1. Prepaid Cards & Payments

2. PC, Mobile & Internet payments
We are in the business of mobile computer. It is no longer a mobile phone.
(Anssi Vanjoki Executive Vice President, Nokia November 25, 2008 New Delhi)
Gap between what you can do from mobile and from PC is diminishing rapidly
WAP site can have secured access (htpps) like websites
WAP site can also have VeriSign certificate
Wireless modem on GSM/CDMA are in fact mobiles with which one can connect to PC and surf
ATM connectivity at many places is on wireless .

3. Mobile Payments
Several new generation mobiles in mid-range to top-end have full browsing capabilities
Several websites are being created to optimise experience on mobile
Software are developed for mobiles to view full websites optimally on mobile screens
Under such circumstances, only SMS/USSD and “On Device Java/Brew” portal can qualify for mobile payments where payment service provider can detect with certainty payments passing through a mobile
All other access methods (web surfing using mobile, connectivity to internet using mobile as GPRS/CDMA modem etc.), there is virtually no way payment provider can determine, if the transactions are coming through a mobile phone

4. Prepaid Payments
Current draft guidelines for prepaid cards on Internet channel under finalisation
Prepaid mobile payments are restricted for only banking channel
For prepaid card of less than Rs 1000, no KYC is required.
The entire unutilized prepaid balance is to be kept with Bank in escrow without interest….
Mobile wallet/Mobile accounts (Prepaid card number = mobile number) as prepaid card also termed as mobile payments under banking channel

5. Discussion points
Will there be a viable business model to mass market services like Mobile Ticketing for unreserved tickets for sub-urban railway with ticket size as small as Rs 4 to pass through bank account?
For cards below Rs 1000 where no KYC is required, Should the access method (mobile or internet) be restricted?
Transfer of funds once from a bank account to prepaid card can be deemed KYC for that card? (It is like withdrawing cash from ATM, which are KYC accounts)
Mobile number = Card number is more for customer convenience. Should it be termed as “mobile payments” just due to the nomenclature?
There is a case for financial inclusion through channel other than banking channel for delivery of services relevant to masses. The current guidelines should have some initial provision to kick-start the process in a phased manner.

6. Thank You