Design management project ii system design by arvind sethia by arvindsethia

https://

A SYSTEM DESIGN PROJECT

https://PAYMENT

NAME PROJECT GUIDE MODULE DISCIPLINE

GATEWAY SYSTEM

Arvind Sethia System Design SrinivasRao Pattur

Design Management Project - II Strategic Design Management

PROCEED

ACKNOWLEDGEMENT No good work can be completed without the guidance of well worth teachers. To complete this project work I had the pleasure of being advised by many eminent personalities. I wish to convey deep sense of gratitude to all of them. In the completion of this project, I am most indebted to my course guide Mr. Srinivasrao Pattur for his expertise & highly valuable guidance. Mr. Srinivasrao Pattur personal supervision of my research work & his keen interest in it was always a source of inspiration to me. He gave a meaningful though to my vague ideas & concepts. His encouragement & helpful attitude, when I needed them most, inspired me to undertake this work. I would like to extend my sincere thanks to all the people whom i have taken the interview, without their inputs it would have been difficult to arrive to an insight. Finally, my special thanks to all my friends without whose support, I could not have completed this project work.

OBJECTIVE OF DESIGN MANAGEMENT PROJECT II • The aim of this course is to equip students with the necessary skills and competencies needed to work effectively as Design Managers while executing any design project. • To develop system-thinking abilities that can be applied to various business sectors. • To understand the process of system design. • To understand the relationship criteria for a group of products / service / organization and its component in a system. • To achieve growth through development of modularity in elements and enable one to form a system. • To understand the behavior of system as a whole. • This course is designed to augment strong creative and industrial skills obtained so far to enhance competencies required to work successfully in coordinating the design projects.

SYSTEM THINKING System

Network

Which has

Entities

needs to be

Living & Non-living

Tangiable & Intangiable

{

Optimized

Relationship & Interacting

Dependent, Inter-dependent Independent

effectively efficiently

Stable (Equilibrium)

Behaviour Latent

(Exists but not yet developed)

SYSTEM DESIGN Product

Service

Process Related

Output

System

TABLE OF CONTENT Project Brief

Methodology

Stage 1 - Introduction

Stage 2 - Secondary Research

Stage 3 - Primary Research

Stage 4 - Framing Insights

Stage 5 - Opportunity Mapping / Conceptualization

Stage 6 - Concept Evaluation

Bibliography

PROJECT BRIEF Payment Gateway enables and facilitates electronic transactions of money between customers, banks and businesses. This process is a must for all online businesses and shopping carts. The gateway takes the submitted form data and presents it to the processing bank. When it receives a response from the bank, it presents that return data to the site of origin for appropriate handling. Payment gateway exists in every online transaction between customer, businesses and a processing bank. The gateway can be either a part of business system or an independent service provider (like CCAvenue). The project is to study the system of a payment gateway that can be adopted by a businesses (e-commerce or physical store) or processing bank and add value to its service which benefits its end user (customer) in terms of better payment experience.

METHODOLOGY

Stage 1 - Introduction • Detailed study on Payment Gateway • Payment System • Payment Gateway System Mapping

Stage 4 - Framing Insights • Insights Sorting • Insight clustering matrix • Design principles generation

Stage 2 - Secondary research • Trend Matrix • Innovation source book

Stage 5 - Conceptualization / Opportunity mapping • Principles to opportunities • Opportunities to Concepts • Concept Rating & Selection

Stage 3 - Primary Research • Stake holder mapping • Subject matter expert interview • One - on - One interview • User Journey map and pain points

Stage 6 - Concept Evaluation

PROJECT MANAGEMENT OF DESIGN PROJECT II

Design Project Management : By Week Project Management 1

Understanding System Thinking & Design Selection of Topic for Design Management Project II Detailed Study on Payment Gateway System Mapping Data and Creating Trend Matrix and Innovation Map Inputs on Project Management Primary Research - Interview & Pain-point journey Insights from Secondary Research Insight From Primary Research Insight Sorting Opportunity & Concept Generation

Stage 1 - Introduction Detailed study on Payment Gateway

Payment System

Payment Gateway System Mapping

What is payment Gateway?

What are its functions?

The service that automates the payment transaction between the shopper and merchant. It is usually a third-party service that is actually a system of computer processes that process, verify, and accept or decline credit card transactions or other forms of electronic payment on behalf of the merchant through secure Internet connections. (webopedia)

Payment gateways offer many different services, some of which include: • • Real time authorisation of credit/debit cards • Rapid, efficient transaction processing • Multiple payment options • Secure flow of transaction details among buyers, sellers and financial institutions • Flexible, powerful real-time reports generation • Multi-currency settlements, if the need be • Facility for customer refund • Merchants can get rid of large databases, extensive processing and complex software • CA (Certifying Authority) authenticated secure servers • Collection of bulk data in a cost-efficient manner, with the additional benefit of being checked for card validity • Access to card “hot-list” to filter out fraudulent deals • Ability to provide value-added services to merchants, acquiring and issuing banks • Provision for multiple host interfaces • Comprehensive, simple administrative control • Stringent security measures to gain customer and merchant trust • Social network in-strem payment collection system • Live update monitor to identifiy the connection with the bank are up and running. • Mobile check-out page • Data Analytics • IVR facility - Phone pay

A payment gateway allows a connection directly between a website and a bank, meaning that payments can be placed directly on a website and deposited straight into a bank account It is the equivalent of a physical point of sale terminal located in most retail outlets. Payment gateways protect card details by encrypting sensitive information, such as credit card numbers, to ensure that information is passed securely between the customer and the merchant and also between merchant and the payment processor. The gateway verifies the validity and encrypts the details of each transaction, ensures of the correct destinations for the data, and decodes the responses sent back to the shopping cart. This is an integrated, invisible process; the purchaser only interacts with the shopping cart and the payment confirmation pages. The information is sent from the shopping cart to the gateway via a secure connection. Online payments are made thousands of times in a second all over the world. There are hundreds of different ways these payments are made, including PayPal and EFT transactions but a large proportional are based on payment gateway technology. .

Why do we need payment gateway ? Purpose The payment gateway simply defined is: a service provider that authorizes payments. This e-commerce application service provider is utilized by online businesses/retailers as well as brick and mortar stores. The payment gateway could be described as the point of sale terminal that consumers recognize when shopping by credit card in many retail outlets. The purpose of the payment gateway is to protect the credit card/ financial data. It is responsible for encrypting all sensitive information related to the transaction being processed (this includes the consumerâ&#x20AC;&#x2122;s credit card number). By using a reputable payment gateway service, businesses can expect that all information related to the transaction at hand will be passed securely from the consumer to the merchant and from the merchant to the payment processor. A Payment gateway receives, processes and relays online payment requests via the card scheme networks to member banks around the world. If you want to accept online payments you will need to integrate a payment gateway into your store. Without one you do not have the functionality to process web, phone or mail order transactions. - (source: paypoint) Online payments give you the ability to accept credit cards or other electronic means through the payment gateway itself, without a lot of trouble or delay. What does this mean? Your clients can now pay you quickly with a card and the money is in your bank much faster. This will increase the cashflow; important for any business. And no longer need to wait for a physical check to show up in the mail, then go to the bank to deposit it, and then wait three to five days for the funds to clear.

Also, if anybody want to charge clientâ&#x20AC;&#x2122;s credit card on a recurring basis (like monthly or quarterly), online payments can allow to do that in an automated way as well. It makes recurring revenue (cash) very reliable and predictable. (source: freshbook) Choosing the right payment gateway solution for your business can often determine whether or not your online store is successful. If payments on your online store are not optimally set up, you could lose a lot of orders through sales drop offs by unsatisfied customers or end up spending a lot of money on transaction fees and costs. Figuring out the payments end of your online store is key to the long term success of your online business. - (Source: yola) Businesses who choose to process credit card transaction manually lose several benefits provided when working with a payment gateway service: Fraud protection: Payment gateways notify merchants immediately if a consumer presents a credit card that has been reported as lost or stolen; preventing the transaction before it is processed. This prevents charge-backs for merchants and protects customers from fraudulent charges. Speed and efficiency: Merchants that conduct a large number of credit card transactions will find that working with a payment gateway significantly decreases the amount spent on transaction processing, and since time is money, most businesses find the relationship to be a profitable one. Less red tape: Businesses just starting out will discover that with a payment gateway the company can start accepting credit cards immediately; without the service the merchant account needs to show a positive credit history. (Source: Insta merchant) Payment history: Each transaction that is processed through a payment gateway is captured and stored in a merchantâ&#x20AC;&#x2122;s account for later ref12

erence. This makes keeping track of online payments automatic (and hopefully redundant). Recurring billing: A common feature of subscription based websites is the ability to charge customers on a regular scheduled basis. Some POS software includes recurring payment functionality and many payment gateways offer this feature as well. By doing so they take the burden of PCI Compliance off of the merchant. The merchant does not need to worry about storing credit card information and the security that is required to do so. All-in-all a payment gatewayâ&#x20AC;&#x2122;s purpose is small in scope but they are still powerful and essential tools for online processing. If they still seem daunting, just remember they are just virtual card terminals and act almost in the very same way. They connect merchant website to merchant account so the business can get paid from card / online sales. Simple yet powerful. (source: merchant-account-services)

Where payment gateway is / can be used ? Payment Gateway is a must in all possible areas where there is transaction of money and money is required in exchange of good and services. In the 21st century, technology has opened many windows for providing service to its end customer. The era of e-commerce has created lot of importance to the function of Payment Gateway. Below Services of Payment Gateway is broadly classified: Government • Tax payment • Export / Import duties • Utility bill payments like electricity, water, etc • Identity card service like passport, licence, etc • Various licencing • Savings schemes • Railways • Airways • Banking service • Connecting Rural with Urban • Transfer of funds

Restaurants Hospitality Education Hospitals & Other Medical facilities Tours & Travels • Tour packages • Holiday schemes • Hotel booking • Restaurant booking Transport • Various other means of transport • Railways • Airways • Buses Financial Services • Mobile Bills, • Insurance premium

Products FMCG Apparel Fashion Lifestyle Grocery Services Matrimony Classified Ads 14

How payment gateway works? Payment gateways work by providing the secure, integral link between a website (web server) and the bank. When credit card details are submitted on a website the payment gateway receives these details and sends them to the bank for verification. The bank then replies with a response; usually either accepted or declined. The payment gateway then sends this response back to the web server when the appropriate message is displayed to the user - for example “Your payment has been successful”. The process followed by the Consumer Step 1-At checkout, customer submits the credit card data for payment. Step 2-Payment gateway handles the complex routing and checking on behalf of the merchant through the involved entities.

