitally signed for now. But the app is free of all dependencies, doesn't even require an internet connection and is completely safe. Click here to Download
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