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 concept (POC) for the stored value card for offline payments has been set by a visa in partnership with the Innoviti payment solution company.
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.
The chip in this new visa debit card will save the stored value of the daily expenditure limit of RS 2,000 and has a limit per RS ​​200 transaction – the 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.
RBI has urged banks to produce solutions for offline digital transactions so that this 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 cheap way to resolve this problem that can change the way Payment occurred, “said Rajeev Agrawal, MD & CEO of Innoviti, India’s payment solution.