The payment gateway sends the card data over a secure connection to the acquiring bank and through to the credit card network, like Visa and MasterCard and on to the bank that issued the credit card to the customer. Step 3-The issuing bank accepts or declines the transaction based on the available funds and passes the transaction result back to the credit card network. The credit card network relays the result back to the acquiring bank which sends it back to Cyberbit’s payment gateway. Step 4-Cyberbit’s gateway saves the transaction result and sends them to the website so both the customer and the merchant can see the result. Step 5-The merchant delivers the goods or services to the customer. Step 6-The issuing bank sends the funds through the credit card network to the acquiring bank. The acquiring bank then deposits the funds into the merchant’s bank account.

What to do to setup a payment gateway system? Essentially a gateway is the â&#x20AC;&#x153;middlemanâ&#x20AC;? in the transaction process. The first step is to get in touch with the integrations team at each network like the merchant, card association, banks, etc. STEP 1: Contact a major bank and get through to their card acquiring arm. STEP 2: Request details on comms format for authorization requests and end of day settlement files. STEP 3: Set up a test merchant account and develop authorization / settlement software and go through the accreditation process. STEP 4: Once it is registered with bank apply for certification from various regulatory body like PCI complaince, RBI rules & regulatory body, etc. STEP 5: During the certification process, the card association runs systems through many tests and once completed, Then will need to do a PCI/CISP audit. This can be expensive and will require quite a bit of infrastructure on infrastructure part as well as an on-site audit to make sure that everything is compliant. STEP 6: Once the company is registered and accredited it will then be able to accept customers and setup merchant accounts on behalf of the bank/s accredited against (bearing in mind that each acquirer will generally support multiple banks). STEP 7: Rinse and repeat with other acquirers as seen necessary.

What is Payment?

Payment System

A payment is the transfer of money from one party (such as a person or company) to another.[contradiction] A payment is usually made in exchange for the provision of goods, services or both, or to fulfill a legal obligation. The simplest and oldest form of payment is barter, the exchange of one good or service for another. In the modern world, common means of payment by an individual include money, cheque, debit, credit, or bank transfer, and in trade such payments are frequently preceded by an invoice or result in a receipt. However, there are no arbitrary limits on the form a payment can take and thus in complex transactions between businesses, payments may take the form of stock or other more complicated arrangements. In law, the payer is the party making a payment while the payee is the party receiving the payment. (wiki)

The payment system is an operational network - governed by laws, rules and standards - that links bank accounts and provides the functionality for monetary exchange using bank deposits. The payment system is the infrastructure (consisting of institutions, instruments, rules, procedures, standards,and technical means) established in effect the transfer of monetary value between parties discharging mutual obligations. Its technical efficiency determines the efficiency with which transaction money is used in the economy, and risk associated with its use.

Payment Methods There are two types of payment methods; exchanging and provisioning. Exchanging is to change coin, money and banknote in terms of the price. Provisioning is to transfer money from one account to another. In this method, a third party must be involved. Credit card, debit card, money transfers, and recurring cash or ACH (Automated Clearing House) disbursements are all electronic payments methods. Electronic payments technologies are magnetic stripe card, smartcard, contactless card and mobile handset. Mobile handset based payments are called mobile payments. Parties Involved Payments may be classified by the number of parties involved to consummate a transaction. For example, a credit card transaction in the United States requires a minimum of four parties (the purchaser, the seller, the issuing bank, and the acquiring bank). A cash payment requires a minimum of three parties (the seller, the purchaser, and the issuer of the currency). A barter payment requires a minimum of two parties (the purchaser and the seller). 17

What makes it a â&#x20AC;&#x153;systemâ&#x20AC;? is that it employs cash-substitutes; traditional payment systems are negotiable instruments such as drafts (e.g., checks) and documentary credits such as letter of credits. With the advent of computers and electronic communications a large number of alternative electronic payment systems have emerged. These include debit cards, credit cards, electronic funds transfers, direct credits, direct debits, internet banking and e-commerce payment systems. Some payment systems include credit mechanisms, but that is essentially a different aspect of payment. Payment systems are used in lieu of tendering cash in domestic and international transactions and consist of a major service provided by banks and other financial institutions. Payment systems may be physical or electronic and each has their own procedures and protocols. Standardisation have allowed some of these systems and networks to grow to a global scale, but there are still many country and product specific systems. Examples of payment systems that have become globally available are credit card and automated teller machine networks. Specific forms of payment systems are also used to settle financial transactions for products in the equity markets, bond markets, currency markets, futures markets, derivatives markets, options markets and for transfer funds between financial institutions both domestically using clearing and Real Time Gross Settlement (RTGS) systems and internationally

using the SWIFT network. The term electronic payment can refer narrowly to e-commerce - a payment for buying and selling goods or services offered through the Internet, or broadly to any type of electronic funds transfer. National Payment system An efficient national payment system reduced the cost of exchanging goods and services, and indispensable to the functioning of the interbank, money, and capital markets. A weak payment system may severely drag on the stability and developmental capacity of a national economy; its failures can result in inefficient use of financial resources, inequitable risk-sharing among agents, actual losses for participants, and loss of confidence in the financial system and in the very use of money. The technical effciency of payment system is important for a development of economy. Real time gross settlement systems (RTGS) are funds transfer systems where transfer of money or securities takes place from one bank to another on a “real time” and on “gross” basis. Settlement in “real time” means that payment transaction does not require any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bunching or netting with any other transaction. Once processed, payments are final and irrevocable. RTGS systems covering multiple countries: TARGET resp. TARGET2 (Trans-European Automated Real-time Gross Settlement Express Transfer System) in 26 countries of the European Union. TARGET2 is the Real Time Gross Settlement system for the Euro currency, and is offered by the Eurosystem, which comprises the European Central Bank and the National Central Banks of those countries that have adopted the Euro currency. The Eurosystem and the European System of Central Banks will co-exist as long as there are EU Member States outside the Euro area. TARGET2 is used for the settlement of central bank operations, large-value Euro interbank transfers as well as other euro payments. TARGET 2 provides real-time financial

transfers, debt settlement at central banks which is immediate and irreversible. This “electronic” payment system is normally maintained or controlled by the Central Bank of a country. There is no physical exchange of money; the Central Bank makes adjustments in the electronic accounts of Bank A and Bank B, reducing the amount in Bank A’s account by $100,000 and increasing the amount of Bank B’s account by the same. The RTGS system is suited for low-volume, high-value transactions. It lowers settlement risk, besides giving an accurate picture of an institution’s account at any point of time. Such systems are an alternative to systems of settling transactions at the end of the day, also known as the net settlement system such as BACS. In the net settlement system, all the inter-institution transactions during the day are accumulated. At the end of the day, the accounts of the institutions are adjusted. The implementation of RTGS systems by Central Banks throughout the world is driven by the goal to minimize risk in high-value electronic payment settlement systems. In an RTGS system, transactions are settled across accounts held at a Central Bank on a continuous gross basis. Settlement is immediate, final and irrevocable. Credit risks due to settlement lags are eliminated. The best RTGS national payment system cover up to 95% of high-value transactions within national monetary market. The World Bank has bee paying increasing attention to payment system development as a key component of the financial infrastructure of a country, and has provided various form of assistance to over 100 counrites. Most of the RTGS systems in place are secure and have been designed around international standards and best practices.[4] By 1985 only 3 central banks had implemented RTGS system. At the end of 2005, the use of RTGS systems had diffused to 90 central banks.[5] (wiki)

Evolution of Payment System CREDIT CARD PAYMENT SYSTEM

BARTER PAYMENT SYSTEM

Purchaser

Issuing Bank

Acquiring Bank

Purchaser

Seller

ONLINE PAYMENT SYSTEM CASH PAYMENT SYSTEM

Acquiring Bank

Issuing Bank Issuer of Currency Payment Gateway Purchaser

Seller Purchaser

Seller

Payment System Mapping Government Regulatory Body

Central Bank Issuing Bank

Large-value system

Business Organization

Individual

Physical Transaction Draft

Cheque

Acquiring Bank

Retail payment system

Electronic Transaction Debit Card

Letter of credit

Credit Card

Electronic fund transfer

Direct Debit

Direct Credit

Internet Banking

E-commerce payment system

SIPS (Systematically Important payment systems) Clearing Electronic Clearing Srvice (ECS)

Equity market

National Electronic fund transfer (NEFT)

Bonds market

Real Time Gross Settlement (RTGS)

Derivatives market

SWIFT (Society for Worldwide Financial Telecommunication)

options market

currency market

Payment System of India

Payments in India going the e-way

Payments are an indispensable part of our daily transactions, be it a consumer to a business, a business to a consumer or a business to a business. Payments raise the GDP of a country thus it is mandatory that the payment systems of the country are “safe, secure, sound, efficient, accessible and authorize,” as states the mission statement of the Reserve Bank of India’s publication on Payment Systems in India (2009–12). The Reserve Bank of India continually strives towards ensuring the smooth progress of the payments system. In India it is the BPSS (Board for Regulation of Payment and Settlement Systems) which is in charge of regulating these systems. Payment systems in any country are the most essential part of the economic system of that country. Efficiency in these is required to guarantee the timely completion of all transactions. As the payment system is one of the most important components of the financial system, innovative ways of making payments which are less hasslesome are being focused upon. The BPSS is trying to effect a change in the mode of payments in India, from paper to electronic. Since electronic means are both safer and more efficient efforts are continuously being made to change the mindset of people and make them shift to electronic-payments. An efficient payment system forms the backbone of economic well-being of a nation.

