Mumbai: Debit card holders may immediately request their bank for a visa card that allows them to store up to RS 2,000 in the chip itself, allowing transactions to take place without connectivity.
Proof of concepts for the stored value card for offline payments has been set by a visa in the partnership with the Ministry of Innoviti’s payment solution.
POC has been executed in partnership with Bank and Axis Bank.
The value card is stored different from prepaid cards where the authorization occurs in the network cloud.
Reserve Bank of India has urged banks to produce solutions for offline digital transactions so that transactions can continue with poor telecommunications infrastructure or during tissue damage.
Digital payments depend on cellular networks and blackouts can result in failure of large transactions in an area.
With deep penetration that debit cards throughout India, offline payments using visa cards are expected to facilitate the payment transition from cash to digital.
“The lack of internet connectivity has limited the democratization of digital payments in this country, because all existing payment technology requires real-time connectivity for authentication and authorization.
Offline payments are a fast, reliable, and low-cost way to solve this problem that can change Payment methods occur, “said Rajeev Agrawal, MD & CEO, Inoviti Payment Solution, India.
The chip on this new Visa Debit Card will save the stored value of the daily expenditure limit of Rs 2,000 and has a 200-boundary transaction limit mandated by the current RBI.
If the balance is insufficient, the transaction will be rejected, making this proposition conducive to cardholders and traders.
Traders also stand to get income from friction reduction and risk of payment failure.
The visa solution is the first of its kind and equipped to enter the Indian market.