The National Payments Council of India (NPCI), collaborated all Banks across India for that country’s payment systems, is expanding its Inter-Bank Mobile Payment Service (IMPS) electronic transaction network to include merchant payments by consumers. Now customers of the NPCI’s 50 member banks can use their mobile devices not only for person-to-person (p2p) payments.

Shri A. P. Hota, managing director and CEO of NPCI is the visionary behind IMPS by NPCI to further improve speed of instant interoperable system for country with 2nd largest population in the world India . IMPS switch is going to enable merchants to receive payments from customers conveniently, safely, anytime, anywhere.

This initiative would certainly eliminate use of on any POS, or Square like solutions in India market place. It is also observed that India rarely has POS in market & moreover not many consumers have bank accounts to use their cards on these POS. As 60% of the country is unbanked, they dont have bank accounts but they do have mobile phones.

There are various challenges in front of India in terms of sending and receiving money ie remittances. It is observed a huge line in front of all banks in first week of every month in particularly in SBI branches for sending money. Consumers migrated from tier three cities, towns, villages have moved to city and have hard time sending money back to home. So the domestic money transfer itself is a huge market. Establishment of IMPS by NPCI is a great achievement for India to move forward on mobile payments.

IMPS now has 50 banks from India joined the network to enable their customers to send and receive money from their mobile phone.

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