The Reserve Bank of India is doing its best to encourage alternative methods of payments which will bring security and efficiency to the payments system and make the whole process easier for banks. The Indian banking sector has been growing successfully, innovating and trying to adopt and implement electronic payments to enhance the banking system. Though the Indian payment systems have always been dominated by paper-based transactions, e-payments are not far behind. Ever since the introduction of e-payments in India, the banking sector has witnessed growth like never before. According to a survey by Celent, the ratio of e-payments to paper based transactions has considerably increased between 2004 and 2008. This has happened as a result of advances in technology and increasing consumer awareness of the ease and efficiency of internet and mobile transactions. In the case of India, the RBI has played a pivotal role in facilitating e-payments by making it compulsory for banks to route high value transactions through Real Time Gross Settlement (RTGS) and also by introducing NEFT (National Electronic Funds Transfer) and NECS (National Electronic Clearing Services) which has encouraged individuals and businesses to switch to electronic methods of payment. With the changing times and technology so have changed the methods of payments in India. E-payments in India have been growing at a fast rate of 60% over the last 3 years. In India ‘plastics’ have been fast over-taking ‘papers’. With 130 million cards in circulation currently, both credit and debit, and an increasing consumer base with disposable income, India is clearly one of the fastest growing countries for payment cards in the Asis-Pacific region. Behaviourial patterns of Indian customers are also likely to be influenced by their internet accessibility and usage, which currently is about 32 million PC users, 68% of whom have access to the net. However these statistical indications are far from the reality where customers still prefer to pay “in line” rather than online, with 63% payments still being made in cash. E-payments have to be continuously promoted showing consumers the various

Traditional methods of making payments Traditional methods dominating the Indian payments market have been cheques and cash. Cash is the most popular modes of payment especially when it comes to retail transactions because it gives the customer a sense of completion once the amount is paid in cash. However, if we look at the flip-side, it poses a security- risk for the customer if he is carrying too large an amount of cash. So, it is here that cheques make things simpler and hence they are the second most popular mode of payment.

routes through which they can make these payments like ATM’s, the internet, mobile phones and drop boxes. The Indian payments systems have however undergone a change with respect to methods of payments, there now being card-based payments, Electronic Funds Transfers, Electronic Clearing Services and ways to pay via the mobile and internet. In India payments can be divided in two ways- firstly, large-scale payments and smallscale payments and secondly, paper-based and electronic. Most large-scale payments concern corporates or government payments and are settled by the RBI. Small-scale payments are mainly retail payments concerning individuals which are generally paper-based transactions. Most large-value payments are handled electronically. However, even the retail payments are showing a tendency of shifting to the e-payment mode, mainly because of consumer awareness and regulations by the RBI.

ATM’s serve many other purposes, apart from functioning as terminals for withdrawals and balance inquiries, such as payment of bills through ATM’s, applications for cheques books and loans can also be made via ATM’s. Banks also provide telephone and mobile banking facilities. Through call agents payments can be made and as the number of telephone and mobile subscribers are expected to rise, so is this channel of payment expected to gain popularity. Drop boxes provide a solution to those who have no access to the internet or to a telephone or mobile. These drop-boxes are kept in the premises of banks and the customers can drop their bills along with the bill payment slips in these boxes to be collected by third party agents.

Electronic payment systems in India

As the apex financial and regulatory institution in the country it is compulsory for the RBI to ensure that the payments system in the country is as technologically advanced as possible and in view of this aim, the RBI has taken several initiatives to strengthen the e-payments system in India and encourage people to adopt it. • The Payment and Settlement Systems Act, 2007 was a major step in this direction. It enables the RBI to “regulate, supervise and lay down policies involving payment and settlement space in India.” Apart from some basic instructions to banks as to the personal and confidential nature of customer payments, supervising the timely payment and settlement of all transactions, the RBI has actively encouraged all banks and consumers to embrace e-payments. • In pursuit of the above-mentioned goal the RBI has granted NBFC’s (Non-Banking Financial Companies) the permission to issue co branded credit cards forming partnerships with commercial banks. • The Kisan Credit Card Scheme was launched by NABARD in order to meet the credit needs of farmers, so that they can be free of paper money hassles and use only plastic money. • A domestic card scheme known as RuPay has recently been start-

Due to the efforts of the RBI and the BPSS now over 75% of all transaction volume are in the electronic mode, including both large-value and retail payments. Out of this 75%, 98% come from the RTGS (large-value payments) whereas a meagre 2% come from retail payments. This means consumers have not yet accepted this as a regular means of paying their bills and still prefer conventional methods. Retail payments if made via electronic modes are done by ECS (debit and credit), EFT and card payments. Channels of e-payments In their effort to enable customers to make payments the electronic way banks have developed many channels of payments viz. the internet, mobiles, ATM’s (Automated Teller Machines) and drop boxes. The internet as a channel of payment is one of the most popular especially among the youth. Debit and credit payments are made by customers on various bank’s websites for small purchases,(retail payments) and retail transfers( ATM transfers).

Role of the RBI in encouraging e-payments

ed by the National Payments Corporation of India (NPCI),promoted by RBI and Indian Banks Association (IBA), inspired by Unionpay in China, which will be promoting the use of cards ie. “plastic money”. Initially functioning as an NPO, Rupay will focus on potential customers from rural and semi-urban areas of India. Rupay will have a much wider coverage than Visa, MasterCard or American Express cards which have always been used for card-based settlements. • The NREGA (National Rural Employment Guarantee Scheme) introduced by the Government will ensure rural employment in turn ensuring that the employees get wages. Each employee will have a smart card functioning as his personal identification card, driver’s license, credit card which will also function as an electronic pass book, thus familiarising the rural populations with e-payments.[9] However, the Indian banking system suffers from some defects due to certain socio-cultural factors which hampers the spread of the e-payments culture even though there are many effective electronic payment channels and systems in place. Despite the infrastructure being there nearly 63% of all payments are still made in cash. A relatively small percentage of the population pays their bills electronically and most of that population is from urban India-the metropolitans. Also in some cases the transaction is done partially online and partially “offline”. The main reason for this apathy t switch to e-payments comes from lack of awareness of the customer despite various efforts by the Government.

What is Gateway? A node on a network that serves as an entrance to another network. In enterprises, the gateway is the computer that routes the traffic from a workstation to the outside network that is serving the Web pages. In homes, the gateway is the ISP that connects the user to the internet. In enterprises, the gateway node often acts as a proxy server and a firewall. The gateway is also associated with both a router, which use headers and forwarding tables to determine where packets are sent, and a switch, which provides the actual path for the packet in and out of the gateway.

Payment Gateway System Mapping

Mapping Activity

System consists of entities, components and sub-systems. All these were mapped down on a paper. To break down various entities, the process and work-flow of payment gateway system was studied. All the process flow, which included customer using payment option, Merchant forwarding encrypted file to payment gateway were written down.

Activity system map, show how a companyâ&#x20AC;&#x2122;s strategic position is contained in a set of tailored activities designed to deliver it. In companies with a clear strategic position, a number of higher order strategic activities can be identified and implemented through clusters of tightly linked activities.

All the flow had various component, these component were mapped keeping Payment Gateway in the center. The map is divided into Core component, Secondary and Tertiary. Core components are the ones responsible for the creation of the system. They take the center stage on the map. Without these core components, the whole system will either collapse or become unstable. From the core system, follows secondary and tertiary. All of these play a very important role in a system. After mapping the components and entities, their connection is shown using dotted lines and arrow mark. Thicker the dotted lines, stronger the relationship with the component. Each and every component is connected to many different components. Their behaviour with each other determines the value of the component.

In this process, all the tasks a Payment Gateway performs were written down. It is divided into three categories. Core - Core is the activity which tells the prime function of the particular enterprise. It is defined by knowing the in-depth and gaining knowledge about the subject. Core defines the existence of that particular need. In Payment Gateway Secure, Easy and Fast are the core activity. Peripheral - Peripheral are the support which help core function better. They work around the principle of core. In Payment Gateway, Refund Tracking, API Compatibility to merchants website, Failure reports, Analytics, all these are the support system which help define core. Magic - Magic refers to the unique selling proportion of that product. It is that factor which gives a strategic advantage to one enterprise over other. In Payment Gateway, Digital Wallet, Tax calculator, Customer Profiling, etc

System Mapping Administration

RBI

TRAI

Travel System

Trading System

App developer Software Engineer Hardware Engineer

Purchase

Management Customer Relationship

Policy & Regulation

Technical

Cloud

Maintainance

Operations

Government

Documentation

e-commerce Infrastructure

Hardware Networking

Ddigital Wallet Shopping Cart Authorization Payment form Digital Checkout

Operations

Software

Merchant Brick & Mortor Point of sale device

Management Technical

Maintainance Customer Relationship

Software Engineer Hardware Engineer Networking Engineer User-Interface Designer

Social Interface Mobile Interface Information system Web Interface

Payment Bill Desk Processor Bank account

Customer a/c Debit card

Refund Tracking

Hardware

Tax Clculators

Mobile & Internet Service Provider

Cash Electrpnic Cash

Auction payment collection

Software

Bill / Invoice facility Phone pay solution Social payment facility 3G Internet SMS

Customer

Bank

Content Management Fraud Tracking

Networking

Payment Gateway System

Card Association

Database

Infrastructure

Protection Mechanism PCI Complaince

Shopping Cart

Networking Engineer User-Interface Designer

Sales

Post office

Public Service

3D secure

Security developer

Accounting Marketing

Tablet Smartphone PC / Laptop

Social Network Facebook Twitter Pinterest

Physical Cash

Merchant a/c

Net Banking

Credit card CVV Expiry Date CArd No

Core Component Secondary Tertiary

Mapping Activity Customer profiling

Tax calculator

Refund Tracking

Maintaining Large Database

Data Analysis

Validating Transaction

Digital Wallet

API creation & compatibility

Certifying Authority

Check for Fraud Strict Security environment

Connection with other gateway (international)

Link between point of sale and bank

Information passing through secure network

Customer support and helpline

Real time authorization

Web checkout

encrypt secure data Mobile checkout

Social network patment

Core Activity Pheriperal Magic

Stage 2 - Secondary research • Trend Matrix

• Innovation source book

Secondary Research - Quantitative Collecting Data

All the data was compiled in Evernote, creating seperate sections for each topic. All important articles, pictures were stored using that software.

