Modernizing the Payments System to make it Faster and more Secure

The past 5 years, India has seen a massive growth in digital transactions, incentivized by the rapid penetration of 4G mobile internet and the 2016 demonetization. Today, the digital transactions have become common place even for micro value transactions. A digital payments interface has the following four critical essential aspects:

  • Security
  • Scalability
  • Resilience
  • Integrability

The ease and seamlessness with which a payments system can be integrated with the related systems in the environments, the better it is for the beneficiary of the system. Whilst there are different types of payments such as Gross settlement payments, Net settlement payments, instant fund availability payments, cross border payments, the fundamental characteristic that influences the effectiveness of all these types is the integration. Depending on the use cases that are to be served, payments systems need to be integrated differently to suit the purpose.

Say for example, in the case of repeated corporate payments collection, the payment system needs to be able to tightly integrate within the ERP system of the company, bank’s payment processing system or the central processing system of a country. Also, as the use case grows in scope, the same system needs to integrate with hand-held devices of customer service agents, citizen identity networks such as UIDAI, or social security systems. When a payments system is thus tightly integrated with its operating environment, it is able to complete the payment faster and present the latest position/status of the payment to users. Users can thus predict the near-term future finance position with utmost accuracy and take decisions regarding management of personal or corporate finances in an informed manner.

Evolvus Solutions offers extensive APIs to all the functional end-point operations of our payments solution to ensure that the integration of our product within client systems is easy and minimally invasive. Hence, customers of Evolvus can reap the benefits of end-to-end integration and automation of payments processing. The payments solutions that we offer have ready interface modules for many core banking systems and central solutions of India, UAE, and USA.

Security and non-repudiation are important aspects of secure payment. A secure payment is one where the payment cannot be tampered with by any 3rd party right at any step of the payment process. Non-repudiation means that the user who authorises a payment cannot deny such an authorisation.

Evolvus employs many different methods to ensure secure transaction. For example, in the case of repeated payments, to set up a payment mandate, the Flux automation suite provides mechanisms by which the customer who authorises the repeated payment can use his own internet/mobile banking credential to authorise his mandates. This ensures 2-factor or 3-factor authentication to set up e-mandates on the customer’s behalf. Apart from this, the presence and validity of the account are all confirmed at the time of the mandate setup. This method also ensures that the customer could not possibly deny setting up this mandate.

The speed of payment depends on the ability of the system to scale elastically as the volumes grow, the robustness of the architecture to optimise the time to validate and process each message. The Flux Suite of products have been architected for scale and code efficiency. It has also been refined over many years through repeated reviews and enhancements with consistent inputs from customers, making the Flux Suite one of the most evolved technologies in the payments industry.

Through continuous product innovation, we have been able to help several businesses and banks achieve digital transformation of their payments systems. Today, digital transactions can be performed from the remotest parts of the world, and we are confident that we have a major role to play in taking digital payments to the masses through enablement of faster and secure payments.