Interbank Mobile Payment Service (IMPS) Merchant Payments Process Flow and Use Cases

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Interbank Mobile Payment Service

(IMPS) – Merchant Payments

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IMPS merchant payments

• Allows customers to make instant, 24*7,

interbank payments to merchants or

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How does it work?

• Two ways in which IMPS merchant payments

(P2M – Person-to-Merchant) transaction can

be performed:

– Customer Initiated Transaction (P2M PUSH)

– Merchant Initiated Transaction (P2M PULL)

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IMPS merchant payments –

PUSH transaction

• Customer can initiate transaction through

mobile banking application and through SMS

facility provided by bank

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Transaction through mobile

banking

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Transaction through mobile

banking

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Transaction through SMS banking

• The SMS syntax : MIMPS <Merchant mobile number> <Merchant MMID>

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Flow for Customer Initiated Transactions

• MPIN validation

• Sender a/c identification • Debit to the Sender’s a/c

• Generate and send transaction • SMS confirmation to the sender

• Receiver a/c identification • Credit to the Receiver’s a/c • Generate and send transaction

response

• Online Validation with Merchant • SMS confirmation to the receiver • Merchant Mobile No.

• Merchant MMID • Amount

• Payment Reference • MPIN

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Use cases

• Insurance

• DTH

• Fee payments

• Credit card payments

• Utility Bill payments

• Over-the-counter payments

• Face-to-face payments – Pizza delivery,

Courier, Cabs, Retail

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Face-to-face payments

• Pizza delivery, courier, Cabs, retail POS

• Customer enters the pizza delivery or courier

agents mobile number and MMID, amount and

payment reference

• Agents mobile number and MMID linked with

merchants account at the back-end (multiple

mobile numbers and MMIDs can be linked to one

merchant account)

• Customer account debited and merchants

account credited

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IMPS merchant payments –

PULL transaction

• Step 1 – Generate OTP before transaction

• Step 2 – Make payment using OTP

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OTP validity

• OTP can be generated through mobile banking application and through SMS facility provided by the Bank

• OTP generation is 2-factor authentication process • Only one OTP is valid at a time

• OTP valid for only one transaction – successful or failure • OTP is valid for 1 hour

• OTP is 6-digit numeric

• Transaction limit unlimited (subject to bank discretion) for OTP generated through mobile application, and Rs 5,000/- for OTP generated through SMS

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OTP generation through mobile

banking application

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Make payment using OTP

• Can make payment using OTP at merchant

application

– Website

– IVR

– Mobile application

– Mobile POS

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Flow for Merchant Initiated Transactions

• In the request Acquirer bank

sends the transaction to NPCI

• In response Acquirer bank

credits the merchant account

• Sends the confirmation on the

merchant website

• Issuer Identifies and validates the

Customer a/c and the OTP

• Debits the Customer a/c

• Generates and sends transaction

response to NPCI

• SMS confirmation to the customer • Customer Mobile No.

• Customer MMID • OTP

• Customer logs on to

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Use cases

• Mobile POS

• Merchant aggregators

• Retailers, FMCG, Food chains

• E-commerce, movies, classifieds, courier • Travel & Ticketing, radio taxi

• Mutual funds • Insurance

• Utility bill payments • Mobile / DTH recharge • Trading / NBFC

• Credit cards • Fees payments • Donation

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Mobile POS

• Enterprise agent has mobile POS application on the phone • Opens up form ‘Receive payment from customer’

• Enters payment reference, amount

• Asks customer to enter mobile number, MMID and OTP

• Agents mobile number (through which payment is initiated) is linked with merchant account

• Merchant account is credited and customer account is debited

• Customer and agent get confirmation SMS

• Facility to link multiple mobile numbers and MMID with

one account, so payments can be received in single account of merchant / aggregator

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Merchant aggregator

• Aggregator can offer IMPS as payment option

to their merchants

• IMPS can be added as payment option at

following access channels

– Website

– WAP site

– IVR

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Retailers

• Retailers can provide mobile application (mobile POS) at cash counters for receiving payment via IMPS

• Cash counter agent opens up form ‘Receive payment from customer’

• Enters payment reference, amount

• Asks customer to enter mobile number, MMID and OTP

• Agents mobile number (through which payment is initiated) is linked with merchant account. Multiple mobile numbers can be linked with one merchant account

• Merchant account is credited and customer account is debited

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Virtual POS

• At cash counters in retail chains

• Customer swipes card at the cash counter

• Linked with billing system at cash counter

• Option to pay via IMPS can be provided at Virtual

POS

• Customer enters mobile number, MMID, and OTP

• Customer account is debited and retail chains

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E-Commerce company - Cash on

delivery

• Cash on delivery preferred mode for physical delivery items • IMPS as replacement of cash on delivery

• Customer places an order and opts to pay via IMPS on delivery

• E-commerce company ties up with courier company • Courier company opens account with acquiring bank

• The delivery agent’s mobile number is linked with courier company

• Customer makes payment using delivery agent’s number • Payment is received in courier company account