Keeping the Brief in mind, Data was collected using different medias like Internet, Blogs, Articles, Discusion Forums, Online & Video Interviews, Magazines, Newspapers, Journals, etc.

Blogs

Articles

Discussion Forums

Interviews

Magazine

Internet

Newspaper

Journals

All the data was segregated into broader topics which influenced Payment Gateway. The PESTEM (Political, Economical, Social, Technological, Enviroment, Media) approach was applied. There were many other segments which influence Payment Gateway as well. Since all topics in PESTEM were not applicable, different topics were applied. It was finally segregated into E-commerce, Government, Economic and Business, Socio-Economic, Media, Technology, Market and Social Network. 28

Trend Matrix A trend matrix presents a high level summary of how trends and forces of change affect technology, business, people, culture and policy. The matrix offers an at-a-glance understanding of how trends impact a project. Steps followed: STEP 1: Setting up the dimentions for the Trend matrix The Vertical axis is usually shown as echnology, business, people, culture and policy. Instead of policy business was added. The horizontal dimension shows the aspects of the project related to system components. It is valuable to define the horizontal axis as ‘Formerly’, ‘Currently’, and ‘Emerging’. STEP 2: Filling the matrix with relevant information The data segregated previously were read throughly. Most important trends, events, dialogs were identified and were placed according to the suitable cell. If there was any collapse of data, it was added in both the cells. STEP 3: Observing the matrix as an overview The purpose of the trend matrix is to present a high level over-view of changes. Compare the trends to others to see how they are related. Recognize patterns of similar trends developing together. These helped to speculate future direction. STEP 4: Analyzing & Capturing insights as overlays on the matrix. Key words emerged from the cell. All these key words were clustered together based on their similarity. This helped us find an emerging pattern, which led us to insight. These insights were speculated and documented about how things might develop. 29

Trend Matrix of e-‐payment gateway Currently

Formerly

Paperless Security Issue Digital Wallet International Payment One-‐click payment

Net Banking Banks Struggling Credit Cards Technology MICR

Market

E-‐ticketing Credit card & POS system Banks starting Payment gateway service

People

Research Trust Secure Wait and See

Culture

Lack of Trust

Business

e-‐utility private players Bank reservations

Poor Service Penetration in different market like Mobile & Social Commerce No Competition Few Players High Failure Rate Restless & Not Comfortable Multiple payment options Lack of Information Youth Demography Believe in Brand Risk & Trust Price Sensitive Physical presence / Touch No Innovation Expensive Strict government regulations Poor customer service High failure rate Bank reservations

Emerging Internet Driven E-‐mail / One contact Smartphones Cloud Technology Cashless Digital Wallet Social Payment Mobile Commerce Mobile & Teblet Devices FDI Government Initiated Payment Gateway system Private-‐public venture Mobile-‐Shopping Mobile a Habit F-‐commerce Unique Identification System Loyalty & Reward Program Digital Wallet F-‐Commerce / Social Commerce Payment Gateway as friend / advisor Personalized approach Digital Wallet M-‐Shopping Niche Market / Product Analytics F-‐commerce & Social Commerce Multiple payment Option

Trend Matrix key words emerged from different patterns

Key points emerging from Trends Matrix • • • • • • • •

Unique Identification / One Contact Emergence of M-commerce & Social Commerce Concept of Cashless & Digital Wallet Government Initiated & partnered with private payment gateway system Personalization and Creating a smart payment gateway (AI) Cloud technology Targetting Niche market / Single market and customizing payment gateway accordingly For ex - Payment Gateway for only Grocery shops Smartphones a habit

Key Trends emerging from matrix All the above key words were clubbed in a pattern and these trends were speculated. The image shows how the keywords were clubbed together and trends were interpretted. These trend will help further in the project to know the leverage points in the existing system. Below are the trends that emerged from the exercise: TREND 1 : Everything in Smart phones TREND 2 : • Government Policies • Government led Payment Gateway initiative, partnering private ventures • International players introducing better technology TREND 3: Everything in Cloud TREND 4 : Unique Identification System like finger print, e-mail id

TREND 5 : • Branding of Payment Gateway • One Organization giving multiple payment methods TREND 6 : • Cashless • Digital Wallet TREND 7 : Commerce using Social Network TREND 8 : Data as Gold mine TREND 9 : Personalization of Shopping Experience TREND 10 : Targetting a segment & Personalizing a payment type

Innovation Mapping The innovation mapping is a structured approach to assembling best practises embodied in a wide range of innovation successes. The method helps find and organize successful examples of offerings. Comparing and Contrasting them helps understand the reason behind their success as platform. Delving deeper to understand the strategies employed by these innovations is even more valuable.

factors. This can help find inspiration and how the common strategies found in the examples can be adopted. The Innovation table throughout design process can help gain inspiration. Inspiration & Findings from Innovation Map These are the common points which emerge by comparing the examples of Innovation.

Steps followed:

Innovation

STEP 1: Establish an agreed upon definition of Innovation

• • • • • • • • •

What is Innovation and How do we know if its Innovation was a big question. The simple definition of Innovation thought of is Something new made real in a marketplace that provide both customer value and provider value. STEP 2 : Search for examples of Successful Innovation The pool of Data available was scanned for examples of noteworthy new offerings (product, service, experience, organization, people, etc.) STEP 3 : Creation of Innovation Table. Each example innovations is entered as a row under Categories Offerings, Organization, and People. The five coloumns in the table are Name of Innovation, Description of Innovation, Strategic advantage, What influenced the innovation, for customers and for merchants. STEP 4 : Reviewing the examples and looking for inspiration Different examples were compared with one another. Common patterns were identified in terms of strategic advantage and influencing

Digital Wallet NFC (Mear Field Communicator) technology Integrating Credit, Debit and Loyalty Card in one platform Cross-Border facility Mobile Application Digital Cash transfer SMS based cash transfer Internet Cash trading Payment gateway for Disabled

Strategic Advantage • • • • • • •

e-mail id as one payment identity Mobile device as payment mode Payment Gateway as Brand name Transfer money using e-mail id and SMS Using mobile phones as payment receiver Paperless transactions No need of bank account

What Influenced the Innovation • Increase in Smartphone users • Concept of creating Cashless experience and reduce dependency on cash 32

• • • • •

To create trust in the mind of consumers Easy access to Internet Easy way to build an app on mobile device Emergence of Small business online To break the payment system created

How did it help Customers? • By making transfer of money easy • Reducing the number of steps to pay • Increasing the trust How did it help Merchants? • • • • •

Multiple Payment options Better security Able to mix the payment feature with various business model Go mobile, can be anywhere Can tap disabled clients

Category

Organization

Innovation Mapping -‐ Payment Gateway Name of Organizattion Description if Innovation Strategic Advantage created What made / influenced the innovation 1. Send money with an e-‐mail addres either through bank balance or google wallet balance 2. All loyalty and offer in one place 3. NFC enabled 4. Two-‐click step payment through 1. Increase in sale and use of mobile or tablets 1. Digital Wallet Smartphones and tablets 5. If phone gets lost, the app can be 2. NFC (Near Field 2. The concept of creating cashless deactivated through online a/c Communicator) experience 6. Instant notification on phone Compatible 3. Loyalty Card 7. Large user base 3. Easy access to Internet Google Wallet

Organzation

PayPal

Offering

Venmo

Business

Offering

Organization

Square

M-‐pesa

Bitcoin

Semafone

1. Digital Wallet 2.Cross border facilities 3. Loyalty Card

Digital cash transfer 1.Digital Wallet 2.Can swipe card and provide transaction using mobile devices 3. Mobile app based 1. SMS based system which enables user to deposit, send and withdraw using mobile phones

Internet cash

1. Same as above 2. Gives International payment options 3.Introducing Social commerce payment facility 4. Most popular payment gateway brand worldwide 1. Send cash to your friends or peer through mail or facebook 2. All transaction free of cost

1. A small device which fits in a pocket can be attached to mobile device and accept payments

For Merchants

1. Multiple payment 1. To ease the transfer option 2. Better security of money 2. Increase in trust from 3. Ability to mix the customers payment feature 3. Decrease in number with various of payment steps business model

1. Has created a trust in the mind of consumer 2. Same as above

1. Same as above 2. International Card payment

1. Same as above 2. International card payment

1. Easily availabilty to build an app on mobile devie

1. Send cash free of cost

None

1. Digital receipt

1. Free secure card reader 2. Go mobile, be anywhere

1. Improved version of POS devices 2. For small business

1. Mobile phone penetration 2. Need for money transfer system 3. Reduce dependency on cash 1. Breaking the government norms of 1. Send and earn bitcoin within less than rupee payment 2. To sell on internet without a payment system 2. No need of payment gateway or card 3. Protect wealth from devaluating from 3. Influenced by the use of payment of government cash in a tradional manner 1. No need of Bank account 2. Transaction through agents outlet

Payment through phone 1. No need to speak out keypad 2. Very good for blind people

For customers

1. Disability

1. Best way to transfer 1.Every transaction money 2. Safe and Reliable gets commission

1.easier checkout

2. Bitcoin can be broken down to 8 decimal value

1. Great help to blind persons 2. All keypad emit same sound, impossible to know which number 1. Can tap disablled was dialled clients

Trend Matrix key words emerged from different patterns 34

Stage 3 - Primary Research

• Stake holder mapping

• Subject matter expert interview

• One - on - One interview

• User Journey map and pain points

Primary Research - Qualitative

DIRECT STAKE HOLDERS

Merchant Customers Bank

Bank representative

CORE TARGET GROUP

e-commerce merchant

shut e-commerce business owner e-commerce startup owner UX / UI designer

Maintainance specialist

Domain Experts

F-commerce user

Above were the methods thought of to get insights about the target group. To begin the research, target group were listed down. From the target group Direct stake holders and Indirect stake holders were divided.

