/ / Digitial Wallet Contradictions

Digitial Wallet Contradictions

Scoping The Digital Payment Problem

Scoping The Digital Payment Problem

Business Contradictions

Original Specific Problem

Original Specific Problem

Ideas

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Ideas in UPI Lite

  1. They have extracted amount from payer’s bank account (#IP2 Extraction), so you have a bank account with large amount and a wallet for small amounts which is local (#IP4 Asymmetry).
  2. Another example of #IP2 extraction is they have extracted (eliminated) the step that app must make with the payer’s bank server and authorizing the transaction by entering Now due to local wallet this is not requited
  3. Any transaction less than INR 200 can be made (#IP15 Dynamization, #IP 37 Relative Change) using local wallet embedded in app (#IP7 Nesting) they have expanded BHIM app capability to act as a local wallet (#IP 25 Self Service) the payer and the app doesn’t have to connect with the user bank’s server
  4. Digital currency (which will be exchanged between users on their cell phone, the amounts can get increase to say 25,000 INR, no need to connect with bank’s server, blue tooth or near field communication technology etc) (Probable Future)

Problem Solved

These are the key problem-solving solutions implemented to address digital payment challenges, optimizing transaction efficiency and enhancing user convenience:

  1. Reduced number of interactions with the payee’s bank which reduced the load on the servers and bank’s system. Freeing up server’s capacity. Thus, bank has also saved cost by optimizing server capacity (if the amount is less than 200)
  2. Make digital payments possible for small payments
  3. Get more share of digital business payments
  4. User convenience
  5. No need for user to carry small denomination currency which usually get spoilt because of frequent exchanges
  6. Preventing permanent value loss because of bad Respecting the currency
  7. No need to have system for exchanging spoiled currency with a new one