Software Engineer

Stake Holders Mapping

E-commerce developer

Subject matter expert interview Interest group forums / discussions One - on - One Interview User Journey map and pain points

Extreme e-commerce user Never used e-commerce user Medium e-commerce user

Government Department

Anti-hacking software provider

The methods adopted were: • • • •

Card associations

Internet service provider

Mobile service provider

To go about doing the primary research many methods were thought of which included one-on-one interview, focus group discussion, expert interview, field observation, etc. The main objective of qualitative research is to find out the aspiration, beliefs and desire of various stake holders.

INDIRECT STAKE HOLDERS

Data Analyst

Hardware & Networking Engineer 36

Subject Matter Expert Interview

Approach

• • • • • • • • •

PART 1 : Objective & Target Group

Specific Question - E-commerce owner

Objective

• Setting up Payment Gateway is better option or taking third party suport? What is the reason ? • What are customers belief towards Payment system in your website? • Is business strategy evolved around Payment Gateway?

The Subject Matter Experts Interview is a method for getting up to speed quickly on the area of interest. Speaking with experts in a given field accelerates general understanding about it, offers information about the most advanced developments, and provide guidance for where to look for additional information.

To know about Payment Gateway, its function, its importance, its feasibility, relationship, difficulties and the journey of workflow.

Main Target Group

E-Commerce business, Domain Expert

Sub-target group 1 - E-commerce business owner (Startup & Shut) Sub-target group 2 - Program Developer Sub-target group 3 - UI / UX designer Sub-target group 3 - Domain Expert

What happenes when there is failure in payment? How long does it take to identify the problem in failure? Are you happy with the service? How it can be improved? What according to you is ideal payment Gateway? Will Google Wallet or PayPal answer to the solution? How is your relationship with the Bank? Is the bank responsible for most of the payment failures? What needs to be improved in terms of Government policies?

Specific Question - E-commerce developer

PART 2 : Questionnaire

• • • • •

General Questions

Specific Question - UI / UX designer

• How important is Payment Gateway? • Why did you choose that particular Payment Gateway? • What were the difficulties faced while integrating Payment Gateway? • Is it Secure? • Is it Fast? • What are you looking for in a Payment Gateway? • What are the value added service it is providing?

• How can you create trust in consumers mind about secure payment? • How can you decrease the number of payment steps less? • Can design create trust? • What changes do you feel in design can change the whole experience of payment?

How difficult or Easy is it to integrate Payment Gateway? What do you feel about the technology Is PG really secure? How can you make it even more secure? How to make it fast and easy?

Interview 1 Name: Sumeet Sagar Gender: Male Age: 30 years Profession: Entrepreneur Business: E-commerce startup Number of employes: 4 including him Name of the Company: GenWiz Lifestyle Key points emerged: • Using Times of Money - ePayment service • Chose based on transaction fees • Payment is done in 2 process - One in merchant domain and other in Payment Gateway • Payment success depends on 70% merchant and 30% Payment Gateway • 70% is the Checkout process and Shiping Address and Card details • Stress on Virtual keyboard & Dynamic virtual keyboard • When there is failure in transaction, the money is stuck between Payment Gateway and Bank. • To get back the amount the customer sends a request to bank, banks sends transaction ID to Payment Gateway, Payment Gateway to Merchand, then the merchant approves and the money gets transfered • It takes long time to make sure money goes back to right person • To improve customer experience, add everything in one page • Customers complaints him to add virtual keyboard in payment features • The Payment Gateway doesnt provide any such facility • No proper customer care • No feedback • Waste

• CCAvenue is good, but they also dont have virtual keyboard • There are two ways of improving E-commerce, one by providing shipping address easyness and Safety and Security by Payment Gateway • The data typed by customer goes to Merchant and Payment Gateway as well • The system of storing card detail is bad, anybody can hack, its not safe • Recently there was a news where Mukesh Ambani account was hacked. Touch Points: • Payment success depends on 70% merchant and 30% Payment Gateway • 70% is the Checkout process, Shiping Address and Card details • Stress on Virtual keyboard & Dynamic virtual keyboard • No proper customer care • No feedback

Interview 2 Name: Pinku Ahuja Gender: Male Age: 38 years Profession: E-commerce developer Name of the Business: www.39shops.com Experience of more than 8 years in the field of E-commerce development in regards to Web page development and Security Key Points emerged • The existing ones are unreliable and are often the biggest painpoint for online businesses • Cash on Delivery is very expensive for any eCommerce merchant. • Dearth of reliable gateways in India • 3 significant hurdles - regulatory issues, business development with banks and the time taken to go to market because of the first 2 hurdles. • Almost all the incumbent players started about 10-12 years back. They have a set high upfront fee based Sales model and they find no reason to innovate or updgrade their tech platforms. Therefore, we have no reliable payment gateways. • The reliability of a payment gateway depends to a large extent on the performance of the Banks with whom the payment gateway provider partners to process the payment. • Unless these Banks improve their processes/systems, a new payment gateway provider will find it hard to completely eliminate two of the biggest pain points of online payments • (1) Money deducted from customer’s bank account but merchant doesn’t know. • (2) Merchant issued a refund which the customer never got. Many times when a merchant has issued an online refund (reversal), the customer will not receive the refund in his/her bank 39

• •

account either within a reasonable timeframe account. Both these cases are perfect situations where a merchant could end up losing his credibility for no fault of his. The day the Banks can offer a better solution that takes care of issues like the ones highlighted above, online payments will automatically become a lesser devil to handle for e-commerce merchants. The Bank’s regulatory team plays a major hurdle because they do not want to take risks. Regulation seems to be the biggest roadblock. The Reserve Bank of India has traditionally been very conservative in letting new payment systems and mechanisms come into the play in the Indian market. A lot of it seems to stem from a (sometimes misguided) desire to foolproof these systems against any potential fraud so as to protect consumers.

Touch Points: • 3 significant hurdles - regulatory issues, business development with banks and the time taken to go to market because of the first 2 hurdles. • The reliability of a payment gateway depends to a large extent on the performance of the Banks with whom the payment gateway provider partners to process the payment. • Both these cases are perfect situations where a merchant could end up losing his credibility for no fault of his.

Interview 3 Name: Bharat Das Gender: Male Age: 32 years Profession: E-commerce Company owner

• • • •

No support from either Domain nor, PAyment Gateway Lack of Information from both the ends No policy clarity in terms of Customer Relationship. Loss of Client due to 3rd party poor support.

2 years in the line of Lifestyle product sale, has tie-up with flipkart for various sales in Books & Stationery. Had taken up B4UIndia as Web Hosting and EBS payment Gateway for all transaction. Key Points emerged • When I was making payment I have got an error, The amount was deducted from my account, but invoice status is still unpaid. • When i complaint it in B4UIndia, Then they are saying that they have not got any payment from my side. If your amount is deducted from your card then contact directly to EBS because we have no control over payment gateway. • Its already been 15 days but still my credit card amount is on hold by the merchant. • The amount is not deducted from my account but still the amount is on hold for merchant approval and my credit card limit is blocked. • The transaction was unsuccessful So I am not able to understand why the amount is on hold. • I have lost my client just because of B4UIndia. • I am going to consumer court and RBI to complain against these two fraud companies Web Hosting & Domain Name Registration Service Provider in India - B4U India and EBS payment gateway. Touch Points: • Payment stuck in between Web Domain and Payment Gateway, do not know whom to contact for information. 40

Interview 4 Name: Manish Begwani Gender: Male Age: 28 years Profession: Drug store owner Manish is planning to start an e-commerce business. He saw an opportunity in the field of Pharmacy, lack of e-pharma in India. This made him explore the idea of starting a e-commerce business. He has been incubating his idea from more than 6 months and has been facing problem from the payment gateway ventor. Key Points emerged • I am planning to start the Online pharmacy in India. • We already own an offline store we have all the perquisite licenses & qualified pharmacists available with us on our store all the time. • We haven’t been able to find a reliable ‘payment gateway’ that can be integrated to our site. • I have high hopes to start this venture but without a payment gateway it would get difficult for us to sustain. • RBI regulation restricts giving payment gateway to high risk businesses like Pharmacy in India. • Now you know how unprofessional place India is to do business! Touch Points: • • • • • 41

Knows the importance of Payment Gateway Policy Paralysis from the government Lot of Hastel to go through prcess of finding out about services. Payment Gateway is totally new concept in India. It has still not been / explored in many areas of application.

One - on - One Interview A close companion to field visit observational research, Interview is concerned with understanding peoples activities and experiences from their own perspectives and in their own places. It lets us learn about people through their stories and in their own words, in an open ended explanatory fashion. Approach PART 1 : Observation & Target Group

Objective

To know the payment experience of the end customer, who shop online from an e-commerce merchant through website, mobile or social media. What makes them pay online? What are their aspiration and belief?

What do we want to find out? • • • •

What are the security issues they faced? Difficulty in payment Their payment journey and pain points Their aspiration of a secure, fast and easy payment

Hypotheses:

• Customers are restless and are not comfortable paying online • Customers feel there is lack of information • They find paying online is risky

Target group

People purchasing online

Main target group: People of age group 18 – 50 years • Men and Women • Different social class Sec A, B • Mix of Students, Professionals, Business Men, House Wives Sub target Group 1: Extreme e-commerce user Sub target Group 2: Medium e-commerce user Sub target Group 3: Never used e-commerce PART 2 : Questionnaire

General Questions

Gender Socio-cultural background Ages Value Attitude Interests Lifestyle Motivations Emotions Gadgets Credit Card / Debit Card Account in which Bank and its facilities

Specific Questions - To Extreme e-commerce user • • • • •

How often do you shop online? What type of product / service do you buy? Do you find online payment easy? Do you feel online payment is safe? Are you comfortable paying online? 42

• • • • • • • • • • • •

If yes, what makes you feel comfortable? If no, what makes you uncomfortable? Describe any payment experience Can you recall any incident where a payment failed What was your reaction to that incident? What were the difficulties faced while paying? What do you feel about the technology? What do you feel about the design? What do you feel about the shopping cart experience? What would be your ideal payment system Would you like to contribute to improve payment system? Do you still use cash

Specific Questions - To Never e-commerce user • What is the reason for not shopping online - Is it because of online payment mode? • Do you feel online payment is safe? • Are you comfortable paying online? • If yes, what makes you feel comfortable? • If no, what makes you uncomfortable? • What do you feel about the technology? • What do you feel about the design? • What would be your ideal payment system? • Would you like to contribute to improve payment system?

Interview 1 Name: Hitesh Kumar Gender: Male Age: 24 years SEC: SEC A3 Occupation: Student Pursuing Masters Gadgets: Apple Ipad Mini, Micromax Canvas HD smartphone, Sony VAIO laptop. Cards: 3 Debit cards with Net banking facility, Axis Bank & State Bank of India, ICICI bank Extreme online user, Can buy anything online and uses services like mobile recharge, Rail and Air ticketing. Many times uses his Ipad to purchase online. Key Points from the Interview • • • • • • • • • • • • • • • • • •

Uses card atlest one’s a week Shop using PayTM & Flipkart mostly Flipkart is the trusted service and feedback is very good They give liberty Process is not lengthy After payment, they again take back to shopping page Dont have to add details again in form PayTM is also safe Flipkart process is lengthy than PayTM Do not invest huge money in PayTM may be thats why Pyschologically not effecting because it is small amount Huge amount failure hurts and I fight At flipkart fight system is more and they justify also why it failed IRCTC biggest disaster, RedBus also Very old time - what they say and what they provide is bad Very long transaction process They took time but money was refunded - IRCTC Dont have to go online, all details through SMS

• • • • • • • • • • • • • • • • • • • •

Bonus is through SMS, do not have to stress out on tracking PayTM Cash - What I lost i will surely get it I know the location where my cash and the company That gets customer loyalty Life has become competitive, Simple & Secure is what to me Axis bank has high security option, it doesnt have a back button and no double click facility, its very irritating to me Mehenat se kamate hai, Mehenat sahi jagah jaye, simpler way main Hacking tension unko lena chahiye Proof hona chahiye ki ye secure hai Paisa Idhar Udhar ho ye tension online company ko hona chahiye In PayTM service, first give service and then take money That system process needs to be revised I dont carry cash, I dont like it Frustrated & Fast life We keep wallet anywhere and I forget it Card security is also very high and informed very well UI color is not inviting PayTM screen is simple and only three steps very basic If payment fails you will blame the merchant not the PG

Aspiration: Fast, Safe, Easy and Simple Value: Proper Feedback from Merchant, Pre-fed Data

Touch Points • • • • • • • • •

In PayTM service, first give service and then take money If payment fails you will blame the merchant not the PG Frustrated & Fast life Hacking tension unko lena chahiye Paisa Idhar Udhar ho ye tension online company ko hona chahiye Proof hona chahiye ki ye secure hai I know the location where my cash and the company Bonus is through SMS, do not have to stress out on tracking Huge amount failure hurts and I fight 44

Interview 2

Touch points

Name: Saakshi Y Gender: Female Age: 22 years Occupation: Student, Under-Graduate SEC: SEC A3 Gadgets: Samsung Galaxy S Smartphone, Branded laptop Cards: 2 Debit Card, State Bank of India

• • • • • • • • • •

Medium Online User, Only uses online to recharge phones and purchase Bus, Rail and Air tickets. Key Points from the interview: • • • • • • • • • • • • • • • • • • • 45

Purchases online once in 2 weeks Often uses freecharge.com Easy to use and coupons Better to use card details on one site than putting it everywhere Risk of loosing all money Worried about company employ can hack Medicine online system hacked Depend on site how security they give By using it, by people, by mouth of word, trust My understanding, I prefer typing again and again People dont even register because of security reasons IRCTC failed lot of times Seperate system has started in IRCTC, to book you ll have to ligin seperately No other option, thats why have to use IRCTC Information is either incomplete or wrong No proper communication Cash is still a must Peer support Presence of ATM everywhere

Better to use card details on one site than putting it everywhere Risk of loosing all money Worried about company employ can hack By using it, by people, by mouth of word, trust My understanding, I prefer typing again and again People dont even register because of security reasons No other option, thats why have to use IRCTC Information is either incomplete or wrong No proper communication Cash is still a must

Insights generated from Expert Interview and One-on-One Interview All the touch points are written on sticky notes. After placing it on board, sticky notes are clustered together based on similar patterns. After placing them together Insights are generated based on the understanding. Below are the insights generated from Expert Interview:

Dynamic keyboard increases the trust in security Too many steps in processign and refund Offline payment is costly like Cash on delivery Service / Product first, Payment next Lack of Information No trust in company Money matters than anything else Cashless No proper customer care & feedback from PG Difference in PG system and Bank system Merchant or Payment Gateway should take ownership of failures Lack of clarity on the policy from the government.

User Journey Map & Pain point mapping

Interview 1 - Refund

The User journey Map is a flow map that tracks users steps through an entire experience. This method breaks down users journey into component parts to gain insights into problem that may be present. Pain point mapping is an activity which goes along user journey map where problem faced by user is termed as pain points and it is identified during the process.

Company used one number everywhere!

Product found Damaged!

The following steps were followed: STEP 1: Understanding the process STEP 2: Generating list of activities STEP 3: Clustering the activities STEP 4: Showing activity clusters as nodes on a timeline STEP 5: Identifying pain points STEP 6: Observation & Insight Generation

Found Complaint number!

Explained very nicely return steps!

Provided date of pick-up!

Picked the product!

Observation & Pain Points

Called Operator!

Quick call as soon as the mail was sent!

Dropped Complaint e-mail!

Operator Called back!

Representative called!

• • • •

Operator asked to drop an ! e-mail!

Found number easily!

Refund within 7-10 working days!

One was given to the user!

Asked to ﬁll 3 forms!

Received refund mail!

After returning the product still there is worry about the money!

Very Quick service Good feedback system, with apt problem finding criterias Refund of money in 7-10 working days After returning the product what guarantee is there of refunding

Interview 2 - Error reporting

• User is confused • User didn’t notice the error message • User feels UI should provide more information before payment to reduce errors • User didn’t notice the error message • If the UI had notified where the problem the user is facing, the steps wouldn’t have been repeated

Payment was done very fast!

Opened PayTM web page!

Filled the form and proceeded to pay!

User confused!

Transaction steps page opened!

Similar above process followed!

Money fetched from digital wallet!

Error notice is shown after transaction fails!

Transaction failed again!

If the UI had notiﬁed where the problem the user is facing, the steps wouldn’t have been repeated!

Interview 3 - Lack of Information Finds it to be a lengthy process!

Transaction failed to recharge!

Money sent to digital wallet!

Tried whole step again!

First it did the payment!

Second it started to recharge but failed!

User selects the product to buy!

User didn’t notice the error message!

User starts looking for help!

Frustrated, tries seeking help online!

Ignored the notiﬁcation!

No CVV number in the card available with her!

Form asks for CVV number!

Irritated by the process!

Transaction success this time!

User realized ﬁlling wrong information! Gives up and closes the page!

User feels stupid!

Starts ﬁlling the payment form!

Add in shopping cart!

Observation & Pain Points

• Payment is very quick • First it did the payment, then it started to recharge, but it failed

• • • •

Observation & Pain Points

Finds it to be lengthy process User starts looking for help Frustrated & Irritated Gives up 48

Company used one number everywhere!

Interview 4 - No Information on Payment Selects payment button after booking a ticket!

Selects Debit card option!

Screen was blank for more than a minute!

Gets information on success rate! Selects the highest success rate PG!

Blank screen with no information!

3D secure password page appears!

Page gets redirected for payment!

Again it takes 1 min minimum to process!

Transaction failed!

No message on screen!

Interview 5 - No Refund

No clarity on what went wrong!

No information on money deducted!

User add a product in shopping card!

Have to use that as digital cash!

Fills card detail!

The money cannot be re-cashed!

Payment is successful!

Product not available with vendor!

Money gets transferred to Digital wallet!

Can only buy listed product from that vendor only!

Refund within 18 21 working days!

After 3 working days gets mail about failure in delivery!

The same product on other sites are cheaper, but have to buy from this vendor only!

Later gets to know through SMS!

User loses his money from account!

Does payment using Debit Card!

No other option other than buying products!

No knowledge whom to ask and where to go!

Observation & Pain Points • Information available on which Payment Gateway provides highest success rate • Blank screen with no information • Screen was blank for more than a minute • Very slow process • No clarity on what went wrong • User looses his money from account • No knowledge whom to ask and where to go 49

Observation & Pain Points • • • • •

Product not available with vendor After 3 days gets mail about failure in delivery That money cannot be re-cashed The money gets transferred to Digital Wallet The same product on other sites are cheaper, but have to buy from this vendor only.

Interview 6 - Purchase

User selects the product to buy

Confirms the Shopping Cart

Site asks for user name

User adds shipping address

User confirms the address

User selects the payment option

Redirecting to Gateway

Transaction fails due to unknown reasons

User Retry again

This time its successful

Merchant providing transaction ID

Purchase receipt is generated 50

Insights generated from Journey Map & Pain Points All the observations and pain points are written on sticky notes. After placing it on board, sticky notes are clustered together based on similar patterns. After placing them together Insights are generated based on the understanding. Below are the insights generated from Journey map: Need Trust like a Friend Learning from Mistakes Need trust like Family member Somebody who can listen Information is incomplete Need Guidance, Support, Information, Clarity In Trade products and Services is bought first, then paid Need Somebody more intelligent Fear of loosing

Stage 4 - Framing Insights • Insights Sorting

• Insight clustering matrix

• Design principles generation

Insight Sorting The method starts with gathering all the insights generated from various research methods used in this process of Trend matrix, Innovation Mapping, Interviews and Journey maps. All the insight statement are written on sticky note and placed on the board. And then a logical cluster formation was sorted. Analyzing these clusterring pattern not only gives us a better understanding of the topic but also provide a strong foundation of generating concepts. Steps followed are: STEP 1: Gather Insight statements STEP 2: Sample sorting and Allignment of clustering logic STEP 3: Cluster and Re-cluster insight statement STEP 4: Defining the cluster Insights generated from Primary & Secondary research: Dynamic keyboard increases the trust in security • Too many steps in processign and refund • Offline payment is costly like Cash on delivery • Service / Product first, Payment next • Lack of Information • No trust in company • Money matters than anything else • Cashless • No proper customer care & feedback from PG • Difference in PG system and Bank system • Merchant or Payment Gateway should take ownership of failures • Lack of clarity on the policy from the government. Need Trust like a Friend • Learning from Mistakes • Need trust like Family member • Somebody who can listen 53

• • • • •

Information is incomplete Need Guidance, Support, Information, Clarity In Trade products and Services is bought first, then paid Need Somebody more intelligent Fear of loosing

Insight Clustering Matrix

STEP 1: List enteries for clustering STEP 2: Determine the relationship between entities STEP 3: Determining a scoring scale to measure relationship

This method helps us in alligning all the insights in a matrix format and see how they are grouped together based on their relationship. The result of clustering will help us move towards design direction which further help in creating concepts.

1 mean minimum relationship 2 mean medium relationship 3 mean maximum relationship

Steps involved in creating the matrix are:

“Big Brother” -‐ An online and offline customer support system Information system Introducing Virtual keyboard at every step Unique Identity Creation Involving Government Government led Payment Gateway initiative, partnering private ventures International players introducing better technology Decreasing dependency on Banks Using stored data and segmenting customers based on their purchase and choice, and personalizing business model accordingly Developing Multiple payment solution Introducing Digital Wallet Everything in Cloud Commerce using Social Network Using Smart phone for transfer of money Inceasing the presence / awareness Goods / Service first, Payment next

STEP 4: Identifying Cluster

“Big Brother” -‐ An online Introducing and offline Unique Virtual customer support Information keyboard at Identity system system every step Creation

Insight Clustering Matrix

Government led Payment Gateway initiative, Involving partnering Governmen private t ventures

Using stored data and Internationa segmenting customers l players based on their purchase introducing Decreasing and choice, and dependency personalizing business better technology on Banks model accordingly

Developing Introducing Commerce Multiple Digital payment Everything using Social solution Wallet in Cloud Network

Using Smart Inceasing phone for the transfer of presence / money awareness

Goods / Service first, Payment next

3 3

2 3

1 2

3 3

1 1

1 3

2 2

1 2

3 3

3 2 1

3 3 2

3 2 1

2 3 3

1 3 3

1 1 3

1 1 1

2 3 2

2 3 1

1 2 2

1 2 1

1 3 2

3 3 2

2 2 1

1 1 2

1 3 2

2 2 1

3 3 2

2 1 2

3 3 3

3 3 2

3 2 3

3 3 3

3 2 1

3 3 3

2 3 1

2 3 3

3 54

Design Principles Generation Design Principles fill the ‘Intution gap’ that exists in most projects between understanding needs and having a leap of solutions that meet those needs. This method is a way to explore concept in a directional manner, so that the concepts we develop are fully grounded in objective research than biased by subjective assumptions. Steps followed in this method are: STEP 1: Gathered all the insight clusters generated from Insight sortinf and Matrix STEP 2: Normalize and Combine similar ones STEP 3: Generate Design Direction / Principles STEPS 4: Finding and Finalizing design directions.

Design Principles • Creating a seamless information system, online and offline, that creates trust in the minds of consumer • One identity which has all data fed about that customer and he can use it across all type of payment • A national payment system, started as private-public organization • Allowing International players, which brings advanced technology and large scale • Developing milti-payment system • Moving to cloud technology • Using stored data and segmenting customers based on their purchase and choice, and personalizing business model accordingly • Introducing Digital Wallet 55

• Using Smart phone for transfer of money • Decreasing dependency on Banks • Inceasing the presence / awareness, Branding of Payment Gateway • Goods / Service first, Payment next • Introducing Virtual keyboard at every step

Payment Gateway system - Leverage Points Administration

RBI

TRAI

Travel System

Trading System

App developer Software Engineer Hardware Engineer

Purchase

Management Customer Relationship

Policy & Regulation

Technical

Cloud

Maintainance

Operations

Government

Documentation

e-commerce Infrastructure

Hardware Networking

Ddigital Wallet Shopping Cart Authorization Payment form Digital Checkout

Operations

Software

Merchant Brick & Mortor Point of sale device

Management Technical

Maintainance Customer Relationship

Software Engineer Hardware Engineer Networking Engineer User-Interface Designer

Social Interface Mobile Interface Information system Web Interface

Physical Cash

Debit card

Tax Clculators Auction payment collection

Software

Bill / Invoice facility Phone pay solution

Mobile & Internet Service Provider

Payment Cash Bill Desk Processor Electrpnic Cash Bank account

Customer a/c

Refund Tracking

Hardware

Social payment facility 3G Internet SMS

Customer

Bank

Content Management Fraud Tracking

Networking

Payment Gateway System

Card Association

Database

Infrastructure

Protection Mechanism PCI Complaince

Shopping Cart

Networking Engineer User-Interface Designer

Sales

Post office

Public Service

3D secure

Security developer

Accounting Marketing

Tablet Smartphone PC / Laptop

Social Network Facebook Twitter Pinterest

Trust

Merchant a/c

Net Banking

Credit card CVV Expiry Date CArd No

Problem areas

Stage 5 - Conceptualization / Opportunity mapping

• Principles to opportunities

• Opportunities to Concepts

• Concept Rating & Selection

Design Principles to Opportunity

STEP 5: Viewing all Opportunities together

Exploring opportunities before jumping into generating concepts is an important step that helps us first identify area s that can be more fertile than others. Design principles also help build alignment and stepping stone in bring focus to process

It is not necessary all the cell be filled. In this stage all the opportunities are seen in a relation with one another - individual, system and strategy. By observing and synthesizing all the opportunities together, concepts are generated.

Steps followed in this method are: STEP 1: Created a table to explore opportunities. Collected all the design principles generated from previous method. It is placed along with other three rows titles ‘Individual Opportunity’, ‘System Opportunity’, ‘Strategy Opportunity’. STEP 2 : Generating Individual Opportunities By focusing on design principle and the nature of the project, an individual offering can be a product, service, process, message, etc. Many opportunities were entered in the individual opportunity corrosponding to the design principle. STEP 3: Generating System Opportunities System level opportunities indicates possibilities for a set of component like people, things, environment, etc, all working together for a common purpose. Opportunities were generated in a same way like Individual opportunities , by taking care of each design principle. STEP 4: Generating Strategy Opportunity Strategy opportunity is the forward thinking of an opportunity. This can be seen from the trend which is emerging. This helps to look for strategic opportunity very early in the process. 58

Principles Individual Opportunities One identity which has all data fed about that customer and he can use it across all type of payment

Principles to Opportunities Systems Opportunities There are various level where multiple login ID, passwords are required. Adding up a unique identity system will make the step easier and more secure .Government tie-‐up with Card association .Government tie-‐up with Bank .The public service and various Government systems can be connected, since money flow through all systems

Strategic Opportunities

.Government led Payment Gateway can be a boon in terms of utility payment and cash transactions. There will be record of all cash flow across various business, organization and people. .Government led Payment Gateway will be able to connect Urban to Rural

A national payment system, started as private-‐ .Government taking up payment gateway public organization .Payment Gateway as Public-‐Private partnership Allowing International players, which brings advanced technology and large scale Creating a platform in such a way that covers online Multi-‐payment system will help connect business with (Web, Mobile, Social) and offline (Point-‐of-‐Sale, Mobile POS device) Developing milti-‐payment system Tapping Mobile-‐Commerce and Social Commerce many target groups All transaction will be saved in one location securly and can not be lost (Cloud technology) Moving to cloud technology Adding value to the existing service, Value added service to merchant, by creating an analytical algorithm Using stored data and segmenting customers which shall segregate and segment customers based on based on their purchase and choice, and purchase and habit personalizing business model accordingly Tapping the data which is gold mine to the merchant Introducing Digital wallet along with payment will create trust in customers mind Introducing Digital Wallet .Providing mobile integration facility .To convert smartphones as Digital wallet .Creating an app to transfer money using e-‐mail id .Creating a payment application customized according to business Using Smart phone for transfer of money .Creating smartphones into POS device Improvising Digital Wallet will help decrese of dependency on Banks Decreasing dependency on Banks .Improvising Cash on Delivery system .Creating a whole new system like BITCOIN . To create trust people should know whom to Inceasing the presence / awareness, Branding approach, therefore creating an offline and online of Payment Gateway support system Improvising the process and increasing the role of gateway, where the gateway doesn’t process the Customer do not trust easily because his money is lost payment until either service is not provided or goods and didn’t even receive the product. If the process is .A system in such a way where product reaches first Goods / Service first, Payment next and then payment, in terms of online payment are not despatched reversed, customer will be sure of getting the product. Virtual keyboard should be placed at every stage where security is very important, for example giving virtual Introducing Virtual keyboard at every step keyboard to type credit card number .Creating a name or mascot, which is there for .Creating a support system both online and offline, it “Big Brother” -‐ Creating a seamless customer to seek any kind of help at any stage of should be a smart engine or an Artificial Intelligence information system, online and offline, that payment. which can help customer whenever they are stuck or creates trust in the minds of consumer confused 59

Opportunities to Concept

Idea 3: Customer segmentation using Data available

These are the concepts which were created using the design principles to opportunities mapping. All ideas from three row ‘Individual Opportunity’, ‘System Opportunity’, ‘Strategic Opportunity’ were taken. Duplicate and repititive ideas were eliminated and the rest were listed down. A small illustration is present along with the concept, to provide more clarity on the idea generated. These concepts can be further taken ahead for more detailed eveluation.

Using the existing pool of Data and creating a software algorithm, which helps segment customer and provide great data to merchants Idea 4: Branding of Payment Gateway Branding of Payment Gateway will help create trust in customers mind

Idea 1: Big Brother Creating a smart interface or application within the checkout page which will guide the customer in all possible ways. It is an metaphor used for that particular idea. We associate ‘Big Brother’ with trust, guide, protector, supporter, etc

Idea 2: Virtual Keyboard Introducing Virtual keybord at Payment form to fill Card details and Passwords

Idea 5: Reverse process of Payment First provide product / service to customer, then the payment must be processed

Idea 6: Creating new system like Bitcoin Coming up whole new set of ideas to re-work on curency system and getting back to the old system of Barter 60

Idea 7: Multiple Payment System Tapping all possible technology and making customer & merchant payment experience better

Idea 8: Using Cloud technology Cloud technology will help decrease database space and all data will be secure, this also help increase security of transaction

Idea 11: Improving Cash-on-Delivery Introducing Mobile POS (Point-ofSale) device

Idea 12: Government & Bank Tieup Creating a Public - Private venture and start Payment Gateway at Large scale

Idea 13: Unique Identity Idea 9: Digital Wallet Keeping the money safe virtually , this helps increase trust in mind of consumer

Idea 10: Tapping Smartphone industry Smartphones have the potential to be digital wallets. All the major transactions in future will be using smartphones 61

Creating one login ID and password across all steps

Concept Rating & Selection

These three concepts were chosen:

This method is used to help in selection of concepts. The concepts are arranged in coloumns and are rated based on Impact and Feasibility. It even take into consideration the benefir it provides to Customer and Merchant, and howit will be strategically impactful to the Payment Gateway. Below is the Rating chart which shows the points allotted.

1. Branding of Payment Gateway and Multiple Payment options 2. Tapping smarphone industry and Digital Wallet 3. Big Brother

Concept Rating Idea

Rating: Impact Feasibility

1 2 3 4 5 6 7 8 9 10 11 12 13

Impact

3 2 2 3 3 2 3 1 3 3 2 3 2

Feasibility

1: Minimum 2: Normal 1: Tough 2: Normal

1 2 1 1 1 1 2 3 2 2 3 1 1

Benefit to Customer Benefit to Merchant 3 2 3 2 2 3 3 3 3 1 2 2 2 3 1 3 3 2 3 2 3 1 3 3 2 2

Strategic Advantage to Payment Gateway Total Score Selected 2 11 1 10 2 11 3 13 1 9 1 8 3 13 3 11 2 12 2 12 2 11 1 11 2 9

3: Maximum 3: Easy 62

Stage 6 - Concept Evaluation

The broad idea of ‘Big Brother’ is to create an support system to customers and merchant, to whom they can look forward for taking any problem into account.

Concept Evaluation Concept: “Big Brother”

To get more detail on how this concept can be implemented, a technique was used called Rapid Input Method. Rapid Input Method:

The word ‘Big Brother’ is used as a metaphor to the concept. Many of the insights generated were ‘No trust’, ‘No support’, ‘No Guidance’. These insights led us to the concept of ‘Big Brother’. Big Brother in other words Elder Brother is seen as someone who is family member and a friend as well. We trust our family members in terms of money and friends for support and guidance. All these factors combined together gave the concept of Big Brother.

Characteristics Protective Generous Father Figure Mature Responsible Pampering Guidance Supportive friend Sharing Trust worthy Tutor / Teacher Cool

Steps used in this method are: STEP 1: Write as many characteristics of the Metophor STEP 2: Associate the characteristics with the Subject STEP 3: List down all the ideas STEP 4: Select Patterns and Filters repeatitives STEP 5: Get clarity on concept

Random Input Method Metaphor: Big Brother Ideas To create a virtual person who is instructing us what to do and what not To provide information on traffic and chances of failure to customer and merchant Something which is intelligent and smart, like a smart app Understands customers intelligence (providing support based on customers like first timer, regular, etc) To take responsibility of payment failure and guide customer towards success A physical space where customer or merchant can approach Complete information system either online or offline Correct the customer if they doing some mistake A virtual person or staff in physical space present to attend customers problem A facility in such a way which will connect to facebook and show how satisfied the customer is with the experience Providing assurance of security by providing trust marks or a video or infographics Guiding all through payment process through infographics To attract customers with easy going and cool graphics or if any virtual man then cool looking person 64

What is the Concept?

Impact on Merchant

To create a character (the gender, features and name can be brainstromed), whose characteristics are of ‘Big Brother’. It will be an application which is like Artificial Intelligence, who will respond (if required) based on situation. It will help guide and support the customer and merchant in the payment experience by being present there virtually and an offline support will also be present in form of phone call and physical space (office or kiosks).

Merchans are no less than customers. They too rely on trust factor. They believe Payment Gatway shall provide them with maximum success rate. There are lot of instance where a lapse in the Bank system, there is no record of money lost in loop, this creates confusion in mind of merchand and customer. Then the merchant tries contacting the patment gateway service through phone, mail, and other means, which is inefficient. This kind of virtual character and offline presence will help merchants approach in a better and easier way.

Impact on Customers Trust is the most important factor which improves the payment experience of the customer. Merchants and Payment Gateway system have tried all possible ways to imbibe trust in the minds of customer, but the conversion rate is really less. There is no change in the number of customers increasing due to security and trust factors. Another reason merchant feels there is failure in payment is because of lack of information to customers while filling the payment form. Customer either feels confused or stupid to go through that long process. These long process cannot be decreased due to regulations and other norms. The only way possible is to provide right information at right time to achieve success. Since trust factor is very important for customer to pay, insights reveal that customer look for personal presence, ‘Big Brother’ presence might remove the fear of loosing the money and help increase improve the payment experience. Another insight which revealed that customer look for someone who listen to them helps create trust in the mind of customers. Someone who can guide them, give them clarity, like a family member whom we can give them our money and trust completely. Based on impact rating, the concept will provide maximum impact on the trust factor and improved payment experience. 65

The impact is normal according to the concept impact rating. Strategic Advantage to Payment Gateway • Efficient Customer relationship system - Major pain points occoured in the system direct towards customer relationship. Most of the merchants complaint of poor responce from Gatewayservice, customers complaint about poor information flow on process. All these can be removed by providing virtual character. • Branding of Payment Gateway - This system will create trust in the mind of consumer, and trust increases brand value of the company. • Better Information flow - Intelligent application will guide through all the process of payment, this guidance again and again will help become a habit. And in future if Payment Gateway launches any new services, this platform will be excellent to pass on the information to customers in an efficient way. • Help in emerging from blind spot - There are many instances, customers get blank screen in between the payment process and their money gets transfered without any knowledge. In such situations this virtual character will help the customer in calming down and provide support to get back the money. Infact the app should be efficient enpugh to guarntee the return of money back to its customers.

Innovation The software team have to create this application which can be integrated into any API and be used in Web or Mobile device. Limitations Integration into various platforms Feasibility of Smart engine Opening up of offline offices Might irritate the customers Might make the web / mobile page slow System Intervention A new component will be added in the software hierarchy, where the software engineer will have to create an application compatible with the user interface of merchant. This will directly effect the relationship with software engineer, user-interface designer, the information flow system from merchant, bank. Another impact is that the customer relationship will have two sub-systems namely Online support and Ofline support. Online support will be the smart engine, whereas offline will be phone and Physical office space. This shall impact the overall operations and infracture component of payment Gateway.

BIBLIOGRAPHY Books Kumar, Vijay, 2013, 101 Design Methods, John Wiley & Sons Website • • • • • • • • • • • • • • • • • • 67

Payment systems in India - Wikipedia, the free encyclopedia en.wikipedia.org National Payments Corporation of India, www.npci.org.in Safe and secure online mobile payments for consumers | Zong zong.com http://www.paypoint.net/services/payment-gateway/payment-gateway-intro/#sthash.FdvkXNJ4.dpuf http://www.nextbigwhat.com/costs-of-setting-up-an-e-commerce-business-in-india-analysis-297/ http://www.nextbigwhat.com/payment-gateways-in-india-challenges-297/ http://lightspeedindia.wordpress.com. http://www.hindustantimes.com/India-news/NewDelhi/E-challans-cross-one-lakh-mark-in-3-weeks/Article1-1113342.aspx http://articles.timesofindia.indiatimes.com/2013-09-05/mangalore/41800061_1_mescom-post-offices-india-post http://newindianexpress.com/cities/thiruvananthapuram/Pension-Aadhaar-card-rule-deferred/2013/09/19/article1791760.ece http://www.perceptionsystem.com/e-commerce-solutions-services.html http://www.thehindubusinessline.com/todays-paper/tp-oncampus/the-question-is-not-about-profitability-at-the-moment/article5147690.ece http://www.shopify.com/blog/9196929-why-email-marketing-isthe-key-to-ecommerce-success#ixzz2fq1zeDZf www.wallet.google.com www.square.com www.dallop.com

• • • • •

www.paypal.com www.paisapay.com www.ebay.com www.bestbuy.com www.wikihow.com

Case study • • • • • •

Innopay, Online payment 2012 Sagentia, M-pesa Market research for Qatar IT Paypal quick launch Amazon One click Google wallet

Articles • John Pourdehnad , Systems & Design Thinking: A Conceptual Framework for Their Integration CapGemini, Global Trend in Payment Card Industry • Prosodie, Online Payment • Oracle, Enterprise Payment Solution • Engenico, Europe Online payment trend Videos • Introduction to Payment Gateways - YouTube • www.youtube.com

Thank you ARVIND SETHIA SDM 2012 arvind_se@nid.edu +91 95749 90422